What are STR units in multifamily real estate?

What Are STR Units?

In multifamily real estate, "STR units" refer to Short-Term Rental units. These are individual apartments or units within a multifamily property that are rented out on a short-term basis, typically through platforms like Airbnb, Vrbo, or similar services. Unlike traditional long-term leases, where tenants might rent an apartment for a year or more, short-term rentals are usually for periods ranging from one night to a few weeks.

Short-term rental units in multifamily properties are often furnished and equipped with amenities to attract vacationers, business travelers, or others looking for temporary housing. They can provide higher per-night revenue compared to long-term rentals, but they also come with higher turnover, more management responsibilities, and sometimes additional regulatory scrutiny, depending on local laws.

In some markets, property owners or investors may designate a portion of a multifamily building for STR use to diversify income streams, though this can also affect the overall character and operation of the property.