Convert a STR to MTR/LTR

[Sam Liu]

I have a STR house in a resort town, but the city's new stricter policies have really cut into my revenue. I'm thinking about switching to MTR/LTR with furniture included. In this area, people usually rent for 1-12 months, and the rent is 30-50% higher than unfurnished LTR. Has anyone else made this switch from STR to MTR/LTR? Did it lead to more damage to the furniture/property and end up lowering your ROI? I got an inquiry from a family with a mid-size dog.

[Zachary Deal]

Hi @Sam Liu it's fairly common to charge an additional monthly pet fee for MTRs to account for any additional wear and tear on furniture. You could also consider a small security deposit as well.

[Gabe Chase]

Great question! We manage 60+ units (Primarily STR and MTR) we had one pivot from an STR to MTR. It has been great! We haven't switched an STR to LTR just out of caution for the tenants where in tear on the furniture. If you did LTR, I would honestly do it as a midterm basis. Meaning it may not be a traveling, nurse, but definitely a shorter term lease. Not sure if I'd want to sign a one-year lease with anyone but a working professional or someone that is placed there by insurance or corporate housing.

[Allen Duan]

Hi Sam! My company manages MTRs in Los Angeles. Not sure where your property is exactly, but we find MTR rates are 50-100% higher than LTR rates. 

MTR tenants are the best tenants, better than STR and LTR. The stays are longer than STRs so of course you would expect more wear and tear and a deep cleaning after each booking. But we've rarely had bad guests who trash the place like we do for STRs.

If you're switching from STR, you should expect a decrease in ROI since MTRs earn less than STRs in general. The right way to market a MTR requires more than just Airbnb bookings. If you get good lead flow for insurance and corporate bookings, you can potentially match or make more than STR income.

Happy to help further, let me know what I can do for you!

[Sam Liu]

Quote from @Allen Duan:

Hi Sam! My company manages MTRs in Los Angeles. Not sure where your property is exactly, but we find MTR rates are 50-100% higher than LTR rates. 

MTR tenants are the best tenants, better than STR and LTR. The stays are longer than STRs so of course you would expect more wear and tear and a deep cleaning after each booking. But we've rarely had bad guests who trash the place like we do for STRs.

If you're switching from STR, you should expect a decrease in ROI since MTRs earn less than STRs in general. The right way to market a MTR requires more than just Airbnb bookings. If you get good lead flow for insurance and corporate bookings, you can potentially match or make more than STR income.

Happy to help further, let me know what I can do for you!

My house is in Palm Spring. The STRs have not been doing well. How long are your typical mid-term stay? Like Gabe Chase mentioned above, one year is probably too long? 

[Allen Duan]

Quote from @Sam Liu:

Quote from @Allen Duan:

Hi Sam! My company manages MTRs in Los Angeles. Not sure where your property is exactly, but we find MTR rates are 50-100% higher than LTR rates. 

MTR tenants are the best tenants, better than STR and LTR. The stays are longer than STRs so of course you would expect more wear and tear and a deep cleaning after each booking. But we've rarely had bad guests who trash the place like we do for STRs.

If you're switching from STR, you should expect a decrease in ROI since MTRs earn less than STRs in general. The right way to market a MTR requires more than just Airbnb bookings. If you get good lead flow for insurance and corporate bookings, you can potentially match or make more than STR income.

Happy to help further, let me know what I can do for you!

My house is in Palm Spring. The STRs have not been doing well. How long are your typical mid-term stay? Like Gabe Chase mentioned above, one year is probably too long? 

Yes, it's very rate for a MTR booking to approach 12 months. Smaller units, like 1 bedrooms, are 1-3 month stays mostly. Larger homes are 3-6 months.