All Forum Posts by: Mary Peale

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!