Potpurri of Questions for Out of State STR

[Randy Dubiskas]

Well now it's getting real.  Put an offer on a house in Prescott, AZ (red hot market like so many others right now). My intention is to go Short Term Rental via VRBO or similar.  I have to makes some decisions in a short time:  

1) My accountant tells me that I should get a property manager to maintain my status as a passive investor. This is because my W-2 job is above income thresholds for deducting business expenses against my non-real estate income.  I have two long-term rentals (both duplexes in San Antonio managed by a local PM company) that are considered passive investments.  I have read most of the posts and replies that advocate self-management for maximizing profitability.  So it seems I am looking for a cost effective way to have a property manager.  I will be looking for management companies with a low-cost structure to manage this unit.  Any thoughts welcome.

2) City code specifies a local contact is required for noise violations, etc.  I guess an out of town property manager such as Evolve or similar could not satisfy this requirement.  Maybe the handyman?  Co-host?

3) If I get a PM company (Evolve or other) then they would be the host and get all the reviews?  If I later switched PMs, the reviews would start from scratch.  How do people deal with this?

4) If I decide to stay at the property for a few weeks, do I still owe the PM or VRBO a fee?  Clearly the cleaning crew would need to be paid.

Thanks for your help.

[Nancy Bachety]

1) don’t let the tail wag the dog. Choose your sound investment, maximize profits. Using a pm to make it passive doesn’t by itself make it passive. It makes it less profitable.