I host over 100 AirBnB Listings in CA and AZ **Ask Me Anything**

[Noah Laker]

Hey BP Gang,

I'm a real estate broker in Sacramento, California (23 yo) and I host about 125 properties on AirBnB and VRBO, mostly in Sacramento, CA and Phoenix/Scottsdale, AZ. 

I am new to BiggerPockets but am hoping to help out as much as possible! I have followed quite a few STR threads and I will continue to monitor this one if anyone could use some general or technical advice. My partner and I are quite savvy with the software platforms if that helps. :-)

So ask me anything! I am here to help. 

[Tom Freestone]

Hi @Noah Laker, 

We currently have a guest that wants to book for multiple weeks but we have 2 guests that are staying over the weekend.  One of them booked 3 days ago and their stay is in 2 weekends.  We would like to request them to cancel.  We do have some maintenance tasks that need to be completed prior to the extended stay like getting a fence, getting the siding repaired from a burst pipe, some washing machine maintenance too.  We are open to offer a credit and full refund to buy their cancelation.  Any suggestions on how to approach this?  Its on Airbnb and we are concerned that we could jeopardize our superhost title or worse.  We are still within our first year so pretty green.  Our other concern is that they get scared we are scammers for some reason and get reported to Airbnb.  Google searching says that the host cancelation method is a pretty widely used scam.

[Noah Laker]

Quote from @Tom Freestone:

Hi @Noah Laker, 

We currently have a guest that wants to book for multiple weeks but we have 2 guests that are staying over the weekend.  One of them booked 3 days ago and their stay is in 2 weekends.  We would like to request them to cancel.  We do have some maintenance tasks that need to be completed prior to the extended stay like getting a fence, getting the siding repaired from a burst pipe, some washing machine maintenance too.  We are open to offer a credit and full refund to buy their cancelation.  Any suggestions on how to approach this?  Its on Airbnb and we are concerned that we could jeopardize our superhost title or worse.  We are still within our first year so pretty green.  Our other concern is that they get scared we are scammers for some reason and get reported to Airbnb.  Google searching says that the host cancelation method is a pretty widely used scam.

Hey Tom, Airbnb may penalize you for cancelling on your end, and it is considered to be a dishonorable practice. However, if you negotiate directly with the guest and pay them something extra for the inconvenience, it’s ultimately their decision. If the guests do not wish to cancel, it might be best to honor their reservation and lose the two week. 

[Johnson Best]

Quote from @Noah Laker:

Quote from @Johnson Best:

Quote from @Noah Laker:

Quote from @Mike Dymski:

What is your average occupancy rate and ADR in Phoenix from Oct-Mar and from Apr-Sep?  Thanks for posting.

 Oct-Mar is upwards of 90%

Apr-Sep is closer to 75%

 Why is the drop in the April to Sept?

Most of our properties are in Arizona, which is very seasonal  Q1 is peak and summer is the lowest  

Thank you, quick questions.

1. What about the mid term rental?  What is the occupancy and approximate rates be like for phoenix area for those quarters you mentioned?

2. What is the MTR margin over regular long term tenant rate and STR over MTR in Phoenix greater area?

3.  How is MTR market trending now vs past 12 months?

4. What are top 3 performing CAP rate with current purchase price and rents cities in Phoenix greater area?

Thanks again.

[Dallin West]

@Noah Laker give us your honest, once and for all take on short-term rental management platforms. Best all around for a decent price.  (One random feature I really want to have, because I have ADHD and I procrastinate, is a really good task management feature. Things like remembering to change filters, file city reports, pay taxes, etc.). I currently use Hospitable, don't love it.

Maybe recommend your top 2 or so management platforms for the following scenarios:

1) Four single-family homes (2 in San Diego, 2 in Tennessee). Currently own these. Best platform?

2) Luxury small resort (14 A-frames) near Yellowstone. Building these. Best platform? 

THANK YOU!

