All Forum Posts by: Anandhu Jayan

@Anandhu Jayan ,option 2 with exceptions and modification. Lease property to property management company with experience in STVRs. Make lease for 20 years with 5 year lease escalators. Leasor pays all property taxes, liability insurance and maintenance. Leasor pays for all furnishings including appliances( not mechanical items such as furnace, AC, or water heater.

Set the requirements of your lease terms high enough to give you the net ROI you want as a passive investor. A lease of 10% x ( value of property is common).

Remember, with option 3 you can t carry on all functions of running a STVR business remotely. Things happen! Cleaners; who hires, fires, checks on cleaning, finds new cleaner when cleaner does not show up and 24 hour turnaround is needed? Who makes sure mechanical gets fixed within a couple hours? Who is onsite to give guests concierge type services?
I prefer a lease over revenue sharing ( option 1)as it places full responsibility of Property manager to maximize revenue while having “ skin in the game” via paying for furnishings.

That is an idea I have been thinking about, although I was thinking more of 1-2 year lease than a 20 year one. I have a friend who does AirBnB who has shown interest in renting my property and doing STR. This would help me atleast get the mortgage paid off and gives me an idea on the potential income that I can expect from my home through STR. What are some things that I need to look out for when going that route? Do you or someone you know has experience in writing a solid lease agreement for these kind of deals?

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Originally posted by @Myka Artis:

Option 3. There are way too many tools available to self-manage your business with very little work involved. I'll list a few systems you can use to automate communications with your guests and your staff that you choose to have on board. A good cleaner can pretty much handle all the day-to-day operations of a short-term rental. If you can connect them with your handyman you are good to go. Anyway on to the tools.

1. Smartbnb (automates guest communication)
2. Yourporter (creates a direct booking interface, handles communication, and can handle turnover appointing)
3. Turnoverbnb (Handles turnover communication with your cleaner and payment)
4. Slack (handles all communication with your operations team)
5. Beyondpricing, PriceLabs, & Wheelhouse (pricing automation tools)

I have a lot of Houston connections so if you do decide to go the Houston short term rental property management company route just let me know I can get you in contact with some of the best in the area.

Thanks for all the info. I'll definitely reach out to you if I chose to go for the property management route.

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Originally posted by @Paul Sandhu:

Are you relocating to Coffeyville Kansas to work on a capital expansion project at CVR Energy? I have a few STRs in that town. A few dozen.

I'm relocating to Ft.Worth.

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Hello,

I'm a long time follower of this community and recently made the jump into purchasing a home in Houston with the intend of turning it into an AirBnb. At the time I made the decision to purchase this home that is currently finishing construction, I was still working in Houston. However, recently I've had to relocate to another city for a long term project. This makes it harder for me to get the property furnished, and set-up to become an AirBnb. After reading through many of the posts and talking to some people, I have three options:

1) Hire a Property Management company that specializes in AirBnbs.

2) Rent to someone who does AirBnB arbitrage.

3) Manage it myself.

I know there are pros and cons for all three of these options, but I would like to hear if any of you have gone through such a scenario and what path you chose.

Thank you.

1 Vote

All Forum Posts by: Anandhu Jayan

Anandhu Jayan has started 1 posts and replied 4 times.

Post: AirBnB: Managing myself vs Airbnb Arbitrage Model

Post: AirBnB: Managing myself vs Airbnb Arbitrage Model

Post: AirBnB: Managing myself vs Airbnb Arbitrage Model

Post: AirBnB: Managing myself vs Airbnb Arbitrage Model