All Forum Posts by: Carson McGee

Hey Matt,

My company owns and manages short-term rentals in the Disney area. You should definitely research the zoning & regulations, there are specific communities built for investment purposes. You will have trouble finding an STR in the city of Orlando, more likely Kissimmee/Davenport. The best advice I can give on this market is to be unique. There is a lot of competition, you need to design/theme to help you stand out. I'd love to share my experience if you're interested.

Hey Matthew!

This service is out there, it's just a matter of connecting with the right people. My company offers full-service property management as well as a monthly subscription model. The subscription caters to individuals who want to manage the bookings but need someone to be there for guest support, troubleshooting, & vendor coordination throughout the guest's stay. We are currently only operating in a handful of markets (Kissimmee, PCB, Maui) but best of luck with your search!

Hi Michael,

I helped build Elevated Stays, an STR property management company in Orlando & Maui. My partner and I built the company around personally owned short-term rentals in both areas. I would definitely recommend trying to scale in a few specific markets to compound your established presence. I'd be happy to set up a call and share some best practices.

 I saw this thread reappear. My team owns an oceanfront 1bd and 2bd in Kihei, along with 4 units in Lahaina. We average around 90% occupancy with aggressive pricing strategies. I'd love to discuss this if you are interested.

Hi Mary, I just reached out via DM to the two primary lenders we use in Maui. They do primarily DSCR loans and can close non-warrantable condos.

I would recommend speaking with Joshua Messinger @joshuam447. He is super helpful and knowledgeable on the area as a whole.

This is a very interesting topic, especially since my company has bought a dozen STR's in Orlando and Maui over the past year. STRs are an alternative to hotels in many instances but can also be a great substitute if set up correctly. In Orlando, our properties are 8-9 bedrooms with a private pool and can sleep 15-20 people. We have identified our target audience and believe we can provide a better long-term solution. To multiple generations, large families, and groups of friends, they would rather split the rent and share a large place than pay for 4-5 separate hotel rooms. We also capitalize on providing the guest's an experience that would demand a premium from hotels. This includes custom murals/theming, in-house movie theatres, personal hot tubs, unique game rooms, etc. These allow us to differentiate from hotels and capture that market of guests.

Other markets, such as Maui, HI target the consumers differently. We purchase properties that are oceanfront, have central locations, have multiple bedrooms etc. These are able to compete with hotels in a different sense. We are providing accommodations with breathtaking views and elegant design. This enables us to provide a similar quality if not better than hotels but at a competitive nightly rate. Markets like Maui, HI are so lucrative due to the forced lack of supply. They aren't building more hotels on the island and they aren't zoning more transient accommodations. This lack of supply allows us to capture the overall demand for the Hawaii scenery that sells itself.

Hi John,

I personally prefer higher-priced "luxury" short-term rentals. If the options are an STR that costs $350,000 and makes $52,000 vs an STR that costs $700,000 and makes $104,000 I would take the second all day. It is logistically easier to own and manage a single property.

If you are confident in the market and valuations then the higher-end property may make more sense. This also brings along slight economies of scale when you go larger. If you need to remodel the house you are only spending the money to update one kitchen vs two, you only need to furnish/design a single property, etc. There could be an argument to diversify and spread out the risk, which is definitely something to consider. 

My company doesn't have an issue with the risk as we purchase across multiple markets at different entry prices. If these are your only investments then you should be confident in the value of the property as well as realistic revenue projections. Generally speaking, there is more margin for error in luxury properties, if a recession limits consumer spending, you can drop your ADR and still be the obvious choice for guests. With the lower-tier STR, it may feel like a race to the bottom at times, but there can also be fewer expenses with those properties. It all depends on the specific deals and their returns. I saw you are looking in the Southeast, we own and manage in Orlando, FL (Kissimmee/Davenport) and Panama City Beach, FL. If you are interested in those markets, feel free to reach out!

If you have no luck with TurnoverBnB, you should join local Facebook groups and ask for recommendations. Also, message other nearby hosts, they are often friendly and happy to share vendors.

 Hi Neil,

It looks like you have a great property. If you are not considering self-management I would focus on hiring a quality property manager. Often times the big corporate property managers may have cheaper fees but don't provide the level of attention you need. They are not monitoring this property's rates daily or being proactive with maintenance etc. You may need to find someone who can truly help market this home to its potential. A few initial things I noticed about your listing, the title is way too long and not catchy "Snowbird-Friendly Home w/WiFi, Central AC, Private Washer/Dryer & Huge Garden". Almost all these amenities can be assumed to be included in a standard Airbnb, you need to brand this property. You should try and sell the modern bungalow aesthetic you are going for in the description. Also advertise why people are coming to your place, how far it is from those destinations etc. I know a lot of that stuff you may not have direct control over but that also goes back to picking out a better property manager. Also if occupancy becomes a problem, consider putting it on Furnished Finder and doing a midterm rental for a few months. If it is still not cash flowing well, another option would be to sell and repurpose the equity somewhere you can get higher returns. Just some of my thoughts, best of luck with your short-term rental!