Help needed : is it worth converting to STR/mid term

[Avinash V.]

Hi,

Need some expert inputs if it's worth the investment needed to convert my current property to mid term/ STR with fully furnished.

I have a property right opposite to UT Arlington . Currently it has 6 rooms ( 5 bed and 1 additional room). common areas are fully furnished and bedrooms are unfurnished. They are managed by a company that rents by individual rooms. Currently I am getting like 170-1900 average after all expenses.

now I have a different company who's proposing the below. They would like to fully furnish the property and renting the house either long term or mid term or STR. Their goal is to maximize the occupancy.if they secure a mid term rental, they gonna do STR after the lease ends while they find another tenant. Here's the investment details

10k for revamp and fully furnishing 

5k upfront fee for design and management 

$500 flat fee for the management

FYI I have already spent like 15k on the property 2.5 years ago to set up.

Thanks for looking into this.

[Melanie P.]

Most AirBNB property managers are charging 20%. Of course this doesn't include expenses either and they will similarly mark up anything they pay for. The fee gets you listing maintenance, a professional person available around the clock to communicate with your guests and monthly/end of year reporting. While it may seem like a high fee you'd be hard placed to replace those services with a paid employee and do better than you're paying now.

My problem with the deal is the $5,000 setup fee. That's outrageous. Further, there's nothing special about setting up on AirBNB. You can furnish the bedrooms and list it on AirBNB yourself if that's the direction you want to go.