All Forum Posts by: Leon Lee

Hi BPers! 

I have some short-term rentals, and occasionally, a few of these have turned into mid-term rentals when rented out for several months. I appreciate the ease of management that comes with mid-term rentals, but I have some concerns. For one, the rental income tends to be lower than with short-term stays due to the necessary discounts, yet we still face most of the usual costs, aside from savings on cleaning and supplies. Additionally, each deep clean after a mid-term stay costs around $300 or more, which almost negates the financial benefit of the mid-term rental model. Repairs after tenants move out also are significantly higher. 

I'm curious about everyone's thoughts on the pros and cons of mid-term rentals versus short-term rentals. profit margin on STR is getting thinner, and I'm interested in exploring other strategies. I'd love to hear from those with more experience to see if my observations align with yours and if there are tips for managing costs or maximizing the benefits of mid-term rentals.

Thanks!

Lee

Carolyn,

All these properties have backyards, so I'm puzzled as to why weed smoking has become so popular, and why guests don't even bother to go outside to smoke. I'm just trying to get a sense of how common this issue has become and how other STR hosts in urban areas are handling it.

I just checked Amazon but couldn’t find it. I wanted to look at the reviews to see if it’s worth trying. Another question: Have you noticed any change in income for the property since the policy was implemented? If this is becoming common in certain areas, do you think it might deter a significant percentage of potential guests?

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Hi, BPers,

I’m curious about how you handle weed smoking in your STRs. It seems like almost every young guest in my units ends up smoking weed inside the house. They’re getting smarter about it too—trying to clean up any residue so there’s no visible evidence, though the smell still lingers.

I currently have a $350 fine for smoking inside, including weed. However, with the frequent incidents and the persistent odor, even after cleaning, I’m beginning to wonder if this has become the norm for STRs in urban areas.

Any advice or tips on how to prevent this would be greatly appreciated!

Thanks,

Lee

Utility bills can increase significantly if guests stay for months during hot summers or cold winters. To manage this, find the average electricity, water, and gas usage in your area. In the contract, state that if usage exceeds 120% of the average, the guest will be responsible for the extra cost. This strategy can help reduce utility expenses.

Mid-term and short-term rentals can have utility costs up to 10% of gross income, including electricity, water, gas, cable, lawn care, and pest control. Set pricing appropriately to ensure the business remains sustainable.

Thank you for your inputs! They make a lot of sense. I have decided to do both. I enjoy visuals and management, which got me started on Airbnb. I'm fascinated by the economy of scale and OPM in apartment syndication, but I never had the opportunity to learn firsthand. Another reason is that I see both niches as means to serve my true passion in life.

Thanks again
Lee

@Prashant P. @Brandon Vukelich

I'm glad I asked! I should keep my current Airbnb portfolio while expanding into apartment syndication with a team. This will diversify risks and allow me to learn about the economy of scale in apartment syndications first hand. Thank you all for the insights.

@Brandon Vukelich: I totally agree: STRs provide the cash flow I need, but policy risks and market saturation make me want to diversify. Scaling up STRs, where many small things can go wrong and no one will care about your house as you do, is also quite challenging.

Thanks again!
Lee

Justin,

Thank you for the inputs! I wonder what other major factors you would consider if you were me? Obviously, everyone will have a different answer here, but I would like to hear your (and everyone's) thoughts on important factors and thought processes.

Thanks,

Lee