All Forum Posts by: Julia Ferris

@Bruce Woodruff

I think the either/or mentality is odd. But my experience of comparing the two...

On VRBO, the amount you put the rate in at, is the amount you receive. They will adjust it up for their fee. On AirBNB, the amount you put in is not the amount that you get. The adjust it up a bit for the guest (the portion of their commission that they charge the guest) but will take their commission out the amount you set the rate at. Some people describe this as who pays the commission, hosts or guests, but as long as you understand before setting rates, it does not matter.

VRBO charges higher commission (but again you can compensate for that by set the rates differently.)

AirBNB will refund guest without your consent, and can be very inconsistent in doing so, depending on what agent answered the phone. They are showing a trend of favoring guests over hosts. Also, they frequently keep their commission when a host refunds the guest, so guest is out the commission amount. VRBO will check to ensure that it is not an extreme or unsafe issue, but will not refund a guest without hosts consent. If host refunds, they will refund the commission too. (During COVID, AirBNB even gave guests AirBNB credits only, instead of cash, but hosts got nothing. Hosts thought guests were getting full refunds.)

In some markets, AirBNB does not collect all occupancy taxes. Hosts must collect and pay this on their own. (Depends on county). VRBO takes care of taxes.

AirBNB has many more rules (for both guests and hosts). They will not hesitate to lock hosts out of your account based on accusations that the will not even share with you, and take a very long time to investigate. VRBO leaves guests and hosts to work things out on their own. They will try to mediate, but not strong arm.

AirBNB has developed a specific culture that many people enjoy. They give out accolades like “Superhost”, and advocate a “right” way of hosting. They have a lot of resources to help people get started.

During high seasons, or in markets that have a long history of STR, you can do well on VRBO, but AirBNB gets more traction in most markets.

However, it is not a good idea to be too dependent on any one platform. I am trying to work toward direct bookings.

I think you need to clearly define your terms for their legal definitions. "Assigning" a purchase agreement is not "Selling". Look up the legal definitions of the terms that you are using. 

Hello,

I am getting a second home mortgage with 10% down that I will be Short Term Renting when I am not there. I want to purchase a commercial homeowners insurance policy, and have a quote. Will this be allowed by my mortgage company (I'm using Rocket Mortgage)? Can you have a commercial insurance policy on a second home mortgage?

@Shane Short

I’m not sure I was looking at it correctly. Are you saying that you think it would cash flow at $700 per month? What is the purchase price? I did not see an analysis factoring in expenses, did I miss that?

Does anyone have any expertise in short term rental friendly neighborhoods in Petoskey/ Harbo Springs area of Northern Michigan? I am looking to buy. Any good contacts; Realtors, Prop Managers, Construction, etc.

If I have an FHA Streamline mortgage, will I ever be able to put the property into an LLC? I just got a 2.25% interest rate, and doubt I'm going to want to refinance again.

Also, does anyone know about STR insurance? I live in hurricane country, and all the reasonable quotes I got said that they did not include wind protection. With wind protection the price was three times more. Have my regular home owners insurance, and purchasing the STR insurance without wind, is less expensive than the STR with wind, but they won't let you do that.

Thank you,

Julia

@Joseph Bafia

Thank you.

@Boris Mordkovich

Thank you. That is super helpful.

I am house hacking by living in a converted carport apartment in my house and STR the main house. It has been going very well. However, I am increasingly worrying that since most of my bookings come through AirBNB, my business is at that platforms mercy. I believe that they are increasingly enacting policies that are not in hosts best interest. Since I only have one property, and want to manage myself, I have been reluctant to take direct bookings. Booking through platforms offers liability protection, as well as, credit card processing, not to mention marketing. Does anyone out there run a short term rental business with low overhead, but not relaying on AirBNB, VRBO, etc.? Have any credit card processing, technology, or marketing tips?

@Lynne Hart

Your question seems to be about proving it, but they have admitted it, and don’t deny it, so there is your first proof. When you put it in writing, mention the confession. Keep a journal of your conversations with them, and any time you smell it. There are also devices that can analyze the air quality, but I only know of a company that works with hotels with contracts for multiple units.

But how many chances are you going to give them?