So, You Own an Apartment – Now What? To Pursue or Not Pursue Short-Term Rentals in St. Paul, Minnesota
Have you ever considered leasing your unit in the St. Paul area? If so, have you opened your mind to the idea of Short-Term Rentals (STR) versus the traditional concept of long-term leasing? With a growing rise of popularity in non-committal investments by consumers (think Uber or AirBnB versus purchasing vehicles and homes) it is the perfect time to consider investing in STR’s, especially in St. Paul, Minnesota. Why? The decision is ultimately yours, but when we examine things like the Average Daily Rate (ADR) for STRs in St. Paul, as well as things like occupancy rates and “live” units in that area – it’s almost too good to resist.
Investing in STR units in St. Paul should be appealing for a variety of reasons, but for starters let’s look at the ADR; With an average unit in mind, an investor would yield the rewards of about $134 daily on the East side of the Metro area. Knowing that, we can then consider the cost of a single bedroom unit in St. Paul – which is (as of this year, on average) about $157,000. Quick math will reveal to us that a unit would provide an ROI of about $36,682 per year if you were to rent your unit out successfully for 75% of the calendar dates available. Additionally, Saint Paul has an occupancy rate of about 67%, which means there are more than enough units to sort through depending on your tastes and preferences for location, size, and so on. Considering that the daily average rate of occupancy in Airbnb units alone is at about 87%, the margin probability of missing out on ROI for your STL unit is quite small in the Capital city.
When you are looking to make an investment in the real estate industry, we often look towards selling or long-term leasing our properties – but, after looking at the benefits of STR in St. Paul, Minnesota, we hope you agree with us when we say that the time to invest in your own stake in this game is now. Below are some examples of available units for sale in Saint Paul, as well as a few examples of current or live Airbnb units in that area as well for your reference.