STR/MTR hybrid question

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STR/MTR hybrid question

Ashley Bitner
Member since 2022 · 77 posts · 43 votes

I'm considering turning my STR into a MTR during these slower months. I just had my first applicant, for a month in the spring. For those of you who do this hybrid model - do you collect the entire month's rent in advance (even if the booking isn't for a few months from now) Do you specify in the lease that the month's rent is non-refundable (to protect in case they ask to cancel after they have paid but before the stay begins). This potential tenant is asking to pay half the rent now and half the rent two weeks prior to move in date. My airbnb booking lead time is 31 days which makes me nervous about accepting the other half of the rent just two weeks prior to their move in date (if they decide to cancel, I'm past my booking window to be able to fill those days on Airbnb). Would love some thoughts from the MTR/STR folks. Thank you!

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Jeff Langley
Member since 2021 · 167 posts · 141 votes
9mo

I do 7 night minimums and that attracts a lot of 30+ day bookings. Most of the 2-6 month stays start with an OTA booking, and then transfer to a lease if needed.

I’d have no problem with half rent now and 2nd half 15 days before move-in. It’s a win-win in my eyes, if they don’t pay the remaining balance then I get to keep the half with no expenses occurred  and could possibly book those dates going forward. Now, I don’t root for that situation but i also have no issues following the contract. 

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  • Jeff Langley
    Member since 2021 · 167 posts · 141 votes
    9mo

    I do 7 night minimums and that attracts a lot of 30+ day bookings. Most of the 2-6 month stays start with an OTA booking, and then transfer to a lease if needed.

    I’d have no problem with half rent now and 2nd half 15 days before move-in. It’s a win-win in my eyes, if they don’t pay the remaining balance then I get to keep the half with no expenses occurred  and could possibly book those dates going forward. Now, I don’t root for that situation but i also have no issues following the contract. 

    2Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    9mo

    I concur with Jeff.

    1Reply
  • Ashley Bitner
    OP
    Member since 2022 · 77 posts · 43 votes
    9mo

    Thanks @Jeff Langley and @Mike Grudzien !

    Ok, silly question, as this is my first time drawing up a lease (I'm using turbo tenant) but does it need to be spelled out in the lease that once signed, they are not allowed to cancel the reservation and/or receive any type of refund of rent paid? Or is that sort of implied in a lease? (I'm having a hard time not looking at things through a STR lens, ha!)

    1Reply
    • Jeff Langley
      Member since 2021 · 167 posts · 141 votes
      9mo
      Quote from @Ashley Bitner:

      Thanks @Jeff Langley and @Mike Grudzien !

      Ok, silly question, as this is my first time drawing up a lease (I'm using turbo tenant) but does it need to be spelled out in the lease that once signed, they are not allowed to cancel the reservation and/or receive any type of refund of rent paid? Or is that sort of implied in a lease? (I'm having a hard time not looking at things through a STR lens, ha!)

      I use a standard LTR lease. In your case, i would add in a line how first months rent will be paid and then what happens if it’s late. 

      i can share my standard LTR lease doc and you can edit as needed. 
      2Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    9mo

    Not related to your question, but suspend your OTA listings when occupied by an MTR tenant.   I failed to do this and my unit fell way down in the search results.   It took a couple of months to get to near where it had been before being off the market for 6 months with an MTR tenant.

    Good luck

    1Reply
    • Ashley Bitner
      OP
      Member since 2022 · 77 posts · 43 votes
      9mo
      Quote from @Dan H.:

      Not related to your question, but suspend your OTA listings when occupied by an MTR tenant.   


      Ohhh I hadn't thought about that!! Great tip. Thanks 

      0Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    9mo

    I use my LTR lease and modify it to cover MTR, which addresses when funds are due. I require a $1000 deposit to hold the property and the month’s balance is due 15 days prior to the lease starting. I think asking for 2/2 upfront is reasonable. Since, most states treat LTR the same as MTR you need to utilize the same stipulations in your lease. I also don’t allow them to book months in advance as that could eliminate bookings or leases in the meantime.

    Make sure you know the laws in your state regarding security deposits and regular deposits if applicable.

    1Reply
  • Rosston Smith
    Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
    9mo
    Quote from @Ashley Bitner:

    I'm considering turning my STR into a MTR during these slower months. I just had my first applicant, for a month in the spring. For those of you who do this hybrid model - do you collect the entire month's rent in advance (even if the booking isn't for a few months from now) Do you specify in the lease that the month's rent is non-refundable (to protect in case they ask to cancel after they have paid but before the stay begins). This potential tenant is asking to pay half the rent now and half the rent two weeks prior to move in date. My airbnb booking lead time is 31 days which makes me nervous about accepting the other half of the rent just two weeks prior to their move in date (if they decide to cancel, I'm past my booking window to be able to fill those days on Airbnb). Would love some thoughts from the MTR/STR folks. Thank you!


    Either way works, we normally collect full payment no later than 7 days in advance. You can certainly accept half up front, and half prior to check in.

    or, better yet, accept full payment at the time of booking. I've placed reservations where 50% was due a year in advance. Its perfectly acceptable to have more aggressive payment policies. 
    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    9mo

    As a STR Property Manager by default I market every property as both STR and MTR. This is achieved through proper discounting of the property for 7+ and 28+ night stays, as well as putting properties not only on Airbnb and VRBO but 15+ platforms including Zillow and Furnished Finder. When occupancy is at its highest so is price and the average stay falls, and in the slowest months the price falls and average stay length increases. We also adjust the discount amounts by month/season.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • Andrew Street
    Member since 2019 · 1k+ posts · 292 votes
    9mo

    Most hybrid STR/MTR hosts collect the full first month up front to hold the dates, especially if the stay blocks your Airbnb calendar. It's reasonable to treat that payment as non-refundable, or partially refundable, once the unit is taken off the market.

    1Reply
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