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All Forum Posts by: Peter R.

Peter R. has started 9 posts and replied 151 times.

Post: Any interest in a VR Startup Follow-Along?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

Not at all @Corlan M. I just finished up the first post today:

https://www.biggerpockets.com/forums/530/topics/45...

I'd be interested to hear what else people might want to see as a topic!

Post: VR Startup Follow Along - Automation & Notifications

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

Hi BP!

This is part of a series where I detail the conversion of four units from long-term rentals to short-term Vacation Rentals (VR.)

Synopsis of this part: Setting up wifi for your guests and for smart devices in your VR and getting notifications when necessary (smoke detected, leak detected, etc.) Also, how to remotely manage locks and access codes for your guests. No more keys!

If you see something I missed please let me know, or if you’d like me to expand or clarify anything.

How to Automate Guest Access and Get Notifications About Property Status

Step 1 – Get a Google Voice number

To avoid exposing your personal cell number to guests and any services you set up I highly recommend getting a Google Voice number that you can use to forward any VR related notifications to any number you like. Most often you’ll just point this at your own cell number but you can also use Google Voice to redirect your entire notification stack to another number if necessary. A good example of this is if you decide to take a vacation yourself, you can log into Google Voice and redirect everything in once step to anyone you like.

You can also separate SMS, Voice and Voicemail routing at this point if you’d like, this could be useful later as I get into multi-party notifications.

Note: Don’t mix and match notification numbers. This process begins to break down if you mix and match your own cell number with your google voice number as you establish accounts and online services.

Step 2 – Decide how much you want to automate

For this VR, I’m going to automate the front door lock, a smoke/CO alarm, a water leak sensor, an in-wall outlet, and the thermostat.

With this setup, I can reasonably know what’s going on in the VR at any given time and set codes remotely to provide guest access and then delete those codes remotely after a guest stay.

Step 3 – Get your VR Internet Access Established

You’ll need an underlying internet provider. Cable, DSL, Fiber, whatever’s in your area and provides the best speed for the price. Don’t focus on any added services like WiFi, you’re going to be adding your own anyway, I wouldn’t pay for the extras from your internet provider.

Although, it may be a good idea to bundle the internet with a basic TV package without DVR or Pay Per View to provide guests at least a limited TV experience.

Unrelated Note: If you’re going to replace the TV, I tend to recommend Samsung TVs as they are the only major brand to have all four big internet TV services. Netflix, Hulu, HBO and Amazon as a part of the Samsung TV interface. Your guests can choose to log into their own accounts on any or all those four, it’s been a popular addition in our VRs.

Step 4 – Choose your WiFi Overlay

What I’m calling a WiFi Overlay is a series of devices you place throughout the VR to establish strong, fast WiFi throughout the property. Nothing worse than a VR with bad WiFi, particularly when your guests are stuck inside due to weather.

I’m using Google Wifi. It’s expandable and no matter how many you have or where you put the Google Wifi devices, it all looks and feels like one WiFi network to your guests. You can pick the network name (ex. YOURPROPERTY) and password and change it whenever you like.

They are little pucks you place around the VR, they look like this:

Once you set this up you’ll probably never worry about it again but you need it set up to provide your automation hub wifi access.

Step 5 – Pick an Automation Hub

There are various smart hubs out there that support different technologies in devices.Samsung Smart Things, Wink, Vera, etc. I settled on Smart Things (ST) for now but most of the devices you purchase for ST can be used with other automation services if you decide to switch automation hubs later.

Note: Apple Homekit is the outlier here. Things that are compatible with Homekit are usually NOT compatible with most other automation hubs. Schlage locks are a good example, they have two versions of identical looking locks, be careful when ordering!

Why did I pick ST? It has an internal battery backup. Combine that with a battery backup on your internet access and your automation hub and ability to see that status of your VR continues even in a power outage. Plus, I like the interface way better than most others.

SmartThings Hub looks like this:

Note: SmartThings has a web interface but it’s not really intended for use on a browser. You’ll need an iOS or Android smartphone app to add and manage ST and the ST devices. You can add other people to your ST account and they can use their own ST App on their phone to manage ST as well, if you want to have more than just yourself managing this.

Step 6 – Pick Automation Devices

Here’s the list I’m using and some notes on why I’ve picked them:

Front Door: Schlage BE469 Keypad Deadbolt. Comes in a few colors and trims, but this battery-operated lock controls the DEADBOLT not the lever. For simplicity and to avoid accidental lockout, I paired this with a decorative matching handle that has no lock, so only the deadbolt can lock/unlock the door.

You could also go with something like the Schlage FE599. This has two key differences in that the handle is controlled, not the deadbolt and the lock auto-locks after 5 seconds, the guest must enter the code every time. In the deadbolt setup, the lock remains open until the guest manually chooses to lock it. If you go with this you’ll need a matching trim deadbolt but I’d keep the key offsite somewhere.

Note: By default, you cannot add or remove codes remotely with ST unless you add a custom ST app called Door Manager. It’s a bit of a setup to get running but once you do, it works smoothly. If you don’t want to do this, you can still use these locks but just program 10-15 codes at once when you’re at your VR and cycle through them.Then delete the set once you’ve used them up and program another set.

Smoke/CO Alarm – First Alert ZCOMBO. Standard looking smoke/co alarm. Battery only, so if you have hardwired detectors in the unit like I do, you keep those and mount one of these somewhere as an alerting device just to know if something is going on. If you have all battery powered detectors, you can replace all of them with this unit or just replace one.

