Is the bed count more important than the sqft?

Question

What's the difference in sq.ft and bed count requirements between STR and LTR?

Any sites I can gather this data besides AirDNA which charges $300/year even if I need 20 minutes worth of data.

Sarah Kensinger · Answer

Airdna just updated everything.... extensively! They offer affordable plans now and I believe they're month by month if you choose that option.

But in answer to your question, the sqft is more important than bed count. A bunch of people should not be crammed in a small house, everyone should be comfortable and not feel packed in. The "heads in beds" thought process is not cool when you're a guest and there's not enough seating in the dining room or living room, and you're waiting forever for your turn to shower in a 1 or 2 bath property. So, the bed count is not different from a LTR to a STR unless you can add on or finish a room with a proper egress.

Tanner Lewis · Answer

Another consideration: excess square footage may present forced value add opportunities for adding an additional bed/bath

Teri Feeney Styers · Answer

@K S. It is the second toilet that adds the value - even a powder room. A "luxury" bathroom might translate to higher STR rental amounts - but that has never been a high criteria for me when seeking lodging. However, a double sink for LTR maybe...

K S. · Answer

Teri, If a double bath isn't possible, what about a double shower head with a his/her sink or is there no return on the extra investment?

I'm trying to squeeze LTR and STR into a <500/sq.ft apt. Some compromises will be made. The other option is to just go all studios/1bd and rent for $1200-1500. 2bd might fetch $1800 from what I can tell.

Teri Feeney Styers · Answer

@K S. I have done comps on 2 bed vs. 3 bed multiple times in my area. The third bedroom adds $25k to value across all neighborhoods. Likewise a second bathroom. You should always look at multiple exit or investment strategies. Can the numbers work in LTR as well as STR? If not - I would be hesitant. What are the rents on 1 bedroom vs. 2 (real) bedrooms? What are the sales? A Realtor or property manager should be able to assist you with these comps.

K S. · Answer

True but I think it would be difficult to pull that off in a somewhat luxury rental with above average furnishings. I used to live in a trailer park where some opted for pull out beds. Anything tiny house or minimalist like furnishings may degrade the value and convenience of the rental unless the area is a hip urban downtown loft with expensive French and Italian designed pull out beds or couch beds.

Bobby Paquette · Answer

I think if you can get a 1 bedroom and have a sofa that transitions into a bed, you should be solid. It allows for flexibility and cost savings overall in my opinion

K S. · Answer

That's def what I'm seeing. Some add the sofa bed as an actual bed which is a cheap trick to get the "sleeps x" number. I'd imagine it improves occupancy for STR as people travel in groups in these areas which is probably why studios rent for around 25% less. This means spending the extra to build rooms should be made up by the extra income but I'll have to check the rental history like expired listings.

Also what I'm seeing is at least 1 queen bed. Not sure if it's a requirement but I only have space for a Full XL 50" wide but 80" length. Not sure why that would be important because I personally slept my gf and me on a twin with no issues.

Bud Gaffney · Answer

100%. bed/bath more important than size.

Tanner Lewis · Answer

The bed/bath count is more important if qualifying with AirDNA projections since the market comps are based on similar bed/bath STRs in the area. I'm not sure if they compare square footage in this process, but the last I used it I was not able to manipulate sqft, only bed/bath and max number of occupants.

Is the bed count more important than the sqft?

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