Hi my name is Darin. I'm an investor in the Cincinnati Ohio area. Like many of you, I'm actively building my portfolio. My partner is in marketing, and often shares real-estate related posts from social media outlets with me (especially TikTok). Among many of the topics, I'm starting to see noticeable trends in customers discussing AirB&B and similar markets. The general consensus being, "we feel ripped off, we're going somewhere else". In one example, a resident of a luxury neighborhood shared video of 3 neighboring properties that have been vacant for months, where before they were rented out rather frequently. Certainly, STRs will ebb and flow in tenant occupancy but I have to wonder if the STR market, outside of well defined tourist destinations, could be in trouble. Social media has tremendous power in that it illuminates our pedestrian experiences on the daily, in real-time, and in some cases have detrimental implications towards brands that have been well established like AirB&B. Not in-any-way trying to single AirB&B out... It's just one of the examples in the stack. Despite the criticisms I still want to participate in the STR market. So that's the informative part... Here's the question....
I'm interested in your feedback as to how you mitigate risk when you have STRs that are underperforming?
Great post, and interested to see what others have to say.
I am not in the STR market, but I would feel very uncomfortable in the STR space if the property would not ALSO cash flow as a traditional long-term rental unit. I think that's the best possible defense. Multiple exit options.