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Bill Ames
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Ocean City Maryland Vacation Rental

Bill Ames
Pro Member
Posted Feb 4 2021, 16:24

I'm looking for a vacation rental property in Ocean City Maryland that my family and I can use a couple times a year and rent out the rest.
I currently have "regular" rental properties and for the most part understand in my area at least how much say a 200-250k house can rent for each month with a year lease but have no idea where to start in trying to determine the potential rents of a vacation property.

How do you determine how much rent per week/month/year you can realistically bring in? Is it best to reach out to a vacation rental company to get this information or will they exaggerate? 

I would appreciate any direction you have to offer.


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Bill Ames
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Bill Ames
Pro Member
Replied Jan 17 2023, 07:46
Quote from @Claudio Meira:

I wanted to give an update on my last post

Compared to 2021 when I had Coastal Rental management managing it. My revenue went up 30% this past summer (2022) which doesn't include the 12% that Coastal rental charged for their management.

Which is a sizable difference. Using the online system Pricelab which is linked here https://pricelabs.co/users/sig... was one of the main reasons for that. Additionally, it was able to get me some additional rentals in September which was a happy surprise.  Highly recommend Pricelab and also turnoverbnb which automated the cleaning.

One thing I will mention is if you have a larger house and have room for additional entertainment. I recommend buying 1 to 2 Arcade1up game machines which can be bought from $300 to $500 and are very popular with kids. Specials can be seen here https://slickdeals.net/newsear... Pac-Man is probably the top one to get.  I don't have room in my rental but for my WV rental. This has been a very popular entertainment option for kids and adults.

Thanks for the update and extra information. I ended up signing on with OCVACATIONS.com (formerly Resort Rentals) again. I did it mainly because it was easy and hands off but from the success you are having I can see I'm leaving a lot on the table. I may make the switch this year. I'm also reaching out to your Fiver guy for some copywriting. I'll make sure to plug you. Thanks again

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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
Replied Jan 17 2023, 11:04

@Bill Ames

Sounds good. Definitely check if they are charging incoming guests as well. I usually tell people for the first season is to have the rental company manage since it gives a better sense of issues that come up and better ideas on pricing and how to handle customer issues. 

Two things, I completely forgot in my last update to flag which is another reason to do Self Management

1- Management companies won't allow hosts to have linens on the bed and in some cases towels. Guest in OC has to rent linens which can be pricey for several beds and weekly rental. 

Outside of the net revenue, that is probably one of the main reasons that I switched. I personally don't like guests renting linens and having them make the bed after a long journey on the road.  Additionally, the linens are sometimes not the best quality.

Not sure why they haven't allowed it. There is an initial sunk cost for linens and towels but I have gotten better reviews due to it. There are great places online where you can get affordable linens/towels.

2- The other main reason is that when you are with a rental company. Your VRBO and Airbnb listing will be done through their account. So any positive reviews you get will be under their account. In the sense that if you ever leave that management company, those reviews won't transfer to your account. I asked multiple rental companies if they will be willing to be co-host so if I decide to leave their management company in 1 or 2 years. I would still have those reviews under my account.  It's much harder to leave a management company if they have several years of reviews and you have to start from scratch after leaving them.

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Jason Charlton
  • Rental Property Investor
  • Maryland
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27
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Jason Charlton
  • Rental Property Investor
  • Maryland
Replied Jan 17 2023, 13:38
Quote from @Claudio Meira:

@Bill Ames

Sounds good. Definitely check if they are charging incoming guests as well. I usually tell people for the first season is to have the rental company manage since it gives a better sense of issues that come up and better ideas on pricing and how to handle customer issues. 

Two things, I completely forgot in my last update to flag which is another reason to do Self Management

1- Management companies won't allow hosts to have linens on the bed and in some cases towels. Guest in OC has to rent linens which can be pricey for several beds and weekly rental. 

Outside of the net revenue, that is probably one of the main reasons that I switched. I personally don't like guests renting linens and having them make the bed after a long journey on the road.  Additionally, the linens are sometimes not the best quality.

Not sure why they haven't allowed it. There is an initial sunk cost for linens and towels but I have gotten better reviews due to it. There are great places online where you can get affordable linens/towels.

2- The other main reason is that when you are with a rental company. Your VRBO and Airbnb listing will be done through their account. So any positive reviews you get will be under their account. In the sense that if you ever leave that management company, those reviews won't transfer to your account. I asked multiple rental companies if they will be willing to be co-host so if I decide to leave their management company in 1 or 2 years. I would still have those reviews under my account.  It's much harder to leave a management company if they have several years of reviews and you have to start from scratch after leaving them.


For the linens, this is really dependent on the rental company. We provide ours for guests (we are a management company). Its part of the cleaning, so is less expensive (and hassle) then having to get them on their own and also make the beds etc.

Lots of good information in your last few posts!

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Bill Ames
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Bill Ames
Pro Member
Replied Jan 19 2023, 17:07
Quote from @Claudio Meira:

@Bill Ames

Sounds good. Definitely check if they are charging incoming guests as well. I usually tell people for the first season is to have the rental company manage since it gives a better sense of issues that come up and better ideas on pricing and how to handle customer issues. 

