Rental Property Investor · San Diego, CA · Member since 2017 · 66 posts · 66 votes
Hi bp community - I'm interested in your opinion on why you would or would NOT short-term rental your property. I talk to property owners almost everyday and while some are completely for the STR model because it brings in more cashflow, others are against it because of a "horror" story they've heard from a friend of a friend. If your property could generate more cashflow as an STR and there are no restrictions in your area (HOA, county etc...), is there anything else that would be holding you back?
Rental Property Investor · Member since 2019 · 41 posts · 53 votes
7y
Even if there were no HOA or local restrictions, I think it depends a lot on your personality. Operating a short term rental is much more like being in the hospitality industry than in real estate. Your short term guests expect more than your long term tenants, and your business can thrive or die based on reviews.
The constant turnover and the rush to get everything ready for the next group can also be exhausting. Some people love it; others prefer the stability of a long term lease.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
7y
I might have an interesting perspective. I experimented and tried a VRBO rental in the fall of 2017 from a duplex I bought that needed a lot of work on one side. Now I am in the middle of Wyoming and the rental unit is in the middle of an old nice neighborhood. First the neighbors were mostly thrilled that I fixed it quite nice. The first winter was DEAD maybe rented 6 days from November to March. This was my second winter and so far it is the same, very dead in winter. Now we do have some tourism in the summer. I just looked at my books for the STR and grossed about $6K, so it almost exactly the same amount I would have grossed with a month to month renter. However my expenses are massively higher. I pay all of the utilities, I have cable TV, WiFi, and provide towels, soap, pots, pans, bedding, etc. I always have bottled water in the fridge and granola bars on the table with a personal note for each guest. I love meeting the people and visiting with them. The neighbors love them as well. The neighbor lady had her foot amputated and is in a wheelchair but seems to become friends with nearly every guest. I have had wonderful people without exception. Many have kids, some are tourists, many are fishermen interestingly enough. it is a lot of work, we change and wash bedding for every guest same with towels etc. We vacuume, wipe areas down disenfect counters and tables etc. I am debating about going back to a regular lease on it. but have the other side fixed up now for the same thing. I did lease it our for a month last winter to help a guy out, fully furnished, which helped a lot on income, but the wear and tear was a LOT higher. I have found all of my guests to be very considerate. I wish I had a higher demand, but on the other hand our rural community is probably the reason I get such great guests. Literally every one has been wonderful.
Rental Property Investor · San Diego, CA · Member since 2017 · 66 posts · 66 votes
7y
@Charles Kao Valid points and great things to keep in mind while thinking about this strategy. To speak to many of those points, I believe it's very important to have a team in place to take care of all of the issues that will/can arise.