Short Term Vacation Rental Virgin

[Mike Harding]

I have been flipping for 7 years and done 60+ homes but this will be my first Vacation Rental. I am pretty busy between family and work as it is but I am mostly curious about the pros and cons of self managing vs full service management from some of you folks that have experience with it. The house is in South Lake Tahoe which is a great market for vacation rentals. The house is zoned commercial which is rare and means that I can get the permit from the city. South Lake just passed a bill that heavily restricts short term rentals, very limited new permits and most existing are getting shut out in 2021(if the bill doesn't get overturned).

I met a guy playing poker the other night that told me that he owns 10 short term rentals spread out around the country, works a full time job and self manages. I wasn't able to get into too much detail at the poker table but he said his wife and him handle the bookings and that a reliable cleaner and handyman is all you really need. That vrbo and airbnb is enough to get plenty of bookings and that there platforms ingrate with each other. We have a mutual friend which makes his story a bit more reliable but I need your help to figure out if he was bluffing.

Vacasa was the front runner of the management companies that I looked into. They charge 35% but my point of contact said he could get me 30%. I like the idea of not having to do anything but seems quite expensive. They also say that they are on 20+ sites and use dynamic pricing to maximize number of bookings.

I got a really good deal on the home because of a problem tenant/squatter. I am just met the sheriff there last week and was able to get in and start work.  it is currently a 2/1 that I am going to make into a 3/2 by taking out a large wood burning fireplace, shrinking the closets and moving the laundry into the garage.  I am thinking I will add a hot tub and a small back patio as well.   I will put in the life-proof flooring throughout, new kitchen and bathrooms.   I am going to put in new windows.  Trying to balance budget with durability and efficiency.  

Thanks for your help!

[Julie McCoy]

Your poker friend is telling the truth.  I self-manage 4 vacation rentals long-distance in two markets, and all I need is a great cleaner and occasionally a handyman.  Keep that 30% for yourself!!!  All you need is the ability to check your phone regularly and respond to messages, which is probably already something you're doing.

@Jon Crosby is our local Tahoe expert, he's got a property in the area and I'm sure he'll have some good insight for you.  Congrats on the commercially-zoned find, and best of luck as you start your journey!