All Forum Posts by: Julia Ferris

Hello,

Does anyone have any good short term rental leases specificaaly for Michigan or Florida that they would like to share? I am working on my own, but I am getting bogged down by trying to put too much in them. I am trying to expand past just AirBNB and VRBO, and do direct bookings and other channels, but I'm getting paralysis from over complicating it. I feel very confident using the two platforms, but I need more systems, and to learn Owner Rez.

I believe in specific House Rules and a Lease agreement as a way of weeding out problem guests, but I don't want it so complicated that it scares away good guests. I want myself protected fron guests establishing residency, since I want to start taking mid-term stays.

Anyone?

@Greg R.

It cam be difficult to be at the top of the searches on both AirBNB and VRBO at the same time, because both availability given to the platform and previous bookings on the platform are big factors in the algorithms used to elevate placement. So bookings will mostly come from one or the other.

The scammers go after low hanging fruit. So newer listings, listings on the back pages, and/or longer stays with huge payouts are who they target.

I'm not certain I'm reading your description of the property correctly, because "older wiring" and "a lot of things on the inspection" sounded like something serious to me.

To guests old, broken and dity are all synonyms. If you are thinking of making an older home a STR it will need a complete cosmetic rehab.

Also, you will have a wide variety of people staying, and inevitably, some will be Darwin Award contenders. Meaning the property must be as safe as possible. 

Hope this helps.

My humble opion is that STRs are more of a business than LTRs. There are going to be cycles, pricing is art form, dealing with guests, marketing, providing a guest experience. It isn't about saturation. Investors who want to learn a new business; who want to read and understand ADA law as it applies to innkeepers; who want think of new ways to attract guests, and enhance stays; who actively learn how to recognize and take precautious against high risk guests; and who learn how to do all this without refunding gusts left and right . . . those investors will always find opportunies.

It would depend greatly on the terms of the lease. Depending on the terms you could lose equity, appreciation, value add/forced appreciation, and it could be harder to exit. There could be other undesirables depending on the lease. Can you sub-lease, for example? (because that is what you would be doing.)

When you are first starting, it is best to make things as simple as possible, so here are my suggestions:

Have detailed House Rules that you send to guests using VRBO and AirBNB, but not a rental agreement. 

Have your rates high enough and minimum lengths of stay to keep out the rift/raft, and look into how deposits work on the platforms, but do not try to get credit cards or IDs. This will seem shady to guests.

There are places on both platforms where you could add a service fee for the pool heat/maintenance, if you choose to. However, please note that doing so can be a turn off to guests. Have you looked on the platforms at your competition for yourself? It is usually best to just raise your rate, so that guests do not feel nickled and dimed, and pricing is more transparent.

Yes, there are arguments for doing things differently, but that is usually only necessary as you grow, and have muliple properties, and less time to spend screening guests. BTW, I don't screen by asking questions most of the time; I screen by having a decent rate, length of stay minimums, detailed house rules, repsonses to reviews, putting in my listings that guests are being watched (whether by neighbor or cameras), etc. My listing says to would be rule breakers, you will be caught, and it will be a hassel, so book elsewhere.

Good luck.

Sorry about all my typos....

Hi,

Under "Identifing your Market", I suggest you add a bunch of steps about researching the legalites of running an STR in that area. Do not rely on Real Estate Agents for this. Does the city allow STRs? Does the County? Does the state? Is there an HOA? Are there convanants? Read them. Get that STRs are aloowed in writing from HOA. What are the lincening obligations? Tourism Tax? Any community talk about limiting or banning them?

I don't want to overwhelm you, but it is very important. It should be done sooner rather than later, so that you do not waste time in unfriendly areas.

I agree with Dave above. Like him, I run great propertyies, and care deeply about guests having a great experience.

But with that said, I strongly feel that the STR reviews process has been completely bastardized by AirBNB, and it is spreading. Coming from a Hotelier background, bad reviews can be useful; and ALL 5 star reviews become meanings. A review should not be a commodity that guests can sell; and Hosts are not doing that industry a favor by purchasing them. Every property, should not necessarily be every guests' cup of tea. A negative review can help Hosts keep the guests that that Host does not want (but other Hosts may very much want) from booking. Therefore, guests can be matched up approiately with the right property for them.

For example, I do not want smokers of any substance, inside or outside of my property. Book elsewhere. Many Hosts don't mind outdoor smoking, or even indoor marijuana use. I state it many times in my listings, and in every pre-arrival and arrival message. But I still have a guest message me after check-in (after acknowlwdging the no smoking policy), "So where can I smoke, since I can't smoke outside." When I explained (basicall) anywhere, but here, she lectured me on how it isn't her fault that she smokes, and don't I think that she wishes that she didn't, and how hard it is being her. Then she proceeded to smoke in our laundry room (which is in an out building in the backyard, and shared with another unit.) I don't actually remember if she reviewed us, but if she did give a negative review, I would have answered, "You are not welcome back." I would have written to furture guests to not come here and smoke. Book another property in you smoke. There are many choices.

I personally, do not think Hosts who regularly give guests refunds should be bragging about their reviews. I give refunds when my team or I screw up; which, frankly, is slightly above never (we have, but really rarely).

That's my two cents.

Hello,

Does anyone have their own STR Agreement that they are happy with and willing to share? CSpecifically for Florida or Michigan? I'm (very slowly) setting myself up to take direct bookings. Thanks.