All Forum Posts by: Jason Charlton

I am also an investor in Ocean City MD. I agree that the market is tough right now for lending. Depending on when you bought your existing, some values have gone up quite a bit and you may be able to borrow against equity as an option.

Awesome! Send the link to your listing when its up and running!

Jeramey,

I would need to know more about the condo itself, which building / street location etc. Is it Ocean side or Bayside etc.

I have been an operator in Ocean City MD for awhile and have units ranging from 2 bed 1 bath to 6 bed 3 bath. 60k GRI is achievable on some units, typically on the larger side, in the 3 bed 2 bath range. That GRI does include income for cleaning, taxes etc. though normally, which is really pass through expenses for the most part.

Happy to help more if you like, send me a message and we can connect on the details of the condo you are looking at. The special assessment seems high in general, so which building it is would help provide some insight into why and what you gain from it etc.

Jason 

Quote from @Claudio Meira:

@Bill Ames

Sounds good. Definitely check if they are charging incoming guests as well. I usually tell people for the first season is to have the rental company manage since it gives a better sense of issues that come up and better ideas on pricing and how to handle customer issues. 

Two things, I completely forgot in my last update to flag which is another reason to do Self Management

1- Management companies won't allow hosts to have linens on the bed and in some cases towels. Guest in OC has to rent linens which can be pricey for several beds and weekly rental. 

Outside of the net revenue, that is probably one of the main reasons that I switched. I personally don't like guests renting linens and having them make the bed after a long journey on the road.  Additionally, the linens are sometimes not the best quality.

Not sure why they haven't allowed it. There is an initial sunk cost for linens and towels but I have gotten better reviews due to it. There are great places online where you can get affordable linens/towels.

2- The other main reason is that when you are with a rental company. Your VRBO and Airbnb listing will be done through their account. So any positive reviews you get will be under their account. In the sense that if you ever leave that management company, those reviews won't transfer to your account. I asked multiple rental companies if they will be willing to be co-host so if I decide to leave their management company in 1 or 2 years. I would still have those reviews under my account.  It's much harder to leave a management company if they have several years of reviews and you have to start from scratch after leaving them.

For the linens, this is really dependent on the rental company. We provide ours for guests (we are a management company). Its part of the cleaning, so is less expensive (and hassle) then having to get them on their own and also make the beds etc.

Lots of good information in your last few posts!

Mitch,

Happy to hear you are looking into investing into the Ocean City MD location! I would be happy to help answer any questions for you. I am both an investor as well as run a vacation rental management business focused in Ocean City MD. Reach out to me via my profile and we can connect further.

Quote from @Jason Charlton:

I invest heavy in the Ocean City MD market, for short term rentals. Both my own progress and managing for others. Certainly money in the market, just need the right type of property and short term vs. long term. 

I invest in the Ocean City MD market, for short term rentals. Both my own progress and managing for others. Certainly money in the market, just need the right type of property and short term vs. long term. 

Quote from @Nora Kelleher:

Quote from @Jason Charlton:

Appreciate the feedback everyone! 

Hi  Jason, I came here looking for the same info. What did you end up doing? Have you run into any issues with monthly or longer tenants?

Also, for those who said signing a lease helps, could you provide more info about that? How would having an Airbnb tenant who stays longer than 27 days (or whatever the min number is to establish tenant rights in the relevant area) help avoid the tenancy claims or steps required to remove them from the property? Not sure what I'm missing lol

Nora,

I ended up staying away from anything long term, just due to the risk and potential hassle. In my markets(s) (Beach / Vacation) the amount of inquiries that were for longer term stays is low enough already, and honestly the price that those guests were willing to pay was no where close to the same amount for 5 to 7 day stays from multiple guests in the same period. So ultimately it just didn't make business sense to pursue further.

There are some things you can do if you go that route though, just make sure you know the local laws for eviction and what is required. For example, if someone does squat and established tenant rights, they likely don't have rights to the furnishings. So you could have the entire house cleared out, as the furnishings don't fall under tenant rights, at least in my area. Its unlikely that they would continue to stay.

@Bonnie Low Great points. I have also noticed less lead time between travelers on the STR side of things.

@Nicole Heasley Beitenman Interesting take. How about the availability of a kitchen, larger spaces and keeping larger groups closer together? Even if the same cost as a hotel, isn't that the value? I think that if you break it down by per guest per day, AIrbnb is still competitive to hotels, depending on the host. Sure, if its a very basic home with no real "warm feeling" then I agree with you. I think the hotels will always exist, I stay in them as well, while also being an Airbnb host (Ocean City MD) as well as consumer myself.

I think all of the perceptions of fee's and taxes certainly raise the price of Airbnb, but they are really there in a hotel as well, if we add it all up. Just my thoughts, as it was an interesting discussion that I have had a few times recently. Both in my business and in my own personal travels.