What is STR?
STR stands for Short-Term Rental. This refers to a property, usually furnished, that is rented out for a short period, often less than six months. They’re most commonly used for vacation rentals.
- Not Long-Term: STR is not equivalent to leasing or long-term rentals.
- Legal Constraints: STRs are subject to local regulations which can vary widely. Oakland and Berkeley strictly regulate short-term rentals. If you make your property a short-term rental and the city finds out they can elect to fine you for this violation.
How to Make the Best Use of This Information
If you’re a property owner, STRs can be a high return but high effort investment. Maintenance on short term rentals is extensive because you have to continually maintain the property in a clean, gorgeous state to attract short-term residents. Most of the websites that service this kind of rental, like AirBNB and VRBO, rate property owners as being excellent, good, or average. Hitting the excellent mark takes a lot of work! You are essentially acting as a boutique hotelier to achieve the excellent mark for these services. It can be fun, but it takes effort. Make sure to check local laws and think about property management logistics before diving in.