All Forum Posts by: Tyson James

Hi Cory, 

I've had a similar issue before, with the exception that I've always been paid in full. When a guest tries to over-stay, I simply let myself in and start cleaning.  I tell them the next guest will arrive very soon, so they need to go.  If they give me any trouble, I let them know I'll call the police for trespassing.  You would need to check with a lawyer to be certain, but I believe they don't have the right to stay without a lease.  If you're intimidated, you could also hire a security guard for an hour to do the talking for you.  

Hi Noor,

This can be a very lucrative undertaking, but it may not be worth the stress and risk that you're almost certain to face. First and foremost, you will be hard pressed to find a landlord who will agree to rent to you for the purpose of vacation rental because they are highly unlikely to have insurance that covers this type of accommodation - in addition to other concerns they may have (e.g. bad publicity of parties/damage with airbnb).  Also, residents are not always fond of living in a "hotel" type environment - so they're likely to report you if you do begin without permission.  

The best option I've come across has been to contact local realtors.  Some will have investor clients with properties sitting vacant, who may want to earn a bit of additional income while they wait for their properties to sell.  You can get these places at a discount if you offer great flexibility in your agreement (e.g. no 24 hours notice needed for showings, or agree to break the lease with only a week's notice, etc). You can also sell the idea that you'll be keeping the places furnished and very clean, which will help an otherwise vacant home sell faster.  This also works with foreign investors who may be subject to an additional vacant property tax (depending on the laws in your area). 

If you are able to come to an agreement with a realtor/investor, you still need to be aware of the legislation/bylaws your city has in place, and more importantly, how rigorously they're enforced.  That said, this strategy does mitigate the risk of conflict with your landlord which is far more likely to occur than a bylaw fine (at least in my area). 

Hi @Stanley Kong, 

My realtor was renting out a 2bdr suite at $300 per night through the winter months averaging 1-2% vacancy. That said, I think private rooms are the more profitable long term strategy if an owner is there to manage and maintain "super host" status.  

Hi @Pawan J.,

I agree, it will be nice when our city decides on a way to regulate short term rentals. A building inspector here told me that discussion about licensing and taxing is taking place, but that we are are still a couple years away from any formal decisions.  For now, Revelstoke passed a by-law requiring vacation rental hosts to apply for a permit that changes zoning from R2 to R2V (the vast majority of applicants have been approved, but there is talk of a cap on the number of permits issued in the future).  My realtor side stepped this requirement herself by purchasing a property with C2 zoning.  I gather that the majority of hosts have ignored the bylaw as there is no enforcement unless a complaint is made directly to council.  

Hi @Farhad Shir, 

Comparable airbnb calendars show ~90% occupancy in the summer, and >95% in the winter, so I used a conservative 70% occupancy for my numbers, or 22/31 nights per month. 

Average nightly prices for a single bedroom seem to average ~$85/night in the summer, and $150 in the winter, so I used a conservative $90/night for my numbers, and $50/night for the den. 

$90/night x 22 nights = $1980

$1980 x 4 bedrooms = $7920

Den:  $50 x 22 nights = $1080

$7920 + $1080 = $9000

One additional revenue source that has not been included in these numbers is a cleaning fee of $10-20 per guest.  

Hi fellow bigger pockets members,

I'm looking for a partner who will finance this deal.  My contribution will be managing the constant flow of tenants, stocking, and cleaning the rooms between each new guest arrival.     

Find the deal analysis here:

https://www.biggerpockets.com/calculators/shared/553979/d4f279bf-ed6a-4cd1-9448-4c9ef1cfa9f7

I've been hosting with Airbnb, VRBO, and Homeaway in downtown Vancouver for 1 year, and have realized the enormous cash-flow potential for this type of rental if in the right location.  I've been sourcing the best spots in Canada since this past January looking for:

- highest year-round demand (full host calendars several months out, at all times during the year) 

- highest price per night vs. price to purchase the properties

Major Canadian hotspots include: Vancouver, Whistler, Toronto, Montreal

Revelstoke is unique in that property values are still far below the markets listed above, but it captures very high nightly rates.  Additionally, like Whistler BC, it has high year-round demand: winter and part of Spring have enormous demand from snow sport enthusiasts, while summer/fall draw hikers, downhill mountain bikers, corporate retreats, etc.  Also, the new Revelstoke Mountain "Pipe" (rail roller coaster) draws significant tourism. See a video here: https://www.youtube.com/watch?v=RJgD21kAICs

If you're interested in partnering on this deal, please send me a message.

Thanks,

Tyson

If you haven't already tried, you could search for potential relatives with the same last name through social media and ask the best way to get in touch.  Another option that can sometimes be relatively inexpensive is a private investigator, but make sure you're clear about your budget and expectations.  Let me know if you end up wholesaling in Windsor because I'm looking to buy!