Turnkey Short Term Vacation Rental Purchases?

Question

Hi allI'm wondering if there are any real estate agents that focus on turnkey Short Term Vacation Rentals? I'm not location specific at the moment as I'm just starting my analysis trying to figure out where best to do this. I'd like to find a geography where the airbnb laws are friendly in the city plus easily rentable short term - eg tourist destinations, great weather, near a colleague town, etc.Thanks in advance

Garry C. · Answer

It's 50% it many areas of Colorado. If you bring your own guests to the PM, they will only charge 35%. It doesn't make sense as a business venture, but can work well if you just want to break even.Self management can be very lucrative. And easy, with the right systems and templates in place. You'll really want to utilize both VRBO and AirBNB to secure a greater number of bookings. Although VRBO is becoming more and more like AirBNB every day, which is very disappointing.VRBO is generally going to bring in guests doing a lot of planning, who will scrutinize reviews and amenities to find a great vacation spot. AirBNB can be utilized to bring in last minute guests looking for a cheap rate. Using both has allowed me to fill every weekend in my calendar for the last 10 months, not to mention quite a few full weeks.

Susan P. · Answer

Big Bear Lake, CA has been great for me.

Andrew Grieb · Answer

We are new to the vacation rental side of investing, but we have been researching it for a while now. We (my wife and I) finally decided to Invest in Angel Fire, nm. It is a Ski town in the winter and a mountain biking/outdoor activity location in the summer. Property Managers there are charging 40% there, so we are opting to use the VRBO management ourselves, along with automation for us to monitor it, and several local cleaners and handy men should we need them. Most of the agents in angel fire focus on vacation rentals.

Account Closed · Answer

Wow 40% management charge - with that type of impact on the cost base the numbers won't stack up. I'm thinking of something like a small SFH then have it on Airbnb, managed by one of the property management companies like Pillow Homes. Still need to run some numbers with some examples but seems that will stack up instead of the 40% cut!

Brian T. Grooms · Answer

I have been considering "property management" business models to operate more vacation rentals. I have thought for a while one way is offer to lease residential properties sort of like a commercial lease. IE longer terms, slightly higher than residential market rents, having the right to improve and furnish the property, paying the taxes, etc. if it makes sense of course.lllThe kicker would be getting an option to buy also.What management companies have you found that are doing this?

Lisa Troxel · Answer

I just bought a small house that I want to use as a short term furnished rental- one month +. My husband is not sold on my business plan- he wants to just do a regular rental. Problem is that the house is small but expensive since it is brand new and LEED construction. I also bought it to learn about this type of rental because I have another property in another City far, far away (400 miles) that I want to convert to a short term furnished rental. Trying to learn all I can.

Gerard Lester · Answer

If you can find a management company who will deliver the same or greater net that you can achieve self managing, then they have earned their commission. I would council owners to look closely at what services a manager is performing for the commission they charge, what they tack on and up-charge on and what you as an owner are still tasked with completing. The old model of vacation rental property management saw managers making profits on property management services and housekeeping but not playing offense on renting. This leaves home owners/investors with a unit that may only break even, as Gary C points out. Low commissions from managers can also mean lots of add on services that show up on your account, leaving an effective management commission that ends up in the 30-40% range. The vacation rental management business is great, but Investors and owners--don't be afraid of commissions that deliver a solid net income so that you can focus on finding more real estate deals.

Michael Greenberg · Answer

@Darryl I. - PM me I am not a realtor but I do have friend who is a turn-key vacation rental realtor in a great destination.