Short-Term Rentals, with Marilynn Taylor

Is the age of short-term rentals over? If you ask Marilynn Taylor, who coaches investors on successful short-term rental investments, the answer is a resounding no. All it takes is a true understanding of the market and the customer who is seeking a short-term rental.

In this insightful conversation with Marilynn, we learn how her investing paths all led back to short-term rentals over and over, thanks to her unique ability for interior design and hospitality. She was in the game long before the rise of Airbnb, and she has stayed successful in the marketplace because she knows what the upstarts in the market forgot—quality matters.

Marilynn walks us through the ups and downs of short-term rentals, what it takes to be successful, and how to get involved in the space in a way that works for your life’s vision.

For an inside look at the world of short-term rentals, tune in now!

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[05:45] “For some people, the world of finances, real estate investing, and all of that is because they just want to get rich. But if we really back that down for a minute and ask ourselves why we want that, I think that the answer, for the majority of people, is they want security. They want to live a nice life. They want to not feel stressed about going out and buying groceries or giving their kids a ballet lesson.”

Marilynn was heavily motivated by her external circumstances, and she knew that she wanted to break the cycle of financial troubles and challenge her family’s mindset that being rich meant you were greedy. While Marilynn began her career as a professional dancer and later a makeup artist, her path eventually led her into real estate investing, which eventually evolved into interior design. One of her early properties was in Cape Cod, and the thing to do was turn it into a short-term rental. After doing some research, she furnished and decorated that property, as well as a second one, and discovered she had a knack for interior design.

Her path also led her to being featured on HGTV, and at one point Marilynn believed she would be a house flipper. The lifestyle, however, didn’t suit her, and so she returned to the short-term rental space. Now, many years later, Marilynn coaches other investors on the short-term rental game.

Airbnb and the Rise of Short-Term Rentals

Marilynn got into short-term rentals before Airbnb was on the scene, and that company certainly transformed the market in many ways. Marilynn even resisted Airbnb for a long time because it took the personal touch out of short-term rentals. All communication happens online or in-app, and it creates barriers between you and your host.

[12:53] “Now, what I think a lot of people see when they see social media content about short-term rentals—especially since Covid—it was a gold rush during that time. And so many people rushed into short-term rental as a get-rich-quick scheme. It was just a cash cow, and it didn’t matter where they bought, where they invested, how they invested, what they even put out into the market—they were just going to bring money in. And for a year and a half or two, that was true. But the harsh reality of the actual industry has slapped a whole lot of investors in the face at this point.”

The reality? You have to put quality out there, and you have to provide value. Now that the market is saturated, it’s not enough to have just any old room with a bed. People care about their location, the amenities, and more. The market is saturated with places that are filled with cheap accommodations and little to no care, and people are waking up to that. That’s not what they want anymore. 

[15:30] “What I recommend to people when you’re searching for what is the right type of real estate investment for [you], is really truly digging into what does the back end look like? How much effort is really involved?”

You have to decide what you want your life to look like and then find something that fits into that vision. If you want to have a work-free investment, short-term rentals are not the way. Short-term rentals are about hospitality, and that takes work, even if you have a team. For Marilynn, her bread and butter is creating amazing experiences for people on short-term stays. If that’s not something that interests you, it’s probably not the business for you.

Short-Term Co-Hosting

A more recent development in short-term rentals is what’s called a co-host. Co-hosts are people who manage and run your short-term rental on your behalf, sort of like a management company, except it’s typically more personal. As a property owner, having a co-host is a great way to relinquish some of the responsibility, while also ensuring that there is still a personal touch. 

Boutique co-hosts are Marilynn’s preferred way to partner with people because they’re not in over their heads or too busy with hundreds of properties. Finding good help is difficult, so working with people who are aligned with you and good at what they do is essential. 

No matter what, you still have to remain a leader for your business. You want your team to feel valued and taken care of, just like your guests, and you also want to ensure that they have a little bit of oversight. Even the best team members can let quality slip when you step away and try to let the boat steer itself. 

Heed Regulations

If you’re looking to get into short-term rentals, you have to be aware of the regulations and the landscape of your particular market. More regulations are happening every day, and many places are cracking down on Airbnb and rentals. You also want to be clear about what rental law is and what makes you a landlord. In some states, a 30-day tenancy makes you a landlord, and therefore subject to a different set of rules.

If you do not know the rules of the game, you cannot play, and even when you do know the rules, you should be aware that some people may be against you. 

If you do not pay attention to laws and regulations, you might find yourself on the other end of a shutdown or another unfortunate and costly scenario. If you’re shut down, one of the worst-case scenarios is that you lose that investment (furniture, renovations, etc.). You may also find yourself with broken or stolen goods, squatters, and more. There are even some people who rent with the sole purpose of getting you taken off the site because they do not like Airbnb.

Infinite Banking and Short-Term Rentals

As with any investment, you must have a way to finance it. The Infinite Banking Concept utilizing Whole life insurance provides a pool of money which you can use to finance new mortgages, make down payments, and more. And the major key is that you can replenish that pool so that you have meaningful funds for retirement and other phases of your life. 

Of course, to make and take loans, you’ve got to be successful in creating cash flow, which all comes back to the question: Why are you getting into this business? Are you getting into short-term rentals because you’re passionate, because you want to provide value, etc? Or are you looking for a get-rich-quick scheme? Because the latter is going to fizzle out, while the former will give you longevity, purpose, and satisfaction on top of income. 

[01:05:30] “Nelson used to say this all the time—people need to be in two businesses. They need to be in the banking business, and they need to be in the business that makes them money.”

About Marilynn Taylor

Marilynn has a rich and wonderful creative background, as well as a background in numbers, but you can take it from her. Here is an excerpt of her About page on her website.

Today I am a full time short & mid term rental coach with a focus on guest experience & design with a mission to help and support the Heart Centered Host™ achieve their dream lifestyle….time, location & financial freedom. Today I’m invested in luxury short-term rentals, one in wine country Central California and partnered in a lake property in Michigan and actively adding to my portfolio.

I see a lot of self professed “experts” out there with only a few years of experience or who have only hosted one property who are offering a lot of questionable advice to hosts with situations very different than theirs. I have hosted my personal home in Los Angeles, a large homes in a very remote seasonal area + tiny homes in the CA desert and each one needed a different approach & strategy.

Since day 1, I learned the importance of a beautifully designed space + an amazing guest experience.  Over the years, I have become an expert in guest experience + hospitality, wowing my guests for a 5 star review even when things don’t go perfectly. My short-term rentals are a way for me to pour my love and care in to other humans and it is incredibly rewarding.

Hosting also comes with a lot of responsibility and personal liability that most hosts never think about and often they put too much faith in the listing platforms to protect them. I apply both legal and business strategies that build in protection for the host, while simultaneously building guest vetting & relationship building in to your entire automated process from listing to finalized booking.

Connect with Marilynn Taylor

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