All Forum Posts by: Karen Chenaille

Hello!

I am not a CPA so use caution when implementing my advice :-). There are less expensive cost segs out there if what you have is fairly straightforward. I used kpkg on my home that I lived and ran an air bnb in. It’s a software algorithm based tool. Cost me less that $1K at the time to do it. If you have a CPA run it by them. If you don’t I can recommend one. 

Hi Amy!

I personally own 4 STR's across three markets. I also hold some in a syndication. I am a full time agent in TN. I have been into STR's since 2016. I would be happy to dig into any questions you have! Pleaser DM at your leisure.

Pinterest is a great source for design inspiration!  I would look at your competitors and then aim to punch it up a notch above them.  There are several elements of the Air BnB algorithm that are based on how long folks spend looking at your listing photos...longer is better and gets you up in the search rankings.  You definitely want to do things that will make your listing stand out compared to your competition.  Also consider amenities that no one else offers...for a lake, you could look at kayaks, lawn games, or even a swim dock and be sure to showcase these in your listing photos.

Occupancy is definitely down this year over the last two years, but there are several things folks can do to increase revenue.  Going pet friendly is a great strategy as long as you can get over the idea that there might be an animal mess in your cabin (this is just an investment after all...not your personal home).  You can charge at least another $150 per stay for a pet..and even at that rate its a bargain compared to what folks pay to board their pets back home. As you consider furnishing your place, you might want to look at items that could take the wear and tear of a pet and then go pet friendly. This will make you stand out over other cabins and drive your occupancy and rates up. The Wayfair professional line of furnishings is a good choice.

Smokies will always be a great market because the fundamentals are solid.  Prices are definitely sliding as interest rates rise.  In just a few months its transitioned from a raging sellers market into a buyers market.  I expect to see further price drops as interest rates continue to rise.  Not sure where the bottom will be, but I expect it to be late Q3, early Q4.  

Congrats on your purchase!  

If you are going to buy any more STR's in the future, consider getting a PMS like ownerRez that integrates with all the tools the other folks have mentioned in this thread. You need a pricing automation tool...lots has been said in the forums before, but PriceLabs always comes out with high marks. For cleaning, turn over BnB or ResortClean. TurnOverBnB is normally paid for by the host. Some cleaning services will have ResortClean and you can get it for free under their account. Both turnover and ResortClean integrate with OwnerRez. If you get OwnerRez, you won't need hospitable. Good luck!

Have you considered glamping tents or geodesic domes?  There are several models of these that come with bathrooms and kitchens in them.  The returns are insane due to the low cost of entry.  Biggest thing to look out for is what type of zoning regulations will apply...oh and the septic requirements.  We have a two phase glamping resort going in right now down in the Smokies and so far, the septic design has been the most difficult part, but it's all worth it in the end because the returns are insane.

They may have a significant amount of equity they are looking to cash in on. It may take them years to get the same amount of cash they can pull out in one sale.  Take a hard luck at their revenue for the last three years and what they have on the books this year.  If those numbers meet your investment goals, you should buy it.  I know, seems obvious, but I just don't want to see you get too wrapped around the axle about why they are selling it and miss a great investment opportunity :-)

I am a huge fan of self-managing whenever possible. Even the 10% evolve takes for what they provide is too much. You are still stuck holding the bag for any boots-on-the-ground issues. I was forced to use them for a one bedroom ski on/off STR I held in my SDIRA and it was a nightmare for my guests. Worst communication ever. I had another studio condo in the same area that I self managed...it was lower headcount and only a studio, and not as desirable location I consistently beat the 1 bedroom condo revenue that Evolve was managing. Have you considered finding a co-host? Roughly same cost as Evolve, but it's more of a partnership and you can learn the ropes of the co-host and eventually manage yourself.

Roku's are the easiest for guests to use.  I have them in all my latest rentals and never get any complaints.  In my own home, I prefer Samsung's, but for the one beach rental I have a Samsung in, the guests are always having problems with the menu function (even after making instructional videos).  

A lot of people have hit me up on Air BnB asking me who my cleaners are.  If you ever go to the area and stay in another property, you could possible get the name of the cleaner of the property you are staying in. Frequently, the host has the cleaner's name as the first line of defense for guest problems. Also, you should ideally be looking for two cleaners to ensure you have coverage no matter what.