All Forum Posts by: Dan H.

Quote from @Jonathan Small:

You've raised some valid concerns about California, and it's true that the state faces significant challenges. However, dismissing it entirely based on these issues overlooks several factors that continue to attract people and investment:

• Diverse Economy: California boasts a massive and diverse economy, far beyond just Hollywood. It's a global leader in technology (Silicon Valley), agriculture (Central Valley), international trade (ports of Los Angeles and Long Beach), and tourism. This economic strength creates job opportunities and attracts talent from around the world.

• Innovation and Entrepreneurship: California has a deeply ingrained culture of innovation and entrepreneurship. It's a hub for startups, venture capital, and cutting-edge research. This attracts ambitious individuals seeking to build the next big thing.

• World-Class Universities: California is home to some of the world's most prestigious universities, including Stanford, UC Berkeley, UCLA, and Caltech. These institutions attract top students and faculty, contributing to the state's intellectual capital and driving innovation.

• Natural Beauty and Diversity: While you mentioned the weather (which is undeniably a major draw for many), California's natural beauty extends far beyond sunny beaches. It encompasses diverse landscapes, including mountains (Sierra Nevada), forests (Redwoods), deserts (Death Valley), and national parks (Yosemite, Sequoia). This offers a wide range of outdoor activities and recreational opportunities.

• Cultural Hubs: Cities like Los Angeles and San Francisco are major cultural centers, offering world-class museums, theaters, music venues, and diverse culinary scenes. They attract artists, creatives, and people who appreciate a vibrant urban lifestyle.

• Real Estate Appreciation (Historically): @Dan H. points this out with his bathroom addition. While recent years have presented challenges, California real estate has historically seen significant appreciation, particularly in desirable coastal areas. This has made it an attractive investment for some, though high prices and increasing interest rates are currently impacting affordability.

Addressing your specific points:

• High Taxes: Yes, California has high taxes, particularly income tax. However, many high-income earners are willing to pay these taxes for the perceived benefits of living and working in California, such as access to opportunities, infrastructure, and services.
• Crime and Homelessness: These are serious issues in some parts of California, particularly in major cities. However, it's important to avoid generalizations. Crime rates vary significantly by neighborhood and city. While the homelessness crisis is a complex problem, it's not unique to California and is being addressed through various initiatives.

In summary: While California has its problems, it's not a simple case of "everything else sucks." The state's economic dynamism, natural beauty, cultural attractions, and educational institutions continue to draw people and investment. Whether these factors outweigh the challenges is a personal decision.

 San diego, los angeles, and san Francisco violent crime rate is low compared to most large cities outside california.  The 3 of them are below Cincinnati, cleveland, and toledo. 

The lowest city on the list on wikipedia for violent crime is irvine, CA

https://en.m.wikipedia.org/wiki/List_of_United_States_cities...

Any violent crime is too high but i travel a bit.  I feel far safer in the roughest parts of San Diego than i do in many large cities outside CA. 

People seldom look at actual crime numbers.   What they see is what their media presents to them.   A crime in a low crime area may be media worthy but the same crime in a high crime area may be just another day.

in my neighborhood (poway), kids playing doorbell ditch or riding 3 on an electric bike warrants posting on social media and dozens of comments (no exaggeration).  Must be nice that those “crimes” deserve so much attention.

It is my belief that most RE investors are best served initially investing near their home. After they have some experience they can decide if other markets are likely to suit them better.  I believe this is true for high price san Francisco and lower priced detroit and most markets in between.

Best wishes

Quote from @James Wise:

Do people still buy property in California for any reason other than the weather? Seems like everything else about California sucks. High taxes. Soft on crime. People just stealing whatever and whenever they want. Homeless people living in tent cities pooping on the streets etc.....

Why do people still go to California?

 California has the highest share if investor owned homes in the nation   So it appears that a lot of RE investors are choosing to purchase and own in CA.

https://www.corelogic.com/intelligence/total-investor-home-p...

Why do people invest in ca?  It is because of the return.

Case shiller used to publish numbers for highest residential return for large cities for this century.  I believe they have not published this in a few years now.  The last one i saw had the top 3 cities being Ca cities (San Francisco o, los angeles, san diego) because the 1) appreciation and cash flow are tightly coupled over a hold period.  So the cash flow as a percentage of investment was higher than virtually all markets that had far higher initial cash flow. There was a year a few years ago that my lical market had over $500/month average rent increase.   Imagine how that improves cash flow.  2) appreciation in high appreciation markets dwarfs cash flow in low cost markets.

