Traveling nurses are a vital part of the healthcare system, stepping in to fill critical staffing gaps across the country. As a result, the demand for short-term, furnished housing for these professionals is steadily growing.
According to the American Mobile Healthcare Association, over 120,000 travel nurses are currently working across the United States, and that number is expected to grow significantly in the coming years as hospitals face nurse shortages. This makes renting to traveling nurses an attractive opportunity if you want to minimize vacancy and maximize your rental income.
However, it’s not a decision to make lightly. Like any tenant group, renting to traveling nurses comes with its own set of advantages and disadvantages. So, in this article, I have discussed the pros and cons of renting to a traveling nurses to help you make an informed choice about whether or not this is the right type of renter for your rental business goals.
Who Are Traveling Nurses?
Traveling nurses are registered nurses (RNs) who take on short-term assignments at various healthcare facilities across the country. These assignments commonly last 13 weeks, though the duration can vary- shorter or longer. Traveling nurses fill staffing gaps in hospitals, clinics, and other healthcare settings, ensuring that patient care is maintained even during periods of high demand or staff shortages.
Why Do They Travel?
Traveling nurses choose this career path for various reasons, including the opportunity to explore different parts of the country, gain diverse clinical experiences, and earn higher salaries. This mobility creates a constant need for temporary housing, making traveling nurses an attractive target market for property owners.
Let’s break down the advantages of renting them first.
Pros of Renting to Traveling Nurses
Here are the main benefits you can look forward to when opening your doors to traveling nurses:
1. Consistent Demand and Reduced Vacancy
One of the biggest challenges you face is keeping your properties occupied. With traveling nurses constantly moving from one assignment to another, there’s a consistent need for temporary housing. This high demand means less time spent with your property sitting empty, transforming directly into a stable income stream.
This contrasts with traditional renters, who often sign longer leases but may move out with less predictable timing. You might experience a constant battle to find your next tenant. With traveling nurses, you’re tapping into a market that’s predictably in need of temporary housing, which is a significant advantage.
2. Shorter Lease Terms and Flexibility
Traveling nurses typically have assignments that range from 3 to 13 weeks, meaning they need housing for a relatively short period. This flexibility can be a huge advantage if you prefer shorter lease terms or want more flexibility in managing your property.
For instance, if you are considering seasonal rental options or having your property available for a short period, renting to travel nurses provides that flexibility. You might also be experimenting with rental rates. Renting to travel nurses offers the chance to test out rates within a shorter period of time.
3. Higher Rental Rates Potential
Because they’re often seeking furnished, move-in-ready spaces, traveling nurses are frequently willing to pay a premium for convenience. They often come with good benefits packages, including housing stipends, which allow them to spend more.
By providing a furnished property with all the necessary amenities, you can capitalize on this market demand and command higher rent compared to traditional unfurnished rentals. It’s a straightforward way to boost your income.
4. Responsible and Professional Tenants
Generally, traveling nurses are mature, responsible professionals with stable incomes. They are often focused on their work and are less likely to engage in disruptive behavior or cause property damage. Their careers require them to maintain good standards of living, which can result in taking good care of your property.
They’re typically very busy with their work, meaning less wear and tear on your property. And if you’re looking for a tenant who’ll respect your property and stick to the rules, a traveling nurse is usually a good bet.
5. Potential for Repeat Business
If you’re able to provide a great experience, many travel nurses will return for their next assignment in the area. Building a good relationship with them and providing excellent accommodation will encourage them to come back or to recommend your property to their colleagues.
This repeat business is a great way to establish a consistent income stream and to cut down on time spent looking for new tenants. Happy tenants are your best marketing tool, and traveling nurses are no exception.
Cons of Renting to Traveling Nurses
Now, it’s essential to be aware of the potential downsides before you dive in headfirst. Here are some aspects to consider:
1. High Tenant Turnover
While the short lease terms can be a pro, they also mean that you’ll have a higher tenant turnover rate. This can be more work for you in terms of:
- Regular Marketing: You’ll need to advertise and show your property frequently.
- Background Checks: Running credit checks and conducting background screenings more often adds to the expenses and time you need to invest.
- Property Management: Preparing the property for new tenants in between short leases (cleaning, maintenance, etc.) takes time and effort.
While it could mean a higher rental rate, the increased workload and costs should also be considered.
2. Furnishing and Amenity Costs
To effectively attract traveling nurses, you’ll likely need to fully furnish the property and provide certain amenities, like internet and a well-equipped kitchen. This initial investment can be substantial and requires careful budgeting.
You’ll need to invest in quality furniture that’s durable and appealing. Plus, you’ll need to ensure all appliances are in top condition. It’s an upfront cost but can pay off handsomely with higher rental income.
