Short Term Rental or 1 Year Lease?

Question

All - I have a rental property 3 bed 3 bath in Mesa, AZ that is lightly furnished. Trying to decide if I should rent on Airbnb or FurnishedFinder-(Anyone use this site?) or back to long term yearly leases?

$2,142/month unfurnished and I don't have the bandwidth to actively manage a STR at this moment, so I have minimum rental lengths on Airbnb for 2 months.

Thanks in advance for your input/advice - much appreciated!

Jared

Bruce Woodruff · Answer

Depending on the exact location (and hence desirability), it could get you much more $$ as a STR. You need to look at VRBO and AIR sites and see what competitor are getting in the real world....

Mary Smith · Answer

@Jared Smith I personally would do a one year lease. I know that short term rentals are obviously more profitable, but I'm honestly not sure if you're going to get a lot of people with your minimum length of stay being 2 months. If you do not have the bandwidth to actively manage a short term rental (with a lower minimum stay), then you can either find someone to manage your property or then go for a fixed term lease.

Steven Foster Wilson · Answer

I was going to say the same thing. I would look up the rates for both and if you do not feel like you can manage then find a property manager. I would call around your area and see what PM people think your property could go for. The you would be more hands off.

Conner Olsen · Answer

@Jared Smith I do monthly rentals on Furnished Finder and Airbnb and it is amazing! Very low headache and 50%-100% higher rents than traditional LTR. It's my go-to strategy in higher appreciation markets like Austin as a way to still get cashflow.

Jordan Fiore · Answer

Finding a short term rental property manager could pay off big time here. They charge 20-25% but will maximize profits. Especially since you do not have the time to do it.

Short Term Rental or 1 Year Lease?

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