All Forum Posts by: Ryan Rabideau

Doraine,

I'm sure you have read the open letter but here it is. Unfortunately its part of a larger industry trend of charging service fees for lobbying and the cost of acquisition. Doing it mid subscription term is what has a lot of people upset. At the same time they have changed a lot of their ranking algorithms which might be what is dropping traffic to lesser optimized ads. Staying ahead of these issues and having back up channel distributions so you are not so reliant on just one channel is another perk of working with a professional manager. 

-Ryan

Stan,

I would suggest using local professionals when possible due to the regulations in Big Bear around STR restrictions. Demand can vary by building, location and of course size so getting an accurate projection from a manager that operates there is key for the property you are looking for. Let me know if your interested and I can pass on contact for someone I recommend down there.

Best,

Ryan

Congrats John!  Do you have a link would love to see what you did rate wise!

While condos can offer a cheap way to invest in vacation rentals finding a unique property will be a great way to earn higher yields. Being one of many reduces your pricing power. Another thing to keep in mind aside from the building's requirements and policies but also Miami Beach has a regulatory map on their website you can reference. Unfortunately I don't think there is an automated thing on Redfin or Zillow that tells you HOA requirements, many HOAs are small and behind the times on getting that data out there.

Hey Pat,

To speak to your point about presenting to your banker as a good investment you can work with a property manager to get a projection or even a fixed rent offer to assist with financing of the property if you have a contract or letter of intent to rent. Fixed rent is a great way to get the property demonstrating you have guaranteed income then you can switch to commission down the road to get more upside on your investment. 

Some rental graders are great but I would caution reliance on them as they are automated tools and cannot see everything. A vacation rental property management company can quickly look at the property build rates and model what the property can do for you.  Many calculators screen scrape unsophisticated rates and just multiply across a band of occupancy estimates which can be pretty inaccurate. If your making a purchasing decision talk to an expert, does not take long and can save you from some big mistakes. 

Shoot me a message if your interested I do analytics for a vacation PM with rate algorithms, guarantees and fixed payments. I can put you in touch with someone who specializes in working with investors and building their portfolios. We work internationally so can assist in US and yes Spain.

Best,

Ryan

Megan,

I would recommend checking to see what level ad you even need to get ranked at the top for your home type and size. Think of VRBO/Homeaway as a funnel and the more boxes checked as people filter you want to be the last one standing (higher occ, pets, hot tub etc..) then see what subscription you need. For example if you have a 3BD and are pet friendly with a hot tub you are one of four left standing. This is not the only thing that plays into their ranking algorithms they take into account online bookablity, instant quotes, conversion rates, response scores, reviews, ad level, calendar update time etc--you can buy a promo to help you start collecting reviews even price a little lower to get your first few. It is possible to be at the top with a lower ad ranking if you have built up your brand. I would recommend a bundled package. PPB is also favored since they see more revenue the more often it books but you could end up handing away more money than a platinum ad would of cost. 

I would recommend checking calendars on Airbnb and Booking.com to see if they beat VRBO in this area but it never hurts to list on all of them if you can keep all your calendars up to day. There are many packages out there that let you manage your channel distribution and maintain price parity but they cost money. All of this plus managing housekeeping and taxes are typically how (good) manager earn their keep. 

Let me know if you have any questions, happy to help on the analytics side of STR!

-Ryan Rabideau

Shandi,

When considering where to invest it might be easiest to start with where you already like to travel. Some drive to VR markets in Texas for example. Then once you have diversified in the markets you know you can start by adding complimentary markets to lower your seasonal revenue standard deviation. ie if you own a summer market and add a winter ski market you can begin cutting your standard deviation in income by 40 - 50% offering a lower risk profile on the portfolio. 

VRBO/Homeaway continues to be a driving force in the VR market due to their size and number of acquisitions. They have a whole section on listing quality and make frequent changes to their ranking algorithms so read up on their listing quality. I would also make sure to compare the population size of various listing sites to tell you which platforms you need to be on for the given market ie Homeaway or Airbnb. 

Thats just the advertising side of things there are a number of operational and dynamic pricing that can be discussed at great length. I am an analyst in the industry to feel free to reach out with any questions on how to build a portfolio of homes and where to go for great resources. 

Best,

Ryan

Andrew,

I have to agree with Timothy about the ware and tare. The fact that it is increased ware and tare due to the "type" of people is largely a misconception similar to the fact that it destroys affordable housing which is another false claim. The unit will be occupied far less often with more eyes on the property and reviews keeping you held accountable very early on to issues before the become anything bigger. 

Leavenworth is pretty seasonal but it only emphasizes the importance of dynamic rates and adjusting them as appropriate. If the majority of owners write off Feb - May as dead and you are the only one priced appropriately you are going to be the unit getting booked and earning money. Further during a period where supply outstrips demand being the unit that gets further down VRBO's funnel of filters and having more amenities will get you the bookings the others do not. 

Let me know if you have any questions, would be happy to help answer them. 

Best,

Ryan