With short-term leases and flexible stays, multifamily operators are finding new rent revenue streams by identifying new net operating income (NOI) strategies.
In multifamily, short-term leases generate new revenue streams by commanding higher premiums.
They have, however, not been effectively leveraged in the industry historically. It is now becoming more apparent to savvy owners that any-length-of-stay management models, which offer furnished short-term homes alongside traditional 12-month leases, can be powerful revenue drivers, as they de-risk the asset by attracting an array of customers. By allowing flexibility in unit mix based on market and seasonal demands, variable-stay programs can boost upside revenue by as much as 40%, and increase NOI by 10% on average.