STR strategy questions

[Allen L.]

Hi all,

I am underwriting a potential STR property and I have some basic questions. I'm looking to add some features to the backyard to make the property more attractive as vacation rental.

1. fire pit

2. outdoor sauna

3. children's playground

I'm looking to add all of these things, however what happens if someone slips on the playground? Passes out in the sauna? For LTRs, we do not add these things, but they seem attractive in a STR. I see people marketing properties with pools all the time on AirBnB, and the consensus on BP is that pools are great for STR as long as you carry sufficient liability insurance. This logic then follows for outdoor sauna and playground. Is this liability issue sort of a non-issue for STR?

[Bruce Woodruff]

First question to ask yourself is this - Will you regain 1) the costs of these amenities, plus 2) the added maintenance and repairs, plus 3) the cost of the added insurance? What do your competitors in the nearby areas have for amenities? This should be about money. Don't do it for fun or just to have the coolest STR around...

You can always 'insurance up', that's not the problem....it's the $ in vs $ out and the added hassles