[Noah Laker]

Quote from @Johnson Best:

Quote from @Noah Laker:

Quote from @Johnson Best:

Quote from @Noah Laker:

Quote from @Mike Dymski:

What is your average occupancy rate and ADR in Phoenix from Oct-Mar and from Apr-Sep?  Thanks for posting.

 Oct-Mar is upwards of 90%

Apr-Sep is closer to 75%

 Why is the drop in the April to Sept?

Most of our properties are in Arizona, which is very seasonal  Q1 is peak and summer is the lowest  

Thank you, quick questions.

1. What about the mid term rental?  What is the occupancy and approximate rates be like for phoenix area for those quarters you mentioned?

2. What is the MTR margin over regular long term tenant rate and STR over MTR in Phoenix greater area?

3.  How is MTR market trending now vs past 12 months?

4. What are top 3 performing CAP rate with current purchase price and rents cities in Phoenix greater area?

Thanks again.

Hey Johnson, thanks for the question. MTR occupancy totally depends on location, property size & quality, and other factors. Some properties have an impressive 90%+ occupancy while others will experience long "orphan" periods between bookings. Ideally, you blend STR with your MTR strategy to fill the gaps. I NEVER recommend buying a property exclusively for midterm rental, but rather underwrite for LTR if there is a municipal or HOA restriction on STR rental.

MTR is usually between LTR and STR -- again, this varies regionally. For example, if the going LTR rate in an area for your unit is $2000, and STR might be $3500, then MTR is probably around $2800. It's the basic economics of the benefits of the product. Furniture adds a premium, as does short-term rentability. If you have both, you make the most money. If you have only one, you make more than LTR, but not as much as selling both products.

MTR is still pretty good, but (sorry for repeating myself) it varies regionally. Urban cores seem to be doing well for MTR because of business and medical demand, as well as family relocations etc.

This last question is a tough one. High CAP rate usually comes at the cost of quality class. So C-class areas cashflow more than A-class, but there is an obvious tradeoff here. You should consider your longterm goals when structuring a portfolio (more appreciation at the expense of immediate cashflow? Or do you need cash now at the expense of future appreciation and possible renter quality issues?)

Hope this helps. Feel free to reach out directly for more discussion on these complex issues. 

[Noah Laker]

Quote from @Dallin West:

@Noah Laker give us your honest, once and for all take on short-term rental management platforms. Best all around for a decent price.  (One random feature I really want to have, because I have ADHD and I procrastinate, is a really good task management feature. Things like remembering to change filters, file city reports, pay taxes, etc.). I currently use Hospitable, don't love it.

Maybe recommend your top 2 or so management platforms for the following scenarios:

1) Four single-family homes (2 in San Diego, 2 in Tennessee). Currently own these. Best platform?

2) Luxury small resort (14 A-frames) near Yellowstone. Building these. Best platform? 

THANK YOU!

I vote Hospitable ALL THE WAY. My bias comes from experience with Guesty, OwnerRez, etc, where the platforms are more expensive, less intuitive, and ultimately less useful. 

Hospitable gives you all the right features for a very fair price, and not much frill. I would only ever recommend Guesty if you're a large PM using Trust Accounting methodology. 

For Task Management, if you don't like Hospitable's built-in tool, keep a simple log in Google Sheets with formatting variables -- for example, Air Filters haven't been changed in 3 months? Flash red. 

There are so many ways to configure your tech stack but I value simplicity and efficacy. 

[Dallin West]

Thanks @Noah Laker!!

[Cannen Hill]

Quote from @Noah Laker:

Quote from @Pretty Khare:

Quote from @Noah Laker:

Hey BP Gang,

I'm a real estate broker in Sacramento, California (23 yo) and I host about 125 properties on AirBnB and VRBO, mostly in Sacramento, CA and Phoenix/Scottsdale, AZ. 

I am new to BiggerPockets but am hoping to help out as much as possible! I have followed quite a few STR threads and I will continue to monitor this one if anyone could use some general or technical advice. My partner and I are quite savvy with the software platforms if that helps. :-)

So ask me anything! I am here to help. 

