In real estate, STR is the abbreviation for short term rentals. Short term rentals, also known as vacation rentals or Airbnb rentals, are properties that are rented out for short periods, typically for 30 days or less.
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A short-term rental (STR) allows a host to offer fee-based lodging at their primary residence while the host is present on the property (e.g., a bedroom within a home).
Simply put, it's a tax strategy that utilizes short-term rental properties, such as AirBnB or Vrbo to generate income while concurrently writing off depreciation (noncash expense) and expenses to reduce taxable income.
Vacation rental arbitrage, or Airbnb rental arbitrage, is when a host rents out a property they do not own on Airbnb for more than they are paying in rent. This can be done by finding properties that are undervalued in the marketplace and renting them out at a higher price point.