Santa Monica Case Study

Short-term Rental Leases in Santa Monica!

Summary

The apartment community is located across from the Santa Monica beach and owned by a large REIT. The property is unique with 54 furnished apartments. Nightly short-term stays are not an option because Santa Monica is considered one of the strictest municipalities for short-term stays. Vacation rentals, any stays less than 31 days, are strictly prohibited. The onsite management team used short-term marketplaces (i.e HomeAway, VRBO, Airbnb, etc..) in the past but without much success.

The Challenge

The property began piloting ApartmentJet in July 2017. The management team posed the following challenges for the pilot:

  • Demonstrate you can get leases from AirBnB and HomeAway/VRBO
  • Manage the interaction with guests, and maintain existing lease process
  • Utilize their availability report and book available apartments

Leases from AirBnB & HomeAway/VRBO

The property had listings for some of their apartments on HomeAway and VRBO. The management team didn’t see much activity from the listings, and they were time consuming to support. ApartmentJet was challenged to increase the amount of leases from HomeAway, VRBO, and see if Airbnb could generate activity, too.

In July 2017, the ApartmentJet team added content to the ApartmentJet platform to support posting community and unit data for 50+ apartments. In August, ApartmentJet published the listings to Airbnb, HomeAway and VRBO.

From August 2017 through July 2018, ApartmentJet has booked 36 reservations of 31+ days or more. The gross net bookings for the property have been $218,000. To date, ApartmentJet has paid out over $170,000 for in progress and completed reservations, and another $48,000  for upcoming move-ins.

Manage Guests and Normal Lease Process

The ApartmentJet Concierge team is responsible for interacting with all potential guests. The Concierge team responds to inquiries from potential guests seven days a week. The onsite team is not involved with a guest until the guest is booked by ApartmentJet.
A key focus for ApartmentJet is attempting to work within a client’s existing lease process. When a new reservation request is received, the Concierge team reviews the property’s availability and confirms the request after successfully completing a TransUnion criminal background check. The Concierge team provides the site team with all necessary information about the guest and occupants so the onsite team can put together their regular lease agreement.

Availability and Short-term Leases

In the first year, ApartmentJet has booked 36 reservations for the property. The property’s Daily Availability Report is used by the Concierge team to coordinate availability and pricing. Inbound inquiries and reservation requests are cross-referenced against the availability report and discussed with the site team to make sure units are available prior to booking. In the near future ApartmentJet will be fully integrated with the property to provide dynamic pricing and availability updates.

Challenge
  • Attain short-term Leases from new marketing channels: Airbnb and HomeAway/VRBO
  • Avoid disruption to  the existing lease process
  • Prevent double bookings and maintain pricing
Solution
  • ApartmentJet manages dozens of listings for the property on multiple short-term marketplaces
  • Concierge team supports property inquiries and potential guests seven days a week
  • ApartmentJet team works with the property’s existing lease process
Results in Year One
  • To date, the property has been paid over $170,000
  • Total booked net revenue (including future stays) of $218,000 from Airbnb and HomeAway/VRBO
  • ApartmentJet has booked 1384 nights, or nearly four years worth of paid nightly revenue
  • In June alone, ApartmentJet booked $50,000 net revenue.
  • Zero additional expense has been added which means that every dollar goes directly to the bottom line