Short-term rental revenue premiums are eliminated by high turnover and management costs
Alex Birch · Unlocking Multifamily Real Estate Success: Direct Investment Strategies and Insights with Veritas Equity Partners · Jul 14, 2025 · at 17:07
Alex Birch, co-founder of Veritas Equity Partners, discusses why converting multifamily units to short-term rentals is not scalable or profitable for their business model.
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“The Delta just isn't really there for like the management burden that it creates, you know, so you can look at a unit and say, Hey, we're going to get two grand a month in rent for this two bed, one bath. And we could get three grand or 3500 bucks a month if we were to do short term on this. But you know, the turn cost, the cleaning, the cost of furnishing it, like all of these things just sort of eat up all the Delta.”
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