what is str in real estate

STR in real estate stands for short-term rentals, which are properties that are rented out for short periods, typically for 30 days or less. Examples of STR real estate include vacation rentals or Airbnb rentals. STR real estate is generally defined as property that is rented for fewer than 31 days to the same tenant. The income stream from STR real estate can be inconsistent and affected by factors such as the average daily rate (ADR), the average stay of each guest booking, competition from nearby resorts and hotels, and seasonality. However, owning STR real estate can offer higher annual gross rental incomes and more flexible use of the property because guests only stay for a few days at a time. Annual returns from STR real estate can be the same or more compared to a property rented in the long term. STRs are a great investment strategy that offers lucrative returns and require a lower upfront investment if you’ll only rent out an extra room in your primary residence, making them an attractive option for those without a large amount of capital to start with.