New to short term rentals... anything we're missing?

Question

Hi all,

We're looking at perhaps STR'ing our place in the NY hudson valley area. I think the major questions are:

1. LLC or single owner. If we have 2m$ personal liability cover specifically for STR, is there any benefit to LLC? It certainly makes things more complex, and there don't seem to be tax or other advantages.

2. Insurance. I'm having a hard time finding NY available STR insurance. Proper are on the case, but are there recommendations for alternates? A lot appear to be white labelled 'slice' which doesnt serve NY (or this zip code anyway) yet.

3. Management systems; I guess there's a bunch to look at; porter seems popular. Any existing things to read, or is this a bunch of painful primary research? Thanks ;p

4. Other....? Not sure if we've really thought of everything we need to - happy to go read.

Many many thanks,

Matt & Laura

Sean McDonnell · Answer

Spend this downtime educating and building your systems. After all this is over, I have a feeling the STR market is going to bounce back fast. Make sure you have everything in place so you can catch the wave!

Gerald Pitts · Answer

PMS thread

Research photographers that have done this kind of work in your area. Listings with pro photos stand out 1000% imo. Lots of great advice on this forum. Agreed about it being a great time to learn. Welcome!

Doug Pintarch · Answer

I agree with Sean here, we're in a beach vacation market and literally closed on our second unit there on the 30th of March, right in the middle of the state enacting non-resident travel restrictions.  Can't wait for the summer!

One thing we learned after our first one...think of it like you live there right now.  EVERY SINGLE THING that you reach for in your house needs to be there in that rental.  Plenty of knives and forks, spatulas, a strainer, toothbrush holders, iron and ironing board, coat rack or hangars in the closet, coasters on the end tables.....all of it!

Makes getting a 5-star that much easier.  "They even had an iron!!"

Good Luck!

Luke Carl · Answer

BP Podcast #364

Nancy Bachety · Answer

@Matt Collins Perhaps by now you've read some more on this forum and answered some of your questions. LLC status does seem to complicate things and a liability policy is what you are really after. Foremost and Proper are popular in the STR industry and they will cost you more than a regular homeowner's policy but they provide the coverage you are looking for and need. Also try your local insurance broker. Hudson Valley is home to other STR's and they might be able to provide coverage as well. Form a network with other area hosts, your competition. Contact them on the platforms you'd use, airbnb, vrbo, etc and ask them your questions. Be candid and tell them you are considering hosting, let them know why you are asking. Will you self-manage? Most folks on this platform will support that. Using automation, with iGMS or myporter, is helpful but if you are brand new you will learn a lot first by messaging within your chosen platform first. Again, read through the STR forum. The more you read, the more questions you'll have and the more you'll get answers for. Locks, video, cameras, thermostats, cleaners, pricing, etc. Good luck. It's a great time to learn.

Michael Baum · Answer

Hey @Matt Collins, welcome to the forum.

Do you have the house fully furnished? All the linens and such? Well stocked kitchen? There are a ton of things you need to sort out.

How about cleaners? Handyperson/maintenance? Any zoning restrictions?

You could try Foremost for the insurance.

No need for an LLC IMHO.

Go read a bunch of the forum. Many questions are answered there.

John D. · Answer

Since you own the property outright, an LLC is probably worth it.  Or borrow against the property so it is less of an attractive target.  Or both.  You didn't mention your net worth or holdings, but assett protection is most important for people that have assets to protect.

Regarding insurance, a local competent broker is often the way to go, they can shop your policy to all of the majors, and the couple hundred bucks or less it will cost you is well worth it.

Ken Latchers · Answer

insurance.. also CBIZ

Foremost not in PA, for example. also talk to your independent agent. They usually have a few possibilities

John Underwood · Answer

Then I would put this in an LLC.

Talk to a local attorney about asset protection.

I have a trust that owns a master LLC, it owns individual LLC's that owns each house.

Matt Collins · Answer

thanks. No mortgage outstanding though.

New to short term rentals... anything we're missing?

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