1st STR potential purchase!

[Justin Rademacher]

Looking for any insight on self-managing our STR. Right now we are debating between self managing or hiring a PM for this. Self-managing would put about $1500 per month back into our pockets.

 4 bedroom 2 bath home in Cape Coral with a pool

[Collin Hays]

To truly "pocket" the management fee savings, you need to be honest with yourself:

1.  Do you have time to quickly respond to inquiries?  If you do not, you are missing out on reservations.

2.  Do you have the time and resources to quickly respond to problems at the property at all hours of the day, throughout the year, even on Christmas Eve?  Heating, A/C. plumbing, pest problems, appliance failures.  If you do not, you will be refunding a lot of reservations.

3.  Do you have the resources to continuously evaluate your rates and reservation trends, and the time to adjust your rates to keep your property occupied at optimum rates?  If not, you are probably leaving a lot of money on the table.

To truly get ahead going the self-management route, you need TIE.  Time, Interest, and Energy.  If you do not, you are losing a lot more than you are "saving."

For several years, right around the first of the year, we had the same gentleman, a self manager, call us and ask about managing his property the next year.  He would agonize about giving up 20 percent of his revenue.  Couldn't really blame him, but I assured him that I thought that we could far outperform the results he was getting on his own.  The last year on his own, his cabin in Sevierville produced approximately $33,000.  We took it over in 2019, and it has never done less than $50,000.  Why?  Because as a Property Manager, managing properties is our full-time business.  We aren't juggling it while being a doctor, lawyer, or bank officer.  We should be able to outperform a self-manager!  

Whatever you choose, good luck and best wishes to you!