New STR property expenses?

Question

I have a duplex in Columbus, Ohio, which I am planning on turning into a short term rental. It is a 100 year old home, but it is in good shape. The kitchen and bath were remodeled this summer and the entire unit was painted. I plan to make this a STR and do the same with the other side when the tenants on that side move out.

I am curious about expenses. I am budgeting about $6000 for furniture, bedding, towels, etc. It is a 3 bedroom 1 bath apartment. I imagine there will be some more expenses for deep cleaning as well as a punch list of items that need to be addressed after the management company does a walk-through. I figure about $500 for that. I imagine there is a "start up fee" for things like new locks, pictures, advertising, permitting, etc, so $1000 for all of that. I also know that I will need to budget for gas, electric, water, internet, and cleaning between guests.

What else might there be? Do I need a different type of insurance from what I had when it was a long term rental?

Remington Lyman · Answer

@Benjamin Vail is an expert on this kind of stuff. He manages two of my units (soon to be 3) in Columbus, Ohio

Robert Ellis · Answer

Auctions are a great way to pick these items up without paying the retail price for some furniture that's going to get pretty beat of overtime. In my experience guest staying in STR don't care too much about the belongings in the house and the wear and tear is more prevalent than with renters.

Paul Sandhu · Answer

You can furnish it for under $1000 if you buy things from estate auctions. I've got a 16' trailer, a truck and an appliance dolly. I buy the 4 major appliances and furniture for the living room and bedrooms for under $1000. Sometimes it takes as long as 2 weeks to go to 2 auctions to buy everything. Smaller things like linens and utensils come from Wal Mart.

My STR tenants are ruffians. They don't care if it's used. My STRs are decorated like Hugh Hefner's Mansion, but that is for another thread.

John Underwood · Answer

$6,000 doesn't seem like enough to buy living room furniture, TV's, beds, matresses, kitchen equipment, sheets, pillows etc unless your getting everything second hand.

Yes you will need a commercial insurance policy from CBIZ, Proper or Foremost. I found Foremost to have the better price.

New STR property expenses?

New STR property expenses?

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