All Forum Posts by: Tanner Bruce

@Neal CollinsThe Managers we work with typically look for furnished turnkey properties although we do have several that are open to unfurnished spaces as well. I'd say the ratio of demand is around 90% for furnished and 10% for unfurnished.

The majority of properties/owners we have list on our platform are current self-managers of vacation and short-term rental properties. The Managers offer to pay them a guaranteed rate and in turn take over full turnkey management for them. The benefit to an Owner is that they basically get to sit back and cash checks while an industry professional is taking care of their property. The benefit to the Manager is that they're able to seamlessly add inventory to their portfolio and have full-control over how they price rates and run the operations. 

Usually the Owners will provide their historic Gross/Net to give the Managers something to base their offers off of. We also have a database that forecasts the expected rental revenue for the Managers as well.

@Neal CollinsMonika and I are colleagues, so I'll be happy to touch on that. It basically operates the same way as a Master Lease in concept, the main differences are that our Rental Rights contract is between "Owner" and "Manager" vs "Landlord" and "Tenant." Since it's not technically a lease, it makes it not subject to lease laws and regs in regulated states.

You are correct in the net gain aspect. The contract puts all the operating expenses (cleaning, maintenance, marketing, booking, occupancy tax, and damages) on the Manager so the PM basically offers to pay the Owner their Net Income- what they would typically Gross during the length of term minus the expenses listed above. The Managers are able to capture a margin by the following:

- lower operational costs than the Owner has (their own staff to do cleaning, lower fees on booking sites like VRBO/Airbnb/etc by having premium subscripts/being a super host)
- higher occupancy rates than the Owner typically has
- Higher rates/Dynamic pricing (a number of Managers use algorithms that fluctuate the nightly/weekly rates based on supply and demand of the market)

Let me know it that helps, I'm happy to elaborate on anything else.

- Tanner

@James Cuellar Which markets/locations are you particularly interested in?

@Sandy Thomas Thanks Sandy! I'm not the primary owner but one of the original employees 

@Marcia Maynard Thanks for checking it out! The tool does factor in the # of people the property can sleep which will generally fluctuate the nightly rate and overall projection.

@John Underwood & @Sandy Thomas Thanks for the heads up! I just informed our developer. Apparently there was a glitch that caused it to do that in certain zip codes. He is working on it now and should have it fixed soon. I will let you know as soon as it is working in those areas.

@Marcia Maynard Thanks for the feedback. Completing the first 2 steps will project the Rental Revenue based off of the zip code and property size alone.

The 3rd step does not have to be completed. It is only there for people who want to speak with a specialist to get a full analysis. I meant to clarify that in my original post. If you want to visit the website it is www.rented.com.

Thanks again for the reply. Please let me know if you have any additional feedback or questions!

Hi everyone,

I have a Rental Grader tool that projects the short-term rental revenue for a property based on its zip code and size. I've had several people message me for the link, so I figured I'd post it on here for anyone to use. Here's the link:

Rental Grader

Please let me know if you have any feedback or questions!

Best,

Tanner

@Damion Byros I agree with both Lucian and Russell. There are numerous factors involved that can make a vacation property a good or poor investment.

The main three are probably location, supply, and occupancy. Finding an equilibrium between those is the key. For instance, Kissimmee, FL is in a great location and has a consistent occupancy rate (constantly traveled to year round), but is saturated in terms of supply. There's a virtually limitless amount of single family vacation homes there which drives rates way down.

In contrast, a property on a ski resort generally has a good location and relatively low supply but the occupancy isn't consistent throughout the year. Properties there are usually able to rent out extremely well during the 100 ski-season nights but are typically hit or miss the remaining 265 days of the year.

I have a Rental Grader tool that projects the revenue a property can make based on its location and size. Feel free to PM me if you'd like a link to it. 

Hi everyone,

I'm trying to learn more about turn-key properties and what the best options to maximize return on them are currently. To my understanding, the main stream of income generally comes from leasing it out to a single tenant for an extended period of time.

My question is, instead of leasing directly to a tenant, would an owner of an investment property consider selling their rental rights for a fixed amount to a short-term rental manager?

It would operate similar to a Master Lease but with the potential to be higher as the short-term manager would be basing their offer off of the return they would incur from short term rates.

Any feedback is appreciated!

Thanks,

Tanner

@John Fleming I don't know any realtors/brokers in NOLA, but I do have connections with several of the professional short-term rental managers down there if you're looking for someone to handle the airbnb/turn-key aspect of it.