How Do I Reduce Operating Expenses on Detroit Suburb STR?

[Elmer Bonilla]

Hey BP community,

Looking for some advise on reducing operating fees on my str in the city of Southfield, MI (Detroit suburb). This is my first property, bought it last December and went live in mid March. Until now it has been booking consistently and getting great reviews with the same property manager. I’m very hands off besides the monthly payments my wife sends out to the cleaners, maintenance, PM. We are out of state.

Although it books solid most months, after all the expenses are paid there is little profit. Most of it going back to cleaning fees, PM, maintenace, supplies.

Mortgage: 1300

Average Monthly income: 3500-5000

Profit:

On a good month we’ll see 1000 profit but most months it’s been much less.

With those numbers, should I be seeing more profit and consider a new PM or look into mid term rental which will mean less cleaning events? Would appreciate any tips?

Also considering selling the house as an operating ABNB.

[Paul Sandhu]

Raise your nightly rate or increase the minimum duration for a stay.  The first will increase revenue.  The second will decrease cleaning expenses.