All Forum Posts by: Bill Cereske

@Justin R.  Thank you, I work to keep it the "King of the Moderate category".  2017 was a good year for bookings, starting with a strong  January, February and March.  This year - not so much. (One big snow storm can change that instantly).   PM costs me 35% of the gross, plus expenses.  General maintenance (fixing broken things, snow removal, gardening and the like) is probably another 10 to 15%.  To me, I consider maintenance to include upgrades annually to keep the place "hotel fresh".  Last year, I spent a lot more than the usual additional 10 to 15% for upgrades, with new living room flooring, a new hot tub and the master bedroom makeover.  Then figure another 10 to 15% for utilities.

At the end of the year, I've probably taken about $20K from that property after expenses.  And the expenses can be expensive!  Last year saw a new hardwood / tile floor in the living room, a remade master bedroom and a brand new hot tub.  There is no mortgage, if you're calculating.  Feel free to have a visit:  

http://www.tahoeaccommodations.com/cyh1281

One thing you CAN control is electricity use.  Guests are on vacation and are not thinking conservation.  Maybe some of the things I have done can help you save a few bucks:

I replaced the garage lighting with shop lights from Costco.  They have a motion detector and timer, so they shut themselves off if no motion is detected for 10 minutes.

Almost all lighting has been converted to LED lighting.  Not only do they save electricity, they don't burn out, reducing maintenance calls and increasing guest satisfaction.

I replaced the cooktop and clothes dryer with gas ones.  That saves a ton!  Guests prefer cooking with gas and may not notice that their clothes dry faster - but you'll notice lower bills.

Outdoor lighting is all LED on motion detectors.  For some outdoor lighting, I have solar ones which never use line electricity and work if the power is on or off.  I installed one above the BBQ, so it lights up the grill when someone approaches.

I installed electronic count down timers for the exhaust fans.  30 minutes in the baths, 4 hours in the kitchen.  I got the kind that can't be set to "hold" and run for an unlimited time. 

For the sauna and a couple of closets - where it isn't apparent if the light has been left on - I installed switches that glow with a red light if they are left on, prompting folks to turn them off.

If you have an old hot tub, look into replacing it.  The new ones are remarkably efficient.

At one point I was regularly using over 2,000 KWH per month - even hitting 2,500 KWH a couple of times.  Now, if use goes over 1,000 KWH it's unusual.

In my opinion, investing in a "ski town" can carry some high risk.  My property in South Lake Tahoe is a hit in Summer and winter, with summers being dependable.  Last winter, with the early and often snow, occupancy was fantastic - following several years of sporadic snow and occupancy.  This year, the real snow has yet to come and the bookings reflect that.  The Holidays are a real big deal, but the before and after are as quiet as snow crickets - for now.  That could change with the arrival of heavy snow, or stay the same if it stays dry.  A friend of mine had a rental condo at Squaw Valley - a real "winter only" location if there ever was one - and lost it because of the dry drought winters before the snows of 2016 - 2017.  Nobody wanted to go there if there was no snow.

In South Lake Tahoe, in order to rent out your place short term, you need a VHR permit from the city.  If you keep up with the Tahoe Daily Tribune, you'll know about what is happening as the rest of us.  As of now, there is a 1400 permit "freeze" which expires next year, but could well be extended.  There is even a petition being circulated that would put a complete BAN of VHRs on the ballot. If that passes, watch a complete crash of the tourism economy and property values.

Hello and welcome to the Tahoe thread!  I have a VHR in South Lake Tahoe, which I just departed from today.  (I did almost a week of pre-winter maintenance up there).  As said before, owing a VHR property that can be arctic at times presents different challenges, but can be rewarding.  South Lake Tahoe just put a cap on the number of VHR permits they will issue, so you probably don't want to invest in a property in that town, for now.

For my 5 BR property at Lake Tahoe, CA  I really didn't notice a downturn during the recession.  I also didn't raise my rates during that time. 

In my market - South Lake Tahoe, CA, a hot tub is an expected amenity.  To be without one would be detrimental to bookings.  I replaced the 19 year old hot tub with a new one this spring.  It looks terrific and new.  The guests love the waterfall and LED light shows.  I like using about 200 KwH less electricity each month as well.

Although the housekeepers usually throw out minor items and take any food left behind home, guests regularly add new tastes to the spice cabinet, leave additions to the DVD collection and I have no idea where the outdoor lounge chair came from.  As far as I know, no Glocks.

There is no question about it, it's absolutely essential to provide everything you would expect checking into a hotel.  And more, like fine cooking utensils' and spices.  Speaking of cooking equipment, some people make the deadly mistake of placing their old pots and pans in a vacation rental.  Bad error!  Put the new stuff in your rental and rotate the old stuff to your home.  Same thing with the towels.  This summer, I took a shower and the towel I used was rough and scratchy - cheap.  It turned out that it came from ANOTHER property in the system and got mixed up by accident.  I looked up the other property, and they have few repeat bookings.  Lesson of the day:  Going cheap in this business DOESN'T WORK!