Updated 6 months ago on . Most recent reply
New to STR
Hi - wI own to Long Term Rental condos and are now looking into getting a STR. I understand it is a whole different game. Any advice on how to start? What are some of the best resources out there to learn about the business, property search, etc.? Thanks!
Most Popular Reply
@Manuel Castillo, it is a very active business. I'd still always recommend ensuring it can still cashflow as a LTR. With STR's BP has a ton of videos on Youtube about it, as well as videos from other people actively in the business. There are a ton of tools & programs out there in order to get you started. I am sure BP also has a book or for sure blogs about it.
In regards to property search, the property should most likely be close to a popular area that probably is a major attraction to the local area. Look at how the property is structured, is it in a nice neighborhood, do they have an HOA, or would the neighborhood / local municipality like you being there or tax you more? In the property search, the home should have a good layout, is nicely refinished & fully functional for the target audience you are wanting to stay. Having great pictures/videos to highlight the home and experience is important. If your average stays are less than 7 days it will most likely be treated as active income & depending on your situation.
Ongoing operations is also an important topic, from managing prospective & current clients, review management, bookings & prices, ongoing maintenance, curb appeal, cleaning & more. It is a high reward activity with the same amount of work that needs to be done, whether you do all yourself or outsource to other people. I'd recommend attending local free events & REIA's to chat with more in your area.
If it is a single family home, is it worth overpaying for - to chase the high end prospective returns? Will it increase the locals cost of living, will they appreciate & like you being there, does it contribute to the housing affordability issue if a home is used for this activity or should it have sat a little while longer & encounter a price decrease for a regular homebuyer to afford? Will this raise the cost of renting? Can your money make you more money in different avenues? Some internal ethical questions many people don't think of or consider... Not needed but something to think about..