Magazine

Following our experience managing our properties during the pandemic, we have concluded that there is a high demand for mid-term rentals and that developing these properties can be as profitable as short-term rentals.

As you know, due to the pandemic restrictions, we´ve been forced to adapt our strategy in order to maximize our properties profits by renting them mid-term, as there was no tourism.

It´s been always a temporary solution, and it worked.

After all these months, we´ve come to the conclusion that well-managed mid-term rentals can be as profitable, or even more, than short-term rentals. This is because although these properties have less income, they can be compensated by reduced management and lower acquisition cost.

This is why we want to develop new opportunities focused on this market niche, with different kinds of properties than the ones we are used to in Brickstarter, so far.

The main characteristics of these opportunities are:

1. Fewer management costs that compensate for fewer revenues. Vacation rental properties are expensive to manage. Check-ins, check-outs, cleaning, and linen are expensive. We also have web commissions…. All these costs are going to be greatly reduced.
2. Cheaper properties in terms of price per square meter. During the last few years, vacation rental properties prices have raised well above the average. Now we are looking at different kinds of properties, very well located, but not necessary in the city center.
3. Stable revenue inflows throughout the year, while tourist revenue is more seasonal.
4. No regulatory risk. We are not going to need any kind of license for this kind of property.
5. Easier to manage. Selling vacation rental properties is difficult, as buyers know they depend on proper management in order to benefit from their investment. Medium-term rentals are easier to run.
6. Revenues inflow less affected by the pandemic

Our goal is to maximize our monthly revenues by developing a real estate asset that is attractive to our final buyer, and we are convinced that by delivering the right yields, these properties are going to be easier to sell.

No doubt that this is a new category of opportunity, apart from what we have developed so far, but they will also have Brickstarter essence:

• "Cherry-picked" properties.
• Developed only by Brickstarter.
• No debt projects. Only commitment with investors.
• Investors get a double yield: monthly rentals and capital gains.
• Investors first. No fixed commission for Brickstarter. 100% Variable.

We will be publishing this kind of property all along with vacation rental properties. We strongly believe that these two categories complement each other in order to maximize profits and reduce risks, and therefore should be included in any portfolio.