The art of crafting a post-COVID portfolio

Creating a post-pandemic portfolio doesn’t have to be hard, but it should include short-term rentals.

Coming out of the strict lockdowns and early days of the pandemic, a new normal has emerged: stays are shorter, and short-term rentals are more lucrative. A rapidly changing industry landscape means that crafting a portfolio fit to capitalize on the new norms is an exciting prospect for many. Like any good investment portfolio, crafting a post-COVID portfolio is an art of its own, but with the following tips, you’ll be off to a good start.

  1. Diversify your portfolio. The age old investment advice is ever so pertinent for real estate investing. Diversifying real estate investments shields you from market shifts and maximizes your streams of revenue.
  2. Do your due diligence. There are free tools on the market today, like our Insights tool, that provide you in-depth, real-time data analysis of your potential purchase. Plug in any address and see nearby comparables, their performance, and what your projected revenues are for any investment before signing on any dotted line. Want more information? We can underwrite any property for you to give you more granular information to make you confident with any property prospect.
  3. Invest strategic amounts. As with all investments, it’s recommended to limit investments to amounts that are manageable to lose if things don’t pan out. 
  4. Invest in shorter stays. COVID has made work-from-home the norm, and furthermore, work-from-anywhere has thrived. The supply for short-term rental stays cannot match the demand, and Airbnb has announced the need for millions of additional hosts to satisfy this need. Operating short-term stays allow for more real-time optimization of nightly pricing and stay lengths to maximize revenues, almost certainly earning you more than with traditional long-term rentals. All of the signs are there – short-term rentals are not to be missed.

Navigating the waters of post-pandemic investing can feel cumbersome, but it doesn’t have to. By applying common investment principles to a booming new asset class, savvy investors can capitalize on the shifting market and be there to supply the short-term rental demands.

If you’re interested in reading more about this topic, we talk about it in-depth here with our friends at Young Upstarts. Happy reading!

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