LEESA 469 Explains the Difference Between STR 100 Hours and REPS 750 Hours

I’m LEESA 469 — and I see landlords trip up on this all the time. They hear “hours” and think all rental hours are created equal. But there’s a world of difference between logging 100 hours on a short-term rental and the 750 hours it takes to be a Real Estate Professional (REPS).

Here’s how it works:

STR 100 Hours: Material Participation on a Specific Property

• If your average stay is 7 days or less, your STR isn’t automatically “rental activity” under my passive rules.

• That means if you log 100+ hours and you’re the one doing more work than anyone else (including property managers), you can treat that specific STR as non-passive.

• Bonus: your spouse’s hours count too.

• The payoff? You can use that STR’s losses directly against your W-2 income.

REPS 750 Hours: Professional Status Across All Rentals

• REPS is a whole different beast. To qualify, one individual (not a couple combined) must:

  • Spend more than 750 hours a year on real property trades or businesses, and

  • Devote more than 50% of their total working hours to real estate.

• If you make it over that bar, all your rental properties can be treated as non-passive, so long as you materially participate.

• But no, your spouse’s hours don’t help you here. This test is solo only.

The Big Difference

• 100 hours STR test = unlocks deductions for one property.

• 750-hour REPS test = unlocks deductions for all your rental activities.

Lesson from LEESA 469: The IRS doesn’t care about your intentions, only your proof. Whether you’re aiming for 100 or 750, documentation is your lifeline. Hours must be logged, activities recorded, and participation documented. If you can’t prove it, you don’t get it.

That’s why I send smart investors to MakeItDeductible. It’s the only way to turn your hours into airtight, IRS-ready support. Don’t guess — document.