Selling Property Perfect for Short Term Rental

Flipper/Rehabber · Reno, NV · Member since 2019 · 38 posts · 37 votes

So I am selling my rental. I recently renovated it, and it looks better than most of the comps in my price range. I reduced the price, but it seems like the RETAIL real estate market is slowing, and I've dropped my price to as low as I can afford to drop it. So as an alternative, I'm considering pivoting to a short-term rental, but I'm also realistic that I don't have the time to manage an STR, nor do I know enough to determine if net of management fees and other fees and utilities, whether it's actually a viable strategy, even if I wanted to hire it out. Please help!

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Mike GrudzienPro Member

Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes

I wish I had a better answer, but there is a current trend to the bottom with STRs (some markets are exceptions). With inflation and tariffs, travel is down.

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1y
I wish I had a better answer, but there is a current trend to the bottom with STRs (some markets are exceptions). With inflation and tariffs, travel is down.
2 Reply
- Steven Scheetz
  OP
  Flipper/Rehabber · Reno, NV · Member since 2019 · 38 posts · 37 votes
  1y
  Quote from @Mike Grudzien:
  
  I wish I had a better answer, but there is a current trend to the bottom with STRs (some markets are exceptions). With inflation and tariffs, travel is down.
  
  Thank for your input. I fear the same thing, and I don't want to invest more money that I don't have into furnishing and marketing, only to find that it is not a viable strategy.
  1 Reply
- John UnderwoodPro Member
  Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
  1y
  Quote from @Mike Grudzien:
  
  I wish I had a better answer, but there is a current trend to the bottom with STRs (some markets are exceptions). With inflation and tariffs, travel is down.
  That's pretty much what I was going to say.
  Pivoting to a STR may be no better or even worse.
  
  Check some STR comps on VRBO and Airbnb to get an idea what people are getting per night and how full their calendars are.
  
  Whats your LTR numbers look like?
  1 Reply
- Steven Scheetz
  OP
  Flipper/Rehabber · Reno, NV · Member since 2019 · 38 posts · 37 votes
  1y
  Quote from @John Underwood:
  
  Quote from @Mike Grudzien:
  
  I wish I had a better answer, but there is a current trend to the bottom with STRs (some markets are exceptions). With inflation and tariffs, travel is down.
  That's pretty much what I was going to say.
  Pivoting to a STR may be no better or even worse.
  
  Check some STR comps on VRBO and Airbnb to get an idea what people are getting per night and how full their calendars are.
  
  Whats your LTR numbers look like?
  
  LTR is about $3k per month.
  0 Reply
- John UnderwoodPro Member
  Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
  1y
  Quote from @Steven Scheetz:
  
  Quote from @John Underwood:
  
  Quote from @Mike Grudzien:
  
  I wish I had a better answer, but there is a current trend to the bottom with STRs (some markets are exceptions). With inflation and tariffs, travel is down.
  That's pretty much what I was going to say.
  Pivoting to a STR may be no better or even worse.
  
  Check some STR comps on VRBO and Airbnb to get an idea what people are getting per night and how full their calendars are.
  
  Whats your LTR numbers look like?
  
  LTR is about $3k per month.
  
  That doesn't sound bad. It much less work that a STR too.
  1 Reply
- Rick Richard
  Member since 2023 · 10 posts · 5 votes
  1y
  Quote from @Mike Grudzien:
  
  I wish I had a better answer, but there is a current trend to the bottom with STRs (some markets are exceptions). With inflation and tariffs, travel is down.
  
  Mike, do you have source for travel being down? What I'm reading, it's up from 2024. https://www.hoteldive.com/news/summer-2025-travel-preview/74...
  And price inflation is the lowest since 2021, so tariffs are not producing the price inflation the media wrote about. https://tradingeconomics.com/united-states/inflation-cpi
  0 Reply
Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1y
That said, Reno is a college town and might have a strong enough travel market to hang in there.
2 Reply
Krishnan Iyer
Investor · Member since 2023 · 46 posts · 34 votes
1y
Hey Steven - I have a handful of rentals - STR and LTRs. Not sure of where you need help but feel free to hit me up and happy to help out.

