Any STR owners in the DC/MD/VA area?

Question

Hey guys, I am looking to add Airbnb/Vrbos to my current portfolio but the DC area is so competitive that it’s been difficult running the numbers to find properties that make sense. I have a pretty good system and calculator to purchase long term rentals that cash flow positively but STRs have a lot of unknowns. What if I am not booked enough in one month? Cost of furnishings? Cleaning and turnover? Management fees?

Any help would be appreciated, especially from locals who are currently doing this and seeing success!

I have also learned that I can do STR without actually acquiring properties (meaning renting), is that legal? How do the homeowners agree to let me use their units as an airbnb?

Thank you all!

Ika Sargeant · Answer

@Stephanie Assi yes a lot of counties around this area have rules that limit short term rentals. Some counties and towns are more stringent than others. I am seeing more and more rooms for rents, which I assume have longer terms. I doubt if you can do a Airbnb/Vrbos on a rental property. Most rental leases have clauses that forbid this.

Joaquin Camarasa · Answer

Hi there, I am at the same stage as you are. I am in Springfield VA our area has a lot of regulations in regards to STR. I have been looking to several counties and found there is a limitation in most of the ones in Virginia and also in DC. I am currently checking out West Virginia and Pennsylvania. I am planning to go deeper in my research in the upcoming months and be ready to purchase a second home in Q3 - Q4 of 2021. If you want to connect, the more people we know attempting this the easier it will be to gather info and base our decision in data and personal experiences.

About the second question, I believe it is called "arbitrage" or something like that and many members of the community seem to be against it based on other posts I have read. You might do some research in the forum and check pros and cons of going that route.

Russell Brazil · Answer

In an owner occupied house there is no limit. If it is a 2nd home or investment property, its limited to 90 days per year.

Stephanie Assi · Answer

@Russell Brazil

Thank you I was unaware of the 90-day limit. The inventory of STR in dc is huge does that mean they only list for 90 days? Or is there a caveat that I am missing

Russell Brazil · Answer

You can only short term rental your own primary residence in DC.  If the owner is not present in the house, you are limited to 90 days per year.  So you can not own a property that you plan to use exclusively for short term rentals in DC or rent a unit to do so.