3. Wear and Tear
While traveling nurses are generally responsible, the constant flow of tenants can lead to more wear and tear on your property compared to long-term tenants. Small damages can accumulate over time, leading to higher maintenance and repair costs.
Regular inspections and a strong lease agreement that covers property damage will be key to managing this risk.
4. Short Notice and Booking Gaps
Sometimes, travel nurses might have assignments that are shorter than the standard 13 weeks or have scheduling uncertainties. This can result in unexpected gaps between tenants, impacting your rental income.
You might also face last-minute cancellations and short notice, which can leave you with vacant periods that could be difficult to fill on short notice. To mitigate this, you should have a booking strategy to reduce these vacant times and avoid financial gaps.
5. Managing from a Distance
If you live far from your rental property, managing a property with short-term tenants can be more challenging. It might be necessary to hire a property manager to handle day-to-day operations, increasing expenses.
You’ll need a process for handling maintenance requests, emergencies, and cleaning between tenants, which could mean being on-call often if you choose to manage it yourself.
6. Competition From Other Short-Term Options
With the rise in popularity of short-term rental sites like Airbnb and VRBO, traveling nurses have a growing range of housing options. You’ll need to ensure your property stands out by offering competitive rates, appealing amenities, and high-quality customer service.
This means you need to stay informed of what other similar options are offering and ensure your service is better than the rest.
Key Considerations Before Renting to Traveling Nurses
Having looked at the pros and cons, let’s summarize key points to ensure you make an informed decision.
1. Your Property’s Location and Condition
Is your property located near hospitals or medical facilities? Is it in good condition, or does it need major renovations?
The closer your property is to healthcare facilities, the higher the demand for short-term rental from traveling nurses. It’s also important that your property is well-maintained and can provide a comfortable living environment.
2. Your Level of Involvement
Are you comfortable managing a high-turnover property, or would you prefer hiring a property manager? Consider how much time and effort you’re willing to dedicate to managing short-term rentals.
It’s important to be realistic about the level of engagement required. The more organized you are, the smoother the process.
3. Legal and Insurance Matters
Check with your local authorities if there are any restrictions on short-term rentals. Additionally, talk to your insurance provider and ensure your policy covers damages caused by short-term tenants.
Make sure you have adequate insurance coverage and are in compliance with all local regulations.
4. Your Target Market
Are traveling nurses your target tenant group? If so, how well is your property suited to their needs? It’s essential to have a clear understanding of your target market and ensure your property and services are suited to them.
Understanding your target market will help you to identify the ideal tenant pool for you.
5. Setting Your Rental Rates
Research similar properties in your area and set competitive rates. Factor in the costs of furnishing, utilities, and cleaning when calculating your rental rates.
Ensure that your pricing strategy is competitive but still allows for a healthy return on your investment.
Best Practices for Your Rental Success
Okay, you’ve considered the pros and cons, and you think renting to travel nurses is a good fit for you. Here are some best practices to maximize your success:
High-Quality Furnishings: Invest in comfortable, durable, and stylish furniture. A well-furnished space makes all the difference.
Fully Equipped Kitchen: Ensure the kitchen has everything they need for meal prep: cookware, utensils, dishes, and appliances.
Reliable High-Speed Internet: This is a must for traveling nurses, who often need to work remotely or stay in contact with family.
Clear Communication: Maintain open communication with your tenants. Be responsive to their needs and address issues promptly.
Detailed Lease Agreement: Include all terms and conditions, damage clauses, and house rules in a clear written agreement.
Regular Cleaning: Implement a consistent cleaning protocol after every tenant moves out.
Secure Booking and Payment System: Streamline your booking and payment systems to simplify the process.
Local Information: Provide local tips, transport options, and emergency contact information to help your tenants feel comfortable in a new area.
Positive Reviews: Encourage happy tenants to leave reviews, which can bring in new bookings in the future.
Be Flexible: Sometimes, travel nurses may have unique requests. Be open to adjusting where possible.
By following these best practices, make sure you are also well informed about what a landlord cannot do, as this knowledge can help you avoid potential disputes and enhance your reputation as a reliable landlord.
Conclusion
Renting to traveling nurses can be a very profitable strategy if you approach it with a realistic outlook and a proactive plan. The high demand and premium rent possibilities can be a game changer for your investment portfolio.
However, it’s crucial to be fully aware of the potential downsides, such as high tenant turnover and the need for thorough property management. By carefully weighing the pros and cons, and implementing best practices, you can determine if this rental strategy aligns with your goals and resources.
Take your time to make the right decision. If you’re prepared to put in the work and provide a quality experience, you might just find that traveling nurses are the perfect tenants for your property!
So, what are your thoughts? Have you had experience renting to traveling nurses? I’d love to hear your experiences in the comments below! And if you found this article helpful, be sure to share it with your fellow landlords!
