Hey all! I'm looking for anyone who has experience in the STR/Corporate rental space in Los Angeles, specifically in the Hollywood area - would love to get your first-hand opinions on the following:
I have a lead on a great house in the Hollywood Hills where the owner is willing to do a master lease agreement with me. It has three rentable units (1/2 + office, chef's kitchen, view; MIL suite - no kitchen; and 2/1 unit on the ground floor) with three parking spaces. There's one premium unit, the other two are fine but nothing fancy. Fantastic location in an upper-middle-class neighborhood with great accessibility to Hollywood, Universal City, Burbank, Studio City, etc.
I want to focus on traveling professionals for mid-term stays (entertainment professionals, medical professionals, other corporate-style travelers), but am open to short-term stays as well, as Hollywood is obviously a tourist-centric area. Do any of you have experience with occupancy rates etc. that would help me determine if this is a good investment? I'm looking at AirDNA but I don't fully trust their data - I'd rather have first-hand accounts. I'm also checking comparable properties on AirBNB and VRBO.
The amount I'd be leasing the property for is still under discussion, and obviously is a key factor, but I'm trying to assemble accurate numbers from my end. It will be a sizable financial commitment (I may bring in a partner), so due diligence is of utmost importance. :) Thank you!
Julie, wish I could help you. When I come out to work as a local, I usually just use the Airbnb route and find something that gives a great monthly rate, even if the nightly is pretty steep. That may help you weed out some short-termers.
It was my experience that the studios mostly maintained housing for guest directors, out of town crew, which they controlled and booked. I did search Oakwood once, but it was so damn expensive for a month I didn't look long.
If you have 3 units, I'd suggest keeping at least 1 as a 2-3 night minimum Airbnb or VRBO, just to pay bills, then market one as furnished rental on CL or some other platform.
Richard, one of the reasons I think of targeting entertainment pros is because my landlord frequently rents out his unit to them - we've had actors/actresses and, recently, a director of photography stay in his unit for 1-3 month stays. They've all been great tenants and I'm sure he gets a pretty penny for it. So, there's a market, but how much of one is what I'm trying to pin down. (That said, it doesn't surprise me at all that studios usually provide, I'm sure they have agreements with corporate rental companies, etc.)
Re: Oakwood, I remember looking at an apartment years and years ago and being so shocked by the rate I never looked again, LOL
I'm definitely not opposed to using AirBNB/VRBO as a marketing platform for any/all of this; in fact, I plan on it. And I definitely want nightly rentals to "fill the holes" as it were - I'm just hoping to cut back on some turnover with the longer stays, for my own mental health :D
Regardless, after some reflection and research I'm virtually certain I'm going to move forward, but I continue to welcome input!
I think going long-term is great. Saves on a lot of headache. I'm pretty sure you'll keep it rented. Make contact with all the PMs and Supervisors and travel coordinators you know and ask them to recommend your place when they know people are traveling in to work.
If I head out there for pilot season I'll let you know!