Friends and family discount?

[Jonathan Bombaci]

We just finished renovating an investment condo in a vacation destination. We do quite a bit of long term rentals but this one was bought with the intention of using it ourselves and then renting it out when we're not using it. I think we bought it right and the mortgage + HOA fee ends up being about $1000 a month. Based on other comparable vacation rentals (in worse condition) in the same area we should be able to get $1200-$1500 per week. Which I see as a bonus since it's really a vacation spot for the family when we want to use it. We're able to support the monthly payments without renting it out but I like having assets, not liabilities, on our balance sheet.

I am pretty bad at saying no to people I like. The question is do we offer a “friends and family discount” of like 50% off to people we know that don’t book through Airbnb? The reason why I want to establish a rule early on is because I’m the kind of person that would let people use it for free but don’t want to back myself into a awkward situation.

[Nathan Gesner]

Quote from @Kenneth Garrett:

@Jonathan Bombaci

Are some of you saying you would charge your parents to use your STR. That's seems completely heartless. If you want to charge your brothers and sisters that's up to you. It depends on your own philosophy. I make enough money for my family to use it occasionally.

I moved my mom to be near me last year and she's living in one of my rentals for free. It's cost me almost $20,000 this past year, but I'll let her stay there until she can't or she passes. However, I wouldn't say it's "heartless" to charge parents something. I would say it's heartless for relatives to expect to reap the benefits of my hard work. I didn't inherit these properties or win the lottery. I have them because I've hustled, sacrificed, saved, self educated, and otherwise taken the road less traveled. My relatives chose to take the common path and do the minimum to get by. 

I think 25% is awfully generous.