Purchased a new home. Keeping my current for a rental property Long term rental vs Short term rental, thoughts?

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Gunna need to at least know the neighborhood to provide some more insight here…

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Theres a lot of space between what makes a good short vs long term rental. We kept our last home as a long term rental. We live in a large city with nearby tourist attractions and our neighbor had his house as a short term rental for a while. I feel like there is so much upkeep and management with a short term rental that I wouldn't want to do it myself or pay for it. My long term rentals have been pretty hands off and I'm making a good return so that's always my preference.

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Be ready to put in the work of owning a rental. The more you do yourself, the more cashflow positive you are.

If you don’t have the skills/ time to take care of things at the rental you will hire someone and pay thru the nose for the work. Less cashflow.

Long term renter - if you can screen and find a good renter, they are worth their weight in gold!

I look at rentals this way - if it earns you money then it’s another job.

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I have both. There are pluses and minuses to each.

LTR: predictable income, a good tenant will take care of the place. Once you get a tenant placed, there’s little to no work.

STR: cost to furnish up front, constant work screening guests / scheduling cleanings / keeping your listing updated. Cashflow is substantially more but it’s basically a second job. Also highly volatile - some months will have high cashflows, others might be barely breaking even. One late checkout or one cleaner calling out sick can send your day into turmoil.

Use AirDNA to figure out what you might get in your market for a STR. If you have the time, the extra cash to furnish it, and the tolerance for volatility, a STR can be very lucrative. If this is your first entry into being a landlord, I suggest a long term rental to get started.

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Property owner here. My str was bought as a str and one that we can use…. I hate when guests are there…. I’m way over protective for the property. Emotionally invested. I have zero emotional ties to my Ltr. Sooo. Make sure you can emotionally detach from your former home as people will not take care of it the way you do.

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It really depends on your market. You’ll have to do some research and see how much you can get per night and the number of rental days per month. Then compare that to what you’ll get per month as a LTR. The set up will take a little longer for STR then LTR but you can get pretty close to being hands off. There are property managers/cohosts and cleaning services that cater to STR so they can take care of guest management. You’ll have to see what the numbers look like and if it will be worth it.

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