2.3 A Different Type of Landlord

Just as investors may not fully understand the different models of rental, they may need help in appreciating the added responsibility of being an STR host as opposed to a traditional landlord.

Let’s start with looking at tenants vs guests.

Tenants:

• Rent out of necessity
• Have little communication with the landlord
• May not love the home

Rental guests:

• Rent choice for leisure or business purposes
• May communicate regularly with host and this can be critical to generate 5* reviews
• Typically book a home because they love it

In a short-term rental, the guest is in the driver’s seat and a happy guest is critical to the long term cash flow situation while in a long term rental situation, the landlord is in the driver’s seat and is less concerned about the happiness of the tenant and mainly just expects to get their rent on time.

There are mindset differences too.  In a long-term rental situation, the landlord may do the bare minimum to increase profit margin and will view the investment solely as an asset.  Complaints from the tenant rarely make it past the property manager. 

The landlord’s biggest concern is making sure if something breaks it’s fixed quickly. Hospitality does not play any role in income.

In the short-term rental world, the host goes above & beyond to stand out and get the best reviews.  He may view the property as an asset but can also be emotionally involved in the property. He understands that any complaints will make it onto reviews if they are not addressed.  A hospitality mindset and excellent customer service skills are essential for success.