Magazine

If there is one thing we have learned from the pandemic, it is that we need to diversify our investments, and that mid-term rental can offer more stable income than vacation rental, with lower revenue and lower expenses.

As you know, due to the pandemic and the drop in tourism, we have been forced to adapt by (occasionally) placing many of our properties on a mid-term basis. We did this with the aim of not leaving our properties empty and thus maximizing the monthly result of each property, which is distributed among the investors when there is one.

Until now, it has always been a temporary solution, imposed by the limitations resulting from the pandemic.

Experience has allowed us to see that this arrangement, if well managed, could offset lower income with lower management expenses and a lower acquisition cost, without any guarantee.

At Brickstarter, we want to take advantage of this new market opportunity by launching new opportunities focused on the guest who is looking for a mid-term stay, and who has different needs from the short-stay guest (and will therefore require a different type of product).

This new type of mid-term property will be characterized by:

• lower management expenses, which must offset the drop in income. Tourist apartments have more income, but also higher management expenses, because of the need to pay for cleaning, check-ins, maintenance, portal commissions, etc…. This drop in income could be partly offset by lower management costs (in our estimates, from 25% to 10% of income), without any guarantee.
• Lower price per square meter. In recent years, vacation properties are the ones whose prices have risen the most. This new type of property, not as central, could allow us to acquire the apartments at a relatively lower price, which could improve the estimated return.
• Lower seasonality. Income that may be more stable throughout the year, without any guarantee.
• Lower exposure to the tourist license, as it is not needed, which broadens the supply of available apartments, although regulatory risk remains.
• Estimated demand for the finished product from buy-and-hold investors, with simpler management than vacation rental.
• Product less exposed to how the pandemic evolves.

The objective, as always, will be to seek stable monthly income, which is not guaranteed, by developing a real estate product that is attractive to the end investor.

Obviously this is a new type of project, different from those published so far. With different characteristics, but with the Brickstarter essence; that is,

• Properties selected according to our analysis criteria.
• Properties with no registered encumbrances at the time of purchase (detailed in each opportunity).
• Developed solely by Brickstarter.
• The investor may obtain results from the rental and from the possible future capital gain, without any guarantee.
• Brickstarter's fees depend on the type of property and may vary for each opportunity; they are detailed in the fact sheet.

This new type of property will alternate with, and complement, the publication of new vacation rental opportunities, and could also allow us to diversify geographically by expanding our investment area.

Past or estimated returns do not guarantee future returns. Investing involves a risk of total or partial loss of the invested capital.