All Forum Posts by: Benjamin Louie

When leaving Evolve, the specifics around bookings depend on the contract you have with them. Here's a general overview of what might happen:

1. Bookings Under Evolve: If you leave Evolve, bookings made through their platform may be tied to their system. You may lose access to the bookings they have managed, as those reservations are often under Evolve’s control, and they may manage the communication, payments, and cancellations for those guests.
2. Transferring Bookings: Some companies might allow you to transfer the bookings if you switch to managing the property independently or through another service. However, this often requires negotiation with Evolve and coordination with guests to ensure a smooth transition.
3. Cancellation Penalties: Be mindful of any cancellation clauses in your contract with Evolve. If you terminate the agreement, there might be penalties or fees, especially for bookings that were secured under Evolve’s platform.

Steps to Take:

• Review Your Contract: Look at the terms regarding cancellations or ending the agreement. There should be details on what happens with future bookings.
• Contact Evolve: Reach out to them and ask about the specific process for terminating your agreement and what happens to the bookings.
• Have a Plan for Guests: If you’re able to transfer bookings, ensure that guests are notified well in advance, and the transition is seamless.

Since you're new to STR investing, taking the time to clarify these details will help you avoid any surprises or disruptions.

To stay organized as you set up your short-term rental (STR) management business, it's great that you're already thinking about key categories. Here are some additional file folder categories to consider, along with tips for managing your documents:

Categories for File Organization:

Finance Docs

Income Statements

Profit/Loss Reports

Tax Documents (e.g., 1099s)

Mortgage/Loan Statements

Bank Statements

Financial Projections

Corporate Documents

LLC Formation Documents

Operating Agreements

Business Licenses & Permits

EIN (Employer Identification Number) Confirmation

Business Insurance Policies

Legal Docs

Property Deed

Lease Agreements (if any)

Insurance Policies (Homeowner’s, Liability)

Contracts (with vendors, cleaning services, etc.)

Permits (short-term rental permits, zoning compliance)

Repairs & Maintenance

Contractor Invoices

Maintenance Logs

Service Agreements (pest control, HVAC)

Before/After Photos of Repairs

Equipment Warranties

Bills & Utilities

Water, Gas, Electricity Bills

Cable/Internet Bills

Trash Removal

HOA Fees (if applicable)

Security System Payments

Receipts

Furniture/Appliance Receipts

Supplies (cleaning, amenities)

Software Subscriptions (property management software, Airbnb fees)

Guest Documentation

Signed Rental Agreements (if applicable)

Guest Incident Reports

Communications (important emails from guests)

Marketing & Listings

Property Photos

Airbnb/STR Listing Descriptions

Marketing Strategies/Ads

Social Media Campaigns

Taxes

Tax Receipts (sales tax, property tax, etc.)

STR-specific Tax Documents

Expense Reports for Write-Offs (cleaning fees, repairs, management software)

Permits & Licenses

STR Permit

Local or State Registration Documents

Fire Safety Certificates

Health & Safety Certifications (if required)

Additional Tips:

Go Digital When Possible: Scanning your documents and organizing them into folders on your computer or cloud storage (e.g., Google Drive, Dropbox) is a great way to stay organized without worrying about physical clutter.

Use Labels: Whether digital or physical, make sure your folders are clearly labeled and easy to navigate.

Create a Calendar for Renewals: For things like insurance renewals, permits, or taxes, set calendar reminders to stay on top of deadlines.

This should give you a solid framework for staying organized with all aspects of your STR business!

It sounds like you're facing a complex decision with several factors to consider. Let’s break it down:

1. Pursue STR and Aim to Be Top-Performing:

If the STR market in Lynchburg is competitive, it's possible to generate higher returns if you can position your property as a premium option. Since you're located near Rivermont Blvd, which is likely a desirable area, you could focus on standout amenities like the finished basement, appealing decor, and targeted marketing. However, the projected $40,000 annual revenue seems to only offer slim margins at the moment. If you believe there's room to boost occupancy and rates, aiming for top-performer status could potentially net you an extra $1,000 in monthly cash flow, though it would take careful management.

