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Paul Sandhu#5 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • The worst town to live in, KS
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Workforce housing for a group of people

Paul Sandhu#5 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • The worst town to live in, KS
Posted

I normally deal 1 on 1 with my tenants in my STRs.  I rent to contractors working at a refinery.  Their company gives them a per diem, and they are free to choose where they stay.  I normally have no interaction with their company.

This week I'm meeting with a project manager (that lives 35 minutes away) to show him my STRs.  He is currently paying $500/week/person to house his out of state crew in a nice hotel (the kind with a pool and breakfast).  I can house his people for $200/week/person.  He's going to have between 15-25 people here for the rest of this year.  

After I show him the houses, he has to pitch the idea to the vice-presidents of his company for their approval.  His company has 90 branches with 5500 people.

I know in some industries, it's common to give a commission or finders fee to the person that helps you make sales (or rentals, in my case).  If the project manager knows that he'll get a finders fee, he is going to make a better case for my STRs in front of the vice-presidents.  

My concern is that the actual people staying in my STRs are going to grumble because nobody cleans their room every day, there's no breakfast waiting for them, no pool, etc.  And more importantly they're going to complain that the company is saving money by renting from me, and they get no share of the savings.

What would you do?  I know my STRs are hands down better than a hotel room.  Full kitchen, washer/dryer, smart tv's, wifi, outdoor grill, etc.

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Nancy Bachety
  • Rental Property Investor
  • North Fork, NY
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Nancy Bachety
  • Rental Property Investor
  • North Fork, NY
Replied

As long as your cleaning lady will still sleep with you, now that she's getting paid:)

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