Short-Term and Mid-Term Rental Strategies That Create High Occupancy and Repeat Bookings

Susan Houston (00:00)

So the midterm rental market is also great for investors who don’t want that everyday, hands-on, have-to-be-available job. Midterm can be anywhere 30 days. I get a lot of 30, 60, 90 days.

My avatars for that are a lot of engineers and mid-level management coming into the area.

Dylan Silver (01:57)

Hey folks, welcome back to the show. Today’s guest, Susan Houston, is a real estate investor based in beautiful Long Beach, California. She specializes in short-term and mid-term rentals and has consistently maintained high occupancy and strong performance in markets where many investors struggle. She also provides consulting and training to help others build profitable rental portfolios. She’s the host of the podcast, Done Pretending, where she shares insights on business growth and mindset. Susan, thanks for taking the time today.

Susan Houston (02:25)

Thank you, Dylan. So happy to be here.

Dylan Silver (02:28)

Now, when we talk about maintaining high occupancy as someone who’s done it, what are the keys to having that high occupancy?

Susan Houston (02:37)

You know, I think the number one key is figuring out who your clientele is. You’ve got to know your avatar. And once you know who it is who’s booking your place, then you can cater to them. You need to find out what are the amenities that you want. I’ll give you an example. My avatar is the middle to upper level woman because she’s the one who’s going to book for her family. ⁓ And so I have

extra coffee machines. have extra ⁓ things, sound machines, know, things for the kids to do all the beach gear so she doesn’t have to worry about it. I have a wagon so she can figure out how to get all that stuff to the beach. Just those little amenities are what really build the return business that I get. My occupancy is so high because

we started doing midterm and short-term rentals during COVID. And what I did was I really catered to who was staying. I keep my communication easy to get ahold of me. I respond immediately and I follow up with them, always asking them, what can we improve? What’s missing? We allow dogs. We’ve always allowed pets. So, you know, one thing someone said was,

You really need a little shower station outside so we can rinse Fido off after going to Rosie’s dog beach and rolling in the sand. Done. So it’s things like that. And now I would say probably 30 % of my occupancy are returned customers.

Dylan Silver (04:19)

Now, for folks who are trying to establish a successful short-term rental, how important are some of those almost concierge level services that you’re offering? And how can people determine what works best for them? Is it identifying who their ideal client is first? Is that where people should start?

Susan Houston (04:25)

Mm-hmm.

Well, when you’re first starting, you have to know your software. So most people will list on Airbnb, VRBO. I used furnished finders a lot. ⁓ So you have to understand their algorithms. It means going in and updating pictures, updating language, making sure all the amenities are checked, answering everything within an hour. ⁓

It’s really being on top of all that because what that does is that will put you at the top of the search list. You’ll be on the front page. And that is how you will start getting those bookings. And then you really try and find out what it is that they’re looking for. I always ask in my initial message, let me know if this is a special occasion. I’ve had people say, hey, we’re coming for my son’s birthday.

and I really want to surprise them and I say, okay, well, hey, I can go get a bunch of beach buckets, fill them with beach stuff, you know, and happy birthday signs up. Would that work? And it’s a little thing. It’s something that doesn’t take me very long. And yet I have a customer for life and referrals from it. So.

Dylan Silver (06:43)

Now,

I do want to pivot here, Susan, for first rentals specifically, and that’s what all short-term rentals are and midterm rentals as well, when folks are determining, should I go short-term, midterm, should I do long-term, is it more about what the market has to bear or is it more about what that ⁓ investor’s preference is and how much time they have?

Susan Houston (06:46)

Yeah.

I’m

It’s both. So, so many cities are coming down with really strict regulations about short-term rentals. ⁓ The hotel industry has very strong lobbyists that are really pushing to eliminate a lot of these, including here in Long Beach. We, my property is actually split into two parcel numbers, but I, because they’re together, I’m only allowed one short-term rental out of all eight units.

So when that came down a few years ago, it’s like, OK, well, what do I do? And I went into the midterm market.

So the midterm rental market is also great for investors who don’t want that everyday, hands-on, have-to-be-available job. Midterm can be anywhere 30 days. I get a lot of 30, 60, 90 days.

My avatars for that are a lot of engineers and mid-level management coming into the area.

