Converting LTR to STR

[Cindy Craft]

In Findlay, OH we currently have one LTR that is single story, with a covered car port, close to downtown, a park, and shopping in a quiet neighborhood. The current renters are amazing and have been in there since we first listed it. However, they will be moving back to CA next December and we will be looking for new tenants. I just recently heard of someone in the Toledo area with a home very similar to our LTC, renting out as STR however, it is rented on a weekly basis to traveling employees from nearby companies. They have been very profitable and are booked for the entire year already at $1200/week.

I would like to look into doing this once our current renters move out. Findlay, OH has a lot of factories, Marathon headquarters, distribution centers, and a hospital. 

Has anyone done this? I am not sure where to begin with reaching out to the local large businesses and developing a relationship or contract. I know I will need a special license and to get a tax ID number, and it would need to be fully furnished and live-in ready. Is there anything else I need to do? 

If anyone has any advice or help figuring out the logistics of this please feel free to share!

[Rick Turman]

@Cindy Craft,

I'm not sure you are getting the answer you are looking for.  I also reside here in Findlay, and no way are you going to get 2k in rent for 2bd 2ba house unless it is a 3000 sqft home in a well known development like Lakeview and or Somerset. 

SFR and Multi have ruled this area in rentals for years and that still holds the majority of market share. Median rents just outside of downtown range from 450 for a 1b 1ba to 650 for 2bd 1 ba. That is due to the tell tale investor not keeping up with market rents and following the pack. I was skeptical of these rents after recently renovating 2 duplexes within walking distance of Marathon. To test, I marketed them as Upscale/ Luxurious living at a fraction of the cost, and filled each unit (2bd1 ba) at 850-900 within a week of the listings.

Where i'm going with this is the new renters are most likely milenials in our area either graduating, doing internship from UF, or working in town, and commute from Toledo, Lima, and or Bowling Green. Previous renters are used to the old Laminate, worn down cabinets, etc at that price point. Add a little more to it, and now they feel they are a grade above and will pay that premium.

Now getting the Market Specifics and demographics out of the way, let's talk about your situation. I haven't seen that many STR here in this area. I thought about B&B myself prior to LTR and Flips, but didn't see the market for it just yet. However given the current circumstances we are in now, is forever changing the world.

Last I checked B&B there were 2-4 listings in the area and half were booked out.  The demand wasn't that high but you could be onto something now. Perhaps starting a new trend in the area.  

My suggestion prior to reaching out to HR is to DYOR off B&B.  Reach out to others on here that are doing B&B and or contact those SuperHosts off their listings and see what route they went.  Offer those on B&B a night stay in their home in return for their time.  I doubt they have TIN's and/or businesses as you can rent out your home, not be incorporated, and still benefit from those tax saavy write-offs.  

I hope this information finds you well,or triggers another idea that can slingshot you in the right direction.  Either way you go, good luck, and continue Crushing it