Is this a valid alternative for my vacation cabin?

Chattanooga, Tennessee
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Is this a valid alternative for my vacation cabin?

Jenny Scott
Alpharetta, GA · Member since 2011 · 23 posts · 8 votes

I have a vacation cabin in mountains that our family used to go pretty often for summer break, vacations and holidays. But now we go there less and less often, we are thinking about if there is any way to use it to bring in some extra income to cover its cost.

So my husband kinda think about turning it into an airbnb business, but we don't really want to (or more accurate, not capable of) handle daily guest check in, cleaning after each stay etc. And we do not want to sell it either, because it is always nice to have a spot for vacation.

Then my husband cames up with another idea, kinda like time share, but not exact. Basically, we can find a few similar faimies (renters) to share/rent that cabin. For example to have a 12 months lease with 4-5 familes each pay 5k to allow them stay in cabin for up to 2 month for this whole 12 month period, as long as there is no time conflict.

I like that idea, because we still has the place and we can go there as we need and we don't need to do cleaning. Other family also can go whenever they want and they will do cleaning after each stay, just like a long term lease.

So, do you guys think if that is do-able? any potentail problem down the road?

I also heard some people saying the county might put some ristrction on airbnb in that area, If that comes true, that should not affect me if I do it in this rent share structure, right?

Thanks

Jenn.

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Most Popular Reply

John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y

You can self manage it without checking in guests or cleaning it yourself.

You have a electronic door lock with a code and you hire cleaners to take care of cleaning the house and guest turnovers.

4Reply
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  • Tim J.
    Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    3y
    I bought a cabin on a lake in vermont in 2000.  I did not use it fully.  around 2014 I decided to rent it out for short terms.  That was about when airbnb became popular.  I found a local cleaner who would do all the cleaning work for me so I did not have to  do it.

    I make it clear in my listing that it is a rustic cabin.  I set expectations.    Cleaners have been great.  I make about 10k each year from what would have just sat idle.  

    I encourage you to re-think the plan - and find a local cleaner or two or an airbnb Property manager.  
    2Reply
  • Brian Barch
    Member since 2022 · 272 posts · 253 votes
    3y

    Uhhhh….just find a property manager

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    You can self manage it without checking in guests or cleaning it yourself.

    You have a electronic door lock with a code and you hire cleaners to take care of cleaning the house and guest turnovers.

    4Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    1. You want to own a short term rental business, not a Airbnb business 😊

    2. Find out your local restrictions/regulations before you do anything 

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    3y

    I agree with the above comment to find a Property Manager.  We manage around 80 units for clients who range from snowbirds to once a year guests, to investors who never step foot on the property and everything in between.  Find a good local PM that does not have restrictions on owner use and let them do the rest :)

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Brooklyn McCarty:

    1. You want to own a short term rental business, not a Airbnb business 😊

    Thank you! And I think the OP could have problems with friends and family sharing the cabin. Petty disputes and all that. And then there's the fact that a LOT of money is being left on the table. As was already said, just hire a cleaner and have a handyman standing by, do your own off-site management, it's easy...

    3Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    Maybe think about selling it and buying another place --on the water--with a dock and a boat launch, plus a new speed boat.

    Lots of new experiences, water ski-ing, fishing, hiking a new area, etc..

    Buy small, with big land and add on to it every 3 or 4 years.

    Some extra bedrooms, a bigger patio, a hot tub.

    Have contractors do the work when you are not living there--so its ready to go when you arrive.

    Invite everyone in the family to take vacation at the same time and stay there all together (collect some $$$ to cover their food costs if that bites your wallet too hard).

    Have an adequate well and septic field to handle a lot of people.

    Just my 2 cents.

    1Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    Get a professionally licensed property manager who knows the area. Best option! 

    1Reply
  • Mark S.
    Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 475 votes
    3y

    @Jenny Scott It is pretty easy to manage it yourself. You can manage the door locks, check in check out notifications, thermostat, propane tank levels, calendar and pricing, accounting, lodging tax payments, etc all on your phone. There is software for all of it and it’s not expensive or difficult. The key is a good cleaner and handyman, plus visiting yourself several times a year to check on things. Beats paying 20-40% of rents to a PM. Unless you just don’t want to have anything to do with the managing and the money isn’t an issue. Then a PM may make sense.

