I have a duplex in Austin that will be fully renovated. I wanted to do a VRBO STR but Austin has made this difficult to get a license.

So I am pondering doing 1+month rentals through VRBO/AirBNB to get around the Austin restrictions. It is a duplex so both sides could be long term vs short term leases.

I feel like short term leases fetches a higher rate, less wear/tear, and allows me to inspect the place after they leave similar to a STR VRBO model. Cost would be more up front with full furnishings but I think there is a big market for people coming to austin for 1-3 month needing a short lease for work or looking for a house without the 6-12 months apt leases.

I just feel people living in a place for 1-3 months will treat the place better.

Anyone do this and even if the short term lease makes less money than a LTR, I would be OK with this.

I think Austin is a great market for that but most of your renters would people trying to buy homes IMO, so you might get stuck with one for a while

I think rates will be higher with people looking to buy a home = less wear/tear + hopefully higher rate.

if I can get close to breaking even with short term rentals vs long term rentals, I would be happy. If I found someone who rented and kept doing month to month at higher rate, I would be happy about doing this.

Austin is so nuts right now, people are making people make offers on rentals. Management expense if using a company is higher on STRs are we 20% vs 8%

Medaggie said:

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I have a duplex in Austin that will be fully renovated. I wanted to do a VRBO STR but Austin has made this difficult to get a license.

So I am pondering doing 1+month rentals through VRBO/AirBNB to get around the Austin restrictions. It is a duplex so both sides could be long term vs short term leases.

I feel like short term leases fetches a higher rate, less wear/tear, and allows me to inspect the place after they leave similar to a STR VRBO model. Cost would be more up front with full furnishings but I think there is a big market for people coming to austin for 1-3 month needing a short lease for work or looking for a house without the 6-12 months apt leases.

I just feel people living in a place for 1-3 months will treat the place better.

Anyone do this and even if the short term lease makes less money than a LTR, I would be OK with this.

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You are right on with your thinking!

I own or manage 25 rental units, mostly duplexes and half of them are in the Austin MSA!

There is a great market for 30 day rentals and duplexes are the perfect vehicle for them.

I live in Austin, if you do too we should do lunch. PM if you have a desire!

Joe

Joe,

Thanks for your opinions. I have 4 duplexes in Austin that rents very easily long term, 2 VRBO STRs on LBJ and am doing a complete reno on another duplex that should show well. I first thought about putting it on the market as a LTR but had the idea of doing VRBO like STRs to capture all of the events in town but Austin has essentially stopped giving out new licenses.

So I had the idea of spending an extra 6K to fully furnish the place and just do Short term leases for 1+ months to capture people coming in for long work stints, people moving to Austin looking for a home, etc.

Advantage would be higher monthly rates, less wear & tear. I believe I can get a 50% monthly rate premium and people will tend to keep the place in better shape.

I have found furnishedfinder which seems like the best. VRBO, Airbnb, Zillow has some listings but hard to do searches. Any idea what the best way to advertise a short term lease?

Medaggie,

I have 6 duplexes spread throughout Georgetown, Round Rock and Austin. I am currently long term rentals and of course no problem renting them.

However, I know of a few people who are doing the 30 days or more and they tell me that they have no problem renting out their units. Usually their tenants stay 90 days or more. Tenants give 30 days notice and they tell me there is such a demand that as one tenant moves out the next moves in the very next day.

You are right in that the premium to rent is about 50%. I haven't asked them how they advertise but next time I talk to them I will. With all this said, I did have an Airbnb in Bryan but shut it down to Covid. I am thinking about putting it back in play in July. I had a tenant in the unit (fully furnished) but has let me know she will be leaving in July.

I have another 3 duplexes and one four plex in Bryan.

Not to hijack ….but is there a market for this in Houston? We're finishing up the renovation of a 2/1 bungalow in the heights and I've never even considered this. I don't want to do STR but 30+ days at a higher rate is enticing.

What are the best sites to post 1+month rentals?

Google gives me hello landing, Zillow, VRBO, AirBNB

Sounds a lot like corporate leasing.

Diggity said:

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Sounds a lot like corporate leasing.

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We thought about this but big big corporate leasing often work through furnished apartment units with maintenance crews etc.

Not Austin-related, but several of the VRBOs I've stayed at in the past -- mostly in smaller cities in Texas -- are now off the market and have longer-term tenants.

Not sure what the message is there. STRs a lot of work? Not profitable in some weekend-only markets? Lots more demand for full-time rentals? But it's interesting nonetheless.

I was the very first guest at an awesome new STR not long ago, and before I could even complete my review, the owner had found a long-term tenant and pulled it.