From 0 To 165 Units in Two Years

If you survived the last 3 months, you can survive anything. The pandemic hit short-term rental (STR) units hard and it hit property management companies even harder.So, how did major players handle the crisis? What advice do they have for anyone still trying to navigate rough waters?Syed Lateef is the CEO and founder of Hostly, a property management company based in Chicago. He left his full-time job as a financial analyst in 2018 to start his master lease business and build relationships with landlords in and around the city. By February 2020, Syed had 165 units and was looking to bring in $6 million in revenue in 2020.Today, Syed joins me to discuss how he and his team have handled the pandemic. Syed explains how he started his business and on-boarded units pre-COVID. He then pivots to his experience de-commissioning units after the crisis hit and how he negotiated his way out of contracts with landlords. Syed also reflects on how he and his company have weathered the pandemic and what his plans are moving forward. Listen in for Syed’s insight on identifying new business partners and growing the number of units you maintain.Topics CoveredSyed’s Airbnb storyBackground in financeBought multi-family property in 2017 (4 units plus basement unit)Slowly converted all units to STRsHow Syed founded HostlyLeft full-time job in 2018 to manage STR properties full-timeBuilt strong relationships with larger landlords and property management companiesSyed’s approach STR seasonality in ChicagoBell curve – Summer to October is when you make your moneyManage cash flow and reserves throughout year to pay for WinterSyed’s advice on approaching landlordsNo one responds to the first call/emailLeverage success with one landlord to bring another on boardHow Syed on-boards propertiesNegotiate up-front rent credits and waived security depositsFurnish apartments but use an intake processHire handy-men using an app like TaskRabbitSyed’s experience with COVIDCovid-19 was like hitting a brick wall – huge losses and no cash or bookingsRented units at super low prices and hit 80 percent occupancy in MarchMade a profit in May and planned to do the same in JuneHow Syed down-sized (decommissioned units)Stuck with 2 or 3 landlords that he had the best relationship with and the most unitsDe-commissioned about 60 units total – settled out of contractsTook furniture out and put in storage or in basements or garages of buildings he ownsSyed’s vision for the next yearTrying to survive month to month right nowWants to add more units if the demand is back2020 is mostly a lost causeHow Syed mentally handled the pandemicKnew it was out of his control and a once in a lifetime thingWas super transparent with business partners and teamLittle wins after biggest loss gave him motivationSyed’s advice for newcomersReputation and the right business partners will set you up for successChoose your partners wiselyConnect with SyedHostlyHostly on InstagramSyed on LinkedInResourcesBiggerPockets Real Estate PodcastSTR Profit AcademySTR Legends MastermindsTaskRabbit Hosted on Acast. See acast.com/privacy for more information.