Owner Case Study: Unlocking Revenue on a Pied-a-terre with Rove Travel
Q&A with Empire House Owner
Tom B. and his family purchased and gut-renovated Empire House, a beautiful townhouse on a tree-lined block in Williamsburg, Brooklyn. After living in the property for six years, work required the family to move to Portugal; however, they wanted to spend a month every summer in New York to visit friends and family.
Rove presented the perfect solution, enabling the family to use the home every July while generating more revenue from monthly rentals than a traditional long term lease. With monthly tenants, the family could stay at the home every July (compared to a traditional long term lease that would keep the property occupied year-round).
After 14 months with Rove, Empire House grossed $315,850 or $22,560 per month before expenses, significantly exceeding long-term lease benchmark $14,000 for comparable long term leased properties. Further, Rove’s management allowed a hands-off ownership experience with Rove handling the full tenant experience.
Financial Key Metrics:
- 100% Occupancy: Rove Travel has maintained 100% occupancy rate since the first guest moved in August 2022.
- $315,850 rental revenue: The total revenue generated during the period from August, 2022, to October, 2023, reached $315,850 or $22,560 per month.
- +29% increase in net performance: The short-term monthly tenants have led to an average monthly gross revenue above $22,000. After fees and taxes, the net revenue exceeds $18,000 per month, a 29% increase in rental income.
Empire House by Rove Travel | Williamsburg, Brooklyn
Why did you decide to let Rove manage your property?
At the time, I wasn't sure if I'd be gone for just a month or perhaps even a few years. As the move wasn't permanent, I didn't fancy the idea of selling my furniture and other belongings. One thing that drew me towards Rove was their flexibility - I could continue to use my house sporadically throughout the year, which I found very appealing. Even though I moved, I still consider New York City as my home and wanted the ability to come back and enjoy my property when I wished. Another bonus was Rove's thorough tenant screening process, I really liked that.
What makes Rove unique compared to other property management companies?
Rove's uniqueness became evident when I didn't see many others offering the option of monthly rentals. At first, I was a bit worried about tenants constantly changing, but I was comforted when Rove told me about their thorough tenant background checks and screening processes. I found myself drawn to the flexibility of Rove's services. What made them stand out was their adaptable dynamic pricing strategy and their capacity to consistently provide a stable source of income.
Monthly Furnished Rentals vs. Traditional Leases:
The owner's decision to let Rove manage the property allowed him to continue enjoying his home intermittently throughout the year. This unique approach to property management provided him with the freedom to use the property whenever he returned to the U.S., making the transition between homes smooth and hassle-free.
Rove Travel: Pioneering Monthly Rentals:
While exploring property management options, the owner couldn't help but notice Rove's distinctive approach to the industry. Monthly rentals were not widely offered by competitors, and the transient nature of Rove's services was particularly appealing. Their emphasis on dynamic pricing and tenant screening provided peace of mind and a reliable income stream over time.
Empire House by Rove Travel | Williamsburg, Brooklyn
What led you to purchase an investment property?
At first, I bought a property as an investment to earn some rental income. Over time, this place slowly turned into a family home, and my family and I made the decision to make this our primary residence. We took part in constructing it ourselves. As a landlord, I appreciated the versatility this property gave us; it meant we had the freedom to live in different locations and build a variety of experiences.
How much time are you saving as Rove manages your property?
Choosing Rove Travel for property management has been a game-changer. Their full-service rental management, which includes tenant screening, maintenance, and all the paperwork, has saved me countless hours. This means no gaps in tenancy and no personal involvement in the nitty-gritty of leasing. The time I save lets me focus on family, knowing my investment is in expert hands.
What else are you able to accomplish while Rove helps manage your property?
With Rove Travel's property management expertise, I've been able to prioritize what's truly important - family time and travel. We've moved to a more cost-effective area and have embraced the opportunity to travel more, enriching our family's cultural experiences. Rove's reliable management services have given us the freedom and peace of mind to explore the world and provide global exposure for our children.