Lux Short Term vs Long Term Rental

[Grey Stone]

What would you do if you inherited a luxury property with no mortgage? This is a home you intend to keep forever and leave to your children. Would you do short term rental (airdna estimates $88k gross per year at 55% occupancy rate) or long term rental at $60k gross per year? What are your thoughts?

[Luke Carl]

There's a lot more to this. Your position in life for one. 

First thing that stands out to me is that 88k is not luxury. In my markets that's a 1.5 bedroom with painted cabinets. Also not a good idea to go advertising "luxury" because you're just inviting in a bunch of complainers that will complain it's not "luxury" enough. "3 stars the host didn't rub my feet."

Is this thing in an area that is short term friendly? There are few places that are. So that's something to consider.

Based on your limited info my answer would be sell it, but it sounds like the trust or will is preventing you from doing that. So my second answer would be put a tenant in it. 88k gross on short term includes cleaning and utilities. So by the time you factor that in the 28k difference probably isn't worth it. Please keep in mind in short term if you're not managing you're breaking even if you're lucky.

Again, would need WAY more info to give qualified answer. Hope this helps.