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All Forum Posts by: Sheri Dell

Sheri Dell has started 2 posts and replied 23 times.

I've been talking to realtors in the areas around Las Vegas, and they are not very encouraging about buying property for short term rentals. Yet AirDNA ratings are high.  I know there are some strict regulations, so what has been your personal experience if you've invested in this area?

I know it's usually a bad idea to use a property with an HOA as a short term rental, if it's even allowed. Has anyone out there attempted this or managed to be successful? What was your experience?

Quote from @Jake Mercer:

1.) Market Selection - Prioritize proximity to national parks, tourism destinations, mountain markets and markets that are less seasonal. Select markets with existing regulations and permitting. This allows you to safely minimize your risk category for next 5-10 years plus suppresses future supply and helps your longevity of consistent returns. Choose markets with tourism as a strong economic driver. Use online tools (AirDNA, Mashvisor, Rabbi) for market scores, market occupancy levels and increases in nightly rates (ADR) and occupancy over past year. Beginner investors! Start in second tier markets. That's what I did : ) We are projecting >20% cash on cash returns on our 2 single family homes and tiny home we are placing in what might call a "F" market ; ) .  

2.) Property Selection - Stay away from HOA! Pick an "under" supplied type of rental. Maybe it sleeps more than 90% of the listings in the market, has >4 bedrooms or bathrooms, has incredible views, is walking distance/close proximity to desirable areas within the market, has unique built in amenities, fenced in yard, etc... Know the numbers! Use Airbnb PRIMARILY for researching the local market. Find comparable listings and use their calendar, nightly rates, property description, reviews and future occupancy levels to make a good assessment THEN refer to AirDNA. AirDNA shows our 15 listing portfolio to making 10-15% less than what we actually make!

3.) Budget for the right furniture, photos and amenities! Use an interior designer or STR consultant who knows where to cut costs and where to invest to increase your ROI. Some amenities are more popularly searched and make sense to accommodate and to highlight! Jacuzzis and pools are shown to increase nightly rates 10-15%/night. Top 5 searched amenities include being pet friendly, smart locks, wifi, fully stocked kitchen, hot tub or jacuzzi.

4.) You are no longer in the business of real estate. You are now in the business of hospitality! If you are not willing to put in the extra hours to invest in a property and market specific pricing strategy, manage vendors and maintenance, be a super host with  communication, guest experience and review management then your business and cash flow will struggle. You need to take the time to learn how to do it right or build I the tools and operations to outsource or hire a full service property management company to make it hands off for you!

I hope you enjoyed these tips! My name is Jake Mercer and started in short term rentals 3 years ago. I started from scratch with rental arbitrage with only $10k and then grew it to a 15 property portfolio in the last few years. We will do close to multiple 6-figures in gross rev on Airbnb this year and we are building out our property management services, coaching/consulting services and investor solutions services. Happy to connect! I am located in the Raleigh, NC area so if you're local, I love coffee!


 These are excellent tips!  You can hire a vacation rental management company to handle some or all of this. The hospitality business can take a lot of time and work.  You should check out several as charges vary.  We charge a percentage of the rent and have no start up fees.  

You might want to check out SimpliSafe. 

It's crucial to note that the STR market is not collapsing; rather, it is going through a natural evolution.

The modern vacation rental guest has evolved, and their expectations have become more sophisticated. To thrive in this industry, it's essential to comprehend these changing needs and align your offerings accordingly. 

a. Personalization and Experiences: Guests are seeking unique experiences and personalized touches that make their stay memorable.

b. Seamless Booking and Communication: Guests expect a smooth booking process and prompt, effective communication.

c. Enhanced Safety and Cleanliness: Implementing rigorous cleaning protocols, emphasizing hygiene, and adhering to local health guidelines will help build trust and attract guests.

Embracing Technology also helps; automated booking systems, smart home technologies, and data analytics to for insights into guest preferences. 

Using a vacation management company can streamline these processes, helping maximize your property's potential, freeing up more of your time, and providing access to various distribution channels.  

Quote from @Michael Baum:

Yikes. This is the worst.


 No kidding!

Quote from @Shawn G.:

I tried them on one STR to see how they performed. They were managing the property when i bought it. They do very limited marketing and handle reservations/payments/taxes. All guest calls, maintenance, supplies, cleaners, yard maint ect is handled by the property owner. I also had a lot of cancelations to be rebooked with a guest paying less for the time frame. I would self manage or find a strong co host that will provide a higher level of service. Evolve does little to make your property successfu

If you don't want to self-manage there are other companies out there that do a better job.  Mine has levels of service to choose from, the highest handling everything.  No setup costs and you only pay for the services when you have a booking, so there is motivation to help get the most out of rent. 

