MTR occupancy in San Diego
I’m curious, for others who own MTR in San Diego, how are they doing? What occupancy rate have you gotten throughout the last year? Where is yours located? Any tips?
Quote from @Keith Mintz:
I’m curious, for others who own MTR in San Diego, how are they doing? What occupancy rate have you gotten throughout the last year? Where is yours located? Any tips?
My MTR is in Mission Beach and is an MTR due to not getting an STR permit in spite of it having been an STR for 24 years prior to the STR quota. This is relevant because many STRs converted to MTR at the same time resulting in a significant increase in supply.
We have outstanding occupancy (in the high 90%) at a rate that is basically the same as LTR. This implies our unit’s cash flow is below if it were an LTR because 1) we pay utilities 2) we furnish the unit 3) we pay MTR PM fees which is near double the LTR rate.
The hope is that with poor MTR returns that various operators convert to LTR and the supply diminishes allowing us to raise our rates while maintaining a high occupancy rate.
We have done very well with this unit for many years. It currently is cash flow negative but it has had many years with outstanding cash flow. in addition, the property (2 units) has appreciated over $1m since acquired. No reason to feel sorry for us u less you feel the STR quota was unfair.
Quote from @Dan Heuschele:
Quote from @Keith Mintz:
I’m curious, for others who own MTR in San Diego, how are they doing? What occupancy rate have you gotten throughout the last year? Where is yours located? Any tips?
My MTR is in Mission Beach and is an MTR due to not getting an STR permit in spite of it having been an STR for 24 years prior to the STR quota. This is relevant because many STRs converted to MTR at the same time resulting in a significant increase in supply.
We have outstanding occupancy (in the high 90%) at a rate that is basically the same as LTR. This implies our unit’s cash flow is below if it were an LTR because 1) we pay utilities 2) we furnish the unit 3) we pay MTR PM fees which is near double the LTR rate.
The hope is that with poor MTR returns that various operators convert to LTR and the supply diminishes allowing us to raise our rates while maintaining a high occupancy rate.
We have done very well with this unit for many years. It currently is cash flow negative but it has had many years with outstanding cash flow. in addition, the property (2 units) has appreciated over $1m since acquired. No reason to feel sorry for us u less you feel the STR quota was unfair.
Oh very nice! Do you just have it listed on airbnb or other platforms too?
I have MTR in Hillcrest, Oceanside, and city heights and they usually have pretty good occupancy rate but seems to be slowing down or something. Not sure what more I can do.
Quote from @Keith Mintz:
Quote from @Dan Heuschele:
Quote from @Keith Mintz:
I’m curious, for others who own MTR in San Diego, how are they doing? What occupancy rate have you gotten throughout the last year? Where is yours located? Any tips?
My MTR is in Mission Beach and is an MTR due to not getting an STR permit in spite of it having been an STR for 24 years prior to the STR quota. This is relevant because many STRs converted to MTR at the same time resulting in a significant increase in supply.
We have outstanding occupancy (in the high 90%) at a rate that is basically the same as LTR. This implies our unit’s cash flow is below if it were an LTR because 1) we pay utilities 2) we furnish the unit 3) we pay MTR PM fees which is near double the LTR rate.
The hope is that with poor MTR returns that various operators convert to LTR and the supply diminishes allowing us to raise our rates while maintaining a high occupancy rate.
We have done very well with this unit for many years. It currently is cash flow negative but it has had many years with outstanding cash flow. in addition, the property (2 units) has appreciated over $1m since acquired. No reason to feel sorry for us u less you feel the STR quota was unfair.
Oh very nice! Do you just have it listed on airbnb or other platforms too?
I have MTR in Hillcrest, Oceanside, and city heights and they usually have pretty good occupancy rate but seems to be slowing down or something. Not sure what more I can do.
We are listed with the 3 primary MTR OTAs (furnished Finder, AirBnB, VRBO). The PM handles the interaction with the OTAs.
We have an offer on our MTR that is $200 below LTR rates in the summer and $400 below in the off season. It would be nice to get an almost 1 year rental, but that price is too low. We have in effect done a pocket veto as we have not responded, but I plan on responding indicating we need above LTR rates otherwise we can just switch to LTR increasing our revenue due to reduced expenses.
Best wishes
Any one here rent monthly in San diego? I am trying to help my brother in law find a reasonable place- he is going thru a divorce. Thank you