All Forum Posts by: Priti Ag

Hi All - I know that in general it is a good idea to avoid HOAs for STR/MTR rentals. In the Bay Area, most HOAs actively restrict less-than 30 days rentals in CC&Rs, and can have % rental caps on units which may make MTRs difficult.

Has anyone been in a situation where they acquired a condo and operated it as an STR when the HOA did not make the exclusion in their CC&Rs, but then faced resistance from the HOA? What did you do in that situation?

@Miguel Del Mazo - Thank you - I know about the STR loophole. I am looking to understand if there is a way to make MTR income/losses classified as active income (rather than passive) when you do not have REPS status?

Hi - are there any scenarios in which mid-term rental income/losses can be considered as active income rather than passive, besides when one has REPS status? Thank you.

Quote from @Landon Mizuguchi:

Quote from @John Pipitone:

I have a fully furnished home I want to put on Air BnB. I understand there is a maximum of 180 days for STRs in San Jose, CA. If anyone has a STR here, can you share what you do to maximize revenue after it has been rented for 180 days? Or is it better just to do a MTR? Thank for any advice.

Yes,, have STR in San Jose and can share some tips. I don't think MTR is advised.

 Hi @Landon Mizuguchi - why do you not advise MTRs in San Jose?

Quote from @John Pipitone:

Thank you for your response. I would like to put it on air BnB full time 365 days a year to take advantage of the higher rent price. But San Jose doesn’t allow you to rent your home as a short term rental for more than 180 days. I need the asset to perform 365 days of the year, so I am exploring medium term- 1 month medium stays. If you are familiar with the San Jose area, do you think this will work? It’s 2 bedroom, 2 full bathrooms, 1500 sf, fully upgraded and fully furnished.

Hi John, is your property an apartment/condo or a SFR? Do you have an HOA and if yes, do you have a grandfathered override of being able to do STRs? From what I can find, all HOA based properties in San Jose have restricted STRs per AB 1452, even though San Jose as a city allows STRs.

Thanks All for the feedback. Sounds like the kind of demographic/demand in north San Jose is more suited to MTRs while still providing the option to fill interim vacancies with STR using the 180-day limit.

I have another question - Section 4741 allows HOAs to prohibit STRs of 30-days or less. The few condos to come on the market that I've talked to recently, all have this restriction in place. Does this in general eliminate the possibility of doing part-time STR in condos? Has anyone had a different experience with HOAs or has any solution to getting around this?

Hi @Wilson Lau - do you have any knowledge of STR demand in North San Jose zip codes specifically, for example Berryessa? Thank you.

Is anyone doing MTRs in the North San Jose area and using their property both for STRs and MTRs within the same calendar year based on demand, seasonality, etc.? Any best practices or things you have found that have worked well for you?

Hello Nick, 

I am starting to explore the MTR space, and would like to position my property in the Bay Area to large tech companies. Can you please help me understand the following:

1. You said in your original post you targeted local companies but a large corporation reached out to you directly to sign a lease. Were these local companies property management companies that work with large corporations? How did the corporation end up reaching out to you directly?

2. What is the profile of this tenant for 6 months that the corporation is placing in your rental? Are they an executive, an employee on 6-month business travel, etc.? Is your rental furnished or unfurnished? I am assuming you got a better monthly rate with this direct deal?

Thanks,
Priti

Hi Jamie, thank you.

How do you target mid-size companies? How do you find contacts, reach out, market and then maintain your relationship with them?

Priti