Two things, I completely forgot in my last update to flag which is another reason to do Self Management

1- Management companies won't allow hosts to have linens on the bed and in some cases towels. Guest in OC has to rent linens which can be pricey for several beds and weekly rental. 

Outside of the net revenue, that is probably one of the main reasons that I switched. I personally don't like guests renting linens and having them make the bed after a long journey on the road.  Additionally, the linens are sometimes not the best quality.

Not sure why they haven't allowed it. There is an initial sunk cost for linens and towels but I have gotten better reviews due to it. There are great places online where you can get affordable linens/towels.

2- The other main reason is that when you are with a rental company. Your VRBO and Airbnb listing will be done through their account. So any positive reviews you get will be under their account. In the sense that if you ever leave that management company, those reviews won't transfer to your account. I asked multiple rental companies if they will be willing to be co-host so if I decide to leave their management company in 1 or 2 years. I would still have those reviews under my account.  It's much harder to leave a management company if they have several years of reviews and you have to start from scratch after leaving them.

All good points, thanks for the extra info. I do have the option to provide linens but was told that there was no need and that people don't expect it. I didn't even cross my mind at the time that they don't want me to provide it because they lose out on the opportunity to sell the linens. My cleaner did say she would take care of them but it seemed like a bit of a pain so I took the lazy way out. I may consider adding that service back in. One benefit of including linens is that it will likely prevent people from sleeping on the mattress with out sheets. Happens more than you would think. Thanks to your tips I signed up for Fiverr today and am having a new title and listing description created.

Thanks again!




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Dre N.
  • New to Real Estate
  • Downingtown PA
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Dre N.
  • New to Real Estate
  • Downingtown PA
Replied Jan 19 2023, 19:42
Quote from @Claudio Meira:

@Bill Ames

Sounds good. Definitely check if they are charging incoming guests as well. I usually tell people for the first season is to have the rental company manage since it gives a better sense of issues that come up and better ideas on pricing and how to handle customer issues. 

Two things, I completely forgot in my last update to flag which is another reason to do Self Management

1- Management companies won't allow hosts to have linens on the bed and in some cases towels. Guest in OC has to rent linens which can be pricey for several beds and weekly rental. 

Outside of the net revenue, that is probably one of the main reasons that I switched. I personally don't like guests renting linens and having them make the bed after a long journey on the road.  Additionally, the linens are sometimes not the best quality.

Not sure why they haven't allowed it. There is an initial sunk cost for linens and towels but I have gotten better reviews due to it. There are great places online where you can get affordable linens/towels.

2- The other main reason is that when you are with a rental company. Your VRBO and Airbnb listing will be done through their account. So any positive reviews you get will be under their account. In the sense that if you ever leave that management company, those reviews won't transfer to your account. I asked multiple rental companies if they will be willing to be co-host so if I decide to leave their management company in 1 or 2 years. I would still have those reviews under my account.  It's much harder to leave a management company if they have several years of reviews and you have to start from scratch after leaving them.


Do you do your own cleanings or have a cleaning company do it? Curious on what you’re doing to provide linens.  My cleaner works with a company to rent the linens per guest. 

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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
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23
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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
Replied Jan 26 2023, 15:08

@Dre N. Our cleaning company does it. They clean it and make the beds as well. There was no additional cost. I'm paying $148 for a 3-bedroom/2.5-bath townhouse.I get 3 sets for each bed. What they do is take the used linens and wash them at their laundry service. And when they come to clean, they use those. I have spares just in case, there is an issue with used linens which we did have issues with. But the cost is minimal. I usually buy several during Black Friday. 

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Heather Carrow
  • Realtor
  • Ocean City, MD
26
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52
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Heather Carrow
  • Realtor
  • Ocean City, MD
Replied Apr 6 2023, 12:30

@Claudio Meira I have also seen a lot of success managing my own rentals in OC. I think the best part is that you can go in and change your pricing each day to reflect vacancies, local events, holidays, etc. Since commenting on this post 2 years ago I've acquired 2 STR's in Ocean City and one in Bethany Beach. It has been a dream come true to manage my own rentals in my home beach town. I've found that my oceanfront does very well all year while my bayside does lag behind a bit during off-season weekdays. Do you rent off-season?

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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
Replied Apr 12 2023, 07:43
Quote from @Heather Carrow:

@Claudio Meira I have also seen a lot of success managing my own rentals in OC. I think the best part is that you can go in and change your pricing each day to reflect vacancies, local events, holidays, etc. Since commenting on this post 2 years ago I've acquired 2 STR's in Ocean City and one in Bethany Beach. It has been a dream come true to manage my own rentals in my home beach town. I've found that my oceanfront does very well all year while my bayside does lag behind a bit during off-season weekdays. Do you rent off-season?


I try to rent off-season but I need to lower my rates since I really don't get any rentals during the off-season.

