Should I do long term rental or short term rental?

[Jason Lopez]

hi, I'm not sure what is best. Should I do long term rental or short term rental? 

Someone try another platforms beside of Airbnb here in San Antonio, TX?  

Any recommendations, please. Thank You.  

[Erik Estrada]

What is your goal?

[Jason Lopez]

Hi, I'm looking to obtain my first real estate investment for rent. 

[Jeremy Rosen]

Quote from @Jason Lopez:

hi, I'm not sure what is best. Should I do long term rental or short term rental? 

Someone try another platforms beside of Airbnb here in San Antonio, TX?  

Any recommendations, please. Thank You.  

If I’ve got the capital to furnish and decorate a property to compete in San Antonio, then do STR. Otherwise, do LTR. I’m an STR for 17 listings in San Antonio and you gotta compete, especially if you’re getting a standard 3/2 house. 

[Marian Huish]

@Jason Lopez who's going to manage it? Are you going to pay a company or do it yourself? And STR is much more involved with high turnover rates so you'll not only need to post the listing but know how to keep it competitive so that you maximize bookings, of course, furnishing it, keeping supplies, restocked, cleaning, maintenance, And what about consideration to any local STR rules and regulations? How reliant are you going to be on the cashflow? if you need something steady every month, go long-term. STRs also involve more risk in regards to property damage, increased wear and tear, etc. If you hire a professional management company, then that of course will also eat into your profits. Talk to more local homeowners, property managers & Realtors on this one. Good luck!

[Gregory Schwartz]

If you plan to self-manage and can find something within 15 min of your home or work then STR is a good move.

If the area you're investing in is more 15 min or more away I would recommend LTR.

However, all that changes is you plan to hire a PM. 

All 7 of my STR are within 5 miles of my house

[Adam Bartomeo]

I would not recommend an STR for a first investment. They are a lot of work and the revenue is inconsistent. LTR are much easier for a beginner and the income is extremely stable.

[Tyler Elliott]

It depends on many different factors. Are you looking for consistent income? Are you ok with being cash flow negative at different times of the year? Is the property you are looking at/own able to be a short-term rental? 

If this is your first step into real estate, I would suggest finding a home that needs minimal work and is in a good rental market.

[Melanie Thomas]

For a first investment, I recommend long-term rentals for more reliable income. Feel free to reach out if you have any questions about professional property management in San Antonio. When you start identifying potential properties, be sure to check out our website. We have a great tool that provides estimated monthly rent, which you can use in your calculations. Good luck & happy investing!

[Jacopo Iasiello]

Depends on your goal and resources

[River Sava]

Hi Jason - Good question, it really is going to depend on your goals and rental market which, I know, is a vague answer. 

LTRs provide stable, consistent income with less turnover and typically lower maintenance. STRs can yield higher income but require more management, including frequent cleaning and guest communication. As others have mentioned, an LTR seems to be a smoother gateway into investing.

Have you been working with any local experts in the area (realtors, lenders, etc)?

[Alecia Loveless]

@Jason Lopez I essentially did STR for about 25 years before it became popular.

I’m over the headaches of it now with constantly having to communicate with guests, cleaning units, getting reviews, and constantly having weird maintenance issues and lots of turnover.

I only do LTR now and live everything about it. I spend about 6 hours a week on my LTRs, I have 25 units and am buying more. Most of that time is spent on my weekly visits to each location to make sure they don’t need trash picked up and to make sure the lawn or snow removal is being done correctly.

Obviously there’s times when there’s more work to be done such as when I have a turnover. Most of the labor expenses I have budgeted for to outsource when I purchased the property.

I vote you go with the consistency of a LTR for your first property.

[Basit Siddiqi]

Long-term rental and a short-term rental are two completely different business/investments.

You should understand what each requires and see if you are comfortable with them.

Short-term rentals, on paper, generate more income but require more work. Are you okay with the extra work that is required.

[Chris Rich]

Quote from @Jason Lopez:

hi, I'm not sure what is best. Should I do long term rental or short term rental? 

Someone try another platforms beside of Airbnb here in San Antonio, TX?  

Any recommendations, please. Thank You.  

Like others have said, figure out your goal first.

Personally, start with LTR and then if you want to diversify into STR go for it. But I would also say it's highly market specific. I won't get into STR until I have a LTR portfolio large enough to supplement the inconsistencies of STR in my market, if at all. I don't want to be in the hospitality industry.

[Roshni Na]

Hi I am Roshni and I am looking to get a rental property in San Antonio, Tx. However, I would like to know about the developments going on there, rent and house appreciation in 5 to 10 years and I am looking for LTR.

[Edward Zachary Samperio]

Hey there!

Great question. Both long-term and short-term rentals have their pros and cons, especially here in San Antonio.

Long-Term Rentals:

- Stability: With long-term tenants, you have a more stable income and fewer turnover costs.

- Less Management: Once a tenant is in place, there’s typically less day-to-day management required.

- Consistency: In neighborhoods like Northwest and Northeast San Antonio, long-term rentals can offer consistent demand due to local schools and businesses.

Short-Term Rentals:

- Higher Potential Income: You can charge more per night, especially during peak tourist seasons.

- Flexibility: If you want to use the property yourself occasionally, you have that option.

- More Work: Managing a short-term rental requires more effort with frequent guest turnover and maintaining high standards for reviews.

As for platforms, Airbnb is popular, but you might also consider VRBO or Booking.com for short-term rentals. Each platform has its own audience and advantages.

Personally, I'm leaning towards long-term rentals because it aligns better with my goals for stability and lower management effort. But ultimately, it’s about what fits best with your lifestyle and goals. Whichever route you choose, getting started is the most important step.

Hope this helps, and good luck!

[Jacopo Iasiello]

Set your goals first 

[Thomas M.]

Lots of great input in this thread. I have done both and I think long term is better these days. The main reason is because local governments are getting quite aggressive trying to shut down STRs and creating new taxes etc for them. I think there's still money to be made but it's going to get harder and harder. Neighbors are hostile too. People really hate STRs.

[Tucker Billimek]

Howdy @Jeremy Rosen I currently operate one STR in the heart of SA. With my management skills, furnishings, and location, It leans to be in the more profitable side than I presume STRs in places that don't have major attractions immediately nearby. With 17 listings sounds like you might have STRs across the city.

I'm curious as to what your occupancy rate is + margins are in areas that aren't the immediate central area(Think Pearl) or La Cantera area. 

I am looking to learn more than anything. Thanks!

[Timothy G Dunson]

Quote from @Jason Lopez:

hi, I'm not sure what is best. Should I do long term rental or short term rental? 

Someone try another platforms beside of Airbnb here in San Antonio, TX?  

Any recommendations, please. Thank You.  

 Hey Jason I sent you a connect request off a different post. I believe I can be a resource for you here in San Antonio. We have deals and lenders ready to go. Let's connect!