Hello my YouTube friends this is Richard founder STRU and
Airbnb super host today's video is answering a question that I see in the
Facebook groups all the time and that is basically should I accept somebody for a
long term rent but here's my overall thesis if you're in the short-term
rental game you should lean short-term rental but like in everything else there
are exceptions there are tax benefits to being in the short-term rental business
if you have less than 7 days on average in your stay you get certain tax
treatment then you should speak to your CPA about that that may alone be reason
enough to like not even consider long term rentals I personally believe that
the rental income that I receive from short-term rentals is 2 to 3 times more
than I do on a long-term basis and therefore if I were to accept a
long-term rental it's at my cost I'm reducing my income and I do recognize
there are exceptions to the rule so I make them as should you that said I've
never had anybody stay more than two weeks I would rather have the place be
empty there's less wear and tear there's less utility there's less like friction
and my team so sometimes a place to be empty is okay and if I'm making 2 to 3
times the amount that I would make normally during long term rentals having
some vacancy is welcome let's talk about some of the long-term
rentals that I've seen asked about and that I would consider and then help you
make your own decision the first is seasonality if there's a
period of time where your place is completely vacant its dormant
then you may want to consider a long term rental if somebody comes along who
fits all of your other criteria who you think is gonna be a good citizen and a
good guest and is gonna pay you a income amount that is you know above the
long-term rate and perhaps below the short-term rate but it doesn't make any
sense in my mind to accept somebody for less than they would be paying for a
long-term rental even though it's better than zero if your place would normally
rent for $1,000 a month and you rent it on short-term rentals and you get two
thousand or three thousand dollars a month if somebody wants to come and rent
your place for 750 dollars a month that just doesn't make any sense so I
wouldn't do that if somebody says but I'll pay you 1,500 a month and you look
at your calendar and it's vacant and it's the slow season instead of winter
and it's a beach community like absolutely why wouldn't you do that that
makes a lot of sense but I need everybody to start thinking about you
know the opportunity cost of taking somebody long term for the surety right
like the security of knowing that you have some income in and start to be a
little more entrepreneurial take that chance take that gamble you may rent it
for more money less certainty but more money if you turn that person down
so a couple of flags regarding long-term stays in your short-term rental I've
read online that different communities and municipalities consider somebody a
legal tenant if they've stayed more than say 28 days or 30 days and then you
might have to evict them so like that's not good I'm not doing short-term
rentals to have to like evict somebody because they're not paying rent I had
that when I was doing long-term rentals I'm trying to avoid that in short-term
rentals that's one of the perks the second thing is if somebody's open-ended
and they don't know when they're leaving well that might sound exciting I've got
all this rental income but wait a minute we were doing this only because it was
slow season and they were gonna fill that void but if they don't know when
they're leaving well I want to make three times more money when it gets to
be high season I don't want to be renting to that person for less so that
doesn't summarize I don't like to do it because there's tax advantages for me to
have people that stay seven days or less - I like that turnover and somebody like
leaving and I'm not becoming you know part of like my everyday routine I like
the fact that they're not long-term tenants I like the fact that they don't
have any like rights to stay and I don't have to a victim that was all back in my
day when I was a long-term landlord and I specifically moved to short-term
rentals for that similarly I very much like the fact that I'm a two and a half
to three times more money on short-term rentals for so long
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