Airbnbs vs Long term rental

[MortonR]

I have never been involved in the STR side of the rental business, but there are several next to or near one of my homes. This is in a popular year-round vacation area, too, I might add. I know for a fact that the property next door to me that is an STR can't be occupied more than about 40%-50% of the time if that.

While rates can be steep during peak times, and it is usually occupied on weekends during those times, and occasionally for a whole week, I still don't see how the owner makes any money. They are not local, so there is a management company that takes care of it, as I see their vehicles over there after clients leave.

Between the hassle of managing it and the accelerated wear and tear I would expect from an STR, I would think a long-term rental would be far better over time, not to mention a lot less effort.

RM

[sll3454]

Originally Posted by katharsis

There is a LOT of negativity here toward STRs by year-round residents, and there is a push to increase restrictions.

There is negativity here, too, for a couple of reasons. One is that the near neighbors in a small, safe, quiet neighborhood (where all of the other houses have been occupied by the same people for over ten years, most for a lot longer) prefer not to have a parade of strangers going through.

The other reason is a broader issue - the proliferation of bnbs has contributed to the housing shortage. Normal rentals - for people who actually need a place to live - do not become available often.

[JBtwinz]

Air B & B is a great way to make more money rather than LTR if you can handle the responsibility, and there is a lot of responsibility.

We live in a desirable area for tourism and we have friends who maintain them themselves and others who let someone manage them.

If the unit stays booked and you are maintaining you are golden but if not and the cleaning lady cancels last minute which happens to them you are scrambling.

One couple keeps a closet in the unit as storage with their cleaning supplies, vacuum cleaner, bathroom items, kitchen items and a full change out of towels sheets, etc.

As mentioned neighborhoods here are really starting to push back on STR’s. If you don’t mind the work and responsibility and the possibility’s of calls at all hours with finicky guests the rewards monetarily are great.

Note also, we are in the age of social media and keyboard warriors, people love to leave reviews over the smallest details that to most are insignificant but to them they feel the need to let the world know. LTR’s aren’t going to subject you to the social aspects of many people, just one tenant.

Good luck with your decision.

[MortonR]

We're seeing a much stronger effort to enforce laws and requirements on these sorts of rental properties, especially since the state (in AZ) has taken over by legislating laws/requirements, etc. for STRs. It's up to the municipality to enforce the laws.

In Flagstaff, you must be registered with the City so that bed and occupancy taxes are paid. You must notify all adjacent property owners that you are operating an STR and provide them with contact information for someone responsible for the STR that is available 24/7.

There's more, but the point is the City is taking up the mantle of enforcement with the State backing them up. I'm almost positive the STR across the street was operating under the radar, as the owners, who live out of state, seemed to freak out when they got the letter from the City. I have no idea if they're going to be busted for not paying taxes, but I hope they are. It will be an expensive lesson for them.

I'm not keen about STRs because of where I live and the profusion of tourists, but I bought a house there eyes wide open, so I can't complain. As long as they're good neighbors I don't have a problem with it, as the "renters" are spending there money here, which is always a Good Thing.

RM