Renting both ADU and Main House at STR/MTR

Real Estate Agent · New York, NY · Member since 2018 · 45 posts · 13 votes

Hey Ya'll!

Backstory:

We rent the ADU out regularly via STR or MTR and live in the main house currently and are looking to size up. We'd like to rent both houses if we moved. Our shared backyard has a pool and hot tub.

Has anybody had good experience with renting both an ADU and Main house for either STR or MTR? My main concern are shared spaces like the pool and hot tub (turnoff for some renters), huge parties (when both are rented together), shared internet, logistics (multiple locks, parking, etc)

Thanks for any insight!

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Andrew SteffensBusiness Member

Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes

My very first STR was an estate beachfront in Redington Shores. It had a 4000sqft main house with a 1200 detached ADU and a shared pool. We rented separately and it worked, but I would not do it again. The ADU paid $250 or so a night and the main house paid $1200 so there was a totally different type of traveler renting each. The main house was never happy about sharing the property with the ADU, even though it was properly described in the listing. If I could do it over again I would list as all one unit, I could have made the same if not more doing it that way and less headache.

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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
My very first STR was an estate beachfront in Redington Shores. It had a 4000sqft main house with a 1200 detached ADU and a shared pool. We rented separately and it worked, but I would not do it again. The ADU paid $250 or so a night and the main house paid $1200 so there was a totally different type of traveler renting each. The main house was never happy about sharing the property with the ADU, even though it was properly described in the listing. If I could do it over again I would list as all one unit, I could have made the same if not more doing it that way and less headache.
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Tommy Cheng
OP
Real Estate Agent · New York, NY · Member since 2018 · 45 posts · 13 votes
2y
@Andrew Steffens Great point renting as 1 unit. I could probably charge more with less headache. The only thing I worry about then is that it would be large groups. I guess that's the risk?
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
Quote from @Tommy Cheng:

@Andrew Steffens Great point renting as 1 unit. I could probably charge more with less headache. The only thing I worry about then is that it would be large groups. I guess that's the risk?

You can mitigate risk with exterior cameras and noise monitors. It is mostly families in our larger units so not much in the way of problems, but there is a bad apple here and there. Ive probably only had maybe 20-25 incidents in 8 years and over 30,000 reservations.
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John LitzPro Member
Reno NV · Member since 2022 · 74 posts · 56 votes
2y
Either rent as a single property for both units or find a way to separate with fencing. People will always have issue with shared amenities in a short term rental house. They don’t have issue at hotel for gym, pool, hot tub but a house has a different mind set of privacy.
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Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
2y
How has it worked out for you? Do you mind having those in the ADU when you're home? I expect to see the owner if I'm renting a MIL or ADU. Who cares if its another renter? So long as its not a party. Maybe limit the guest size in the house to 3 or 4 so it can't get too crazy. There's a house like this down the street, busy all the time. 3 units of varying size on one residential lot.
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Brooklyn McCarty
Investor · Member since 2022 · 1k+ posts · 754 votes
2y
I think if you did this I would just give pool and hot tub access to the people in the main house to alleviate any confusion.

Then you just need to be super clear in your ADU listing and make sure they know that they do not have access to it
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KiKi ChaseBusiness Member
Real Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
2y
Hi! We have a couple clients that have two units that share spaces, and we haven't run into many issues. I would just be very clear on the STR listings that they will be sharing those spaces and also make sure you are very clear on house rules for parties and such. For logistics, you can always have designated parking for each unit, and let them know that in their check in instructions. We do this regularly and it can be done using the right systems! I wish you the best of luck. :)
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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
2y
Quote from @Andrew Steffens:

My very first STR was an estate beachfront in Redington Shores. It had a 4000sqft main house with a 1200 detached ADU and a shared pool. We rented separately and it worked, but I would not do it again. The ADU paid $250 or so a night and the main house paid $1200 so there was a totally different type of traveler renting each. The main house was never happy about sharing the property with the ADU, even though it was properly described in the listing. If I could do it over again I would list as all one unit, I could have made the same if not more doing it that way and less headache.

We have 2 slightly large units that share a common outdoor space but nothing nearly as expensive as a pool. Together they sleep 16. We try to rent together until 6 weeks before vacancy at a price that is higher than the sum of the 2 units individually. At 6 weeks the units are available to be rented individually. What we have found is that large occupancy events are typically planned months in advance. Birthday parties, bachelor/bridal parties, weddings, etc. if it has not booked for a large occupancy usage by 6 weeks out, it is unlikely to book. On the opposite smaller occupancy often are booking not far in advance of the occupancy. 6 weeks is enough to have high fill rate. Also my PM handles this (not sure how automated) so it is easy from my perspective.

good luck
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Tommy Cheng
OP
Real Estate Agent · New York, NY · Member since 2018 · 45 posts · 13 votes
2y
@Dan H. That's actually a really good idea. The only caveat probably being you need to have multiple listings and actively manage closing one listing and opening the others at the 6 week mark?
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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
2y
Quote from @Tommy Cheng:

@Dan H. That's actually a really good idea. The only caveat probably being you need to have multiple listings and actively manage closing one listing and opening the others at the 6 week mark?
I am not sure how automated the process is. My PM uses streamline for owner’s portal and OTA interface. Not sure if that supports it, if another app supports it, or if it is fully manual process. However, I do know at MTR summit, co-hosts were offering to include the same feature at much lower rate than my STR PM charges leading me to believe there is some automated way to do this.

Good luck
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