Water Leak Sensor – Samsung Smart Things Leak Sensor. Tiny battery powered device, I put it next to the water heater. Only has two states, dry and wet and all it does is alert you when that state changes.

In Wall Outlet – GE Z Wave Duplex Outlet. Using this mostly as a signal extender because all Z Wave devices relay signal to other devices. But you can plug in a lamp or whatever you like and control it from ST.

Thermostat – Ecobee3.Good looking thermostat, comes with a wireless second temperature/occupancy sensor you can place in another room. I liked the control and the features better than Nest but either should work just fine. Setup is easier than Nest in my opinion. Check your system compatibility before you order.

Step 7 – Managing Automation

Once you’ve got everything paired up with ST, your ST dashboard looks like this:

And you can see at-a-glance info:

At this point you can decide how and when ST should notify you of changes in status.You can have it only do push notifications on your phone, or have it alert by SMS. If you enter the Google Voice number from Step 1 you can then transfer the notifications to anyone you like via Google forwarding at any time.

And that’s it! 

At this point you should be able to see the status of your VR, modify the temperature, lock and unlock the door and set codes for guests. Your guests also have fast, worry free WiFi and you can be notified of any serious problems in real-time. You can also use your Google Voice account to transfer notifications to anyone you like if you’re going to be away for a period of time.

Post: Anyone else built passive income from Vacation Rentals?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

I've thought about the older landlord situation too @David Faulkner and it's a great thought to provoke conversation!  If I found the first example, the older long term landlord, I might be tempted to fish for a price that he'd be willing to owner finance at, if the situation works.  I'd much rather have full control and that owner holding the paper than try a master lease.  But that almost never works. :D 

The personal VR with a set day/schedule holdback is really interesting, hadn't thought of that angle before.  Especially if you can show a record of past performance.  Hmmm. 

Post: Any interest in a VR Startup Follow-Along?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

Hi All,

After reading a lot of questions in the Passive Income from Vacation Rentals thread I wanted to see if there was any interest if I posted a thread detailing and showing the progress as I started up a new set of Vacation Rentals from scratch. 

I recently closed on a property and I'm going to convert it from long term rental to short term vacation rental and thought people might get some insight into how to do this.  I'd cover things like automation, furnishing, listing, State Licensing, taxes, booking engines, turns/cleaning, landscape conversion, etc. 

Also wanted to check to see how best to do this.  I could just start a thread and keep posting but didn't want to run counter to any BP forum rules.  

Any comments would be appreciated.

Thanks!

Post: Anyone else built passive income from Vacation Rentals?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

@Craig Power in my opinion you're not overthinking at all.  This is exactly what I do, and you're spot on with the need for a turn person. Once you solve for that, the rest can be done remotely if you want with little to no issues.  But finding that turn person is key. 

@David Faulkner the lease to Vacation Rental model is an interesting one.  You'd have to get someone willing to let you do this with their property and to me the risk was always if they see you have success, what's to stop them from not renewing your lease and trying it themselves at some point?  Then the time investment of the listing, furnishing, etc is lost at a future date.  That's really what stopped me from looking into it further but I've always been interested to see if the idea would work at scale, anything beyond a property or two.

Post: Anyone else built passive income from Vacation Rentals?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

82.5% blended occupancy rate for the first 4 months of 2017, but there are outliers in there, that number will come down a bit as the summer gets averaged in.  The 30 day stays are usually snowbirds who take a unit for an entire month. 

Post: Anyone else built passive income from Vacation Rentals?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

@MarZia RiVera when I get bookings from people in FL the tend to be from within about 100 miles of the VR I'd say, give or take. I have found through anecdote that Floridians really fall into three camps, those that don't like the water at all, those that prefer rivers and those that prefer ocean. 

I'm interested to see how your weekly rentals go, currently my average stay across all rentals is 6.3 nights, with a couple of 30 day stay outliers in there. 

Post: Anyone use "Evolve Vacation Rental" for short term rentals?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

This is pretty interesting.  I'd be wary of how exactly they expect to continue to provide owner-like quality of service with a cut rate model.  Or maybe they don't and it's more like a Turo of sorts grafted onto the vacation rental marketplace. 

Either way I bet they might have issues with pricing correctly and guest immersion.  An owner knows where the best restaurants are in the rental area, if this service relies a bit too much on speed and cursory research they might reply to that question with a bad suggestion, and spiral from there.

Post: Anyone else built passive income from Vacation Rentals?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

I'm not so sure I buy all of what that speaker was saying @John Thedford at least not in my experience.  Mostly because I think it's highly subjective and you can tailor the experience any way you like.  

Let me suggest that in annual rental, in Florida, let's say you have someone that refuses to pay and you have to evict.  And then they start delaying tactics. By the time they're out and you've got the rental turned around, you're 3 months down the road.

However in a VR situation, you've got the money up front and if they don't leave, now they've got to contend with Felony Defrauding an Innkeeper (Florida Statute 509.151.) With proper documentation and the help (hopefully) of your booking engine (Airbnb, etc) they're out in a matter of days, either with or without the assistance of the County Sheriff. 

I'd agree with him on wear and tear generally but mostly on the furniture.  I've not yet seen a difference between long term and VR on appliance, HVAC or structural components.  And on the furniture wear and tear, buying correctly up front helps, damage warranties, etc.

Post: Anyone else built passive income from Vacation Rentals?

Peter R.
Posted
  • Investor
  • Orlando, FL
  • Posts 152
  • Votes 86

I'm actually a few hours west, all the rentals are in Melbourne Beach but I'm not there much unless I'm using the rentals for myself.