All Forum Posts by: Ryan Moyer

 Fox News is anti-Desantis?

This is from Hospitable.  Same PMS I use.

To clarify on one of the statements above, the revenue includes only pass-through taxes.  Taxes that Airbnb pays direct to the state/county are not included in the revenue there.  But if there are any additional taxes that the host has to collect and pass through to the county/state manually, they are included in the revenue there.

Yes, cleaning fees are included in that revenue.

Yes, that revenue is before Airbnb fees.  To clarify, that is before the 3% Airbnb host fee, NOT the 14% Airbnb guest fee.  However if the host elects to pay the entire fee then that would make the host fee 15%, which would need to be subtracted instead of 3%.

On that screen there is a button to export the report via Excel.  The excel doc will give all of this info broken down.  That screen is just a summary.  If you can't get tax docs, at least get the excel statement which will break everything out (nightly rev, cleaning fee, taxes, host fee, etc).

I suppose the best risk is no risk, but for as much as everyone immediately jumps to the "omg...alcohol, such a liability!" I can't say I've ever heard one single solitary story about any of these potential scenarios actually happening despite a relatively high number of STRs leaving wine etc as a welcome gift.

You'd think by now we'd have at least ONE post in here or in the hundreds of STR facebook groups about someone that left wine as a welcome gift and got sued after a drunk person had an accident, or got reamed out by a recovering alcoholic, etc. But I've never seen it, not even one time, nor even heard about it happening second hand in one of these groups/forums.

Good post @Michael Baum.  So sorry to hear about all the losses.  I never would have imagined these kind of effects from a hurricane in Western NC.  Just gutted for everyone involved and wishing the best on a recovery.

Revenue numbers are trending down year over year, not up.  An email marketing funnel for re-booking is nice, but it's barely keeping up with the year over year decline in rents due to saturation (quantity saturation AND quality saturation) and shifting travel trends.  20 years ago your hot tub made your listing an all-star.  Now it makes it average, everyone has one.  5 years ago your dynamic pricing and professional photos and 5* reviews made your listing an all-star.  Now it makes it average, everyone has that.  Another 2-3 years game rooms and theaters and coffee bars and all that jazz will be the same.  It's already headed there.

And that's while we operate at all-time highs for travel in an economy where travel demand has remained at peak.  Any shift or slight weakness in travel demand and things can accelerate real fast.

There is still lots of dumb money entering the market that won't be if the economy softens.  I see it every day.  I had a client come to me just yesterday to manage their property that I had to have a real heart to heart with.

I asked them what their primary goal was (cash flow was their answer) and what the projections were that they used to make their purchase decision.  They said they were projecting $300/nt with 48% occupancy.  That's $52,500/yr

The house was $750k, 10% down @ 6.5% interest. And this was a large property in a high expense market (Orlando). HOA $500/mo. Electric $900/mo. Water $250/mo.

And they were planning to pay me 18% off the top to manage it.

And I would say, of the clients that typically come to market, they were MORE prepared than normal. 95% have not run any projections at all. They're just buying an STR because their friend (with a 2017 mortgage) is making good money, or because they saw something about it on Youtube, or social media.

If this particular cabin we are talking about here doesn't underwrite, it might still sell....for now.  A few years from now when all the dumb money that doesn't know how to underwrite washes out that may not be true anymore.  If the place is losing $60k-$120k/yr I would take that equity and invest it better into something that is not that far below the margins, while the getting is still good.

Honestly, I would sell it now while there are still an endless supply of foolish newbie investors out there that have the capital to throw around $2M with no underwriting skills and assume they'll cashflow based on bad advice from realtors and youtubers.

Eventually once everyone starts wisening up to these investment-only properties being a negative investment, prices will start falling and you might lose that equity.  I have no idea how long that will take though because there are a lot of people out there right now with more money than sense buying these deals that will never cash flow and then complaining that they can't cash flow.

This part is ridiculous.  I just stayed in a hotel in Moab and we had an A/C issue and it took two days to resolve and, honestly, that's not that out of line with my normal experience at hotels.

I don't know where people dreamed up this idea that all hotels have someone waiting outside your room ready to resolve anything in 5 minutes.  It taking half a day or a full day for someone to show up is completely commonplace at a hotel.  And many hotels don't have 24 hour desks or 24 hour service.

I don't get why all these newer regulations expect STRs to operate to standards that aren't even required of hotels with full-time staffs. Not every STR has to be a 4 Seasons and even those I've waited on service before and it's not like someone was breathing down their neck waiting to revoke their hotel license when it happened.

Our cleaner sends invoices at the end of the month for all of the month's cleans, and we pay them via ACH (used to do Zelle until we got big enough that we started getting hit by Zelle transaction limits).

This works great for the properties we own.  

It does create a small accounting headache for the properties we manage for clients since then our payment date is usually in the following month (IE we pay the invoice for July cleans in August).  We usually bill our owner's via cash rather than accrual (IE our July owners statement for an owner has their July revenue minus expenses paid in July) but the owners get confused when the cleans don't line up to the stays, so had to train our bookkeeper to include the July cleans on the July statement even though that invoice was paid in August, which is different than how all the non-cleaner invoices are handled.

If they don't want to renew with you, or want to write a new policy in order for you to be able to stay, can't they just choose not to renew on their end the same way we can on ours?  What's the point of the tricks?

 Same for Florida.