Reserves and Expenses for STRs

[Jonathan Ruths]

Does anyone find that STRs have higher need for repairs than long term rentals?  When analyzing, what percentage of gross income do you set aside for cap ex and maintenance?

[Tyler Solomon]

Jonathan - typically STR's will have higher need for repairs than long term rentals as there is greater turnover, and thus greater opportunity for both wear and tear and bad tenants that occupy the space. However as with most things, this is not exclusively true. One poorly vetted LTR tenant can cause absolute havoc on a property (there are horror stories posted through out the site on this).

Below is a solid post that might help answer your questions

https://www.buildyourbnb.com/b...