All Forum Posts by: Patrick V.

John,

Yes, i would recommend different type of website should you decide to venture into luxury. I have been doing higher end VR PM for awhile, along with owning my own properties but am moving into more of an investment management role with regards to VRs. 

John,

That's awesome. I have the same strategy...20-25% of the cost of the property in gross annual rents. I do the PM.

Why pay a broker? Maybe a few hundred dollars a year. There are hundreds of brokers in most areas...lawyers, retired, etc. I found it pretty easy to find a broker who would let me hang my license in his office for free when I first started managing VR properties. Network around. You should be able to find someone helpful who doesn't need to make a percentage of your fees.

Can you manage your rental from a distance?...yes. Is it easy?...no. You will need to arrange for a cleaning person, and a backup. Do you know them well, and can you be sure they will show up and do a good job. Who will perform maintenance if something happens? Are you prepared to respond to all the inquiries about your property online? Do you have a contract? There's alot more I could ask. 

The flipside of hiring a PM is you have to pay a substantial amount of your revenue to someone else, which makes it less attractive as an investment. So, the questions I ask are 1. Are you in this predominantly as an investment (versus using on occassion for your own enjoyment), and do you have time and ability to have a second job as a property manager?

Hope this helps.

I can add a few comments as I went down this path some time ago. First, you should be able to find a broker to hang your RE sales license with for little or nothing. There's brokers everywhere including semi- retired, etc who you should get to know and approach. I paid zero to my broker when I was doing PM. Second, you need to find a marketing angle. Just like most businesses, everyone and their brother wants to do VR PM now, including venture capital backed companies charging as low as 10%. Find good software, figure out how to do dynamic pricing/yield mgmt so you can show owners how you can increase income (price for max revenue in season, occupancy in off season), hire good housekeepers and make a good corny website. I made several, and the corny ones play better than the corporate looking stuff. If you can go after higher end homes and luxury, it's alot better use of your time than signing up owners with little rentals. Those aren't even worth it. Good luck!

Very nice and congrats. That is impressive.

I am building another VR this winter which will be ready for spring... $500,000 to $550k for land, house and furnishings. Sleeps 16-18. I will clear $80- $100k annually. We do the PM. 

Hi Percy,

I focus on the midwest...resort towns, Great Lakes, etc. Although seasonal (spring/summer/fall or summer/winter depending on area), in certain towns the returns are great. Less restrictions and competition as well compared to Southeast, islands, etc.

Just depends on various factors...if you are looking at it purely from an investment standpoint, I think it's just so-so. Much better returns available elsewhere. If you like the area, and plan on visiting and using it on occasion then it's a different matter. My preference is to seek investments in VRs, so I don't buy properties with high HOAs,  and prefer to avoid those types of properties. I also prefer to manage my own properties, or hire someone by the hour to do cleanings, maintenance and errands.

I was thinking of doing something along these lines...If an investor wanted to invest in vacation rentals but didn't have time or experience to find properties, I would serve various roles to facilitate and manage the investment. For example, I would utilize my experience to identify the best area for an investor, then find  or design and build a VR. I would then manage the property. Investor would supply the capital, and we would split ownership and income 60/40 or something like that.

I've complained about this issue to HomeAway for a long time. It makes things very difficult for property managers trying to onboard new clients. An owner already has a listing and reviews and may have paid for a subscription. HomeAway wipes all that out when you take that owner in as a client and list them under your property mgmt company. It's just awful and I've told them so. My understanding is they are in no hurry to do anything to rectify it either.