Long Beach is in the middle of building out their infrastructure for not only FIFA this year, but for the Olympics in 2028. But also I get a lot of people who are relocating because maybe they’re remodeling their house or maybe they had a flood at their house or they’re moving back to the States from abroad.

So I have developed relationships with some of the businesses, corporations in the area, and now they just contact me directly like, hey, I need to bring Bernard from Sweden over for three months. Do you have a unit available? Yeah, I do. Not a problem.

Dylan Silver (08:51)

You know, on that subject specifically, how folks are finding their apartments, their condos, their homes, more and more people, especially if you’re relocating, are wanting to be able to do this remotely, the investigatory work. And it lends itself towards these platforms. I’m not in this space, but I’ve seen this trend where more and more people are willing to pay a premium as long as they can click their way into a furnished location versus having to

know, go in person, sign a lease, people are willing to pay for that extra service.

Susan Houston (09:26)

They do. if they find, if they’re finding me through Airbnb or VARBO, they’re pretty much vetted. ⁓ I really prefer working through furnished finders where I can talk to the clients directly or the guests directly and have a little more leeway about which unit I may put them into. ⁓ I have two bedrooms. I have one bedrooms. have upstairs and downstairs. And really it’s just what is going to suit their needs the best.

Everything can be done remotely, even as an investor. I just traveled to London and was on my phone answering emails, answering inquiries and setting up my cleaning. You you have to have a good team. You’ve got to have a good handyman who can be there at the drop of a whim, you know, with who can do the plumbing and whatever else happens. You’ve got to have a great cleaning crew.

Dylan Silver (10:32)

Yeah.

Susan Houston (10:57)

and ours, she knows, she’s my eyes. So I don’t go to my units all that often anymore. Maybe we go once every two weeks to get eyes on everything, but really she is there to tell me, hey, this needs to be painted, this tree needs to be trimmed. I pulled out those rugs because they’re stained. You need to order some new rugs, things like that.

Dylan Silver (11:23)

The changeovers and being able to do this remotely is of course a the one of the biggest if not the biggest Focal point for these short-term rentals and the management of them when folks are starting out. Would you recommend? Especially if they want the the highest level ratings to outsource that to someone else unless that’s their go-to thing That’s what they do or if folks are, you know more inclined to do this themselves Is that a good idea when maybe they’re starting out?

Susan Houston (11:52)

That’s a good question. ⁓ I think it’s a combination of both. think that if you are just starting out with your first short-term rental, you need to read all the reviews on the cleaners. There’s ⁓ different software, different websites that you can go and find these cleaners and or you go start talking to the other owners, the other short-term rental owners and say, who do you have? That’s a good cleaner. Because unless you have a

huge number of units, you can’t keep them busy enough. So they are working with other owners. And it’s also good to develop relationships with other owners to find out their handymen or their, ⁓ it’s also great when I have something that happens where I had a double booking because my software failed for whatever reason out of my control. But I was able to call someone that I knew a couple of blocks away and said, Hey, I’ve got a family coming in. Do you have any availability?

Yep, absolutely. We just moved him over there. They had a great time. He even took him out on their boat, you know, for the inconvenience.

Dylan Silver (12:56)

There’s a lot that goes into not just the changeovers, but the communication. I’m an Airbnb frequenter, especially when I’m abroad. And I recognize, if you’re not in an area that you’re familiar with, this host is like your guide, your counsel, where do I go to find all the places? And so that communication can even happen at odd hours. How do you handle that in your business?

Susan Houston (13:02)

Yeah.

So regarding any of the referrals of things to do, I’ve built out my guide, which goes out with my very first email, along with links to the local area of events that are going on. That will usually answer a lot of questions. But if there’s something that comes up at odd hours, I do the best that I can to be perfectly honest. I tend to respond almost quickly. I would say that

Dylan Silver (13:45)

Yeah.

Susan Houston (13:50)

The only time I’ve ever gotten ⁓ notices in the middle of the night really weren’t something that couldn’t have waited till morning anyway. And ⁓ there are times where I may not see it till five, six in the morning when I get up. That’s OK. That’s OK. If it’s an emergency, they all have my cell phone number. That is one thing that I provide every guest. And regarding the cleaning and things,

Dylan Silver (14:15)

knees flat.

