All Forum Posts by: Mary Peale

Hi Monique, thank you for the response.
Here is the link -> http://airbnb.com/h/chillaxcreeks

Self-managed. I'm the co-host. Fiance is the owner.
Blue Ridge, Ga.
Dog Friendly
Lots of amenities. I'm willing to invest in more but not sure if that's a good idea until I see profitability. 
1 King, 2 Queen, 2 Full (in the loft area)
Photos are taken by a professional, yes.

Quote from @Melanie P.:

1. 2/2 vs. 3/2 properties: 2/2 is smaller, thus cheaper to operate and lower price per night than a 3/2 all other things being equal. There are varying opinions on this but mine is: cheap never goes out of style. You should get more nights in the smaller property that can still easily accommodate a family traveling, but is still inexpensive enough to make sense to solo travelers.
2. Cleaning fee impact: Don't you collect this back from your guests?
3. Nightly rates: Yes, but the benchmarks should also be lower.
4. Year 2 turnaround: What strategies could we implement to project a higher ROI in our second year? Collect cleaning fees and put more of the booking fee on the traveler if your rentals are in demand and it's the market isn't overly competitive. Further you should look at how many nights you were occupied across all units here and divide $25,000 by that number. This is how much you need to increase your room rate to become profitable based on last year's information. Do it ASAP.
5. Exit strategy considerations: Is it worth absorbing some of the costs and focusing on long-term appreciation? I don't see a higher or better use for this real estate - do you? No and I wouldn't mess around with an appraisal until you are positive cashflow. 

 Thank you for your detailed response, Melanie. Yes, we do collect a cleaning fee. 

Quote from @Collin Hays:

While trying to figure out a way to boost revenue is good, I think you are doing pretty darn well if you are short less than $1,000 per month in the first year (or two, or three). Remember, someone else is paying off a chunk of that asset. What would be the crime if you were tossing in $11K every year from now on?  It's an appreciating asset.  Look at it like you do your 401K. 

I appreciate your perspective on “appreciating assets” and agree. This is something I aim to understand more about. So far, Zestimates says it’s appreciated by 0.88% in the past 15 months.

1. Is this expected since interest rates are high and listing prices are subsequently dropping? 
2. I’m temped to order an appraisal this month, or does that seem like over kill and do you recommend I sit back and trust the real estate process?

Thanks for any additional input you have time to put forth. & thank you especially for the positive affirmation, Collin!

May I ask which amenities you added that you believe contributed to a revenue boost?

Hi everyone,

I’m looking for some guidance on improving the performance of our short-term rental, and I’d really appreciate your insights. Here’s a quick breakdown of our financials:

• Operational expenses (excluding mortgage): $33k (Jan-Dec 2024)
• Annual mortgage payments: $58k
• Total needed to break even: $91k+
• Income earned this year: $80k

Clearly, we need to bridge a gap of about $11k just to cover our expenses, and I’m exploring options to increase profitability. Specifically, I’m curious about the following:

1. 2/2 vs. 3/2 properties: Are there significant advantages to offering a 2/2? For instance, do 2/2 properties typically have longer average stays, or are they more desirable?
2. Cleaning fee impact: On average, we spent $2,500/month on cleaning fees this year. Would encouraging longer stays realistically help reduce this, especially for a medium-sized cabin?
3. Nightly rates: Are 2/2 properties generally priced lower per night than 3-bedroom properties? If so, does this make it harder to meet revenue benchmarks?
4. Year 2 turnaround: What strategies could we implement to project a higher ROI in our second year?
5. Exit strategy considerations: Is it worth absorbing some of the costs and focusing on long-term appreciation?

I’d love to hear from others who have navigated similar challenges or have insights on improving profitability in the short-term rental space. Thanks in advance!