All Forum Posts by: Steve Maye

I have clicked the unsubscribe link at the bottom of the emails. I have turned off all alerts and notifications. Nothing works. I don't want to mark all BP emails as spam just to stop them. Exactly what do I have to do?

1 Vote

Nashville, Tennessee

Quote from @Gi'angelo Bautista:

We own a licensed short term rental property management company in an Urban market.

Here are fees from property managers you can expect (but do note that it will vary):

- Property Management fee: 20-30% (depending on the market and I think I've seen higher than that)

- Repair Management Fees: Fees are tacked on top of actual cost

- Setup Fees (getting the unit ready)

- Design Fees (hiring a designer)

- On-boarding Fees

- Linen Fees

- Cleaning Management Fees

- Any other fees (i.e. resort fees)

Expenses to expect (may vary):

*Some may be covered by the property manager*

- Supplies & Linens, Propane tank replacements, Water filters,

- Utilities (water/sewer, garbage, electricity, WiFi)

- Permit fees, TOT (local and/or state), business license fees, HOA fees, and any other local fees

- Maintenance (air filters, touch up painting, plumbing issues, and etc)

- New Amenities/furniture to improve listing as time passes

- Upholstery cleaning

- Pool & Hot tub cleaning

- Gardener

- Security Camera subscription
- Noise / Smoke / etc monitoring
- OTA service fees

- etc

I hope this helps!

Very helpful. With all that you can actually make money?

0 Votes

Nashville, Tennessee

Thank you, Dan. That is the kind of advice I was looking for.

0 Votes

Nashville, Tennessee

Quote from @Raymond J. Rodrigues:

@Steve Maye, based on the areas that you're looking at, I would recommend reaching out to @January Johnson.

Hi Raymond. Thank you for that. Yes, that is one of the areas I am looking. As soon as I decide on an area I will reach to a pro.

0 Votes

Nashville, Tennessee

Quote from @Sarah Kensinger:

But a good STR company takes care of everything, and you receive rent money just like a LTR.

That helps a lot. Thank you.

1 Vote

Nashville, Tennessee

Assume I know absolutely nothing about STR management. You would be exactly right. Is the property manager responsible for advertising and finding renters? If so, is the an additional fee for that? Do they arrange for cleaning between renters?

I know those are some rudimentary questions. It might better if I could find a link to something where it is explained for simpletons. STR 101

0 Votes

Nashville, Tennessee

Quote from @Candace Pfab:

Property management fees here average about 20%.

What does that 20% cover exactly? The property manager for my long term lease rentals charges 8%. They handle everything including repairs. No additional charges for managing a repair. Just the cost of the repair itself.

I am not second guessing the 20%. I am sure being short term rentals there is a lot more work involved. I just want to know what that is.

0 Votes

Nashville, Tennessee

I have have had 2 long term rental properties for about 10 years. Now I am considering a short term rental in an area like Florida or Gulf Shores, AL. I would like to be able to use it when it is not rented. I was a bit turned off when looking at condominium fees and other expenses, but then remembered I may be able to deduct these on my taxes.

I would be living in Tennessee and would need the property managed. Are there property managers who specialize in handling short term rentals like this? I would like to know what I would be getting myself in to. What costs to expect.

I am sorry for such a newbie question. Even if you just had a link to where I could read about this it would be appreciated.

2 Votes

Nashville, Tennessee

Originally posted by @Noble Willis:

@Steve Maye,

My understanding of taxes are capital gains are included in your AGI, which would then be used to get your taxable income. But capital gains would be taxed at a different rate, e.g. that tax table. So in your example of 65,000 (married joint filing), you could have up to 15,000 capital gains bringing you up to 80,000. So you you tax tables would be based on 80k taxable. So you’re looking at 0% on the 15k cap gains.

Makes sense. I liked your idea of owner financing. May be an option.

0 Votes

Originally posted by @Noble Willis:

Hi @Steve Maye,

One option, could be to consider owner financing. This could create limited income for the tax year, instead of 1 big chunk of capital gains from a sale in a single year. For example, if you were to realize 100,000 in capital gains on sale, you would be taxed at 15% (so 15,000 in tax!). However, if you owner finance over 5 years, you would claim 20,000 capital gains per year, which is taxed at 0%. So you would have steady payments coming in over 5 years from the sale and save 15k.

I wanted to followup a little on this thread. I now have 8 months before I need to decide to sell or re-rent one of the properties. I am leaning toward selling. I was thinking of the capital gains ideas here. It would be ideal if I could avoid capital gains altogether. What I don't understand is how the long term capital gains tables work. I would be filing married filing jointly. Anything under $80,000 and capital gains is 0%? My stupid question is if for example my income is $65,000. Does this mean I would pay no long term taxable gains on the sale of the rental? Or does the table refer to the combination of my income of $65,000 + gains I realized on the sale of the rental property?

0 Votes

All Forum Posts by: Steve Maye

Steve Maye has started 17 posts and replied 68 times.

Post: How do I stop BP "New Members" Email Alerts

Post: Looking at short term rentals for the first time. Need advice

Post: Looking at short term rentals for the first time. Need advice

Post: Looking at short term rentals for the first time. Need advice

Post: Looking at short term rentals for the first time. Need advice

Post: Looking at short term rentals for the first time. Need advice

Post: Looking at short term rentals for the first time. Need advice

Post: Looking at short term rentals for the first time. Need advice

Post: Cashing out of rental property - Reduce taxes

Post: Cashing out of rental property - Reduce taxes