Can I short term rent back to back leases to the same tenant over 30 days?

[Patrick Laffey]

Hey all! I'm a new landlord with some units becoming available soon. I am trying to rent to travel nurses mainly (13 week stays), but ideally, I'd like to keep my leases under 30 days to qualify as short term rental income (both for tax and legal purposes). Is there a way to book someone back to back to back 30 day rentals to qualify as a short term rental, or does it not work that way? I guess the idea is it would be like a month to month rental but have more landlord friendly laws and also qualify my rental income as active income. Thanks in advance!

[Sean O'Keefe]

Quote from @Patrick Laffey:

Hey all! I'm a new landlord with some units becoming available soon. I am trying to rent to travel nurses mainly (13 week stays), but ideally, I'd like to keep my leases under 30 days to qualify as short term rental income (both for tax and legal purposes). Is there a way to book someone back to back to back 30 day rentals to qualify as a short term rental, or does it not work that way? I guess the idea is it would be like a month to month rental but have more landlord friendly laws and also qualify my rental income as active income. Thanks in advance!

To be classified by the IRS as a short-term rental and get the tax benefits you must meet the following requirements (defined by Treasury Regulation Sec. 1.469-1T(e)(3)(ii)(A))

• The average period of customer use is 7 days or less
• The average period of customer use is 30 days or less. (Confusing we know, this means that not only does the customer stay for 7 days or less on avg. they also don't come back multiple times during the year for separate trips and these stays add up to > 30 days -> Trip one: 7 days, Trip two: 7 days, etc.)
• Personal use of the property cannot be 15 days or more OR more than 10% of the total rental days

Based on what you said, you won't qualify. 

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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.