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Jenny Scott. You can manage it yourself. Check to make sure you can do short term rentals where the cabin is located, then find a good cleaner who will handle the turnovers. Get a good handyman who can head over and deal with things as necessary.

    Your idea of leasing sounds like a bigger hassle and harder to manage that doing a regular STR. Conflicts over who stays when can really be a problem.

    Take some time to read the forum and you will see a lot of ways to manage it yourself. 

    1Reply
  • Jenny Scott
    OP
    Alpharetta, GA · Member since 2011 · 23 posts · 8 votes
    3y

    Thank you all for tons of great advices. You guys are awesome, as always. :) 
    Looks like the easiest route would be  to hire a PM, once I confirmed with area to make sure there is no restriction. Meanwhile, we will start to learn some management skills, hopefully one day we can be comfortable enough to manage it ourselves. 

    0Reply
  • Clarissa Baker
    Property Manager · Miami, FL · Member since 2023 · 21 posts · 3 votes
    3y

    You can manage it remotely with the help of a good PMS or hire a property manager. Since you know the place you could easily find connections to reliable cleaners, handymen, etc and even a friend who can be called to manage an emergency situation if that is ever necessary

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    @Jenny Scott, when running your numbers, make sure you include the 15-25% a PM will take off the top. Plus any fees they add as well. Not all do, but get the actual final tabulation from the PM, not just a simple percentage you will pay.

    1Reply
  • Sara Levy-Lambert
    USA · Member since 2022 · 879 posts · 109 votes
    3y

    It's great to hear that you're considering ways to generate extra income from your vacation cabin in the mountains. Your idea of sharing the cabin with other families on a long-term lease basis is definitely an option worth considering.

    One of the main benefits of this approach is that it allows you to generate rental income without the hassle of managing the property on a short-term basis. Since each family will be responsible for cleaning after their stay, you won't have to worry about managing cleaning and maintenance for each individual guest. Additionally, this arrangement allows you to maintain access to the cabin for your own personal use.

    However, before moving forward with this idea, it's important to consider a few potential issues. For example, you'll want to make sure that the families you're renting to are trustworthy and reliable. You may also need to develop a system for managing scheduling and resolving conflicts if two or more families want to use the cabin during the same time period.

    In terms of the potential impact of county restrictions on Airbnb, it's difficult to say for certain how these regulations may impact your specific situation. However, since you're not operating the cabin as a short-term rental through a platform like Airbnb, it's possible that any restrictions on short-term rentals may not apply to your arrangement.

    1Reply
  • Bonnie Griffin KaakePro Member
    Real Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
    3y

    @Jenny Scott  What you are suggesting would not be my preferred direction from experience. No two people clean or consider clean the same way. Years ago my daughters and their families shared a tent camper. It always starts off well. Then, somebody breaks something and does not repair the damage or doesn't repair it soon enough for the next usage. One party wants out because another party did not clean the unit to their satisfaction after use. In short, relationships get harmed. 

    Check the regulations and laws in the area before making any decisions. You might be better off listing it with a management company and book your stays when you want them. If you don't intend to stay there more than 10% of the time, you can depreciate it as a long-term rental of 30 days or more, or short-term rental <30 days or transient (like a hotel) for 7 days or less.  

    I just published a Q &A document about STRs because we have been seeing the majority of depreciation schedules for STR are not being done correctly and there is too much misinformation on the Internet.

    [email protected]303-475-4459
    1Reply
  • Chad McMahan
    Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 754 posts · 504 votes
    3y
    Quote from @Jenny Scott:

    I have a vacation cabin in mountains that our family used to go pretty often for summer break, vacations and holidays. But now we go there less and less often, we are thinking about if there is any way to use it to bring in some extra income to cover its cost.

    So my husband kinda think about turning it into an airbnb business, but we don't really want to (or more accurate, not capable of) handle daily guest check in, cleaning after each stay etc. And we do not want to sell it either, because it is always nice to have a spot for vacation.

    Then my husband cames up with another idea, kinda like time share, but not exact. Basically, we can find a few similar faimies (renters) to share/rent that cabin. For example to have a 12 months lease with 4-5 familes each pay 5k to allow them stay in cabin for up to 2 month for this whole 12 month period, as long as there is no time conflict.