Yeah.

Susan Houston (14:18)

I went with my cleaners for the first couple of months because they do a great job cleaning, but there are just certain things that I’m really particular about. Fans, mirrors, ⁓ spots, you know, all of that. So once my cleaners learned me, then they really became my eyes and I felt comfortable not being there.

Dylan Silver (14:31)

Yeah.

You said fans, I’m immediately thinking about wiping my finger on the top of the fan and seeing the dust come off it. I’m thinking that’s, know, attention to detail, right? ⁓ For folks who are putting a short-term rental online and they’re trying to highlight the best parts of the property, what is maybe the most important thing for them to showcase in those photos on their profile?

Susan Houston (15:44)

Here’s something that not everybody understands. It’s not your property. It’s the lifestyle that they’re going to have while they’re at your property. The first four photos in every one of my listings doesn’t show the inside of my units. It shows people on the beach with their dog. It shows people around my fire pit roasting marshmallows.

It shows sitting on the balcony with their cup of coffee and their newspaper. ⁓ I want them to understand, and I think what I always want when I travel is, how can I relax here? How can I feel safe, relaxed, and make this an experience for my family if I’m bringing my family? So that’s what I highlight. Then I show the pictures of my property and really,

you have to show that it can accommodate what you say it will. If you say it’s going to seat or you can allow eight guests, you’d better have seating in the living room, in the dining room, and everywhere for eight guests. You want it to show your top amenities. And everyone wants to know what the bathroom looks like. Everyone wants to know what the bedroom looks like in the living room. But after that,

I start showing things in the area. This is how far you are down to second street where you can walk with all these amazing shops and restaurants. Here’s the Bay where you can take our boogie boards and go play or you can go over there and you can rent kayaks. So I tend to max out my pictures, but it’s a huge plethora of what I include.

Dylan Silver (17:33)

Do you think that there’s a specific ⁓ avatar of investor personality or specific traits that make someone particularly successful in this space? Or is it, you these are learnable skills that anyone can get better at or improve. Where do you think the truth lies there?

Susan Houston (17:51)

think it’s a little bit of both. ⁓ I will tell you, in having worked with a lot of people setting up their short-term rentals, if this is a property that you were deeply attached to, whether it be your former home, maybe it was your parents’ home, or something like that, and there’s a lot of emotional attachment, you’ve got to be able to let go of that. You have to look at this as a business, which means, you know,

The things that I’m going to put in there are things that are beautiful and that I like, but if they get broken, ⁓ no big deal. If they get stolen, no big deal, which by the way rarely happens, but it does happen. but some people are like, well, you know, I’m never going to allow pets in my units. And I said, why? You’re just eliminating 50 % of the people who travel, if not more. Everybody wants to bring their dog or their cat or their emotional support, whatever.

Dylan Silver (18:47)

Right?

Susan Houston (18:48)

I mean, I’ve had rabbits and lizards and birds and I think I even had a pup-bellied pig one time, but…

Dylan Silver (18:55)

Do they tell you that they’re bringing these animals? Okay.

Susan Houston (18:56)

Yes. Yes.

So I say right in my descriptions that look, I love animals. I love doggos. I just need to know they’re coming for my cleaners. And we and by the way, we put treats out for you. So usually they’ll say, hey, I’ve got like two cats. Most places won’t allow cats. I said, I allow cats. You just here’s the fee and just understand if they’re going to rip up my curtain or my blinds, you’re responsible. Is that cool? And they’re like, yeah. Good.

Done. Yeah. Yeah.

Dylan Silver (19:27)

ruffles won’t rub up the blind this time.

are coming up on time here, Susan. Any new projects that you’re working on and then what’s the best way for folks to reach out to you?

Susan Houston (19:38)

New projects, so currently where I’m sitting is one of my rental houses in Long Beach. It’s a three bedroom, two bath house. And I actually had to move my mom in here. She’s 91, so I take care of her. And it’s perfect because it’s single story. But now having lived here, ⁓ there are little things that I’m going to change. So that’s upcoming. I got some things to work on. And the best way to reach me probably is through my website, which is ⁓

thesusanhouston.com and my email is susan at susan@thesusanhouston.com. Super easy.