Opinions on the Recent Wave of STR Entreprenuers

Opinions on the Recent Wave of STR Entreprenuers

Investor · Cincinnati, OH · Member since 2017 · 13 posts · 2 votes

As many landlords are aware following Covid, there has been an uptick in "catch up" travel as lockdown restrictions ease. Among other effects, this has led to an increase in RE investors in some markets looking to rent from landlords and then sub-lease through Airbnb, VRBO, etc.

What are your thoughts/comments on the subject?

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Investor | Syndicator | Instructor · Cincinnati, OH · Member since 2008 · 435 posts · 198 votes
5y

It can work in many places but you must be able to sublease in your rental agreement 

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  • Investor | Syndicator | Instructor · Cincinnati, OH · Member since 2008 · 435 posts · 198 votes
    5y

    It can work in many places but you must be able to sublease in your rental agreement 

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    5y

    A number of investors in my area switched over to long term rentals early in the year. There weren't so many people traveling, and there weren't very many houses near me for rent as short term rentals. I didn't do that, and kept mine going. My long term renters were paying, so no need to change that up. By not getting out of the STR side, I have another year of ratings on both AirBnb and VRBO, a number of guests who were pleased with the opportunity to stay in Florida during the difficult year (many couldn't go to their home states because someone back home was ill, so they stayed longer with me). Many of the competition have remained out of the short term market, yet demand is high.

    I can't see the investors who are looking to rent from landlords; I have never had an investor approach me regarding renting one of my rentals, on a quest to sublease my houses.  What I can see is the bookings I have on my calendar and how crazy high my nightly rate is now.

    I suggest you post on the short term rental forum for more answers to your question.  Kerry

  • Investor · Cincinnati, OH · Member since 2017 · 13 posts · 2 votes
    5y

    Thanks for the advice @Kerry Baird. I've been debating the merits of STR vs investing in a buy and hold/traditional rental. The work involved in STR is more significant, but so are the potential returns (and risk).

  • Investor · Cincinnati, OH · Member since 2017 · 13 posts · 2 votes
    5y

    @Kerry Baird @Bill P. as landlords/RE owners, if you were to be approached by someone looking to utilize the Airbnb/VRBO models in one of your units, what would be the criteria that would convince you to lease to that individual vs. doing it yourself, or leasing to a traditional tenant?

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    5y

    I like to make the extra money myself.  :D  I also found that some of my rentals are not in municipalities that allow the short term rentals.  And some are not the kind of houses that I think would do well as short term rentals, because I have them geared for a certain type of tenant, they are currently under long term PM, and I don't want to kit out 9 houses in another State, learn the law there, blah, blah, blah.  I will purpose choose the next few houses for the short term side, and keep the long term ones for more stable income. 

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