Why Everyone Is Selling Their Short Term Rentals (And Why Savvy Investors Are Still Buying)
Summary
This article discusses why some STR owners are selling, primarily due to unrealistic expectations stemming from the 2021 boom. It argues that now is a good time to buy STRs, highlighting opportunities for those who treat it like a business and leverage automation and tax benefits.
Key Insights
- •Many real estate investments, including STRs, are sold within two years due to underestimated realities of ownership, with some studies placing this at nearly half of all deals.
- •2021 was an anomaly. Expecting every year to perform like 2021 is unrealistic. Real estate is cyclical, and hospitality demand fluctuates seasonally and economically.
- •Home sales across the U.S. hit their lowest levels in 30 years in 2023 and remain sluggish in 2025. Buyers have leverage and better opportunities to negotiate.
Action Items
- ✓Understand that STRs are hospitality businesses, not passive investments, and require systems for guest communication, cleanliness, and attention.Effort: mediumImpact: high
- ✓Consider leveraging tax strategies, including the short term rental tax loophole and bonus depreciation, to increase profitability.Effort: mediumImpact: high
Tools & Resources
- →STS Plus: At The Short Term Shop, they train clients and provide resources like STS Plus.
Common Mistakes
- ⚠Mistake: Buying without a plan to treat STRs as a business, leading to early sales.
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