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All Forum Posts by: Tyler Work

Tyler Work has started 3 posts and replied 169 times.

Post: Taxes on AirBnB vs Long-Term

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

Hey @Arthur Voskanyan, this isn't really answering your question, but to piggy back on what @James Carlson you'll also likely have to plan on paying lodgers/sales taxes on your gross vacation rental income depending on whether or not Airbnb can collect and remit on your behalf in your area.  This is a big cost that some people overlook.  

Post: Accounting Software for Vacation Rental

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

Hey @Bruce Wofford shouldn't your property management company keep track of your books?  If I'm misunderstanding or you want to audit your PM companies revenue reporting, I tend to disagree with some of the others if your rental is taking bookings across multiple platforms (Airbnb, VRBO, Booking.com, direct booking, etc).  I use Tokeet to manage my 10+ listings but would still consider it even if I only had 1.  Why?  Its free and for the upgrade plan is only $7/mo.  It generates very cool revenue reports and separates everything by channel so you can see where most of your bookings are coming from, and also allows you to audit your PM company.  It also tracks profit/loss if you enter your expenses every month and want to get fancy with it.  Hope this helps! 

Post: Airbnb Investment Property - Resources to make the right decision

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Matt Smith You could try Everbooked as another resource in addition to AirDNA, those two are pretty much the industry standards.  Just recently I decided to compare the AirDNA projections for one of my properties for 2018 against its performance in 2017 and the projected was within 7% of actual, so pretty close.  Just remember that both of these sites include cleaning fees in the revenue projections so you're going to have to make an assumption on that front.  

To echo pretty much everyone else on this thread, local knowledge is going to make a big difference.  Search around on Airbnb with random dates and see what you find, you should be able to get a pretty good idea this way.  To get yet another opinion - try calling your local property management companies and as for a free revenue projection.  Some of them manage dozens of listings and have real experience with what to expect. 

Post: Using AirBnB as a Tenant.

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

Hey @Paul Bryzek, what you're talking about is Brian Page's Bnb Formula strategy.  If you plan on scaling that type of business I think his class is well worth the $1k especially if you have never hosted on Airbnb before.  

I do this currently and it is actually much more profitable if you don't split the profits with the landlord.   I would start trying to get owners to rent to you straight up for market rate and move to a profit sharing only if that doesn't work.  

In Denver, if I shared profits it wouldn't be worth it with all the work involved, shoot for a net profit of $500-$1000 per month per property.  I can't imaging this is the case in SF, but in some cities the margins are so good you can afford to pay a property manager to host the rental and still make money, making the income 100% passive.  Hope this helps! 

Post: Grandmas House in Mountain View CA Quitclaim Deed then Refi?

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Eidref Laxa have you looked up your local Airbnb laws? Here in Denver you can make HUGE money by building an ADU and renting it out on Airbnb, even with our "primary residence" rule. I can help you out if you decide to go this route.

Post: Which is Better? Short Term or Long Term for SWFL House??

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

Hi @Jim C. I definitely echo what @Kristin Kiddy has to say about managing long distance.  Unless you are experienced and have safeguards in place you will need a property manager.  The going rate in Denver is about 20% but I've heard rates as high as 40% in hotter vacation markets.  I can't speak to the Naples area but I know that Destin is one of the best short term markets in the country per a number of market reports I've read.  Check data from websites like AirDNA and Everbooked and you'll get a good feel for what kind of revenue your property can generate.  Having said that I have never heard of a short term rental in a hot area making less on the short term rental market vs. long term, even with seasonal swings.  Good luck!   

Post: Tenant wants to Airbnb

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Jeff P Welton can't echo @Nathan Gesner enough on the importance of insurance.  So many of my clients ignore my recommendations to change their landlord or homeowners policies and leave themselves open to risk.  I can provide recommendations for commercial policies if you'd like.  Definitely require them to sign an agreement with you requiring them to hold adequate commercial insurance as well, since they also will have some exposure.  

I think there are some upsides to you as well. If you host the property, your tenant is building you a STR business for free that you can market in the future if you ever go to sell and proving there is demand. It will also, in theory, be cleaned professionally before and after guests rent it so in my mind that reduces wear and tear.

Maybe try asking the tenant for half of the proceeds and see what they say?  

Post: Vacancy rates on Vacation Rental

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

Hi @Karen Margrave, I echo @Jon Crosby on using AirDNA and Everbooked.  One thing to keep in mind is that the ADR and revenue numbers INCLUDE cleaning fees, so you'll have to factor those in.  Also, don't get thrown off by properties that only have 10% occupancy, those folks are most likely renting out their primary residence on the weekends.  In Denver most full time properties are in the 80% range for occupancy.  I keep my properties closer to 90% because I price them more aggressively.  Some properties with lower occupancy actually make more than properties with 100% occupancy just due to their pricing strategy.  

Post: Working as co-host and managing other owner's properties

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Ben Hooper you would think, right?  I use automated messaging, pricing, and scheduling software that does scale well but you still have to respond to individual guest inquiries, schedule (and deal with) cleaning & linen services, and respond to clients who are constantly second guessing what you do.  I think co-hosting can work but you have to be VERY selective at who you choose to work with and don't be afraid to charge 20%+ even if that is what your competition is charging.  Do a thorough analysis and inspection of every property or you could be dealing with chronic issues from neglectful hosts (i.e. AC constantly runs out) that will affect reviews and hurt revenue.  To answer your question directly, corresponding with clients takes up most of my time.  You have to coach them on insurance, pricing, communication, and everything in between.  If you remove the client and rent the property directly, you remove the part of the business that eats up the most time and allows you to relax and run your business how you want it.  It is no coincidence that the properties I own/rent perform the best and have the best guest experience, by far.  Would be happy to share what automation tools I use to help you get started!  

Post: Working as co-host and managing other owner's properties

Tyler WorkPosted
  • Rental Property Investor
  • Denver, CO
  • Posts 179
  • Votes 208

@Ben Hooper I'm with @Myka Artis on this.  The upsides for the owner include limited appliance use, less wear and tear, and no long term tenant to have to throw out which I think outweigh the potential downsides.  You'll have to find an owner who is willing to do this, maybe only one out of 100 will agree but it is a far superior model.  The co-hosting strategy is good to get your feet wet but I think you'll quickly find out its not worth the money unless you have a team in place to take care of all the work.  I went from 0 to 10 properties in less than 4 months and found out that I no longer had a social life and was glued to my phone.  Leasing or owning the properties actually ends up being LESS work for way more pay.  Just my 2 cents :)