STR - To use property managers or not?

[Sam Slivinski]

Hey guys,

My wife and I are getting our single family home ready to be a short term rental. We are in Connecticut and we have contacted Itrip about running the STR. We will be living in the area, so managing it ourselves is a possibility but I am a business owner and involved in other real estate projects so I am worried about having the time to manage the property. What has been your experience with STR managers, specifically Itrip or what has been your experience managing your own short term rentals?

[Joe Splitrock]

@Sam Slivinski if 25% would put you in the red, odds are good your market isn't great for short term rental. You are probably better off doing long term rentals. You will make less money, but have far less expenses and it is very passive.

I understand running a STR is the trendy thing to do, but there is already a shift happening back towards hotels. If you are not in a desirable vacation area, I would reconsider your strategy. Having run LTR and STR, I assure you that STR are very time consuming in comparison. They are also very time sensitive. You need to coordinate quick turn around on cleaning and repairs. You also need to worry about good reviews, so you don't tank your business. You have added expenses like utilities, lawn care and snow removal. These expenses can add up quickly and suddenly long term rental is more profitable and less hassle.

Can you share projected STR gross income versus LTR gross income?