have long term tenant in los angeles but would consider short trm

16 Replies

hi guys, i have long term tenants in torrance and inglewood collecting 1600-1800 while investers in the area are renting 100-150 dollars a night plus service fee .please give me some advice as im a full time landlord waiting for some help thanks

Could you be a little specific as to what advice you're looking for? I'm guessing something more specific than "Kick them out, put in furniture, learn to provide customer service, and put it onto AirBnB"?

actually i wanted to know if i can make better income out of my investment then what im getting now and if los angeles is a good market on airbnb and plus tenants in los angeles do require too much pampering thanks

@Wadood Jumriani I am both a LTR and STR land lord and here's what you need to know:

1) STR is a DIFFERENT BUSINESS. It's a business within the hospitality industry. As a matter of fact there are more and more hosts who don't even own the property.

2) Running a STR is a JOB requiring time AND skills such as : Tech savvy, Project Management, Multi-tasking, customer facing similar to retail, etc... Not a passive income thing like in LTR. I like it, but this is not for everyone. Don't count on STR property managers. They ask 20-30% of the income which is basically why you want to go STR at the first place. Also think about it: there is a reason they ask 3 times more than a PM in LTR... because it's a lot of work.

3) City of LA is about to release an ordinance on the subject, finally. Right now STR is officially illegal but practically tolerated. Restriction rules will be announced soon. Most investors in Anaheim and Palm Springs had to shut down after city bans.

4) Refi of the property is much harder (maybe it's because lenders know all the above).

Make sure you read this post from a LTR landlord who tried airbnb.

Now if you enjoy designing a new house, furnishing it, interacting with guests, playing with the pricing and other parameters on airbnb/vrbo and having the property available in case of sale or personal use, then STR has great benefits.

@Wadood Jumriani Are you trying to buy yourself a job? So you want to become an active investor vs passive right? I assume you’re great at taking care of customers on a daily basis ie: paying/doing laundry, cleaning, booking, answering questions, etc. And further assume you don’t have a much more paying job or if you have a job, it’s not that time demanding. right?

@Kevin Lefeuvre You hit the nail right on the head with the above post.  

I might ad that doing STRs with 2, 3 or 4 houses is not going to cut it if you want a steady income.  I have 22 STRs with 82 bed in a town of 9000.  In the last 4 years, several other people tried doing the same thing I did.  They started with one house, and I'd throw them a bone when everything of mine is rented.  They got confident and bought a 2nd or 3rd house, and furnished it with a credit card.  I'd get full then I'd throw them another bone.  

The guy ended up telling me that the only time he rents out his houses is when all mine are full.  I stopped referring customers to him and actually had some people move out of one of his houses and into one of mine.  This guy is an in-law btw.

The guy ended up converting his STRs back into LTRs, and he sold me some of his furnishings.

To add to Kevins post:

5) Promote promote promote. I have 3 small billboards up in this town, and I distribute engraved pens and personalized calendars with my STR info on it.

6) Be flexible in your pricing.  My competition wasn't. That's why he lost customers to me.

7) You are more or less on call and be ready to rent 24/7.

8) If anything breaks, you should have the capacity to have it fixed the same day.  Do it yourself or pay someone else to do it.  Evenings, weekends and holidays included.

9) Someone else in your city is going to try harder and work smarter than you with their STRs.  I'm pretty fortunate that there are only 9000 people in my town.

10) If you have debts on your STRs and furnishings, an STR is probably not for you.

thanks guys actually i do have 10 condos in southbay and inglewood. i was gas station owner but not any more and i realized that my apartments are rented around 60 dollars a day and me and my wife do have time to invest but my question is that these sites keeps your property rented or how is the los angeles STR MARKET cuz i checked all the listing airbnb and they were all booked for october snf mid november and my neibour is charging 125 plus all the fees weekend 149 and i have rented it for 1800 please advise and kevin,manolo,paul thanks for your advice

Oh Condo = HOA.

Be ready for a fight with your HOA too.

hi kevin they are all in bigger complex as i dont think it will be noticed do you think so and i checked anahiem and palm spring where ppl are still listing thier rental how come 

@Wadood Jumriani Since you have 10, and you have time to learn and diversify, convert one and if it is lucrative, rinse and repeat.

This should be a one man/woman show, it can’t be run by two people, there will be so much miscommunication or loss thereof. But converting one wouldn’t hurt, get your management system up and learn the game. It’s like any other business, presentation, marketing, and capturing the money.

@Wadood Jumriani

Find yourself a cleaning person for the STRs that does the work for free, and will also sleep with you.

I did.

Originally posted by @Wadood Jumriani :

hi kevin they are all in bigger complex as i dont think it will be noticed do you think so and i checked anahiem and palm spring where ppl are still listing thier rental how come 

 and what happens to your business plan when they do notice? What if they notice on Month 2 right after you sink all those costs in? They would be within their right to fine you as well.

hi ronald you are absalutly right but the condo asociation allows rental so does it makes a difference if short or long there is nothing written like that just curios

I had to shut down a str property in Orange County , a SFR in a community , because of HOA letters threatening with copy to the city. That after 2 months only. Some ignore and fight. I didn't.

I doubt you'll find many long term illegal hosts on airbnb. They are either new, less than a year or 2, or they are not really active, or they are in a collective lawsuit with the city with an expired permit. I am told this is the case in Anaheim and about to be in Palm Springs. 

wow i will take this in my considertion thanks

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