The rise of 'short-term rental funds': A new business for agents

  • Real estate agents can use their market expertise and property-management know-how to profit off short-term rental funds.
  • Short-term rental funds are pooling cash from growing numbers of "passive investors" to buy and rent out properties on short-term rental platforms.
  • Fueled by a network of data and management startups, the larger funds like to keep a low profile, as they navigate choppy legal waters and some opposition to short-term rentals.

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After real estate broker Iddo Gavish started making a killing by buying and renting out houses on Airbnb, some local investors took notice. “I’ve had many people approach me, and a lot of people are jealous,” said Gavish, CEO of Las Vegas-based Gavish Real Estate, a brokerage and property management firm that specializes in distressed sales. “They said, ‘Why don’t we do it on a bigger scale?”