All Forum Posts by: Kumar R.

@Michael Belz, since this is the first property, I would be scrappy and go without investing in other platforms or tools. It will be an unnecessary investment. If your goal is to manage multiple properties, think more than 5-10, then you should invest in management software, pricing tools, etc. If your current need is to simply make sure your property is listed at the right price, do a quick check on what other properties in the same area are renting for, avg nightly rate, cleaning fee, amenity fee, and so on. 

@James R. I have seen two different pricing models - one by number of BRs, second by sq.ft. Each market is different for prices. More or less prices in my market are kinda well known amongst competition, so cleaners are pretty much almost always in the same ballpark. Also, depends on whether they include laundry services, linen services, amenities etc. 

@Randy Buff Insurance in FL is a 4 letter word show right now. Even before the Hurricane damages from Hurricane Ian, there were some legislative changes done in Tallahassee that drove most of the big insurance underwriters out of FL. Most of them now have some sister entity established so they can collect premiums and then file bankruptcy and leave when events occur. Since 2018, there has been a steady YoY raise. Compared to 2018, I am paying 6x the premiums on homes, on autos it's been more like 4x. 

I am pretty sure it will get worse. A few connections who frequent the state senate have said that there is work underway to get this under control. Good luck to us all!

I cannot imagine paying $40k in insurance every year, that's absurd!! 

@James Wesley I will concur with @Michael Baum 7-10% on the total booking amount is huge, maybe 5% is too big depending on your typical booking amount. Depending on how much revenue you really think will be driven by the venues maybe 3-5% might be more appropriate. 

We list our properties on multiple platforms. End of the day, it's more visibility which means potential for more bookings and revenue. Which market are you in @Alex Keim? We are across the nation, some cities have higher number of bookings via VRBO but more often than not, its Airbnb that has the highest bookings still. 

One of the homeowner who recently joined our STR portfolio said she got 6.25%. However, local realtors are saying that rates have come down below 6%

@Diaz Principe Nicolas everything that others have already said. There is step by step guide, more an art than science. Look at the multiple factors that influence your market to determine the price. Competitors, local events that attract crowd, pricelabs, seasonality, weather events, your unit profile..

Airbnb is under tremendous pressure, missed earnings and all. I am seeing a lot of ads from Airbnb as well. Maybe they are trying different things to regain market share.. 

@Deborah Wodell I like the response that @Drago Stanimirovic provided. Property value will not always grow, depending on the region, local economy and population, they will continue to grow or start to fall. For example, Pittsburg during its Steel industry boom era and Detroit from it's peak auto industry era, properties would have grown value YoY mostly. At one point in time, if you can believe it, Detroit was a more happening place than New York city. Buy and hold at that point time would have been great advise. And as the economy of those cities evolved and started going down, it had a domino effect on rest of the ecosystem. 

I would hate to refinance in this market, why would I, no way my interest rates would be better than what they were in 2021. Unless I really need cash for something, I would not refinance. 

When should I sell the property? Is the city where your property is located going down the pipe? Are you bored of your investment? Have you found a better place to retain your capital while getting more in returns? These would be the questions I would ask myself. Hope this helps. 

Location, interior and exterior deco, quality of management, marketing.. what's your unit's USP?