Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

2
Posts
0
Votes
Karah Kramer
0
Votes |
2
Posts

Buy a Disney area STR with existing bookings

Karah Kramer
Posted


My husband and I are looking to buy in the Disney area (currently looking at Windsor Hills, Championsgate, Solara etc.), and noticed that many of the listings say that existing bookings convey, if we stay with the existing management company. I'm curious what happens if we wanted to change management companies:

a. Does the existing management company get first dibs to try and rebook those guests to other properties they manage? Or do we get a chance to try and retain the bookings? What's the experience for guests? 

b. Has anyone heard of successfully "buying out" the current PM company? I.e. assuming $50K in bookings, that would be +/- $12.5K in commissions. I'm wondering if there are options to buy that PM out to keep the bookings with the house. 

We're not opposed to talking to the existing PM, particularly since it would be smooth to keep the existing relationship in place, but we don't want to be locked in. 

Thanks,

Karah

Most Popular Reply

User Stats

877
Posts
1,282
Votes
Ryan Moyer
  • Property Manager
  • Orlando Kissimmee, Davenport
1,282
Votes |
877
Posts
Ryan Moyer
  • Property Manager
  • Orlando Kissimmee, Davenport
Replied
Quote from @Karah Kramer:

We're not opposed to talking to the existing PM, particularly since it would be smooth to keep the existing relationship in place, but we don't want to be locked in. 

This is something you need to decide ahead of time, so you can include language about it in your offer.  Most management companies have contracts that hold the owners by the balls, and canceling the bookings is going to mean a penalty will need to be paid to the PM.  You're going to want to make sure that is an expense for the seller who hired that PM (and it should be a drop in the bucket to them with the cash they're making on the sale if they didn't buy recently), not a liability of yours.

This is also a good lesson on why, when you do take over the place, you either self manage, look for a manager that is willing to do a co-hosting setup where you still own the bookings, or if you do decide to go the more traditional PM route, examine the part of the contract that covers these things when choosing the manager rather than focusing on just commission and skimming over the rest.

 A lot of management companies set up their contracts so it is as difficult and expensive as possible to leave them.  You want a manager that you stay with because you're happy with the job they're doing, not one that you stay with because it's too much of an expensive PITA to leave them.

  • Ryan Moyer
business profile image
Cosmic Vacations
5.0 stars
14 Reviews

Loading replies...