Managing a STR long distance... co host or self manage?

Question

I have been doing STR for several years locally and out of state. My out of state STR does not cash flow after all utilities, hosting fees, PITI, and supplies. It basically breaks even. I do most of the communication with the guests. I use a co-host to help with any issues that might come up (rarely have had any issues) and to clean. I pay them a 15% fee plus a cleaning fee. For those of you who self manage out of state STRs do you use a cleaning service to help with co-hosting? How do you compensate them? Or, do you recommend having a co-host? If so how do you compensate them?

Thanks for your input!

Michael Baum · Answer

Hi @Heidi Hughes, our lake house is 360 miles from us and we self manage. We have a great cleaner. She lives just down the road and I can call her if there are any issues. She just records the time she is there and bills us hourly.

I would ditch the co-host. Automate the house as much as possible. What does your co-host charge for cleaning? Would they continue to do it if they aren't being paid to co-host? They could still handle the rare issues.

You might lose your co-host as a cleaner if you make the change, so be prepared to find someone new.

Luke Carl · Answer

Do it your self piece of cake. I self manage 17 doors and I’m never physically in the same state or country for more than a week at a time.

Paul Sandhu · Answer

I have 23 doors, but they are all in my own town.  My cleaner does it for free, plus I get to sleep with her.

Ken Latchers · Answer

"I ask 225 a week for two-bedroom and 325 a week for 3+ bedroom."

that is my markets price. the 3 bedroom cost me about $65,000, for example.

Lauren Kormylo · Answer

@Ken Latchers  Aren't you charging $225 per week per bedroom?  I think @Heidi Hughes is thinking that is for the entire 2 bedroom house.

Luke Carl · Answer

@Heidi Hughes my market is STR only. There’s 13 million tourists per year and only 20k actual residents. It’s not a matter of “how much do I pay my cleaner” it’s a matter of “how much does your cleaner charge”

PM me a list of questions and I’ll answer them all. Thanks

Paul Sandhu · Answer

@Heidi Hughes  Don't charge them back.  Make them pay for it up front.  Otherwise you are going to get the big candle between your buttocks.

Heidi Hughes · Answer

@Ken Latchers Thank you!  Your information is helpful.  I think I will try to go for monthly furnished.  Do you charge them back for electric, gas and wifi?  $225 a week comes out to $900 a month which is about what I get for an unfurnished rental in my area.  I am hoping to get more for a 2 bedroom furnished.

Ken Latchers · Answer

I will make it more clear. Long-term rent them as furnished. Will make more money. Just put them on Craigslist and turbotenant which will broadcast to a lot of places for free. It can be a little slow, but I make more money on furnished apartments and rooms than I did short term rental on this side of town. Not sure of your area, but I am in Eastern Pennsylvania and I asked ask 225 a week for two-bedroom and 325 a week for 3+ bedroom. I pay water trash sewer and they pay everything else. I have a minimum of six or nine months then it goes monthly for rental period.

Managing a STR long distance... co host or self manage?

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