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Updated almost 3 years ago,
Managing STR with 50/50 partners
Hey everyone,
I'm looking at investing in my first short term rental in a saturated market in the Pocono Region of PA. It would be a 50/50 partnership with equal credit/cash coming from both sides. We are considering doing a management rotation since by week since we both live relatively close.
I want to get the decision making basics out of the way. The obvious problem with 50/50 partners is how do you resolve disagreements. Anything from pricing, renovations, repairs, etc... Also what is fair for personal use? Assuming we get 60-70% occupancy, if one party wants to use it during downtime, or takes a chunk out of a prime date range, how could that be worked out? I've thought about a flat fee per stay which would otherwise be unbooked and a requirement that they clean or pay the cleaning fee.
Any experiences or ideas on what to plan for would be greatly appreciated.