    I like that idea, because we still has the place and we can go there as we need and we don't need to do cleaning. Other family also can go whenever they want and they will do cleaning after each stay, just like a long term lease.

    So, do you guys think if that is do-able? any potentail problem down the road?

    I also heard some people saying the county might put some ristrction on airbnb in that area, If that comes true, that should not affect me if I do it in this rent share structure, right?

    Thanks

    Jenn.

    Hi Jenn.
    The simplest, easiest and likely the most profitable option is to run it as a STR but outsource the property management to a top STR PM.
    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3y

    @Jenny Scott as many have suggested, there are other options. You just need to put some effort into this!

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    0Reply
  • January Johnson
    Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 487 votes
    3y
    Quote from @Scott Mac:

    Maybe think about selling it and buying another place --on the water--with a dock and a boat launch, plus a new speed boat.

    Lots of new experiences, water ski-ing, fishing, hiking a new area, etc..

    Buy small, with big land and add on to it every 3 or 4 years.

    Some extra bedrooms, a bigger patio, a hot tub.

    Have contractors do the work when you are not living there--so its ready to go when you arrive.

    Invite everyone in the family to take vacation at the same time and stay there all together (collect some $$$ to cover their food costs if that bites your wallet too hard).

    Have an adequate well and septic field to handle a lot of people.

    Just my 2 cents.

    I'm sorry, but this sounds like an expensive nightmare to manage (dock, boat launch, speed boat, hot tub), let alone the liability. NEVER would I recommend this to ANYONE. And I sell STR properties to investors as my full-time job.

    Surely you are not serious.

    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y
    Quote from @January Johnson:
    Quote from @Scott Mac:

    Maybe think about selling it and buying another place --on the water--with a dock and a boat launch, plus a new speed boat.

    Lots of new experiences, water ski-ing, fishing, hiking a new area, etc..

    Buy small, with big land and add on to it every 3 or 4 years.

    Some extra bedrooms, a bigger patio, a hot tub.

    Have contractors do the work when you are not living there--so its ready to go when you arrive.

    Invite everyone in the family to take vacation at the same time and stay there all together (collect some $$$ to cover their food costs if that bites your wallet too hard).

    Have an adequate well and septic field to handle a lot of people.

    Just my 2 cents.

    I'm sorry, but this sounds like an expensive nightmare to manage (dock, boat launch, speed boat, hot tub), let alone the liability. NEVER would I recommend this to ANYONE. And I sell STR properties to investors as my full-time job.

    Surely you are not serious.

    OP: "I have a vacation cabin in mountains, that our family used to go pretty often for summer break, vacations and holidays. But now we go there less and less often,..."

    Base on that, this family seems bored with their 2nd home and needs another to replace it (in addition to renting the old one out--if that is for them).

    I was envisioning the new one for personal use only, not rent out.

    Lifestyle, like (for some people) owning a hot tub, or on Air Hockey Table--what good are profits if you live "poor".

    Envisioning a realistic nice life goal like this, even if it must come over time, is a good motivator.

    Even if you are starting out and struggling, keeping your eye on the prize gives you something to shoot for.

    Maybe some Real Estate Agent on the Emerald Coast could sell them just such a place (???)

    Good Luck!

    0Reply
  • Malinda Cardel
    Real Estate Agent · Chattanooga, TN · Member since 2023 · 34 posts · 17 votes
    3y

    Hey! I think the airbnb wave is your best bet! Chattanooga has become one of the most vacationed areas and people are always trying to find a unique place to staycation for a good price! You could really profit off this. I think key code access and hiring trusted cleaners would be great. I have connections with others that do airbnbs in the area and would love to help! Sounds like a great investment property :) 

    0Reply
  • Adrienne Green
    Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
    3y

    @Jenny Scott Why not STR it with a property manager or co-host to handle bookings? The PM/co-host handles the bookings, coordinating with the cleaner, the marketing, and you just block out when you want to use it! You continue to get the wealth building and personal use, plus additional income!

    0Reply
  • Amber Epperson
    Member since 2020 · 5 posts · 2 votes
    3y

    Jenny, if your cabin is in the Chattanooga area I'd be happy to discuss managing it as a STR for you. I own/manage several others in the area.

    0Reply
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