This summer we did a rehab where we added a half bathroom out of existing space.  The comps showed a half bathroom in this area added ~$50k of value.  In general value adds add much more value for both the cost and effort than lower cost markets.  adding half bathroom costs only a bit more in hcol areas than LCOL areas with most of the materials being similarly priced.  The effort for the added bathroom for the rehabber is similar in both markets.   Why would one choose value adds that produce lower returns than can be achieved in other markets?

Now specific to my san diego market.   It has near lowest historical vacancy rate, delinquency rate, and eviction rate in the country.  the reality is the low vacancy rates make for tenants that take fairly good care of the units and pay on time.   Our delinquency rate is below 1%.  Eviction rate 0%.   

Many investors realize the value of investing in California RE as evidenced by the high investor ownership rate. 

However, the local Buy and hold RE market, like most areas in the country, is more challenging than most of the last dozen years. The most sure path for local RE investors seems to be with a near term exit. 

Best wishes

Quote from @Bruce Woodruff:

Quote from @Stephen Birnbaum:

Sure, California has problems but it also has amazing weather allowing for a healthier lifestyle. Without traveling far, California has ocean/beaches, mountains, skiing, hiking, desert, lakes, rock climbing, wine country, and more. It's easier to eat local produce year round and eat a healthier diet overall. 

Cali has BIG problems. Huge. And you can find everything you mention (except the ocean) in AZ :-)

 I have skied arizona (near Flagstaff).  No comparison to sierra skiing. also much shorter season.  I was there a few years ago and the resort opened at christmas break.   I suspect it was a poor year, but still.

The lakes are reservoirs for the most part.  I go to some of the basins in the sierras and can encounter a dozen large lakes in one smallish basin.  I am not stating it compares to northern tier, but a lot different than arizona lakes.

The ocean is very critical piece.   Not only is it a recreational source but it is a climate moderator.   It is why coastal Ca has so much lower temps in the summer than phoenix.  100 days plus over 100 degrees is not for me.  Especially as i have aged i find hot weather less pleasant. 

I visit Arizona and enjoy visiting.  I like the national parks and monuments, tourist sites like tombstone, the best cave in the world (karchner Cavern: i have been to all of the us competition except for Mammouth), the best slot canyons (i prefer buckskin gulch over Antelope Canyon), the wave, black canyon (i have done black canyon many times), horseshoe bend, rafting cataract canyon, etc.  But i will choose to live in San Diego. 

IMO all the CA problems add up to less than the temperature issue the Phoenix area faces.  As said already i do not like it hot. 

I am glad people are choosing to leave.  Mostly they are leaving over cost of living.  It is not cheap to live in as desirable place as san diego.  In my opinion the large population (too many people) is the biggest issue in San Diego. Each person that leaves, makes the area nicer imo.

I get threatened with a lawsuit multiple times per year.  I give these threats no thought because 1) my actions are appropriate 2) i document well 3) they have yet to follow through with any of these lawsuits 4) typically their ignorance is apparent in what they are threatening to sue for. 

You gave tenant itemized list at 5 days and have photo documentation of the items.   your actions were appropriate.  You documented well.   their threat demonstrates their ignorance of the laws and expectations.  My bet is you do not get sued.  What would they sue you for?

i would not worry about this threat at all.  

good luck

Quote from @Dionte Griffin:

How do you create a value ad without a ADU?

In most single family zoned areas adding a single ADU is not a value add meaning it will not add more value than the hands off cost of the addition. Mostly people with minimal RE experience are adding a single ADU and they often make that choice based on cash flow without taking into account the negative equity position. Many times their cash flow calculation is using flawed underwriting. It is amazing how many times I have seen the cash flow represented as rent - PITI and to compound the issue they did not realize the ADU would increase their property tax. At the end i will add a list of items why adding a single ADU in single family zoned areas may not be the best RE option.

The most common value add is via a rehab. Typically the more extensive the rehab the higher the value add. Adding paint and replacing flooring is not going to add much value in the typical case. Rehabs is how i initially scaled. If you do not know the term BRRRR, look it up in this forum. The majority of my properties achieved infinite return via a brrrr. However, in this market i find it difficult/impossible to not have negative cash flow after extracting the value add at maximum LTV. So i am not currently actively seeking brrrr opportunities (but if one fell into my lap, i would no complain).

Likely the most sure value add in So Cal at this point are lot splits.  It may be best to partner with someone that has done one before or somehow is a local expert on lot splits.

