All Forum Posts by: Garrett Stockton

@Drew Sygit, Thanks for your feedback! That is an interesting suggestion. I am curious, perhaps I am missing something, but it seems to me that property management is more labor-intensive than it is capital-heavy. What I mean is if I set up the systems to reduce labor, I can run a property management company very efficiently.  Perhaps, I am missing something... what are the operating expenses that justify 25%-35% for property management. 

Have you ever had a negative experience with a big national short-term rental (STR) management company? I certainly have. In my case, the large manager was priced well at 10% but the services rendered were almost non-existent. Meanwhile, the local management companies were charging 35% leaving no profit! As a result, I've decided to start my own STR management company, and I'm interested in hearing from other investors about what they value most in a management company.

If you've worked with a management company in the past, what were the most important factors that influenced your decision to partner with them? Whether it was their communication, pricing, attention to detail, or something else entirely, I would love to hear your thoughts in the comments below. By working together and sharing our experiences, we can help create a better future for STR investors and guests alike.

Have you ever had a negative experience with a big national short-term rental (STR) management company? I certainly have. In my case, the large manager was priced well at 10% but the services rendered were almost non-existent. Meanwhile, the local management companies were charging 35% leaving no profit! As a result, I've decided to start my own STR management company, and I'm interested in hearing from other investors about what they value most in a management company.

If you've worked with a management company in the past, what were the most important factors that influenced your decision to partner with them? Whether it was their communication, pricing, attention to detail, or something else entirely, I would love to hear your thoughts in the comments below. By working together and sharing our experiences, we can help create a better future for STR investors and guests alike.

@Khail Towers First off congratulations on having $500k to invest! That is awesome! Second, standing up for what you believe is admirable, don't compromise!

The number one thing you should do is first invest in education. I am not saying you should go spend $25k on a weekend training course. Those are typically a waste of money, but there are some good ones out there. I would recommend Pace Morby's mentorship program SubTo. He is highly invested in his community and provides way more value than what it costs!

1) I would not recommend investing in syndications right now. With the interest rates right being very high and volatile it is probably not the best time to get into multi-family. However, if it is not leveraged then the interest rates don't matter so that could be a great investment.

2) I would not recommend investing in the stock market. You have no control and the risk is extremely high for the return. Additionally, there are no tax advantages or inflation kills your merger returns.

3) STRs are fantastic for return on investment (ROI). They can be a bit more hands-on but there are many full-service property management (PM) companies that can take care of you. I am starting a PM company, we are based out of Colorado. We will charge 10% for full-service management. Feel free to reach out to me if you want more information.

4) Buy a long-term rental property. I would not buy in California their taxes and regulations are the worst in the country! I also would not buy in New York for the same reasons. Midwest is great, Fl, NC, SC, TN, TX. These are all excellent states to look for property.

5) Partner up! Joint Ventures (JVs) are great. You don't have to leverage your money, you can leverage the knowledge and relationships of other people, especially since you have what so many investors are looking for, cash! My business partner and I are always interested in JVs, but we may not be a good fit for you, however, if you reach out I would be happy to talk to you and give you some more advice.

6) Look into buying a property that can be turned into a group home or some other government-subsidized program. You can get $600 per bed (not per room). For example, you could buy a 3-bedroom house, place 4 best in each room and rent the place out for $7,200. The downside is that this can be hard to manage so it is probably best to find a management company before you buy.

7) Buy some land and build tiny homes, geodomes, yurts, or tree houses. Then STR each of the sites. This can be an excellent way to generate massive amounts of income, however, you would need to put in a fair amount of research and planning to pull it off.

I hope this helps! Happy investing!

Garrett

When I came across Evolve I had high hopes for the level of service I would receive for my STR in the Smokey Mountains, but unfortunately, my experience fell short of my expectations. It is frustrating to be promised a full-service experience and I thought the same thing when it came to being able to scale. I found out that reality doesn't quite measure up. While it's great that they were able to connect me with a cleaner who has been doing a good job, it's disappointing to find that their communication and maintenance services didn't meet my needs.

When it comes to choosing a property management company, there are several key factors to consider. You want to work with a company that provides excellent guest communication around the clock, pays and schedules service providers, verifies their work to ensure quality, and handles routine maintenance and restocking. They should also be able to coordinate the replacement of any worn-out furniture and handle insurance claims if needed. Transparent pricing and financial reports are also important, as is understanding whether their management fees are charged before or after listing fees and taxes are taken out.

A good property management company will also look for ways to streamline your guests' experience, such as by recommending smart locks and thermostats that make it easy for guests to access and enjoy your property. And finally, it's crucial to work with a PM company that is invested in your success and actively looks for ways to save you money without sacrificing quality.

It's understandable to feel frustrated when you're paying a significant percentage of your revenue for management services, and not receiving the level of care and attention that you were promised. As you continue to explore your options for property management, be sure to ask the right questions and seek out a company that truly has your best interests at heart.

When I came across Evolve I have high hopes for the level of service I would receive for my STR in the Smokey Mountains, but unfortunately, my experience fell short of my expectations. It is frustrating to be promised a full-service experience, only to find out that the reality doesn't quite measure up. While it's great that they were able to connect me with a cleaner who has been doing a good job, it's disappointing to find that their communication and maintenance services didn't meet my needs.

When it comes to choosing a property management company, there are several key factors to consider. You want to work with a company that provides excellent guest communication around the clock, pays and schedules service providers, verifies their work to ensure quality, and handles routine maintenance and restocking. They should also be able to coordinate the replacement of any worn-out furniture and handle insurance claims if needed. Transparent pricing and financial reports are also important, as is understanding whether their management fees are charged before or after listing fees and taxes are taken out.

A good property management company will also look for ways to streamline your guests' experience, such as by recommending smart locks and thermostats that make it easy for guests to access and enjoy your property. And finally, it's crucial to work with a PM company that is invested in your success and actively looks for ways to save you money without sacrificing quality.

It's understandable to feel frustrated when you're paying a significant percentage of your revenue for management services, and not receiving the level of care and attention that you were promised. As you continue to explore your options for property management, be sure to ask the right questions and seek out a company that truly has your best interests at heart.

I really apricate all the comments. I will definitely be adding a hot tub it sounds like a must have!

Thanks I will definitely check it out.

I am looking for a great STR cleaner! My property is located in Almond, NC just west of Bryson City, NC. I would like to get some recommendations for cleaners who do a great job, are reliable, and trustworthy. I am not necessarily looking for the cheapest cleaner, reliability and quality are definitely more important.

Your recommendations are greatly appreciated. Thanks so much and I look forward to gaining a lot of insight from your answers. Cheers!

I am currently under contract for my first STR in Almond, NC just west of Bryson City. This property has a nice mountain view with a good-sized deck. I am going to be doing a complete cosmetic rehab on it. The property does not currently have a hot tub and I am considering getting one installed.

The question is, is a hot tub worth the investment? Does anyone have any data showing that a hot tub will increase the RIO or decrease the vacancy rate?

Are there recommendations for hot tub brands that I should consider buying and also brands that I should avoid?

Your feedback is greatly appreciated. Thanks so much and I look forward to gaining a lot of insight from your answers. Cheers!