I've been trying to investigate MTRs vs. STR vs LTR. Just curious has anyone found a way to analyze revenue from MTR vs STR? And things such as the difference in taxes, insurance, cost of start up, cost of management, etc. I'm obviously digging into each of these bits. My thought was to have an AIRbnb and allow for both STR or MTR, but based on what I'm reading so far might be easier to instead have each unit be either just a STR or just MTR for the management company fees, taxes, and insurance sake? But also just figured I'd get an idea of how those of you who do MTR have gone about analyzing the value of it and doing the initial analysis phase. So lots of questions all in one. Just haven't been able to find much on MTRs. Obviously it feels like it's done less often so that's likely why.
Rental Property Investor · Member since 2021 · 6 posts · 8 votes
4y
Determine which niche you're trying to attract to your MTR's. Some niches will pay significantly more than others i.e if you own property in a sunbelt state, you could attract snowbirds for 4-6 months of the year. I do MTR for 4-6 months and STR the remaining part of the year. Also look up monthly rates on VRBO and find some direct booking sites where an MTR guest would book directly with an owner and check their rates. Also, furnished finder and some sites that cater to "travel" health care staff.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
One big reason you don't see more MTRs is that once you pass the magic 30 day number, your guest legally becomes a tenant. So now In some states (CA, NY, NJ) they are virtually impossible to evict....
Stick to STRs.....less hassle and way more money :-)
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
4y
Look at monthly rates on Airbnb for MTR revenue...along with monthly rates at hotels (discounted or marked up depending on convenience, amenities, food, housekeeping).
Rental Property Investor · Member since 2021 · 6 posts · 8 votes
4y
Determine which niche you're trying to attract to your MTR's. Some niches will pay significantly more than others i.e if you own property in a sunbelt state, you could attract snowbirds for 4-6 months of the year. I do MTR for 4-6 months and STR the remaining part of the year. Also look up monthly rates on VRBO and find some direct booking sites where an MTR guest would book directly with an owner and check their rates. Also, furnished finder and some sites that cater to "travel" health care staff.
@Bruce Woodruff just curious with your STR do you self manage or use a management company? I glanced at your profile so I see you're retired which is awesome! Congrats on that :). It's true the STR make more money, but then there's the risk of stability and whether or not the area laws would stay that way or possibly change. However, yeah, I'm wrestling with that!! I'm just digging in to see if maybe there is a happy medium so I can do both MTR and STR. So it's the initial phases of digging in!
@Mike Dymski that's a great idea :). SO really for MTR just relying on the websites themselves not the websites that provide that stuff for you.
@Jenn Richardson ooo love this thank you! SO you do MTR + STR do you use the same place then? How does that work out with taxes and what not? Just curious if you set things up differently at all if it's a MTR vs. STR strictly. That's wonderful!! thans for the info <3
@Bruce Woodruff just curious with your STR do you self manage or use a management company? I glanced at your profile so I see you're retired which is awesome! Congrats on that :). It's true the STR make more money, but then there's the risk of stability and whether or not the area laws would stay that way or possibly change. However, yeah, I'm wrestling with that!! I'm just digging in to see if maybe there is a happy medium so I can do both MTR and STR. So it's the initial phases of digging in!
Haha, I should take that 'retired' tag off for sure! My wife and I self manage and it does take at least a few hours a week....
If you are local to your STR, I would suggest self =managing even if you don't mind the loss of revenue. It is an invaluable way to gain the knowledge of how a STR operates and functions. Once you have a good handle on what that means, then go with a PM if you must, but you're giving up 1/3 of your income.....
Rental Property Investor · Member since 2021 · 6 posts · 8 votes
4y
@sarah
@Sarah Hansen I use the same property for the MTR/STR. I adhered to the philosophy that if folks are staying for 4-6 months, they are "living" in the property as if it were their home, they bring their pets and sometimes their family visits. For example, I supply towels, plates, cups, bowls, sheets, duvets etc. as if I was living in the house (so many multiples of each thing). I have a dutch oven, slow cooker, rice cookers, baking sheets, muffin tins etc. and a billion utensils! The STR guests are always commenting on how "well equipped" the house is. I bought the home with the intention of eventually living in it myself, and stocked it accordingly. I rent exclusive to MTR snowbirds. IMO that group is low risk: they have a home they want to go back to in their home state/country so they won't be overstaying. I hope that helps.