If you can add a bathroom into existing space on high cost property it can add a lot of value.  This year i added a half bathroom on a property that has a value over $1k/ft.  Statistically the half bathroom added ~$50k of value.  Due to increased rates i did not refi so i did not get opportunity to see how an appraiser valued the half bathroom but the comps with same bathroom count had crazy valuation for the additional half bathroom.

Taking under utilized space like a work area to add a br where the added br does not put you above the normal for the area can add value.

Similar if a neighborhood is virtually all 3 br and 4 br properties and you find a 2 BR, it could be a value add to add the bedroom via new construction.  Similar for bathrooms if virtually all are multi bathroom but you find a single bathroom, making it multi bathroom via new construction could be a value add.

There are more sophisticated value adds such as add multiple adus via bonus density program.  Similar areas that have legal under utilized permitted space convert to max studios that you can fit.   This usually works where there is a lot of garages.

If you have the means to solve the financing challenges a tic/coop can be another sophisticated value add.

Note this is just some value adds.  Most value adds involve work   Some require specialized knowledge.

Here is a list of why adding ADUs in my CA market is typically a poor RE investment:
1) The value added by the ADU addition is often significantly less than the cost of adding the ADU. Search the BP for ADU appraisals to encounter numerous examples. This creates a negative initial position. This negative position can consume years of cash flow to recover. Make sure you know the value the ADU will add to the property before building the ADU.
2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc). Leverage magnifies return.
3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR. However if I do a BRRRR I can achieve infinite return by extracting all of my investment. Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).
4) Adding an ADU is a slow process. It can take a year or more to complete an ADU. During this time you are not generating any return from the money invested in the ADU. This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return.
5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space.
6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties. This may affect value or time required to sell.
7) Adding an ADU does not make the property a duplex. For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy). Duplex have different zoning that may permit additional units. Duplex can always add additional units via the ADU laws.
8) Related to number 1, purchasing a property with an existing ADU is cheaper than buying a property and adding an ADU. Why add an ADU if it can be purchased cheaper?
9) adding multiple ADUs or adding an ADU to a quad looses F/F conventional financing. This reduces exit options and affects the value.
10) Small number of small units is the most expensive residential development there is. This implies residential units can be built at lower costs and provide better return.
11) adding an ADU to SFH can make the SFH fall under rent control. In CA currently only MF properties are rent controlled. If the house is older than 15 years old and n ADU is added, it can become rent controlled. Rent control laws are market specific. Make sure you know the impact that adding an ADU will have on any rent control.
12) investors seldom include the land value in the overall ADU costs. The reality is the land has value.

good luck

Quote from @James Wise:

Quote from @Dan H.:

Quote from @James Wise:

Quote from @Dan H.:

Quote from @Anthony Sigala:

I'm  looking for a mentor to guide me through my first deal(s). Hoping to close three rentals in 2025

 I think for most people a good RE based accountability group is a better investment.   Note good accountability groups are not cheap.  I know one that is $50k/year.   I know 2 people who are in this group and both believe it is worth it. 

Search this group for paid mentors and you will likely find many more negative comments than positive ones.  Do the same search n accountability groups and you will find few negative comments.  

A national accountability group will have experts in most facets of RE in most markets.  The members are typically happy and eager to provide assistance.   It is like having dozens of mentors.   Most of them are performing successful deals regularly.   When a deal goes bad it is usually easy to see some mistakes and there is usually multiple offers to help with the issues.  I think it would be a rare (and outstanding) mentorship that provides this same level of help.

Good luck

 $50k? That's crazy bro.

 At first observation i agree but the minimum net worth requirement was $20m (note minimum net worth to join so likely many members in the group with significantly higher net worth).  Imagine the contacts. Imagine the type of influence that the members have. Imagine the type of assistance they could provide.   Imagine the type of people you are associating with.   Imagine the members’ network.   Have an issue, a member knows someone that can help with getting it resolved.  

Basically it is like other accountability groups but with members that have more net worth, more success, more clout, know more people with influence/power, etc.  and it costs a lot more 😀.

I am likely too cheap to ever go for that cost of accountability group but if your level of success truly is indicated by those you associate with, then it is definitely worth it.

by the way, both people who were in this accountability group voiced zero complaints when they were discussing joining.  One of the two was david greene of past BP fame (i think he got in when it was ONLY $45k/year to join).   So that is the type of members.

as indicated, i am too cheap to join an accountability group at that price.  I would rather supplement a negative cash flowing luxury cabin in the sierras (i recently placed offer on a cabin that my underwriting showed no near term cash flow - no value add, already reflected likely income growth, etc). I suspect the negative cash flow on cabin after year 1 will only be $6k/year and i will have luxury cabin.  

