Julian Sage:                         00:00                     In this video, we’re talking about rental arbitrage versus co-hosting in 2020 and beyond. So stay tuned.

Julian Sage:                         00:07                     Vacation rental machine helps hosts just like you learn how to start, grow and scale your short term rental business, the show’s all about creating systems that help you automate your business, giving you more time and money freedom. If you’re ready to start living the vacation rental life, then subscribe to this podcast today, come and join us on our Facebook group, the host nation, where we’ll be talking about starting automating and scaling a short term rental business. Now onto the show.

Julian Sage:                         00:34                     Hey, welcome back, host nation to another episode of vacation rental machine. I’m Julian Sage with Jon Bell and we’re talking about rental arbitrage, the rental arbitrage fallout, if this is a real thing and co-hosting and all these different types of new models of short term rental investing and where we’re kind of positioning our business moving forward. So Jon, right now there’s a lot of fallout with the rental arbitrage. This master lease model. We’ve seen companies like Saunder, lyric Zeus, Dolmio stay Alfred. They’re all just dropping these units. And all of these companies are, I would say that they’re probably be classified as a corporate housing company, but they utilize short term rentals, midterm rentals as well, but they are utilizing this master lease and they are hurting right now. I read an article about Saundra dropping nearly one third of their employees. I’ve heard other stories of companies like stay Alfred just for not paying the leases because they just can’t afford it. So John, maybe there’s some hosts that got burned with the rental arbitrage. Maybe they don’t like just the amount of struggle that it was trying to pivot their business to be able to maintain occupancy or trying to just be able to break even and cover their costs. What are some of the different strategies that you’re going to be implementing in your business going forward in 2020 and beyond?

Jon Bell:                               01:53                     You know what, I’m going to go a lot heavier on co-hosting. I’m going to try to balance all of my books with my cohosted properties so I know I can cover all of my rental arbitrage properties, which was really my personal portfolio. With that said that is going to be what I try to scale in between this time until this whole thing is over and maybe until mid to end 2021 so I expect myself to have at least 60 properties co-hosted by that time and the reason why I’m confident in that model and number is because they will still be some hosts out there that can withstand the storm, but we’ll feel like disheartened about just continuing on and managing and running this business where I could really just step in. With one of the companies that we have like cohostit and we could actually help them manage and still get back to some type of revenue.

Julian Sage:                         02:52                     Right, Jon. I think that there was a lot of interest in the arbitrage model, but I think right now a lot of people are realizing that there is a lot of inherent risk with the arbitrage model. But with the cohost model, this is strictly a value add proposition. When we were trying to scale the arbitrage units, we’re always coming from it from a value add as far as a landlord standpoint. But with that we are taking on a lot of personal risk. But now moving forward ,with the cohost model managing other people’s properties, we are just saying, Hey, we will help you make more money. And I think one of the things moving forward in the future is going to be the positioning of your co-hosting business. So how are we going to be able to get in different types of tenants? And one of the next videos that we’re going to be talking about is short term versus verse midterm versus long longterm and how that all fits within the cohost model.

Julian Sage:                         03:45                     So question of the day. What model of short term rental investing are you going to be using moving forward in the future? Is it going to be the rental arbitrage master lease model or the cohost property management model? Leave your comments down below. Until next time. Host nation. Keep on hosting. If you’d like Jon and I to answer your guys’s questions and be sure to go to the host nation Facebook group and use #askvrm.

Julian Sage:                         04:08                     Hope you hosts found value in this episode. If you did, please go on over to iTunes and leave us a review as that would greatly support the show. If you’d like to connect with Jon the community and I then going over to our Facebook group, the host nation,

Julian Sage:                         04:22                     Talk to you hosts in the next episode. Keep on hosting.