All Forum Posts by: Kevin Lefeuvre

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. 

Oh Condo = HOA.

Be ready for a fight with your HOA too.

@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.

I have paid between $300 up to $620 for properties in the range of 1500-2200. Better experience with the more expensive even though it hurts the pocket.

The Math approach @Chris Mason shared has nothing to do with STR. It can (or can't ) be used in a LTR in the exact same way. Have no idea why some brokers/lenders accept the 2nd approach not all.

@Brandon Battle @Tyler Stamets

Just wondering how the situation evolved in OC around Anaheim since last year?
I don't see any new ordinance in Buena Park, am I correct Brandon?

What were your findings Tyler?

None of the lenders I have worked with in the past accepts airbnb income. It IS a problem. Hopefully some time down the road things may change. I'm sure you can find some, at a higher rate. Their point is: airbnb income is unpredictable and unstable due to changing regulations.

Agents need to adapt their services to add value in the new digital world, or just get out of the way.

I have not been using any buyer agent in the past 5 years when buying and always negotiated a reasonable flat fee, not a %, when selling in premium markets.

I've also been intrigued by the idea and would want to know how the city/County  permits are regulated, and how insurance companies cover liability for the yurts. 

... for a SFR in North Hollywood.

Thanks.