In the scope of things for wealthy to spend money on such as luxury cabin, yacht, plane, fancy cars, plastic surgery, fancy vacations, etc the accountability group seems on the lower end of the frivolous.

best wishes

 So it's basically a paid networking group for rich people. Why would you assume that has any relevance to the O.P? How many newbies looking for a mentor on BP have a Net Worth of $20M?

 >basically a paid networking group for rich people. 

There are accountability groups that cost significantly less.  But basically yes to your question but the networking group has as its intent to hold people accountable and move them forward (versus networking with another intent).

>Why would you assume that has any relevance to the O.P? How many newbies looking for a mentor on BP have a Net Worth of $20M?

Definitely not that accountability group for the OP but a much more modest accountability group as an alternative to a mentor to guide him through his first deal (which is what was requested in OP).  I would be very surprised if the OP qualifies for THAT accountabilty group.

You hear about poor mentors regularly.  There is recent thread on BP of a property purchased with guidance from a mentor that a $12k rehab took 8 months and LL/protege was finding it challenging to get rented in december (duh, hard to make this up).  I guarantee an accountability group would have been asking regularly what is taking so long.  They would have warned about the consequence of placing for rent in December.  I could say the same thing that a good mentor would have done similar to the accountability group.  However, you hear about bad mentors regularly.  You virtually never hear about a bad accountability group and if they do, I question their level of accountability.  So i believe accountability groups have lower failures than mentors.  Many mentors are not good mentors.  

I look at accountability groups as having access to multiple mentor level people but interacting with them closer to a peer.  The range of experience and knowledge is greater than could typically be achieved via a single mentor.

I notice you offer a paid mentorship that seems reasonably priced and i recognize your expertise in your market and domain. But CA, STRs/MTRs, luxury housing, non residential, NNN, etc. i suspect your knowledge is limited. most RE related accountability groups have someone that has some expertise in virtually all areas of RE.

So you can go with a mentor and ideally do your research so you do not get a lame mentor and get a mentor who is an expert in the area desired or you can go with an accountability group and likely get a broader expertise.

best wishes

Quote from @James Wise:

Quote from @Dan H.:

Quote from @Anthony Sigala:

I'm  looking for a mentor to guide me through my first deal(s). Hoping to close three rentals in 2025

 I think for most people a good RE based accountability group is a better investment.   Note good accountability groups are not cheap.  I know one that is $50k/year.   I know 2 people who are in this group and both believe it is worth it. 

Search this group for paid mentors and you will likely find many more negative comments than positive ones.  Do the same search n accountability groups and you will find few negative comments.  

A national accountability group will have experts in most facets of RE in most markets.  The members are typically happy and eager to provide assistance.   It is like having dozens of mentors.   Most of them are performing successful deals regularly.   When a deal goes bad it is usually easy to see some mistakes and there is usually multiple offers to help with the issues.  I think it would be a rare (and outstanding) mentorship that provides this same level of help.

Good luck

 $50k? That's crazy bro.

 At first observation i agree but the minimum net worth requirement was $20m (note minimum net worth to join so likely many members in the group with significantly higher net worth).  Imagine the contacts. Imagine the type of influence that the members have. Imagine the type of assistance they could provide.   Imagine the type of people you are associating with.   Imagine the members’ network.   Have an issue, a member knows someone that can help with getting it resolved.  

Basically it is like other accountability groups but with members that have more net worth, more success, more clout, know more people with influence/power, etc.  and it costs a lot more 😀.

I am likely too cheap to ever go for that cost of accountability group but if your level of success truly is indicated by those you associate with, then it is definitely worth it.

by the way, both people who were in this accountability group voiced zero complaints when they were discussing joining.  One of the two was david greene of past BP fame (i think he got in when it was ONLY $45k/year to join).   So that is the type of members.

as indicated, i am too cheap to join an accountability group at that price.  I would rather supplement a negative cash flowing luxury cabin in the sierras (i recently placed offer on a cabin that my underwriting showed no near term cash flow - no value add, already reflected likely income growth, etc). I suspect the negative cash flow on cabin after year 1 will only be $6k/year and i will have luxury cabin.  

