@Luyen1 everything is pretty risky right now. I might wait a bit-- at least until after the election.
We are landlords as well as Airbnb hosts. We liquidated our last landlord/long term tenant property earlier this month as we did not want to try and rent it during the era of COVID rent forgiveness statutes--we didn't want to have to try and collect rent from people who had lost jobs nor did we relish carrying our properties without rental income. Our tenants all had leases ending or were breaking early to buy a home so it was good timing. We had planned on putting this last place up for sale in the spring of next year anyway. We just couldn't handle it as a STR as it is multiple units in a crowded marketplace where profits would not have been what we needed to cover the costs of furnishing and cleaning. It was time to let it go and cash out.
After hosting for 2 years and being a landlord for the last 7, I can tell you that both have a lot of drawbacks. Hosting requires a lot more work to turn over on a regular basis. If you get good tenants (and that is a huge IF) landlording is easier. If you don't have good tenants, being a landlord is an absolute hellscape.
STR is usually a happier experience with people coming to your place on vacation or to see family and friends. If they are a pain in the behind, they are gone in a few days. If you keep your place party-free and limit your guest numbers and stay lengths you typically don't have terrible damage, though some clean ups can be worse than others. Airbnb is not a great partner to have your back as a host. The review situation is beyond annoying. There is a lot more emotional labor in hosting than there is in landlording.
As a landlord, you generally don't hear from your tenants unless there is a problem. Some tenants resent that you own the property and they can't treat it in any way they want. Some think you are just greedy and overcharging them no matter how reasonable your rents. Some are great and take good care of the place-- those are usually the ones that you lose when they buy their own home. Many do damage that is expensive to repair. The legal costs can be very high if you have to evict someone. And you will need a well-drawn lease-- not one you pull off the internet. So that either means an attorney or the help of someone who is skilled in property management in your state.
I love buying houses so my own investment portfolio is a little lopsided in favor of property ownership. But if I was starting out right now, I don't know that I would buy anything in the current market conditions. Its a great time to sell in my area but inventory is very low and prices are inflated for buyers. Wait and watch. Watch and wait. See what happens with the election. See what happens with a vaccine. See what happens with shutdowns. We have a nice nest egg we would love to reinvest but we won't make a move until we see what is happening in the next few months.
As far as which is better-- STR or owning a place you rent as a landlord? Eh, its probably equally difficult but for different reasons. I would consider all options. Good luck!