Pros:

• Potential for higher income if you can boost occupancy/rates.
• Short-term flexibility with potential tax benefits (depreciation, etc.).

Cons:

• Risky if you can’t significantly improve revenue.
• Requires time, effort, and expense for marketing and management.

2. Rent as Long-Term Rental (LTR):

The fact that long-term rent would just cover your mortgage (before repairs and maintenance) makes this option less appealing for immediate cash flow. If your goal is stability and less volatility, an LTR could be more predictable, but it wouldn’t give you the cash flow cushion you’re looking for.

Pros:

• More predictable income with less management effort than STR.
• Lower vacancy rates compared to STR.
• Less risk of fluctuating occupancy rates.

Cons:

• Potential negative cash flow if maintenance and repairs exceed margins.
• Limited growth potential for income.

3. Break Even and Rely on Future Appreciation:

If you believe the Lynchburg area is poised for appreciation in the next five years, you could take a hybrid approach—run the property as either an STR or LTR to break even (or get close) while banking on property value increases. This is a longer-term strategy, but it could be beneficial if the market trends upward. However, appreciation is never guaranteed, so you'd need to consider how much risk you're comfortable taking.

Pros:

• Potential to cash in on appreciation in the future.
• Flexibility between STR and LTR depending on market conditions.

Cons:

• Requires holding costs and maintenance during the interim.
• No guarantees of appreciation.

4. Is DIYing the Basement Worth It?

Adding 700 square feet could help increase your rental income, especially if you convert it into a usable STR space or add a separate unit for LTR purposes. However, finishing the basement for $25,000 when cash flow is already tight may not offer a sufficient return on investment (ROI) unless you're confident it will significantly raise occupancy or rates.

Pros:

• Potential to increase the property’s rental appeal and income.
• DIYing the basement could save on labor costs.

Cons:

• Upfront costs and time investment.
• The additional space may not increase STR income enough to justify the expense.

5. Sell the Property and Cut Losses:

If the financials and risk are too tight for comfort, selling could be a viable option, especially if the market is still strong. This would help you avoid sinking more money into a property with marginal returns. However, you’d want to carefully evaluate market conditions to ensure you don’t lose too much on the sale.

Pros:

• Avoid further investment and risk.
• Free up capital for other opportunities.

Cons:

• Selling costs and potential difficulty finding a buyer.
• You may miss out on potential appreciation.

Recommendations:

• STR Route: If you believe there's potential to improve revenue and occupancy by refining your property's appeal, going the STR route could work. Focus on standout features and premium amenities (e.g., the finished basement, unique decor).
• DIY the Basement Only if It Significantly Adds Value: Ensure the basement project will provide enough of a boost in rent or property value to justify the cost.
• Sell Only If Risks Outweigh Benefits: Consider selling if the stress and financial risks feel too great, but try to ride out any short-term uncertainties if possible.
• Appreciation Play: Relying on future appreciation while breaking even might be the safest middle ground. It would allow you to hold the property long enough to see whether the market improves in your favor.

It sounds like you’re leaning toward minimizing your risks, so focusing on breaking even in the short term while keeping an eye on appreciation might offer the most balanced strategy.

As you know, in 2023, the new laws require hosts to have a license to do STR. And you have to live in the same unit as the guest, bedroom doors cannot have outside locks, and you can host at most 2 guests at a time. I'm wondering how NYC hosts are surviving or have they turned to LTR.

Best Sources for Attractive & Durable Furnishings:

IKEA: Known for affordable, stylish furniture. It’s great for basics like beds, dressers, and dining sets. Plus, replacement parts are easy to source if needed.

CB2/West Elm (Sales Section): Higher-end, but you can score deals on durable, modern furniture during sales.

