All Forum Posts by: Steve Dove

@Kevin Lefeuvre

Thanks Kevin. I made the assumption as to what happened to my payments, as there was really no indication of where the $$ was, after the client paid. To date, I have been using this new method for only a few days, and have only accepted one booking this way. I have never had to settle a dispute with PayPal. My guests sign an agreement that calls out our terms. I've probably only kept one or two security deposits because of cancellations. I sell the product as it is listed, and do everything I can to make sure that we fully set the expectations for our guests. No surprises = no disputes.

I'm going to do some further reading on the payment processing, as I admit, I do not fully understand it as of yet. I just feel like VRBO has removed me somewhat from my business/vetting process. I honestly don't mind the manual effort involved. It keeps me closer to my business, the guests, and everything that is going on. I live 4 hours from my rentals, and don't have the opportunity to interact with them other than during the reservation process.

@Kevin Lefeuvre

Hi Kevin - I've used PayPal for ten years. I collect the security deposit up front, 50% of the balance 60 days prior and the remainder 14 days prior. If the guest cancels within 60 days, they forfeit all advance payments. VRBO seems to be holding all $$ until the guest checks in. I take last minute bookings all of the time. Everything is done electronically. All guests are informed that this is a first-come type of business, and they have 72 hours to pay the invoice and return all signed paperwork. If someone else books before then, or that time expires, they lose the reservation. I may have the opportunity to move them to another of my available properties. I really don't like the VRBO is also holding my payments. It's my business and my money.

@John Underwood

I like the idea of a security camera, but a couple of my properties are in very rural areas, with no internet access available. I'm not comfortable just letting anyone stay there, which is why I like to screen them. If it was a hotel, with a front desk, I would not feel this way. I'm respectful of my neighbors, so that they continue to be my advocates for me within the community.

Our situations and MO probably vary, but I am glad that it is working for you. I will follow their rules and see how it plays out.

I think that the jury is still out on this one. I need to give it time, but I still can't get over the ethics of it. VRBO itself is intangible. It's a play to make more $$, that's how I see it. Not a way to improve my business.

It's been a while since I have posted, as like you, I have been busy. I wanted to get some of your thoughts on the recent changes that VRBO / Homeaway have made, which forces property owners to use their online booking system. My listings have recently renewed, so my experience with this process has been somewhat expedited. I knew it was coming, but chose to resist and ignore it for as long as possible. Here are a few of the reasons why:

1. They now charge my guests an exorbitant fee for using "their" system, per booking. I find this to be completely unethical, as they are also charging me, and possibly you, an annual listing fee.

2. The contact information of the potential guest is no longer exposed to me, unless I accept their reservation.

3. I like to screen my guests first. This process limits my ability to do so. If I should chose not to book someone who has requested a reservation, it also impacts me negatively within their rankings.

4. By not processing my requests through their booking system, to include the processing of payments, it also negatively impacts my rankings.

5. I have 50+ postive reviews on one property alone, far more than anyone in my geographic area, yet I am at the bottom of the search rankings.

On the up-side, I'm now receiving $1mm in liability coverage, per booking. That's great! However, I already have insurance to cover mishaps that may occur.

Maybe, I'm just not one who is quick to adopt change, but in some ways, they've really changed how I do business, and I feel that these additional fees may be a deterrent for some of our new guests.

Thoughts?

Steve

I've got an interesting scenario here. A relative of mine is purchasing a primary residence through a short sale transaction. The property is owned by an investor who rented the home out for several years. The investor has paid the property taxes through July of next year, and the property is taxed as non-homestead. My relative is being told that he must pay the pro-rated taxes through July, at closing, at the non-homestead rate - even though this will be used as his primary residence. Is this typical? It seems as though the property should be assessed with the homestead exemption for him, and the following should occur.

1. The investor is credited the pro-rated amount, by the township, at the non-homestead rate.

2. My relative would pay the pro-rated taxes, though July, with the homestead exemption.

Thoughts?

To William's point, it's not cost effective to stay in a VR for a single night. However, a VR for the right person, might make a lengthy trip more cost effective to the business. If I were traveling alone on business, which I sometimes do, I'd be more interested in putting groceries in the fridge and cooking "at home". The cost savings to your company for the trade off in meals eaten within a restaurant (plus gratuity), vs. cooked within the VR, might be a good selling point if it's something you need to build a case for.

sounds like we have al lot in common. Welcome to BP.

Steve

@Teri Feeney Styers I definitely understand the desire to be free from stuff. However, as a real estate investor, I'll never be free of things that require my attention. But, I see your point and realize that there are others on the opposite end of the spectrum, who feel that less is more. I wish you luck in your endeavor and am interested to see how this will work out.

I'm failing to comprehend this type of living solution. While they may be the latest craze, I can't help but think that people will grow tired of being in such cramped quarters. They may prove to function well, as cabins or temporary lodging, but I fear that we're going to see a number of things used once and hard to sell later on down the road. 

How would something like this be depreciated or financed? Could the interest on the loan be considered as an annual deduction?