Large House Split Based on # of People?

Large House Split Based on # of People?

Rental Property Investor · Hammond, WI · Member since 2017 · 139 posts · 217 votes

So I currently have 65 long term units that I own and I recently purchased my first property that I'll be going the STR route with.

Basically, I just bought a large (4300 square feet) cabin on Lake Superior that is essentially "split" into two different houses that are connected via a door through one of the bedrooms.  One unit will sleep 8 people comfortably, and the other unit will sleep an additional 10 comfortably.  I'm beginning to decide on my strategy for renters and marketing.  For ease sake as well as cost I was considering making my base rate on 6 people staying, then charging additional for each person with the expectation that if they have more than 8 people they will then gain access to the 2nd half of the cabin.  I was simply going to have an electronic lock on the dividing door (there are 2 separate entrances), and give them access based on # of people.

I don't plan on renting them out individually, it'll simply be either access to only the main part of the 1/2 cabin or the entire thing with the number of people.  It's in a more remote part of WI directly on the lake and I'm attempting to save on cleaning costs/time/maintenance costs by going this route as well as make it more marketable to smaller groups.  Anyone ever done anything like this?  I was considering using my maximum number of photos on AirBnB and VRBO and then make it very clear in the description that you'll have access to the first x amount of pictures etc of the cabin if you have 8 or less people and attempting that route while still maintaining the flexibility to go up to 18 people in the house.  

Any advice I'm all ears!  The main cabin has all of the desirable traits if you will, views of the lake.  Other than room for more sleeping there is nothing on the side of the house that would be a main selling point for a renter.  

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Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
6y

@Luke G. Lots of good feedback here.  I had a riverfront house with an attached garage apartment and could be configured several different ways; I had different listings for each size (to minimize confusion regarding how much of the house a guest was getting), and made it so you could book the whole house furthest in advance, then for closer stays there was the option to book the smaller version.  Like you, only the main part of the house was really desirable/riverfront, I experimented with renting the garage apartment on its own but didn't get many takers, and it always made me uncomfortable to have two groups on the property at once.  

For your scenario, I'd probably create two listings: one for just the main portion of the house, and one for the entire property.  The entire property I'd allow bookings a year-plus in advance.  The main portion of the house would only be available perhaps six months out.  Of course, calendars need to be linked so you don't get double booked.  On the listing for the main house, you can do the extra charge for guests 9/10, but you can also make it clear that there is MORE HOUSE that can be included in the reservation, see your other listing or contact you for details.  

Having the separate listings will help prevent confusion regarding what guests are getting when they book, and will make it easier for you (and your cleaning team) to see at a glance who's getting what.  Limiting the booking window for the main house only will make the whole property more likely to get booked by those groups planning further in advance, regardless of size (if someone's willing to pay for it, who cares if it's six people in the whole house?).  The only downside is your review pool gets diluted, since they will be spread across two listings instead of consolidated in one, but I think the logistical pros will outweigh the cons here. 

That's my two cents!

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  • Rental Property Investor · Hammond, WI · Member since 2017 · 139 posts · 217 votes
    5y

    @Michael Baum

    I don’t have pics to the water as it’s inaccessible due to a cliff at my property. One of the downsides of Lake Superior on the south shore is difficult access. There used to be steps leading to the lake but Mother Nature took care of that during a bad storm.

    I’ll work on getting captions on all photos, it’s hard to logically put them in with the layout of the house, it’s essentially two houses in one so I’m struggling to figure out the best order to put them in.

    Calendar is starting to fill up, I’ve been using price labs but I’m putting prices a bit lower to start to make sure I get the reviews I need. I’m only allowing 9 months in advance to book up so I can keep a good handle on what I should be charging before next year.

  • Rental Property Investor · Hammond, WI · Member since 2017 · 139 posts · 217 votes
    5y

    @Philip Cook

    I agree, I have a professional photographer coming to retake all pictures as my current ones are crap. When I was done with the renovation and had the permits I just needed something to get it listed, my attention to detail was not great.

    I have a photographer that will also come back to take drone footage in the spring and exterior once it greens back up.

    Thanks for the feedback!

  • Rental Property Investor · Hammond, WI · Member since 2017 · 139 posts · 217 votes
    5y

    I finally was able to get a professional photographer into the cabin, he will come back again once it greens up but I think it looks a lot better since he was there.  Let me know anything else you'd change on my listing.

    Lake Superior Lakefront Perfect for Large Groups! - Houses for Rent in Herbster, Wisconsin, United States (airbnb.com)

    I ended up taking @Marcello Di Gerlando advice and leaving it as one large unit.  I pretty much went bullet point for bullet point on his list earlier in this thread and now I have a cash cow.

    Nobody has balked at the large cleaning fee, I have dropped it when they're only using one side of the house, but only offer it if they request it for smaller groups.  I don't really think I've missed out on any bookings as I have been booked every weekend since I went live in December and don't anticipate any weekends that won't fill up.  I've had several guests stay 7+ days during the winter which was likely a covid bump, but I've had a couple groups of ice fisherman too.  I may have left some money on the table for peak season in the summer, but most weeks are booked at 500+ night and I'm ok with that.  

    Thanks everyone for chiming in on this, it's turned into a home run deal.  I paid 325k, put about 35k into new flooring and furnishings and was re-appraised at 495k, leaving me with a new line of credit for 155k to buy my next deal.

  • Investor · WI · Member since 2020 · 10 posts · 3 votes
    5y

    @Luke G.

    Great looking property!

    I always look for a hot tub when I go to an Airbnb, but I understand that's a lot of maintenance.

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    5y

    Hey @Luke G., pics looks good and the place looks good. I would HIGHLY recommend that you change out the main dining set for something that seats more than 6. You can sleep up to 16 so you need to get setup for that number. If not on one table then 2. :)

    You main pic is similar to ours which is cool! I would also freshen up those pics this summer. The ice is cool, but summer pics with full foliage will be appreciated.

  • Rental Property Investor · Hammond, WI · Member since 2017 · 139 posts · 217 votes
    5y

    Hey @Michael Baum great minds think alike.  I'm bringing up a custom made 12' long dining room table with bench seating and tossing the one that's currently up there :)  

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    5y

    Cool beans @Luke G.. I really like the place. It is alot like ours only bigger.

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