I'm probably going to get another property either this year or next year but not sure if I will get it in Ocean City. I love Ocean City rentals. But not having some rentals during the off-season is not great. 

I have STR in Berkeley Springs, WV and that gets rentals year around. On the positive, I only have to do property management during a shorter period of time in OC.

Are your rentals apartments, townhouses, or houses?

I have a friend who build a brand new house for rentals in Fenwick and I'm cohosting with him. And learning new things with that. He has already filled most of his rental days for the 2023 high seasons while I'm about 40% there.  But I realize that his property sleeps 12 people which requires multiple families. So they have to coordinate their vacation plans earlier compared to mine which is generally one family. So I get my rental bookings filled closer to May. 



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Heather Carrow
  • Realtor
  • Ocean City, MD
26
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Heather Carrow
  • Realtor
  • Ocean City, MD
Replied Apr 13 2023, 13:59
Quote from @Claudio Meira:
Quote from @Heather Carrow:

@Claudio Meira I have also seen a lot of success managing my own rentals in OC. I think the best part is that you can go in and change your pricing each day to reflect vacancies, local events, holidays, etc. Since commenting on this post 2 years ago I've acquired 2 STR's in Ocean City and one in Bethany Beach. It has been a dream come true to manage my own rentals in my home beach town. I've found that my oceanfront does very well all year while my bayside does lag behind a bit during off-season weekdays. Do you rent off-season?


I try to rent off-season but I need to lower my rates since I really don't get any rentals during the off-season.

I'm probably going to get another property either this year or next year but not sure if I will get it in Ocean City. I love Ocean City rentals. But not having some rentals during the off-season is not great. 

I have STR in Berkeley Springs, WV and that gets rentals year around. On the positive, I only have to do property management during a shorter period of time in OC.

Are your rentals apartments, townhouses, or houses?

I have a friend who build a brand new house for rentals in Fenwick and I'm cohosting with him. And learning new things with that. He has already filled most of his rental days for the 2023 high seasons while I'm about 40% there.  But I realize that his property sleeps 12 people which requires multiple families. So they have to coordinate their vacation plans earlier compared to mine which is generally one family. So I get my rental bookings filled closer to May. 



Yes, lower rates will help you out during off-season. 

I have 2 condos in OC and my place in Bethany is a house. The oceanfront condo is booked almost year-round, while the bayside condo and house in Bethany are strong on weekends but that's about it for off-season. Summer is good at all places. 

I also have a place in lake Harmony, PA and it does good year-round, but I've found that at the end of the year my profits usually end up being about the same as Ocean City. Do you see that with your place in WV?

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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
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23
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Claudio Meira
  • Rental Property Investor
  • Potomac, MD
Replied Apr 24 2023, 06:47
Quote from @Heather Carrow:
Quote from @Claudio Meira:
Quote from @Heather Carrow:

@Claudio Meira I have also seen a lot of success managing my own rentals in OC. I think the best part is that you can go in and change your pricing each day to reflect vacancies, local events, holidays, etc. Since commenting on this post 2 years ago I've acquired 2 STR's in Ocean City and one in Bethany Beach. It has been a dream come true to manage my own rentals in my home beach town. I've found that my oceanfront does very well all year while my bayside does lag behind a bit during off-season weekdays. Do you rent off-season?


I try to rent off-season but I need to lower my rates since I really don't get any rentals during the off-season.

I'm probably going to get another property either this year or next year but not sure if I will get it in Ocean City. I love Ocean City rentals. But not having some rentals during the off-season is not great. 

I have STR in Berkeley Springs, WV and that gets rentals year around. On the positive, I only have to do property management during a shorter period of time in OC.

Are your rentals apartments, townhouses, or houses?

I have a friend who build a brand new house for rentals in Fenwick and I'm cohosting with him. And learning new things with that. He has already filled most of his rental days for the 2023 high seasons while I'm about 40% there.  But I realize that his property sleeps 12 people which requires multiple families. So they have to coordinate their vacation plans earlier compared to mine which is generally one family. So I get my rental bookings filled closer to May. 



Yes, lower rates will help you out during off-season. 

I have 2 condos in OC and my place in Bethany is a house. The oceanfront condo is booked almost year-round, while the bayside condo and house in Bethany are strong on weekends but that's about it for off-season. Summer is good at all places. 

I also have a place in lake Harmony, PA and it does good year-round, but I've found that at the end of the year my profits usually end up being about the same as Ocean City. Do you see that with your place in WV?

@Heather Carrow

 Hi, ah my property is on the bayside. I will run some tests and lower the price off-season to see if I can get rentals. How much do you discount in the off-season?

My property in Berkeley Springs, WV does well year around. I have no off/on season for it which is great.  The only low time is Jan/Feb. We book about 75% to 80% every year.  In terms of profit, my WV property has a much higher cap rate.  The issue is that properties in Ocean City/Bethany are very expensive and have much higher costs (taxes and condo fees).

An example would be. In Ocean City, a good bayside townhouse would be around $500k while $500k in Berkeley Springs, WV could be two nice cabin properties.