Blue Ridge short term rental

[Matthew Johnathan Newton]

Hello, I’m planning on buying a 4 bedroom short term vacation rental in Blue Ridge Ga. I’m putting together a pro forma and was looking for realistic ballpark operating expenses insurance water electric…. And what is your occupancy rate?

Also what is your experience with property management in the area? Everything I’ve seen has them charging 30 to 35%.

Any recommendations will be very helpful.

[Jeffrey Albaum]

Hey @Matthew Johnathan Newton,

First off, congratulations! Sounds like an awesome deal and super excited for you! I don't own any STRs in Blue Ridge, but I have a few just over the hills in the Smokies. I think realistically you can use 10% of gross rents for utilities (water/sewer, electricity, gas if you have it, and internet), 5k for insurance (unless it's in a flood zone, going through that now on a property we're under contract for and a flood policy costs an additional ~5k). 
As far as occupancy rate - check out "Airdna.co". You can purchase data for the Blue Ridge area and it will compile rental comps such as average daily rates, occupancy rates, and other useful metrics based on the size of the property. Take what this says with a grain of salt and make sure you're comparing properties that are similar to the one you're looking at (layout, amenities, "wow" factor, etc.).

As far as management companies go - have you considered self managing? There's a large community of folks who do it, and although the argument can be made that a management company might increase your revenue 20%, when they take 35% of your gross revenue it still doesn't pencil out so nicely.... Still, 35% seems excessive even for short term management. I'd keep calling around to try and find other alternatives. I know some large companies like Vacasa or Avantstay might be able to help you out.

Hope this is helpful and please reach out if I can clarify or help answer anything else!