So Cal - Considering getting into STR, is it really worth it?

[Richard Chover]

We are considering getting into STR with one of our properties in the Murrieta/Temecula area of southern California.  Our experience is with LTRs so we are a little hesitant to do a STR given the uncertainty of the monthly revenue.  

The property is a 5 bedroom that should sleep 8-10, with a pool, kids playset, and pickleball/basketball court. Our research says that we should be able to rent on a STR basis for about $350-450 per night. Without boring you with our analysis, at a 50% occupancy rate it would net us about the same as renting it out long-term.

Every time I have analyzed converting one of our LTR into a STR the numbers have always looked better as a LTR. Have any of you found the same to be true, or are the STRs incredibly profitable and I am just not understanding the economics of STRs?

[Eric DeNardo]

@Richard Chover,

You're in a good area for it with the wineries and casino. I say go for it and see how it works out. First, get your systems in place - automated messages, check-in/check-out experience, find a great cleaner, supplies, and make the place look nice and take great photos. Its more work and you have to be available to answer questions for guests and have pride in giving an great experience for guests.