What is the checklist for starting out in STR

Question

For people completely new to thisThree seem obvious, purchase property (and ensure staged with furniture, kitchenware, etc, all ready to go), contract with cleaners. list property on platformsWhat are next steps?do you need to apply for a Tax ID? just starting with 1 property, should you look for an accountant?would real estate agent know about any possible licenses needed?what else should someone new to the game be doing?

Alex Pino · Answer

I would definitely recommend you open an LLC and get a bank account under it. Not only to limit yourself from liability but so you have an accurate amount of deductions for tax purposes.

Paul Sandhu · Answer

Start lifting weights and learn how to fight. I've encountered 3 intruders in my STRs the last few years. They went to jail. If you don't want to lift and fight, CCW.

Ahad Ali · Answer

Hello @Trent Reeve The other posts explain very well how to start out with a STR and I would like to add to what @Alex Pino mentioned. While an LLC is not required for a single property (or multiple for that matter) it is beneficial to further reduce liability. This may depend of course on location and other details so that is up to your disclosure or with further information and discussion with a CPA. If you do set up an LLC, you can set it up in a separate state but may be required to file taxes to that state respectively. You may also be required to have a registered agent for the LLC if it is a different state so do bare that in mind and do look into it before proceeding.You would not need a tax ID for the property if you are not getting an LLC as you as the individual would be the owner of it.Regardless of whether you go with an LLC or not, I highly agree with having a separate bank account for the property specifically to keep your transactions organized. Having a mixed account can lead to a lot of confusions in finance managing. A separate bank account also helps with when it comes to filing the taxes.

Alex Pino · Answer

You can get it out of state, but I don't know the process. For those saying you do not need to form an LLC I wouldn't pay much attention to that. Limiting liability is important, but also starting to have business credit and keeping your account separate is important. As an investor your relationship with the bank is going to be important. You also do not want to co-mingle funds. Your CPA will have a heart attack if he has to sort through all your personal accounts to also find what is business expenses.

Jason Regan · Answer

After purchaseSet up Price LabsSet up hospitableEnsure your cleaner you signed on earlier is still good and set them up with IcalVisit the property to make any fixes needed. When I visited mine I realized a lot more was needed then I thought. Replace anything that isn't working GREATEnsure you have all linens and towels there (if the one you are buying was run by a rental company they will take all sheets and towels)Set up your listing using the $4,000 methodGo LiveThis is just a very high level breakdown

Trish Mccoy · Answer

I would check on local ordinance to see if STR are allowed and if there are any restrictions. - that would be step 1There is a lot involved in stocking and furnishing your rentals too...make sure you have everything covered.Get professional photos done. Decide if you are self managing or not - if not, find appropriate people to do that. Open dedicated bank account/credit/debit card for that property.Establish relationship with handyman, plumber, etc..Get internet and TV set up

Mike Eichler · Answer

Hey @Trent Reeve For starting out in STR here is what I would doCheck out your count's web page then call or visit in person to ask to see if you would need a Tax ID.An agent that specializes in investments specifically STR should know this information already or at least be able to figure it out, if not then you probably shouldn't work with them...Other than these things, Enure that your Listing photos are excellent quality, ensure that your cleaners are actually good, and make sure that your communications to guests are super good.I have done a podcast episode on everything needed to onboard a new unit if you are interested PM me and ill send ya the link.Hope this helps, feel free to reach out with any questions, im happy to help with anything STR related as that is my specialty Best of luck, Mike

Randy Singh · Answer

Knowing STR ordinance is primary. Got to town website and search for STR regulation. Rest is secondary and you will figure out. ButTrish Mccoy has accurately answered your question.

Trent Reeve · Answer

ok, i do remember reading that. just wanted to make sure

Jason Regan · Answer

Always here to help!Remember there is also a lot you should be doing between getting it under agreement and going live. To maximize your profit you need to be able to go live as quick as possible with a great roperty. It should have anything you think is junky replaced or else you will just have guests talking about it or it breaking when a guest is there.