In the scope of things for wealthy to spend money on such as luxury cabin, yacht, plane, fancy cars, plastic surgery, fancy vacations, etc the accountability group seems on the lower end of the frivolous.

best wishes

Quote from @Joel Oh:

Quote from @Trent Reeve:

Quote from @Joel Oh:

Quote from @Dan H.:

I am not going to express an opinion on whether being on a single platform can improve your ranking because i really d not know and admit you may be right.  

Even if you are right about the rankings, i would not advocate using a single OTA. Here are some reasons: if the OTA gets too much market share that is bad for hosts and guests. It would allow Airbnb to screw both hosts and guests (assuming airbnb is the ota chosen). if the OTA has issue with you and bans you (there are some crazy horror stories that alone would deter me from listing on a single OTA), you are basically starting over. Using a single OTA has too much reliance on that OTA for my liking. Direct bookings results in higher revenue. Being listed on multiple OTA allows users that use alternate OTAs to see your STR and could provide a higher ADR even if you end up lower ranked of the OTAs.

Basically it comes down to having all your eggs in a single basket and is too risky for my liking.

i am one of those STR owners that corrects anyone that refers to my STR or STR business as an AirBnB. I get more bookings from airBnB then from any other OTA yet AirBnB is the OTA I have the least positive feeling towards.

I hope the new STR owners/hosts realize the risk they take if they choose to list on a single OTA.

I think you have a good reason to follow what you believe. It sounds like you are pretty big and you already have your own ecosystem. I think that is absolutely right path for the big owners like you. The issue is new hosts don't have the advantage you are getting from your direct bookings. They will mostly just split their occupancy rates on multiple platforms without getting too much benefits out of it. 

Out of topic but how do you handle guest resolution on your direct bookings? Do you just suck up the cost if guests damage your property or throw a party? I am moving to STR because of how Aircover works and I doubt I will leave Airbnb unless they change the Aircover and resolution system. Successful collection rate on LTR is not even 15% on top of dealing with insane lawyers and social workers who believe that less fortunate people can hurt wealthier people. I love how Airbnb just pay me based on the evidence without going through 6 months legal battle or 3 years of collection hunting.

I dont know about Dan, but you can use something like Waivo. I use a channel manager (OR) and it has damage protection built in. In fact, i use it on every booking, not just direct, as I have heard too many stories of Airbnb not paying for damages or not paying enough. I just work the amount into my pricing.

 Thanks for sharing! I had over 50 claims with Aircover so far and only failed once or twice and it was definitely my fault for not having enough evidence. It was one of my first claims and I learned how their claim system works and never failed again. Maybe it is more difficult if the damage was more serious like fire or flood but it goes same with any insurance claim. I think most of horror stories came from people who do not understand how insurance system works. They can't just pay people because he or she says this. Record keeping and providing evidence are the key.

Airbnb: toilet is reported as clogged on 4th day of 5 night (6 day) guest stay.  Pm handyman cannot fully clear it, but unit has 2 bathrooms.  Guests stay full stay, guest requests discount for one less toilet.  Handyman after guest vacates replaces toilet, breaks old toilet to find vape in toilet.  No way that toilet worked multiple days with vape in s trap so last guest definitely were responsible for the vape in the toilet.  Airbnb rejected claim stating it could have been in toilet previous to guest that experienced the blockage (no way, nothing but liquid was going past a vape in the s trap).  

our pm ended up paying for the toilet replacement.   He felt spending more time disputing the rejection was not cost effective and i see his point but suspect airbnb recognizes this and uses it to their advantage.  If the claim can be disputed, OTA disputes it and makes it hard to collect and the host may simply give up.

i think pm, airBnB, guest and LL all know who was responsible for the vape in the toilet, but ota did not charge guest or pay for it and gave the guest a discount (a discount for an issue that the guest was responsible for).  Pm paid for it because they would incur additional cost disputing it and may never collect from the OTA.  Note this guest was not intentionally destructive.  I am sure it was an accident, but the guest is responsible for this accident.  Even though the nightly rate is high, the RE has such high value that the margins are fairly tight.  The guest stay with discount and toilet replacement did not cover the cost of the unit for the stay. 

i have the issue on occasion that the guest is expecting a bigger unit and thinks the price is high but they do not realize the value of the unit.  It is likely the number one reason for reviews that are not 5 stars.  My little mission beach units have a value of ~$1m each.   If they are from LCOL locations they cannot fathom that such small units have such high value and expect a lot more than 600’ to 700’ for the price they pay.

host and guests both benefit by having multiple OTA platforms and the resulting competition.

 
best wishes

Is $500k what you are under contract for and its retail value? How much EMD did you provide? i think your options are limited. Break contract, screwing seller and lose EMD is likely going to be your best option.

