All Forum Posts by: Kate Stoermer

So an example: partner and I had an agreement on funds we could bring to the deal and generally what that would look like. We agreed verbally on general details like partnership split and responsibilities. We found the deal, but decided to bring in additional funds and use PML to fund a cash offer as a mortgage/promissory note - not a partner. We used our funds to renovate and set up, and financed into a DSCR after 6 months, paying off the PML and pulling some of our funds back out.

We didn't pull the trigger on LLC or bank account or anything till we had an accepted offer. It doesn't take long to set up, and we changed the offer from personal name to business name before hitting the closing table.

Some things I advise folks having seen partnerships go south - Get really clear not just on who does what but contingency plans. You say you will do operations; is your partner going to have any say on operations? If so, what?  Will you get paid for doing it? (I "gave" year one and we had an agreed on commission for PM starting in year 2 to reflect I'm 24/7 managing). Where are the lines of authority?  How much will be put back into the property vs pulled as profit. Personal use is always one if there is interest - get clear on what's allowed or not.  Exit strategy is huge as well - this was probably the biggest tense point in negotiations for my deal.   Good luck, hope this helps. 

I'm going to echo the idea that the bells and whistles aren't required if you just have 1 property. The KISS principle is helpful here.  Calendars can be synced without a channel manager, the platforms themselves have automations you can leverage.   These third-party tools are simply that - tools.  Understanding and having experience of those processes in the platforms is exquisitely helpful.  Layering on the cost of these tools as well as the learning curve of learning to host and navigate a bunch of software isn't necessary. I DO like dynamic pricing tools, but for a single property I don't think they add enough value for the cost. You should know your pricing and not rely on a tool to tell you - it can only give you averages, we have to understand our market and position correctly; I don't use Pricelabs recommended pricing (and I operate in the 95% percentile across my portfolio).  It will tell you it "should" be, but the job is for you to know it well enough to tell IT what the pricing should be. 

I say all that... if you are set on it, Guesty has a new product - Guesty lite.  Another, HostTools looks to keep it simple as well   Lots of folks like Hospitable. 

Best of luck to you!

We use Waivo; they have a product for folks with just 1 property. It's damage insurance, they have various levels of coverage. I use it on all bookings, on and off platform because they don't ask the guest to pay the damages which avoids potentially strained interactions and therefore retaliation reviews. The fee is covered as a per booking fee. I love them so much I have an affiliate link, which I'll share. Other providers are Know Your Guest and Safely but I heard safely no longer offers single unit coverage Waivo

Guesty does this, but I wonder if you can create a Zapier? I've never tried to look at if it can do texts, but it seems like something that a product like that could do... but the idea of a shared google calendar and calendar notifications might be good... 

So the question is - what's the ROI. The thing is, that's going to depend. I've seen markets where it increases occupancy, not ADR, other markets where it drives both, other markets where maybe it makes no difference. It also matters what budget tier you exist within a market - like the $ - $$$$ for restaurants, we intuitively understand the general experience and price point based on those dollar signs. We have something similar but not presented so succinctly in STR. What I mean is you have a property that isn't the "ideal" experience in a market - drive to the beach vs beach access vs beach front. Economics will play out - the more desirable, the higher overall revenue. So it depends on a lot. But I suspect, regardless, the mid-term market is not a place for adding expensive amenities; those folks are typically on a strict budget and staying long term; the budget and often, proximity to the purpose for their visit drives booking decisions. The gravy for them would be level of finish and extra amenities but they aren't going to pay substantially more. That said, stock pools are inexpensive but I'm not sure they are anything more than visual candy for your listing - and perhaps more hassle and most adults won't look at that anything like a hot tub experience. But sometimes visual candy is enough to get more bookings. I have contacts who routinely install hot tubs at every STR property and do well; you are in a market where there will be professionals who can help maintain and service a hot tub. But you'd have to really dig into your market data to decide if its truly a competitive advantage.

Last I read about this issue, its been challenged in courts and I'm guessing their home owners insurance doesn't want to be embroiled in this; this gets into privacy laws, and it will depend on state specific laws but also could fall into harassment or even voyeurism. 

Its messy as recording is allowed in public areas, but if there is a "reasonable expectation of privacy" - say its in the back of the house and unless you trespass on the neighbors property you wouldn't see it I think its reasonable to suggest its not legal to record in this area. Were it me, I'd start with just a legal-ezee sounding "cease and desist" letter, nicely requesting they adjust their camera on the basis of privacy concerns, and I'd be keeping all documentation in case it escalates. I'd have photo documentation of the camera pointed at the pool.   I would put a date on it for compliance, or note that I would be pursuing the matter through appropriate legal channels.   Of course, this is non-legal advice. :-)   I recall anecdotally this being pursued as a pedofile/recording children in their bathing suits thing ... 

It's highly seasonal; but definitely some opportunities. I have a client I work with who has 2 STR condos in that market. He was able to get some mid-term renters for low season this year. Its all about your cost of acquisition, of course... location/views definitely impact income potential.

You can.  Unless the rules have changed - and I don't think they have in the last year or so,  you can buy in the same market if its an upgrade, or 50 miles out. Work with a knowledgeable broker who does this; ask 10 brokers you'll get 10 answers because there is some interpretation in the regs.   I refer folks to Jeff Chisum for this. 

So I always like to note success in STR is a very different skill set; its hospitality and marketing. Some folks are very willing to lean into the learning curve to understand what it takes to deliver an **experience** vs housing. To learn how to position the property in a marketplace - and understand the STR marketplace in order to achieve that.

The idea of listing it on Airbnb and they will come is no longer a thing if you want to realize income potential. It does take investing time to learn or building a team who has the skills to do this on your behalf in order to see the ideal return. 

Analyzing income potential actually requires understanding the marketplace as well; the data clearinghouses that provide data are not 100%. I tell most people they are 70 to 80% there. But so many factors can impact on revenue, and realizing income potential including how well set up, marketed, and managed they are.  

So ultimately, its about goals - what are you looking to accomplish, and resources - it takes more money to set up and run an STR vs LTR.

In my business, I often help analyze income potential for long-term investors; happy to help if that's of interest.  The learning curve gets a lot shorter when you have someone on your team that can lean in with you,  

Best of Luck

-Kate