STR Owners With Multiple Properties

[William Thompson]

STR Owners With Multiple Properties: The "Grouping" Election That Can Make Material Participation Easier

If you’re a short-term rental investor, you probably already know the headline rules:

- Average guest stay of 7 days or less
- Material participation in the activity

That's the foundation behind the STR "loophole."

But here’s where people get stuck — material participation can be tough to prove when you have multiple STRs and your time is spread across them.

Here’s something many investors don’t realize:

- You may be able to use a grouping election (often called the Group 4 election) to treat multiple rentals as one combined activity.

When done correctly, this can make it much easier to meet material participation because your hours across properties count toward one grouped activity instead of being split up property-by-property.

It's not automatic, and the paperwork/timing matters — but for STR owners with more than one property, it can be a big deal.

STR investors with multiple properties — have you ever looked into grouping your rentals for material participation?

If you want to understand how the grouping election works and whether it fits your situation, DM me “GROUPING”and I’ll help clarify the right direction.

[Andrew Steffens]

Interesting! I had not heard that before.  However most of my clients are buying and focusing on one at a time, but Ill keep this back pocket should that change.  Thanks for sharing!