All Forum Posts by: Pete Slaga

Hi.  Here is a list of vacation rental insurance companies.  I am not an insurance agent nor am I currently affiliated with any of these companies.  Some of them are stand alone insurance.  A couple of these say they sit on top of your normal insurance and are in effect only when the house is rented.  Hope this helps everyone.

Proper Insurance
Proper Insurance is a leader in the vacation rental insurance space, offering policies in all 50 states.

Safely
Safely provides dedicated vacation rental insurance with additional services like guest and home background checks.

CBIZ
CBIZ is known for its comprehensive vacation rental insurance solutions for both everyday hosts and larger-scale property managers.

Rental Guardian
Rental Guardian offers flexible plans tailored to hosts' budgets, including options for international properties.

InsuraGuest
InsuraGuest provides specialized coverage for vacation rental properties, including accidental in-room property damage and theft protection.

Red Sky Travel Insurance
Red Sky offers insurance products specifically designed for managed vacation rental companies, with packages tailored to different destination types.

Keep in mind that Airdna adds into their revenue housekeeping income in addition to Rent. To have a more accurate number, it helps to accurately identify what percentile the STR would fall into and use those numbers. However, be conservative on that. If you are in the top 25% use those numbers as a high end and look at the next tier for a low end. To back out housekeeping income, look at what others are charing for the HK fee and then make an assumption on how many reservations in a year. Not sure, use 50 reservations as a close approximation. subtract the HK fee from the revenue to come up with an idea of rent.

Rabbu is ok,  Pricelabs is nice as well.    I would suggest reaching out the companies that market assumable mortgages for them to answer how hard or easy it is.   Go to perplexity.ai and search for assumable mortgage companies and they will give you a good list.

 After you look into markets that can cash flow at the 7.5-8% rate. Check out assumable mortgages online in those areas  You might be able to find a home with a lower interest rate for a reasonable downpayment.    

Sign up for a trial of Airdna and do some research.   
#1 Location As others have stated Orlando and Tampa (Tampa City or Tampa area like Clearwater?)  are totally different markets.     
Prime location is the most important thing.   Orlando you want to be near the theme parks.   Tampa you better be on the water.

#2 Find a niche.     I would argue that you are better off having a smaller place in Orlando that fits a family under 6 people.  There are way too many 5+ bedrooms themed homes. (oversupply).    In Tampa or Tampa area the opposite is true as big homes do not have a large market share

#3. Does it pencil out?   Can you make money.  I would say your best bet is to see if you can purchase a home with an assumable mortgage.

Do some research online with VRBO and Airbnb along with their site and here are some things you want to look for:

1. Both sites will list their average rating, response time, etc.
2. Look to see how many properties they have close to yours.  You do not want to be an outlier that will be hard for operational staff to get there.
3. Find a listing of theirs and send a message to ask a couple of questions to see how soon and how they address your questions.   The latter is good to understand how well the people handling the inquiry know the property.
4. Start the process of making an actual booking and see what types of fees they are passing through to the guest.  For, example some PM will add (and pad) a booking charge that goes on top of their management fee.
5. Lastly, once you are ready to meet with one or two PMs I would ask that they bring their operations manager.  The operations manager will be the one that is coordinating everything in your home so you better trust them.

Michael,   A good book to purchase is "Professional Real Estate Development: The ULI guide to Business.   

At a minimum,  you should understand what the current zoning is and what restrictions there are.

As the post above mentioned reaching out or going in person to speak with the planning and zoning department will be very helpful. 

If it looks like you can subdivide, then you can sketch out a preliminary plan or several variations to give you a sense of how many lots you can build.     Then I would speak with a land surveyor or civil engineer to get a sense of what it would take to obtain all the entitlements and bring in the utilities, etc.     

Are you looking to just subdivide and sell the lots or actually build?

Hi Scott,  

Since you will be the new manager you will need to start a new listing on VRBO and Airbnb.  The reason they want you to start a new listing is because although the property is the same you will manage it differently.   There is going to be a transition period.

A couple of suggestions would be to make sure you are purchasing the photos on their listing and you can use much of the same verbiage.  I am not 100% sure, but you should also be able to use the same name on your new listing.  For example if it is the old listing was titled " The Pirates Crow's Nest"  You  should be able to use that or a variation close to it.

Also, the owner should be able to provide you all the names and contact information of past guests that you can use to reach out and introduce yourself to them.  

Hey Levi,

First take your time and keep your LTRs for now. I would suggest taking a longer vacation down to 30A and identify the area that you would want to have a vacation home or condo. I could be wrong, but I understand that this is a place that you and your family are wanting to purchase and use and are looking for STR income to offset the price? If this is the case, I would suggest you explore options that fit your family needs. Also, you want to understand the current market supply. (I suggest using Airdna) If you purchase a studio or 1 bedroom then you not only are competing with other vacation rentals, but hotels as well. In PCB the majority of rentals are 2 bedroom so that is where there is the most competition during shoulder and slow periods. I would look at 3 bedrooms on up and see what makes sense as a possibility. I would hate to see you sell your LTRs to get into an STR especially because you would lose out on that income you are currently receiving. Not sure what others think here, but there were a lot of people that bought STRs in 2021, 2022 based on pumped up revenue due to C%vid and now many are seeing much lower revenue. There should be some opportunities to purchase at better prices down the road, but that is my opinion and there are a lot more smarter people on the Real Estate side of things here on BP.

Just thinking in a different direction.  You may want to consider purchasing land on a river, lake with some acreage and renting it out as a camping or couple camping spots.   

 Hi Katrina,

It depends.  A few questions would be first do you currently own or rent a home yourself? How much can you qualify for or are looking to invest?  Is this an area you currently live in or will this be somewhere else?

If you are renting, it might make more sense to purchase something that you can live in and either house hack or rent out on the weekends. If you currently own something then purchasing another property really comes down to does the deal pencil out? Keep in mind that STR as has been stated is seasonal and involves you purchasing nice furnishings, etc. along with managing the property either yourself or be willing to give up 25-40% of your rental revenue and housekeeping revenue to have someone else do this. LTR has more stable income, but you either need to find and deal with tenants and vcacancies yourself or hire someone at 8-10% to manage this for you.

What you can afford for the area you are looking to invest in really should guide you in the right direction for you. Zillow or Apartments.com can show you comps of what long term rents are going for in an area. Using Airdna or Pricelabs can help give you an idea of what you can generate as an STR. Keep in mind Airdna and I believe PL lump in rental revenue along with housekeeping revenue.

Your choice must fit your lifestyle as well.