Quote from @Sheri Dell:
Quote from @Adam Smith:

After 30 days why I'm quitting Evolve and how much it's costing me:

The MAIN reason:  Evolve says they only charge 10%...this is misleading to say the least.  Every night stay is hit with 10% off the top PLUS a 15% charge that includes 3rd party fees (from Air BNB) and Evolve's damage waiver that I don't recall choosing or having the option to opt out.  

So, I lose 25% of revenue every night.  Here's my price breakdown:

$159 is what I charge, however on Air BNB my price is $187 which is comparable to my competitors.  It took me a few guests before I realized I wasn't receiving that $28 difference so I called Evolve and asked who is.  Come to find out, that 15% difference is going to Evolve for the damage waiver and to Air BNB for the 3rd party fees since Evolve is the middleman.  My self-managed competitor are making more revenue than me even if their price is lower.  

So my listing is worth $187 per night, but I only receive $159 which is then hit with Evolve's 10% fee.  

Also, Evolve charges an $80 monthly fee on top of the 25% they take from every booking.  That is an insane amount of charges for a company that does not actively manage anything.  

What it costs to break up with Evolve.  

1. $250 if I cut ties within the 90 trial period 

2. $250 if I want to purchase my photos

3. All Air BNB reviews are lost, and that account is closed.

4. If you don't honor the existing bookings, you are charged at least $250 per booking.

5. Lost revenue while you have to wait for Evolve to close your account which only happens after your last booking.  So, I can't start my personal Air BNB/VRBO listings until Evolve officially closes on their side.

For me, It makes sense to pay the fees and start my own Air BNB listing ASAP rather than continue to build up awesome reviews that will be held hostage.

 I hope this is helpful. 



 I hope this doesn't completely turn you off to using a management company.  There are other options out there. 

Quote from @Adam Smith:

After 30 days why I'm quitting Evolve and how much it's costing me:

The MAIN reason:  Evolve says they only charge 10%...this is misleading to say the least.  Every night stay is hit with 10% off the top PLUS a 15% charge that includes 3rd party fees (from Air BNB) and Evolve's damage waiver that I don't recall choosing or having the option to opt out.  

So, I lose 25% of revenue every night.  Here's my price breakdown:

$159 is what I charge, however on Air BNB my price is $187 which is comparable to my competitors.  It took me a few guests before I realized I wasn't receiving that $28 difference so I called Evolve and asked who is.  Come to find out, that 15% difference is going to Evolve for the damage waiver and to Air BNB for the 3rd party fees since Evolve is the middleman.  My self-managed competitor are making more revenue than me even if their price is lower.  

So my listing is worth $187 per night, but I only receive $159 which is then hit with Evolve's 10% fee.  

Also, Evolve charges an $80 monthly fee on top of the 25% they take from every booking.  That is an insane amount of charges for a company that does not actively manage anything.  

What it costs to break up with Evolve.  

1. $250 if I cut ties within the 90 trial period 

2. $250 if I want to purchase my photos

3. All Air BNB reviews are lost, and that account is closed.

4. If you don't honor the existing bookings, you are charged at least $250 per booking.

5. Lost revenue while you have to wait for Evolve to close your account which only happens after your last booking.  So, I can't start my personal Air BNB/VRBO listings until Evolve officially closes on their side.

For me, It makes sense to pay the fees and start my own Air BNB listing ASAP rather than continue to build up awesome reviews that will be held hostage.

 I hope this is helpful. 


Quote from @Kelly Worley:

Hi there, Zeke. The answer is: it depends on your time and availability AND it depends on your "power team". I am local to my properties in Branson, however I rarely actually go to my properties because my full-time job is my real estate biz. I do have time and ability to answer my phone (i.e. take reservations, answer guest questions). I do have a power team (handyman, cleaner--a huge ally, plumber, electrician, HOA/COA contact, etc.). If you have the time to be a property manager, and you can get your power team in place, then I say go for it!

 I would also add that it depends on how popular your area is for vacationers.  If you hire a management service to take care of everything, then I would choose a hot vacation spot where there aren't a lot of hassles with the local laws restricting STRs, even if it's far away.