Longer-term STRs (28+ days)

[Adam Arkfeld]

Is anyone doing STRs exclusively for 28+ days?

I have an STR in Mesa, AZ, and got a longer-term tenant from January through February who is paying me close to $6k per month. This is about $1,500 more than I get with the normal nightly rentals. I actually had another tenant from March to June at about $5,500 per month, but I allowed them to cancel due to a terrible family tragedy that changed their plans.

Currently, I've restricted my rentals to be 28+ days to see if I can consistently get longer-term renters. It's a fairly decent home in an average neighborhood, but nothing special. I think I'm hoping to prove that those two bookings weren't some fluke (although one was cancelled). 

Is anyone else doing 28+ days in a "normal" suburban neighborhood as an STR strategy?

[Doug McVinua]

@Adam Arkfeld As an Arizona Property Manager I only manage rentals that are a minimum of 30-day rentals. One reason is that less than 30 days starts to fall under the Taxation Rate of Hotel/Motel Short Term Lodging. Plenty of people in the shorter term business, it's just not our expertise.

Everything has its pros and cons, I find that the turnover and vacancies in many short-term rentals kill the yearly return. Many have great short-term returns but some vacancies in the summer can eat that up. Some short terms do great if it's in the right area of the city, Old Town Scottsdale, etc does really well, San Tan Valley not so much.

We have also done well with furnished rentals in 30 days or longer buckets, the returns can be great.

Happy to answer questions or be a resource for you.