have long term tenant in los angeles but would consider short trm

[Wadood Jumriani]

hi guys, i have long term tenants in torrance and inglewood collecting 1600-1800 while investers in the area are renting 100-150 dollars a night plus service fee .please give me some advice as im a full time landlord waiting for some help thanks

[Kevin Lefeuvre]

@Wadood Jumriani I am both a LTR and STR land lord and here's what you need to know:

1) STR is a DIFFERENT BUSINESS. It's a business within the hospitality industry. As a matter of fact there are more and more hosts who don't even own the property.

2) Running a STR is a JOB requiring time AND skills such as : Tech savvy, Project Management, Multi-tasking, customer facing similar to retail, etc... Not a passive income thing like in LTR. I like it, but this is not for everyone. Don't count on STR property managers. They ask 20-30% of the income which is basically why you want to go STR at the first place. Also think about it: there is a reason they ask 3 times more than a PM in LTR... because it's a lot of work.

3) City of LA is about to release an ordinance on the subject, finally. Right now STR is officially illegal but practically tolerated. Restriction rules will be announced soon. Most investors in Anaheim and Palm Springs had to shut down after city bans.

4) Refi of the property is much harder (maybe it's because lenders know all the above).

Make sure you read this post from a LTR landlord who tried airbnb.

Now if you enjoy designing a new house, furnishing it, interacting with guests, playing with the pricing and other parameters on airbnb/vrbo and having the property available in case of sale or personal use, then STR has great benefits.