Property management software for both STR and MTR?

Question

Hi Everyone,

My husband and I recently bought a house in Seattle, Washington (specifically Ballard neighborhood). We are trying to weigh the pros and cons of doing a short-term rental (STR) or medium-term rental (MTR).

Is there a way to do STR and MTR depending on the season of the year? Is there a property management software that does both short-term rentals and medium-term rentals? If so, which ones would you recommend to do STR and MTR?

Thanks in advice for the advice!

Kind Regards,

Jennifer

Michael Haas · Answer

In my opinion you really don't need rental software if you have less than 2 units on MTR or LTR model. If you want to set something up go with a lightweight solution like Cozy (Appartments.com) or Avail. For STR's you should definitely use rental software - we like Hospitable and Guesty.

PS - what were you planning on doing when purchasing it? I'd stay the course with whatever your original numbers and investing strategy was when you were acquiring the property, unless something significant has changed.

Sarah Weaver · Answer

If you are pivoting between STR and MTR, just be sure to check your local regulations for any STR ordinances! Otherwise, it is simple to toggle between the strategies. You'll simply be adjusting your minimum stay.

I do agree with the other posters that you will need to send a lease for longer stays, so familiarize yourself with how to send one electronically. I use Apartments.com and Avail.co and they are both very user-friendly. Best of luck!

Sherief Elbassuoni · Answer

@Jennifer F., in general, STR/MTR yield me more cash flow compared to LTR. Keep in mind that you need to pay utilities and it takes more time to manage compared to LTR!

Emily Hazard · Answer

Hey Jennifer,

My husband and I own two STR, but keep the posting up on furnished finder too. We have gotten a couple of inquires through furnished finder, but most of our month+ rentals are being booked through Airbnb. We do give a discount to those who want to stay longer (10% off for 30+ days bookings). Would be happy to meet up and show you what we have done!

Michael Baum · Answer

Hey @Jennifer F., so being in Seattle can be problematic. I wouldn't do a MTR anywhere in Seattle with the current climate. Once you hit 30 days, they have full tenants rights. You could easily get someone in there who just decides not to leave or pay. The city will side with the tenant and you could be really stuck.

Here are is the info on STRs in the city - https://www.seattle.gov/busine...

Bottom line is that Seattle is one of the most tenant friendly cities in the US. So many people have had "renters" in their places not paying a dime for 3 years now. If you market it as a vacation rental (Ballard has some cool stuff depending on where it is located) I think you would do better and it would be safer.

Just my 2 cents.

Brooklyn McCarty · Answer

There are tons of PMS, most of them do the same thing or very similar functions.

If you’re wanting to STR some of the year and MTR the rest, the only thing you would be doing different is setting different nightly min/max during those parts of the year. Any PMS can do this. Most have free trials.

Marcela Hoag · Answer

Hi Jennifer!My husband and I do both STR and MTR with fully furnished units, and sometimes within the same unit. From our experience, it's not very difficult to switch from one to the other. E.g. Use STR to fill in vacancies between MTR, or during the summer when rates are highest. I've listed some of the pros and cons below.STRPros- Higher rates, higher upside if fully occupied- More flexibility to adjust rates depending on time of yearCons- More time consuming (both from filling vacancies and preparing for and onboarding new tenants)- Potentially, more volatility in cashflowMTRPros- Less volatility, steadier cashflow- Less time spent finding new tenants- Attract different types of tenants like traveling nurses, who are high qualityCons- Can't command as high of rates as STR, but still higher than LTR- Harder to take advantage of seasonal increases in rates during Seattle summersLet me know if you have any other questions!

Nathan Gesner · Answer

Don't confuse yourself. There are short-term rentals (30 days or less) and long-term rentals (more than 30 days). Long-term rentals are rented one month at a time, or for a fixed period of time (three months, six months, 8.5 months, etc.).

Even if it is furnished with utilities included, it is still a long-term rental. MTR was created by some YouTuber that wanted to trick people into thinking it was something new even though people have used furnished, long-term rentals forever.

Long-term rentals have different laws and use different leases that short-term rentals. You need to be aware of this and prepared.

If you rent it short-term, then you can also advertise long-term rates on the same website. But I also recommend advertising it on other websites like Zillow, facebook marketplace, apartments.com, zumper, furnishedfinder, etc. Most people on STR sites are looking for short-term. You will probably get more interest for long-term by advertising on long-term sites. My point is, advertise on both if you are looking for both.

Robert Kurka · Answer

STR and MTR are the best methods to still have cash flow where interest rates are at. I do recommend staying outside of Seattle to scale your STR and MTR methods, that's due to heavy regulations in Seattle.

I personally have a triplex In Edgewood WA, I run all three units as MTRs. The cash flow and income continue to exceed all expectations. The cash on cash returns, when you FHA owner-occupied for a year, is the best way to leverage your down payment.  I also recommend reading the book (30 Day Stay) the author is from Seattle and makes great points about the benefits of MTR vs STR.

Airbnb and VRBO have a calendar link where you don't need to use platforms like Gustily. You won't need a third-party platform till you have a large number of MTRs and STRs. I highly recommend outsourcing the cleaning and turnover and managing the rest yourself. If you need a recommendation for cleaners let me know, the company I'm using does a great job.

Let me know when you are ready to find another property or if have any questions in general would love to connect.

Property management software for both STR and MTR?

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