California laws generally tilt towards protecting tenants, to the extent that tenants can claim residency rights after a certain number of days present, making it harder for landlords to evict them. Founder of Togetherbnb, Xie Yiqi, gave a presentation titled “Your House Can Also Do Airbnb!” at the Los Angeles Overseas Chinese Cultural Center on Sunday, August 10th, analyzing the differences and profits between long-term, short-term, and medium-term rentals, and sharing the advantages of short-term rentals in reducing the risk of “professional tenants.”
Xie Yiqi currently manages over 40 properties in Southern California. She mentioned that in recent years, many Chinese landlords in the United States have been switching from the traditional long-term rental model to short-term and medium-term rentals to increase property earnings. The regulations and lease terms in different cities are key factors affecting investment returns, and property owners must familiarize themselves with local norms and regulations before considering this transition to avoid legal issues.
According to her observations, long-term rentals (lasting between six months to a year or longer) have traditionally been the preferred choice for Chinese landlords due to their high stability. However, the demand for short-term rentals (30 days or less) and medium-term rentals (30 days to six months) has been rapidly growing in recent years, providing more operational flexibility. “Many cities prohibit daily rentals, but regulations often target lease terms of less than 30 days,” she noted. In cities where short-term rentals are banned, medium-term rentals become another legitimate option for landlords to increase income.
Xie Yiqi analyzed that the average monthly rent for long-term rentals is around $3,000, while operating short-term rentals through platforms like Airbnb and Vrbo can generate average monthly income ranging from $5,500 to $6,000, approximately 1.5 to 2 times higher than long-term rentals. Medium-term rentals can increase income by 1.2 to 1.5 times, with lower tenant turnover rates and relatively smaller management risks.
She cautioned that although platforms deduct commissions, Airbnb and other platforms have landlord protection mechanisms to prevent scenarios where accepting cash directly could lead to situations where assistance becomes unavailable. She cited an example of a homeowner who hosted short-term tenants via Airbnb, with the tenants originally planning to stay for six months. However, a month later, they privately agreed with the landlord to terminate the lease early and switched to cash payments. By the second month, they stopped paying rent and refused to vacate. Without a formal lease agreement, the platform couldn’t intervene, and the landlord struggled to swiftly evict them through legal means, leading to an occupation dilemma.
With over a decade of experience in managing Airbnb properties, Xie Yiqi currently oversees a range of properties, including sublet rooms and entire residences, adjusting models flexibly according to local regulations and market demand. She emphasized that in cases of misbehaving short-term tenants, landlords can call the police for assistance in eviction, whereas long-term rentals require more complex legal procedures, making handling more challenging. Additionally, managing cleanliness and maintenance for medium and short-term rentals is more straightforward, with profits generally outpacing those from long-term rentals.
She shared that previously earning approximately $36,000 annually through long-term rentals, transitioning to short-term rentals increased yearly income to between $66,000 and $72,000. Converting some properties to medium-term rentals also allowed for a stable increase in income while complying with regulations. She encourages landlords to leverage regulations and market opportunities to realize their investment ideals of becoming successful property managers.