Another option is you close but that will likely result in a larger loss than your Emd.   This does not screw seller and will not hurt your local reputation but i would expect losses ~10% ($50k) or higher.

I am established and my reputation may be worth the more costly option. For those starting in RE, that likely is not the case. I hate that your best option is likely screwing the seller. It hurts all RE Investors' reputation and results in anti REI sentiment.

I suspect you already have learned the value of thorough and conservative underwriting.  If retail is $500k, you should have gone under contract at less than $400k. 

Good luck

Quote from @Joel Oh:

Quote from @Dan H.:

I am not going to express an opinion on whether being on a single platform can improve your ranking because i really d not know and admit you may be right.

Even if you are right about the rankings, i would not advocate using a single OTA. Here are some reasons: if the OTA gets too much market share that is bad for hosts and guests. It would allow Airbnb to screw both hosts and guests (assuming airbnb is the ota chosen). if the OTA has issue with you and bans you (there are some crazy horror stories that alone would deter me from listing on a single OTA), you are basically starting over. Using a single OTA has too much reliance on that OTA for my liking. Direct bookings results in higher revenue. Being listed on multiple OTA allows users that use alternate OTAs to see your STR and could provide a higher ADR even if you end up lower ranked of the OTAs.

Basically it comes down to having all your eggs in a single basket and is too risky for my liking.

i am one of those STR owners that corrects anyone that refers to my STR or STR business as an AirBnB. I get more bookings from airBnB then from any other OTA yet AirBnB is the OTA I have the least positive feeling towards.

I hope the new STR owners/hosts realize the risk they take if they choose to list on a single OTA.

I think you have a good reason to follow what you believe. It sounds like you are pretty big and you already have your own ecosystem. I think that is absolutely right path for the big owners like you. The issue is new hosts don't have the advantage you are getting from your direct bookings. They will mostly just split their occupancy rates on multiple platforms without getting too much benefits out of it.

Out of topic but how do you handle guest resolution on your direct bookings? Do you just suck up the cost if guests damage your property or throw a party? I am moving to STR because of how Aircover works and I doubt I will leave Airbnb unless they change the Aircover and resolution system. Successful collection rate on LTR is not even 15% on top of dealing with insane lawyers and social workers who believe that less fortunate people can hurt wealthier people. I love how Airbnb just pay me based on the evidence without going through 6 months legal battle or 3 years of collection hunting.

>Successful collection rate on LTR is not even 15%

What is the source of this stat? Are you only referring to damages in excess of the deposit? What is the market? What is the class of tenant? The screening process plays a big role in the odds of collection. In general tenants with a credit score worth preserving pay all that is owed.

>on top of dealing with insane lawyers and social workers who believe that less fortunate people can hurt wealthier people.   

My market has many people with this sentiment. It results in tenant friendly laws.  For example they just double the amount of time tenant has to respond to an eviction notice to 10 days.  In practice, this could mean 5 extra days that no rent is collected.  

these tenant friendly laws seldom matter because the vacancy is so low the tenants want to stay in their units and realize an eviction will make it challenging to ever find a quality rental in this market.  Our policy is no evictions, ever.  No excuses other than court cancelling of the eviction (we have encountered that once).  

my market is near the nation low in both evictions and delinquent rent even with very tenant friendly laws.  Also a local eviction attorney claims the LL winning rate in evictions is near 100% even with the friendly tenant laws.  There are a lot of LL advantages due to the low vacancy rate.

>I love how Airbnb just pay me based on the evidence without going through 6 months legal battle or 3 years of collection hunting.  

We have had challenges collecting a couple/few times from OTAs.   We failed to collect for a vape in toilet that resulted in the toilet needing to be replaced.   A couple times we were able to collect but it was not as simple as make the claim and collect.  There are many horror stories on collecting for damages from OTAs including a current thread on BP where guest left doors and windows open upon exit that resulted in frozen pipes.   The OTA initially ruled against paying. As stated i have had OTAs initially refuse payment but end up paying so this may end with favorable results for the host, but the host has to go through some additional hurdles.

https://www.biggerpockets.com/forums/530/topics/1224322-airb...

I think OTA competition is good for both hosts and guests. I do not want to give a single OTA a competitive advantage by choosing to have my STR listings on a single OTA. I think OTA competition encourages the OTAs to pay for guest damages.

i continue to advocate for being listed on multiple OTAs.

Best wishes