Gateway Spaces Case Studies: Our First Short-term Rental in St. Louis

Property Details: Our first property that we converted into a short-term rental (STR) was a newly renovated 2 bed, 1 bath single family home in the Bevo neighborhood of St. Louis. We decided to try this property as a STR because the finishes were newly installed and very nice- the bathroom and kitchen had marble counters and tiling. We purchased the house for $82,000 with a $4,000 seller credit (effective purchase of $78,000). Additionally, we spent $7,500 on furniture and upgrades, including smart locks for the front door and outfitting a maid’s closet. We installed shampoo and conditioner dispensers in the shower to minimize mess and clutter. We took possession of the house in early December 2017, and because this was our first STR, it took us about 3 weeks to get it furnished for guests and listed on AirBNB. Our first guests arrived on December 26th, and I have memories of making last minute trips to Target on Christmas Day with my husband to ensure everything was perfect was for our first visitors.

Lessons Learned: My sister got married in San Juan a few days after our first AirBNB booking, and our guests had an issue with the washing machine while we were away. Luckily, my brother-in-law was able to make a quick trip over to fix the issue. This taught us the importance of having a team of folks in St. Louis (handymen, maids, etc.) in place and tight communication systems to ensure our guests needs are addressed in a timely manner.

However, by far the most important lesson we learned is that the additional hassle of STRs is worth it. On average, this property grosses $1,919 per month with an average of $379 going towards cleanings and supplies and $208 going towards utilities and internet. This brings our income to an average of $1,333 per month, which is about $333 higher than the average monthly rent for an LTR in the neighborhood. This house provides an affordable alternative to hotels for visitors to St. Louis. Although prices vary by the season, the average nightly rate is $82 and it’s occupied 83% of the time (302 days out of the year).

For more information and photos of Gateway Spaces short-term rentals, please visit https://www.gatewayspaces.com/.