Krishnan
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James CarlsonBusiness Member
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
1y
If you go the STR route, I'd say two things:
1. Manage it yourself. There are several tools that help better automate messaging and cleaning and you'll save so much money that way.
2. Don't skimp on furniture, design, amenities or photos. Like others have said, it's competitive out there, but I have a lot of Airbnb clients in Colorado -- like this guy -- who are still doing well because they created something special. Run-of-the-mill nice is fine, but to excel, you need to do something different (interesting design, or game rooms, or hot tubs, or themes, or some combination of these or other tactics).
[email protected]720-460-1770
James Carlson Real Estate
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- Steven Scheetz
  OP
  Flipper/Rehabber · Reno, NV · Member since 2019 · 38 posts · 37 votes
  1y
  Quote from @James Carlson:
  
  If you go the STR route, I'd say two things:
  1. Manage it yourself. There are several tools that help better automate messaging and cleaning and you'll save so much money that way.
  2. Don't skimp on furniture, design, amenities or photos. Like others have said, it's competitive out there, but I have a lot of Airbnb clients in Colorado -- like this guy -- who are still doing well because they created something special. Run-of-the-mill nice is fine, but to excel, you need to do something different (interesting design, or game rooms, or hot tubs, or themes, or some combination of these or other tactics).
  Thanks for the input. I fixed it up in order to sell it, so it's retail sell ready. The thought of investing even more into establishing it as an STR (of the quality you recommend) wrenches my gut. Especially without hard data to support the viability of it. Is there a general rule of thumb, like someone can expect to net X% of gross revenue? Then I can work backwards from comps to see if I'll even break even.
  0 Reply
- Brandon Elliott-Pandey
  Realtor · Erie · Member since 2022 · 194 posts · 88 votes
  1y
  @James Carlson agreed! I will say there is value in hiring a PM though. If the cash flow can support it, its worth considering and looking into.
  0 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
1y
Quote from @Steven Scheetz:

So I am selling my rental. I recently renovated it, and it looks better than most of the comps in my price range. I reduced the price, but it seems like the RETAIL real estate market is slowing, and I've dropped my price to as low as I can afford to drop it. So as an alternative, I'm considering pivoting to a short-term rental, but I'm also realistic that I don't have the time to manage an STR, nor do I know enough to determine if net of management fees and other fees and utilities, whether it's actually a viable strategy, even if I wanted to hire it out. Please help!

Have you used a tool like airdna to project STR income. AirDNA includes cleaning fees in their income (I wish cleaning was broken out as separate item). There is a one month version of airdna or you could possibly post a request for help with the revenue. You want to determine either the annual income or alternatively the Average Daily Rate (ADR). ADR is function of average rate and occupancy rate.

I have seen markets where the competition is fairly stiff and other markets were most of the competition is not good. Evaluate the competition by viewing the competition on multiple OTAs. This valuation of the competition is referred to as the enemy method. Especially look at the highest rated properties as this is where you want your property.
Next determine the going PM rate. Co-host are usually cheaper but without the same licensing and insurance. There are good co-hosts, but look at all their units on the OTA platforms to determine this.
If you do all this, you will know if it is worth pursuing converting to STR. I personally think you are likely to find that it is not as good an option as you desire.
Good luck
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
1y
I do not know much about the STR market in Reno, but being Tahoe is close I imagine there are good management options. I would at least consult with a STR PM in the area (go with a local company, preferably with 30-100 units). I am happy to give you a list of questions you can ask them. Good luck!
[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
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Krishnan Iyer
Investor · Member since 2023 · 46 posts · 34 votes
1y
… btw, don’t forget the massive advantages of accelerated bonus depreciation.

krishnan
1 Reply
Katrina Georgiou
Member since 2024 · 1 post · 1 vote
1y
Hey Steven - I've used West Haus for my property in Reno. Turned it from a LTR to a STR and am really happy with their management and my returns. Would definitely reach out, Patrick (owner/operator) is really great.
1 Reply
- Steven Scheetz
  OP
  Flipper/Rehabber · Reno, NV · Member since 2019 · 38 posts · 37 votes
  1y
  Quote from @Katrina Georgiou:
  
  Hey Steven - I've used West Haus for my property in Reno. Turned it from a LTR to a STR and am really happy with their management and my returns. Would definitely reach out, Patrick (owner/operator) is really great.
  Thank you. I reached out to him. Great conversation. We're meeting on Thursday to do a deeper dive. Cheers!
  1 Reply
Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1y
I'm part of several Host groups. I'm reporting what we've seen/experienced. Maybe it's just our market(s).
Maybe it's boom times all around us and we're just sucking wind...
0 Reply
Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1y
That said, 1st quarter sucked for me, but second and third are getting pretty full.
0 Reply
Colton Loretz
Attorney · Reno NV, United States · Member since 2021 · 10 posts · 5 votes
1y
@Steven Scheetz What area of town is it in? Location is key with STR if you are targeting tahoe crowd.
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