Vacation Rental Consulting

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Vacation Rental Consulting

Braeden Cobb
Investor · Scottsdale, AZ · Member since 2022 · 50 posts · 22 votes

I am in the process of starting a short term rental consulting company offering the services of str marketing strategies, how to manage your own rental, how to find the right property management company, finding the right str home, knowledge in real estate (podcasts, books, videos, and surface level alternative forms of investing in real estates besides strs), and then a package of pretty much everything a-z from finding a home, to managing or finding a management company, marketing it, to software, tech, and security etc. I have a main goal of wanting to build connections as I am finishing up school so my strategy would be to partner with agents where they sent their investors to me to get them the property, I take my cut and provide any services they would like, and send them back to the agent to follow through with their deal. So both sides are benefiting I am getting a lead, the agent isn't dealing with finding a house and doing market research on strs, and the buyer is getting a property from someone educated in the industry. Do you guys think there is a need for this? I run into countless agents who just aren't as knowledgeable in the re investment market as many investors would like. Let me know thoughts. Thank you!

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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y

So @Braeden Cobb, I find all that and more right here on this site. Just do a search and you can find literally anything you need to know about any real estate topic. If you can't find it, just ask and people will step up. I can't imagine ever hiring someone myself when I have made connections where I can ask of their personal and professional knowledge and get the right answer.

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  • Braeden Cobb
    OP
    Investor · Scottsdale, AZ · Member since 2022 · 50 posts · 22 votes
    3y

    @Michael Baum Hey, so a lot of the homes I manage are in the low to medium price range and many owners just aren't willing to put up a lot of money to make their property improve. Many of them are open to cosmetic stuff and small changes such an extra amenities in the backyard, but the big changes usually aren't favorable by them. Now with the higher end houses, they are all for it and those obviously do the best because they are willing to put the money in. For example, we wanted to take an extra large bedroom, cut it in half, add a hall way, and make two separate rooms. To add an extra bedroom in the house and he was all for it, approved it in days. Construction was done in 2 weeks and his home is already doing better. Also, the higher end homeowners also are willing to may more for extra marketing such as ads, seo listing and airbnb optimization, very very in depth guidebooks, and more. On top of that all, the biggest thing I see is people trying to short term rent a house that is not designed or located to be a very profitable str but they want to make it work. We charge 20% for management. Completely hands off. Let me know if that answers everything, thanks for the response. 

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  • Braeden Cobb
    OP
    Investor · Scottsdale, AZ · Member since 2022 · 50 posts · 22 votes
    3y

    @Paul Sandhu Hey Paul, thanks for the response. Can you expand on that last part a little bit? I'd love to hear some input on what positioning you would like to see or just your opinions on what you thought I could work on? Thanks. 

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Thanks again @Braeden Cobb. It is an interesting challenge I am sure. 

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  • Braeden Cobb
    OP
    Investor · Scottsdale, AZ · Member since 2022 · 50 posts · 22 votes
    3y

    @Michael Baum For sure is! I have ideas of starting a luxury property management company once I am out of school only tailored to homes over the value of $1.5m. I think the key to success for management is attacking a niche and I like the luxury home market. Homeowners are more knowledgeable and trusting, homes are more marketable, and you are able to keep a smaller portfolio to provide that personal experience with the guests without a huge team managing 100+ homes. Just my thoughts, I think there is a need where more expensive homes need better management options who are familiar with property of that value. It takes a lot of my above challenges out of play. And although most people can't start directly in the luxury market, I think there many strategies around it such as only managing one home for the first year so you develop an amazing relationship with that homeowner, they are your reference, and you have a year to set the foundation of the company so you are ready to scale. 

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    That is rarefied air there @Braeden Cobb. In that market segment you will find many of those owners are tax deduction people. Plus there is quite a bit of competition for those listings. Tahoe is a great example. Not saying that you can't do it, but some of those PM agencies are polished to the hilt.

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3y
    Quote from @Braeden Cobb:

    I am in the process of starting a short term rental consulting company offering the services of str marketing strategies, how to manage your own rental, how to find the right property management company, finding the right str home, knowledge in real estate (podcasts, books, videos, and surface level alternative forms of investing in real estates besides strs), and then a package of pretty much everything a-z from finding a home, to managing or finding a management company, marketing it, to software, tech, and security etc. I have a main goal of wanting to build connections as I am finishing up school so my strategy would be to partner with agents where they sent their investors to me to get them the property, I take my cut and provide any services they would like, and send them back to the agent to follow through with their deal. So both sides are benefiting I am getting a lead, the agent isn't dealing with finding a house and doing market research on strs, and the buyer is getting a property from someone educated in the industry. Do you guys think there is a need for this? I run into countless agents who just aren't as knowledgeable in the re investment market as many investors would like. Let me know thoughts. Thank you!

    As you go along you’ll probably have to change your business plan quite a bit to reflect market realities.  What you end up with may be a business that looks completely different than what you imagine it to be now.  This is pretty common as flexibility is a key with any start up venture.  As long as the demand is there for the solution you’re selling the business could be profitable.  However, scaling consulting type businesses is very difficult, but not impossible.  Good luck, make it happen!
    Private Mortgage Financing Partners, LLC
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  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    3y
    Quote from @Braeden Cobb:

    @Paul Sandhu Hey Paul, thanks for the response. Can you expand on that last part a little bit? I'd love to hear some input on what positioning you would like to see or just your opinions on what you thought I could work on? Thanks. 


    Keep enough money in the bank so that you can be a cash buyer for a bank foreclosure within 60 minutes. Also buy your appliances and furniture ahead of time when you find a bargain, even though you don't have an STR to put them in.

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