Operating a vacation rental property management company in a resort community

[Neil Mendez]

Hello All, 

I'm new to Bigger Pockets within the last few months.  Since I started listening, I keep pulling the thread and finding more and more great content!  I have been binging on podcasts, YouTube videos and Audible from the Bigger Pockets community and feeling more inspired than ever to take action.

I currently own and live in Tonasket, WA - which is about 15 miles from my income property in a resort community of about 150 cottages in Oroville, WA. Veranda Beach Resort. The property is on Lake Osoyoos which spans Washington and Canada. The city of Osoyoos in Canada is completely developed and considered Canada's wine country and the lake is the warmest in Canada and Washington. Up until this year, there have been two property management companies that have handled all the rentals at Veranda Beach but one of the companies has not been approved by the HOA this year because they owe hundreds of thousands of dollars in resort fees. This presents an opportunity.

As a home owner in the community, I have to use a HOA approved property management service but I'm thinking I should be that service! I've already established my network of house keeping, I have a handy man that can build a house from the ground up and I have hired a CPA and book keeper to keep me organized. I'll have my LLC by the end of the week and will then set up my business account via Relay so I can have up to 30 accounts to further help keep organized (great advise from the Robinsons!) I plan to use Hostaway and Pricelabs to scale and automate. My capacity is going to be a max of 25 homes at one time.

I'm meeting with the HOA today (short notice) to make my intention known and I expect some push back since I'm new to the business. However, my day job is a Sr. Account Manager. My interpersonal skills, staying organized and having a process are some of my strengths. I also am former college basketball player (2 year captain at PLU), a volunteer coach in the community and am a part business owner in the catering business that operates the diner at the resort I live in. Although I've never been a property manager, I 100% believe I can do this! My goal is to use this money I earn from this business venture and buy other STR properties - ideally ones that are not seasonal and don't have a HOA. I also have started studying for my real estate brokers license to further support my real estate habit.

Is anybody else doing something similar? Any advise on how to approach the HOA and sell them on the fact I can adequately provide an unmatched customer experience for all our guests? All comments and questions welcomed! :D

Best,

Neil

[Leslie Anne Morris]

In the Smoky Mountains there are HOA type communities that require that if your property is going to be rented that the HOAs in-house property management company governs and are the managers. It is in the CC&R (covenants, conditions and restrictions). If you bought a property in the HOA community then you're aware of and agree to these restrictions. I've never heard of anyone challenging it, and I don't think it would hold up if a legal situation arose.