Short-term rental property

[Gobears81]

I've seen a couple similar threads pop up, but when I searched for them, only a couple older threads seemed to be relevant. Apologies if this has already been discussed ad nauseum.

I'm appraising an apartment property that is currently used for AirBnB stays. Most investors in this area utilize MF properties for 12-month leases, so the AirBnB component in this case has largely reflected the operator's preference for greater managerial duties in exchange for additional income. This time, the difference is that the property is near a hospital, and traveling nurses are a big part of the shorter-term rental market, so I could see buyers continuing to utilize this property for ST rental. It is selling a bit higher than most apartments in this market (that are purchased for LT tenant occupancy), although furniture may be included - haven't confirmed this yet.

Posting this in the general forum since the commercial forum is essentially dead, and I know that this has been a factor on the residential side. But, curious how most appraisers would analyze this type of property?

 

[George Hatch]

In this region some of these properties are leased out to the operators.

 

[J Grant]

I've seen a couple similar threads pop up, but when I searched for them, only a couple older threads seemed to be relevant. Apologies if this has already been discussed ad nauseum.

I'm appraising an apartment property that is currently used for AirBnB stays. Most investors in this area utilize MF properties for 12-month leases, so the AirBnB component in this case has largely reflected the operator's preference for greater managerial duties in exchange for additional income. This time, the difference is that the property is near a hospital, and traveling nurses are a big part of the shorter-term rental market, so I could see buyers continuing to utilize this property for ST rental. It is selling a bit higher than most apartments in this market (that are purchased for LT tenant occupancy), although furniture may be included - haven't confirmed this yet.

Posting this in the general forum since the commercial forum is essentially dead, and I know that this has been a factor on the residential side. But, curious how most appraisers would analyze this type of property?

What are you appraising- an apartment building, or a single apartment unit?

 

[Gobears81]

What are you appraising- an apartment building, or a single apartment unit?

It's an apartment building

 

[J Grant]

I've seen a couple similar threads pop up, but when I searched for them, only a couple older threads seemed to be relevant. Apologies if this has already been discussed ad nauseum.

I'm appraising an apartment property that is currently used for AirBnB stays. Most investors in this area utilize MF properties for 12-month leases, so the AirBnB component in this case has largely reflected the operator's preference for greater managerial duties in exchange for additional income. This time, the difference is that the property is near a hospital, and traveling nurses are a big part of the shorter-term rental market, so I could see buyers continuing to utilize this property for ST rental. It is selling a bit higher than most apartments in this market (that are purchased for LT tenant occupancy), although furniture may be included - haven't confirmed this yet.

Posting this in the general forum since the commercial forum is essentially dead, and I know that this has been a factor on the residential side. But, curious how most appraisers would analyze this type of property?

Being that you are appraising an entire apt building, it is a different problem than we res appraisers face with one unit getting a residential loan.

HBU as vacant - the building is like other competing apartment buildings, the difference is location is near a hospital making STR to traveling nurses - does the zoning prohibit STR? Operating an entire building as an Airbnb flirts with hotel use - but I assume a traveling nurse stay a month of more rather than overnight?-

If it is legal to rent STR then the building commands more due to location, then try to find other STR apartment buildings as comps and/or use the subject contract rents as market rents along with the LTR of some competing buildings. ( advice from my limited CR view )