Local Furniture Stores or Liquidators: Sometimes you can find high-quality, durable items at reduced prices, especially in stores that cater to hotels or corporate rentals.

Second-Hand/Consignment Stores: Gently used pieces, particularly mid-century modern, can be very durable and unique.

I do NOT recommend Wayfair as I ordered from them and the furniture came back damaged and low quality.

Avoiding Conflicts Between STR Guests and LTR Tenants:

Clear Boundaries: Make sure that each space has clearly defined areas for privacy. That 6 ft privacy fence is a good start, but you could also include separate entrances, designated parking spaces, and clear instructions about shared spaces (if any).

Noise Policies: Include quiet hours in the STR house rules (e.g., after 10 PM). Inform your LTR tenants about these rules and let them know they can report any excessive disturbances directly to you.

Communication: Keep an open line of communication with your long-term tenants, so they feel comfortable voicing any concerns early on.

Outdoor Amenities: If there's a shared yard or patio, think about dividing these spaces further to give both STR guests and LTR tenants their own zones.

Protecting Your STR from Bedbugs:

Mattress Encasements: Invest in high-quality, bedbug-proof mattress and pillow encasements. They prevent bedbugs from entering or escaping mattresses.

Routine Inspections: Regularly check mattresses, bed frames, and furniture for signs of bedbugs (small black spots, eggs, or live bugs).

Furniture Choice: Choose furniture with metal or plastic legs instead of wood, as bedbugs are less likely to infest non-porous surfaces.

Bedbug Traps: Place bedbug traps under bedposts and other furniture legs to catch any potential bedbugs before they become a problem.

Professional Cleaning: Schedule routine deep cleans between guest stays, and if you ever suspect bedbugs, hire a pest control professional immediately.

Clear Guidelines: Educate your cleaning staff on how to spot bedbugs early, and encourage them to report any signs immediately.

These steps will help you set up a smooth, well-managed STR that's ready to generate revenue while maintaining a good relationship with your LTR tenants.

It sounds like you're in a strong position with a desirable property, and having $6k-$7k in cash flow per partner is appealing. Since refinancing won’t cover a buyout, bringing in a new partner to buy out the one who wants to exit is a reasonable option. Here are some ways to approach this:

New Partner Buyout:

You can bring in a new partner to buy out the exiting one. The key will be to present the property's value, the projected cash flow ($6k-$7k per partner), and the appreciation potential over the next few years. Highlighting the STR revenue potential, especially in a prime location, could attract investors looking for both income and future appreciation.

Steps to take:

Prepare a detailed financial breakdown of the property's current performance and future projections.

Include comparables in the area to show both STR potential and anticipated appreciation.

Offer flexibility in the buyout terms (e.g., structuring it as an installment plan if needed).

If you can’t find an individual investor, you might look for a property management company or real estate investor group that specializes in STRs. They could act as both an investor and manager, potentially bringing in more resources and taking a more active role in maximizing profits. This might appeal to them since they could earn from both the cash flow and appreciation.

Another option could be structuring the buyout or new partnership using a shared appreciation agreement. This allows the new partner to share in the appreciation when the property is sold, which could help compensate for the upfront cash investment they’ll make in buying out the partner.

If the current partner is open to it, you could explore a form of seller financing or a gradual buyout plan. You could buy out the partner over time using part of the cash flow generated by the property.

Consider a silent investor who provides capital without day-to-day involvement. Some investors prefer to be hands-off while still receiving their share of the profits. You would maintain management control while giving them a return on their investment.

Is $6k-$7k Cash Flow Enough to Attract a New Partner?

That level of cash flow, combined with the appreciation potential, could definitely be attractive to a new investor, especially if they’re interested in STRs. The key is to show the long-term benefit, including both the steady income and the future sale profits.

If you put together a clear proposal showing the return on investment (cash flow + equity appreciation), it could be a compelling case to bring in a new partner to buy out the current one.

