Getting Started on a single STR

[Nik Gernhard]

We are in the process of closing on a house that we are going to make a short-term vacation rental.  This is our first rental property of any kind.  

Since this is only a single STR, we were weighing the option to self-manage or not. We live about 4 hours away from the property and have full-time jobs, but I have a bit of flexibility during my day. Nights are relatively open to address any issues and communications. It seems like plenty of folks self-manage multiple properties along with working other full-time jobs and raising families while living half-way across the country. The key appears to have "good boots on the ground". In other words, find a great cleaning service and you are 80% there. Also need handyman or plumber/electrician etc. Most of the work to self-managing appears to be front-loaded, but after getting things initially set up there really isn't a drastic amount of time or effort involved, especially with only one property.

My main questions are about record-keeping and running the business end of things. With a single property, do people start an LLC? Also, should we use Quickbooks or some other software to help keep track of everything? Also, it seems like putting the property "in service" as quickly as possible would be most beneficial with regards to tax benefits. Do people put properties in service ASAP even if they don't yet have all the upgrades you envision for the house?

Thanks

[Bruce Woodruff]

What they said. I personally would not but the property 'in service' too early......wait until it is in prime shape. You may get poor reviews, or less than 5 star reviews, and that sets a bad tone and will take a while to recover from. Just take your time and get the place looking and performing as well as possible.