 Thanks for starting this thread, Noah. Appreciate your offer to help. Are you seeing a slowdown in both occupancy and Average Daily Rates across your listings in the last few Months compared to the same time period last year? How are you planning to prepare your portfolio for the impact of a likely recession in 2023.

 Hello Mr. Khare!

Yes, we've been experiencing the downturn just like everyone else. The first thing I noticed is that changes have been regional. For instance, Sacramento CA has seen very little change, whereas Phoenix and Tucson AZ have seen a much larger decrease in revenue. 

Things are unticking currently, in part due to a lot of weaker players getting out, including "rental arbitragers" (full disclosure I have 21 rental arbitrage in my portfolio but I don't advocate the model). 

We are recreating and perfecting our direct booking site, and building relationships privately with placement companies, including insurance, healthcare, and other professional sectors.

I also think it's more important now than ever to *stand out* with your listings. We have a couple of Starwars themed units for example, and they're been performing very well comparatively. 

Hope that helps! Let me know if you have any other questions!

when starting my airbnb arbitrage business, what is tax deductible? If I consult with an accountant, can that be deducted? I want to scale my business and I don’t necessarily want to be fully involved in all of my rental properties…mostly because I want to have the time to figure out how to grow my business, reinvest earnings back into my business or investing/paying myself first. With that being said, should I hire a cleaning crew when I first begin? Who else should I include on my team on a consistent basis? Are employee salaries tax deductible? How can I profit the most from my investment if I do have a full team to where I am able to be in another city for example?

[Cannen Hill]

Quote from @Noah Laker:

Quote from @Pretty Khare:

Quote from @Noah Laker:

Hey BP Gang,

I'm a real estate broker in Sacramento, California (23 yo) and I host about 125 properties on AirBnB and VRBO, mostly in Sacramento, CA and Phoenix/Scottsdale, AZ. 

I am new to BiggerPockets but am hoping to help out as much as possible! I have followed quite a few STR threads and I will continue to monitor this one if anyone could use some general or technical advice. My partner and I are quite savvy with the software platforms if that helps. :-)

So ask me anything! I am here to help. 

 Thanks for starting this thread, Noah. Appreciate your offer to help. Are you seeing a slowdown in both occupancy and Average Daily Rates across your listings in the last few Months compared to the same time period last year? How are you planning to prepare your portfolio for the impact of a likely recession in 2023.

 Hello Mr. Khare!

Yes, we've been experiencing the downturn just like everyone else. The first thing I noticed is that changes have been regional. For instance, Sacramento CA has seen very little change, whereas Phoenix and Tucson AZ have seen a much larger decrease in revenue. 

Things are unticking currently, in part due to a lot of weaker players getting out, including "rental arbitragers" (full disclosure I have 21 rental arbitrage in my portfolio but I don't advocate the model). 

We are recreating and perfecting our direct booking site, and building relationships privately with placement companies, including insurance, healthcare, and other professional sectors.

I also think it's more important now than ever to *stand out* with your listings. We have a couple of Starwars themed units for example, and they're been performing very well comparatively. 

Hope that helps! Let me know if you have any other questions!

[Zachary Cain Humphrey]

Quote from @Pretty Khare:

Quote from @Noah Laker:

Hey BP Gang,

I'm a real estate broker in Sacramento, California (23 yo) and I host about 125 properties on AirBnB and VRBO, mostly in Sacramento, CA and Phoenix/Scottsdale, AZ. 

I am new to BiggerPockets but am hoping to help out as much as possible! I have followed quite a few STR threads and I will continue to monitor this one if anyone could use some general or technical advice. My partner and I are quite savvy with the software platforms if that helps. :-)

So ask me anything! I am here to help. 

 Thanks for starting this thread, Noah. Appreciate your offer to help. Are you seeing a slowdown in both occupancy and Average Daily Rates across your listings in the last few Months compared to the same time period last year? How are you planning to prepare your portfolio for the impact of a likely recession in 2023.

How did you come about the opportunity of the 120 properties? Was it built up slowly? What is your story of how this growth happened and from that any advice you would give for others to scale?