Taskrabbit or Thumbtack are apps to find handymen 

Congrats on your journey into short-term rentals, and your cottage sounds like it has great potential! Here are a few thoughts based on my experience:

Unique Amenities:

• Outdoor space: If you can create a cozy outdoor area with a fire pit, string lights, or a hot tub, it can set your listing apart. In popular tourist areas, having a place where guests can unwind outdoors really adds value.
• Local-themed welcome basket: Include local snacks, wine, or small souvenirs from nearby businesses. Guests love a taste of the local flavor.
• Tech perks: Smart locks, fast Wi-Fi, and streaming services are expected, but adding something like a smart speaker with local guides or even a coffee station with a variety of brewing methods (French press, drip, espresso) can enhance the experience.

Guest Experience:

• Personalized touches: Leave handwritten notes welcoming guests, or even offer a short list of personalized recommendations based on their preferences (e.g., favorite type of restaurant or activities).
• Thoughtful extras: Think of small details like board games, books, or even a Polaroid camera with a guest book where people can leave their pictures and memories. These can turn a good stay into a memorable one!

Seasonal Strategies:

• Off-peak discounts or promotions: Offering longer-stay discounts or special packages for holidays or events in the off-season can help maintain occupancy. Think about partnering with local event organizers and advertising your place as a perfect accommodation for visitors.
• Seasonal decor: Make your property feel cozy and festive during the holidays, or provide season-specific gear like beach chairs in summer or sleds in winter.

Local Partnerships:

• Experiences and services: Partner with local tour guides, restaurants, or even spas to offer exclusive deals or curated experiences for your guests. It’s a great way to create added value while supporting the local economy.
• Discounts or freebies: Some local businesses may be open to offering discounts to your guests in exchange for being featured in your welcome book or on your property’s website.

Looking forward to hearing from you and others as we share tips on growing and thriving in the STR world. Best of luck with your cottage!

You bring up a valid concern with Airbnb's focus on Experiences potentially pulling attention away from improving the core hosting experience. It's interesting that they’re trying to relaunch this part of their platform, especially after scaling it back. The 5 major points they’re focusing on — affordability, uniqueness, videos, discoverability, and marketing — sound like they’re trying to create a more seamless integration with the main platform, but the question is: will it truly add value for hosts?

On one hand, if Experiences attract more travelers looking for unique, bundled stays and activities, it could help hosts by driving more bookings and increasing guest satisfaction. It gives hosts another opportunity to stand out by offering personalized or local experiences alongside their stays, which might justify higher nightly rates or longer stays.

On the other hand, if Airbnb puts too much emphasis on Experiences and doesn’t prioritize fixing issues like host support, pricing transparency, or booking protections, it could feel like they’re diverting attention from the things that truly impact hosts' day-to-day. It’s a balancing act for them, and time will tell if this shift adds genuine value for hosts or just distracts from core issues that need fixing.

What would make the most sense is if Airbnb uses Experiences to enhance the guest journey while still keeping the focus on the quality of the core stay. If done right, it could be a win-win for everyone involved.

You raise an excellent point, and it's something a lot of people are starting to recognize as more short-term rentals flood the market. There might be demand, but oversupply in certain areas, like Orlando, is pushing prices so low that it becomes impossible for some property owners to break even, let alone turn a profit.

Agents promoting STRs as "good investments" without considering the current market saturation, high operating costs, and potential competition do a disservice to buyers. The nightly rate you're mentioning, $99 for a house that sleeps 10, is shocking when you consider the mortgage, cleaning fees, pool maintenance, and potential property management costs. It’s easy to see how owners would end up cashflow negative in that scenario.

It's definitely a case of people jumping in without fully understanding how drastically different the STR market is from a few years ago. A smarter approach would involve thorough market research, realistic projections on occupancy rates, and understanding that not every location is still a goldmine for STRs.