All Forum Posts by: Richard Ibeh

 Hey Jessie --what other passive RE models are you referring to?

@David Sosa I'm a manager and had someone manage my own rental too. 

Pros-  zero calls, messages about your rental unless an emergency. Never have to communicate with guests, cleaners, handymen, etc. I typically recommend for anyone with a stressful full-time job or just can't be bothered being owner/operator and keeping up with the industry trends. It's not for everyone so don't feel forced into thinking you have to do it on your own. Property managers are in business for a reason.

Cons - giving up profits which is inevitable.
Finding a PM that will take care of your rental like their own home.

@Robert Matuszak Peachy Cleaned - Debbie

@Brad Turley Quite a few ways - direct mailer, word of mouth, solicit via travel sites, social media, regular networking etc. However, the majority prefer you to have some rentals under your belt prior to giving you the keys to manage their own.

@Franklin Tirrell  Beach or Ski areas are best for vacation rentals. Preference to the beach as more people tend to travel where the warm weather is vs snow. Once you select your preferred locations the next step is to review the city laws to verify vacation rentals is legal in those areas.

@Arthur Neves rule of thumb I've gotten from a revenue management executive is to set occupancy at 50% for the first year. The first year you are learning your market, making adjustments, changing staff etc until you've found the right formula that works for you/your rental. Too many put a listing up and expect rapid bookings right out the gate and unfortunately that's not how it goes. As Sid said it takes a while to achieve year-round occupancy especially in Kissimmee where the market is extremely saturated.

@Pat Jackson Things are going to be taken or broken during a guest stay- that's the nature of the business. 

Next time just stock what is needed per reservation. Alot of guests do believe if the host leave items in the rental it's for the taken.

I normally only make a complaint if they take my towels, linens or an actual amenity but that's what deposits (or insurance) is for.

 
Without getting too technical here:

1. Do Electronic Locks on average drive more revenue? No, guest typically don't know how they will enter your home until they pay 100% of the rent.

2. Operating expense - Mainly only wifi enabled locks have a monthly fee. Battery operated locks do not have a monthly fee (that I know of). 

3. Does it increase retention? No, customer service and maintaining your property as advertised does.

4. Competition? Whether you have a lockbox, meet them onsite or smart lock doesn't matter right now in this industry. Neither is a dealbreaker for most guest.

5. Benefits? As Lucas mentioned - Convenience.
You are not wasting time/gas driving back and forth to cut keys if a guest, housekeeper or maintenance misplaced it. It's also better security for your house because anyone can say they lost your key then enter next week if they assume it's vacant. (Most owners do not change their locks when someone reports a lost key).

**It also provides peace of mind which you can't put a price on.

@Erik Kuhi For Kissimmee, you'll NEED to manage as much as you can. The market there is so saturated that if you contract a full-service agency you'll more than likely be underwater.

Def recommend finding an "on the ground team" and that's coming from someone who has done full-service mgmt for hundreds of clients.

@Brad Sicoli Are there any actual restrictions in your area to rent on Airbnb? Based on your explanation it doesn't seem there is a restriction but you are violating code and they need to inspect your rental.

What you need to do is call the city and have them inspect the rental so they can tell you what you need to do in order to keep it up and running. Avoiding them will subject you to fines - most cities do $200/per night. You are already on their radar so it doesn't make sense trying to dodge them.