All Forum Posts by: Leon Lee

Hi BP Nation!

I currently have 20+ units that serve short-term, mid-term, and long-term rentals. As I look ahead to the next 5 to 10 years, I’m at a crossroads and could really use some advice from this knowledgeable community.

I have two potential paths I’m considering:

1. Continue Focusing on Short-Term Rentals (STR):

• My plan is to shift towards mid- to high-end vacation rentals with unique characteristics. I’ve been successful with Airbnbs and love the creative aspect of designing unique and appealing spaces. However, the saturation of the market seems to worry me a little. Also, trying to have a hands-free airbnb business seems to be especially hard. 

2. Team Up with Experienced Apartment Syndicators:

• This option involves partnering with a small group of experienced apartment syndicators to focus on acquiring and managing apartment buildings. The scale of economy in this route is very appealing and offers a different kind of stability and growth potential.

I’m equally interested in both options. On one hand, Airbnb allows me to leverage my passion for unique design. On the other hand, apartment syndication offers substantial economies of scale, which seems to be a common transition for many real estate investors, as I’ve heard on numerous podcasts.

I would love to hear your thoughts on which route you think I should pursue and why. Any insights, experiences, or advice would be greatly appreciated.

Thanks in advance!

Lee

Hi Matt,

I actually called Brian and was very impressed with his team member Scott's knowledge regarding living trust and asset protection. I’m not trying to cut costs, as we all know how important this can be. However, I feel their quote is a little pricy to me. 

I have been referred to another firm previously that charges around $1200, although they have a backlog of over 4 months.

Thank you again for your information!

Lee

Hi everyone,

 I'm planning to set up a revocable living trust. My goal is to ensure that if anything unfortunate happens to me before my daughter turns 18, all my properties won’t go through probate and get frozen for up to two years before she can access them.

I have a few questions and would appreciate any advice:

1. Estate Planning Lawyer Recommendations: Can anyone recommend a good estate planning lawyer in Georgia? Is it essential to have a local lawyer to set up the trust correctly?
2. Online Services for Trust Setup: Has anyone used online services for setting up a trust? If so, what was your experience?
3. Asset Protection through LLCs: Some lawyers I've consulted mentioned a package that includes both probate avoidance and asset protection. They suggested putting my properties in 2-3 LLCs and then placing these LLCs in a revocable living trust. Does this strategy effectively contain potential damages (e.g., from lawsuits) within the specific LLC?
4. Protection from Nursing Home Costs: They also mentioned concerns about Uncle Sam taking my assets to cover nursing home costs. Which part of a revocable living trust can protect me from this?

I’m looking forward to your insights and recommendations. Thanks in advance for your help!

Best regards, Lee

 Toni

Those are really solid tips! Will update our protocol on installing and fixing curtain rods. 

Lee

 Lauren

Thank you for the update! I've drafted a Standard Operating Procedure (SOP) for attaching brackets directly to studs, which should provide enhanced stability. Previously, we utilized white spiral anchors for drywall, but they haven't been strong enough for our guests. lol

Thanks

Lee

Hi Fellow STR Investors,

I'm reaching out to see if anyone has found effective solutions for durable curtain installations. In our units, we use rods with two or three brackets to support thermal/blackout curtains. However, these brackets are frequently pulled off by guests, leading to high maintenance costs. We even used that white spiral plastic anchors and obviously they are still not strong enough for guests. Any recommendations for more robust or guest-proof options would be greatly appreciated.

Thanks!

Lee

We've been seeing a rise in iffy inquiries for mid-term stays lately. It's pretty clear that many of these folks are in a bind, probably due to recent layoffs or the economic downturn. They seem to be looking for a place urgently, possibly after a recent move. 

Thanks for the feedback! I rent out to both individual tenants and corporate housing groups. Yep, I've had construction crews stay in my properties. I have mixed feelings about it: they're a no-fuss, hardworking people, but the amount of mud they can bring into the house...

Hi, Fellow BPers: 

Need some advice here. Last month, the electricity bill for my 1200 sq ft townhouse (mid-term rental) built in 2002 hit almost $400! When I was replacing the Wi-Fi the other day and discovered a running water pipe behind a wall. Upstairs, the toilet was continuously running – who knows for how long. It's frustrating when tenants don't even bother reporting such issues, especially when they're not paying for utilities. I was pretty taken aback and it got me thinking about possible solutions. What's your take on setting a utility cap in the rental agreement for mid-term rentals? I'm not planning to charge for anything over the cap, but maybe it could be a gentle nudge for tenants to be more mindful about their utility usage. Just some background info: I have about 5 or 6 MTRs now and only a small portion of guests are like that. So, it might not be fair to just raise the rents for everyone. 

Thanks for your input!

Lee

Hey Fellow BPers! 

I'm diving into mid-term rentals and hoping to shift more of my units in that direction. I've got a few questions and I'm hoping you can shed some light on them, to help me streamline my approach to mid-term guests. Up to now, I've been focused on short-term rentals. The high fees on platforms, less recreational travelers vs. more business travelers, and the cost of cleaning are really pushing me to explore mid-term rentals more. It seems like a smoother path to profit with less hands-on management.

Here's where I'm at: I have units that attract guests, usually working-class workers sent by their companies, staying for 3-5 months. I noticed that the wear and tear for these MTRs are pretty similar to long-term rentals, especially with larger families. It feels like anything over a couple of months, and they start treating the place like their own home and start to modify everything.

First up, security deposits. My units rent for over $3,000 a month. A one-month deposit feels steep, as guests need to cough up $6,000 for the deposit and first month's rent. I'm charging $1,500 to $2,000 right now, thinking it should cover normal wear and tear and minor damages. What's your approach to security deposits?

Next, lease duration. During off-peak seasons, we've had tenants sign year-long leases at lower rates. But in peak seasons, these rates are way lower than what we may get by short-term rentals. I'm thinking of capping leases at three months, then going month-to-month afterwards. How do you handle lease lengths?

Then there's the notice period for lease termination. Mid-term tenants sometimes need to cut leases short due to project changes. I've set a seven-day notice period, which works both ways – it's also handy if we find tenants are too messy during inspections. What notice period do you work with?

Finally, cleaning costs. Short-term rentals bring in about $3,500 a month, but require 4-5 cleanings at $110 each. Mid-term rentals mean fewer cleanings, but check-out cleaning is intensive and pricey. If your guests are similar and stay for about three months, what are you paying for cleaning?

I generally paid more attention to posts about short-term rentals and less so for MTR, apologize if I asked repeated questions

Thanks for any insights you can share!

Lee