All Forum Posts by: Susan Gillespie

@Ryan Z. I'll put in a plug for Stuart, specifically the southern tip of Hutchinson Island. I met someone who told me about Stuart, and had previously never heard of it. It's beautiful, nice but not pretentious, beaches are pristine, water is clear and it doesn't have the condo canyons found farther south. Prices have increased, but not nearly to where they were 10 years ago. I can see dolphins from my balcony, walk steps to the beach and listen to the waves at night. Heaven. 

I would also move on, because they will do more damage over time. I had renters like that once, and along with being dirty, they got gum stuck in the dryer, nail polish in the carpet, damaged window treatments, burned plastic on the stove, etc. Long list.

Demand is strong right now. I would look for good tenants that are a better fit. You could tell them you are making some renovations, get them moved out, clean up the place and get it back on the market. I've found I get better renters - and they take care of the property more - if I make even simple updates and the place sparkles. 

@Jeff Morse I'd be interested in hearing about your experience. I've been looking at Kissimmee area VRs, specifically two neighborhoods. The market is like the Twin Cities used to be, before prices came back up, and you can find good deals in nice neighborhoods with some patience. 

@Jason Duprat what are you looking for? I have several names, but it depends on the type of investment you seek. 

Hi Maura, I would think you could find something better, especially if you have money down and only two mortgages. My concern is with the five year term and risk of higher rates in the future. Is there a cap or max? If you consider selling the property in 5 or so years, it wouldn't be an issue, but what if rates are higher and the mortgage jumps?

I know someone you could talk to who's helped me several times. At least he could give you another perspective. You could also try local banks in the area, or credit unions as others suggested.

I would also recommend checking with CBIZ. They can provide insurance that replaces homeowners, along with commercial liability. This is important for the rental aspect of your vacation home, because personal liability won't extend to rental activity and could invalidate your claim if something happened.

You could also check with a local insurance agency, but I would try to get in touch with an agent who is more familiar with vacation rentals.

If you have an umbrella policy, make sure your underlying coverage limits are set up correctly for the vacation rental, and make sure your vacation rental is named on the umbrella.

I have a situation like you, where my primary insurer Travelers won't write policies for FL rentals, so I have to work with multiple insurers and it's more work for me. On the bright side, when you find good agents, you'll learn a lot about insurance and have peace of mind that you're covered.

Hi @Brandon Turner , I'm so sorry to hear about your flooding. On the positive side, I know you'll get through it and share what you learn in the process.

I'm happy to talk about vacation rentals anytime. I agree with @Karen Margrave that a Vacation/Short-term Rentals Forum would be timely and useful. The industry has absolutely taken off.

@Maura Paler  how did you come up with Stuart? I learned of it through word of mouth and recently visited. People who know the area call it a best kept secret. Let me know if you want to compare notes.

Hi Matt, there are a few options you might want to consider for VR property management. 

You could hire a full service manager to market, rent and manage the property. This is usually the most expensive option and companies charge 20% or more of rental income.

Another option is to hire a local manager for a monthly fee, someone who checks on the place, changes a/c filters and handles repair or emergency issues. This type of manager doesn't usually do marketing, so you could take that on. You'd also have to coordinate cleaning service and change-overs.

Another option still is to hire out the front-end marketing and contracting, where an online manager does the advertising and booking, basically everything to check in. There are companies who do this for 10% of rents, plus credit card fees. You would handle the property management yourself, with the help of a local contact.

My point is that you have many options to consider. How you market and manage the property, including your own time and effort versus hiring property mangers, will have an impact on your vacation rental's financial performance. All the fees add up.

On a side note, my first investment was a Florida condo, and it's been an experience of many ups and downs. My rentals close to home have been much more stable, but I've learned a lot from having long-distance and local rentals. You really have to decide what you're after with your investment and then work to get all the pieces in place.

Another option for high quality management:

Jennifer Spadine, President

Guardian Property Management 

Guardian Property Maintenance
612.227.4321 Cell
708 Cleveland Ave SW, Suite 160

New Brighton, MN 55112

http://www.guardianprop.com/

@Kevin H. I like your first option, too. When I list choices, I usually put my favorite first, so don't talk yourself out of a new home if that's what you really want. Interest rates remain incredibly low. You have the discipline to manage debt. You could look for a property that needs some work or has an unfinished basement to further add value and build equity.

I agree with @David C. and would run the numbers on your house as a rental. Further, I would be extremely picky about who you rent to if you go that route. Consider hiring a PM to screen and lease the place to reduce DIY landlord risk even if you manage on your own. 

There's nothing wrong with option 2, but it's hard to find a good value in today's market. Investor rates aren't much higher, especially given your situation. 

Good luck with your decision.  

@Mark Turnbull sorry to hear about your bad renter experience. Did you use a rental application and do a credit/background check on each adult?

We had someone disappear during his last month who told us to use his security deposit as rent. He owed a few hundred dollars in damages for minor things, but luckily they were easy fixes. There were no other yellow or red flags with this individual. 

I've learned to look for inconsistencies and listen to my instincts, but it's helpful to learn from other applications gone bad.