How do people who acquire and manage STR's track the time for their Active Material Participation activities? 

We had to replace all the plumbing ($3400 in materials), we did all the work.

Inflation: While real estate is often seen as a hedge against inflation, the rapid increase in costs for materials and labor has made new developments and renovations more expensive, squeezing profit margins.3.

@Usman Khan Yes, you can apply the short-term rental tax loophole to the STR units (80%) in your triplex if you meet the material participation requirements and have average stays of less than 7 days.

I am doing this completely remotely, which has been a massive pain/lesson learned (topic for another day).I signed a very high-level agreement (i.e. expectations simply say "drywall and paint") with him for drywall and paint work at my home for a total of $10KI have paid $5K as a down payment as well as ~$2K in materials over time, as neededThere have been multiple break-in's in the home, and he has done me favors of working with the police, and boarding things up.

You will constantly hear of shortcuts during construction and the conscientious decision to use lower quality materials during the renovation.

Smaller properties are cheaper to update or can use higher quality materials.

The STR loophole is all about “material participation”.

The LP still has to meet the material participation rules in order to take full advantage of the depreciation losses even if they meet REPS. 

Flooring: A lighter or mid gray lvp to compliment (~$3 sq ft material) Cabinets: White shaker style (Lowes/Home Depot, Readily Available with little lead time) Countertops: White Quartz with black veining to match black matte finishes if the return on investment is there or just a nicer laminate (calacatta marble natural stone look)Finishes: Black matte for a modern look or the classic brushed nickel.