Jan 31, 2023
Welcome to Part 2 of my conversation with real estate investor and founder of Cashflow Diary - J. Massey.
We open Part 2 of Make Money In The Sharing Economy with J’s perspective on ordinances and bylaws that dictate where short term rentals (STR’s) are allowed, where they’re not, and why he’s actually a fan of these rules.
J also reveals;
- often overlooked segments of the population that need extended stay accommodation,
- opportunities to rent out your house or condo for day use ; for example – to content creators,
- other ways you can earn money in the shared economy,
- the most common oversights and mistakes made by people entering the STR business,
- and he walks us through the numbers of what it takes to net $1,000 and $2,000 per month from your STR
Like Part 1, this episode is ripe with light bulb moments to inspire your side hustle journey.
What You’ll Hear:
03:35 The ordinances are forcing you into a more profitable part of the business
04:20 All these groups in the “extended stay” category need places to stay
06:25 Government organizations can be a worthwhile source of guests
08:01 J walks us through the numbers to net $1000 and $2000 per month
09:37 Biggest expense is the lease (or mortgage), then labour-related issues
09:57 Start your projections with a revenue number being double what you’re paying for the lease
10:28 Worse case you should expect is a net income of 30% of revenues
11:35 “Tent pole” or “Compression” events coming to town drive up nightly rates
13:09 “Damage fee waiver” vs “security deposit”
14:18 Only 60% of J’s gross revenues are from the nightly rates, 40% are the “add-ons”
14:30 Other “add-on” ideas to receive revenue from guests
16:00 Opportunities in “day-use” property rentals
17:50 Expenses that are sometimes overlooked in budgets
18:06 You need to pay attention to “screening, safety, and security,” to avoid liability, a lot of problems, and increased labour costs
22:11 Where to look for your first short term rental property
25:15 Other rental opportunities from assets you now own
26:43 J’s best tip for taking action
27:52 Focus on being “prepared” rather than waiting to be “ready”
Wrap Up:
29:01 Fail fast, fail forward, fail frequently and start before you’re ready
29:25 A confidence-building mindset to adopt - What would I do differently next time? What went right?
Connect with J Massey:
J’s Short-Term Rental Blueprint Course
Connect with Joan:
Be on the show!