How are everyone's STRs doing right now?

[Bruce Woodruff]

Thought I would check in again, it's been a few months since someone asked this question. Of my 2, one is pretty full, but it has a nearby attraction that supports it. The other is just dead. One booking next week, but nothing after that, Nothing.

It's not an urgent situation, my cost to hold this property is low, but I am thinking of looking a MTRs, and LTRs. The income would be about the same regardless.

How's everyone else doing....?

[Pete Galyon]

No I'm definitely not the only 1. Myself and the clients that I help find properties for are doing ALL the things they need to do on my advise. #1 buying a property that stands out with a view or in Blue Ridge water or a view ( where I own), is absolutely key. Nicer furnishings, bedding, marketing ( pics and video), even thing like higher quality coffee and TP... All of those things combined with our awesome PM handling business is why✅️🤜🤛

[Scott K.]

Doing better than we ever have in 3 years. Sold one of my airbnbs due to Township regulations, made 2x on the price after 3 years. My other 3 are booked out 2 months. Just bought a 4th. It really helped us when we redecorated all our properties and added hot tubs this year. 

[Bruce Woodruff]

Quote from @Paul Erickson:

I would also pose the question, what is your equity position on that property, and would now be a good time to 1031 exchange that property and move on to a property more like your other property to keep the higher rates of return by having 2 similar properties (maybe in the same sub market, where you could maybe reduce your management efforts also in the process by having the same maintainance teams, cleaners, etc. able to service both areas. If you are truly only making MTR returns on your STR property, the property is likely misallocated as STR anyway.

Good thought. This property is free/clear and has almost tripled in price since we purchased in 2020. We've also thought about selling and buying a 4-plex or similar....

This property is a mystery. It should ne booming as a STR - close to popular tourist town, etc, and we've recently been upgrading with little add-ons. (I posted about this property a few months ago and got great input, most of which we have implemented)

[Mike Anderson]

Quote from @Brian Barch:

I’m in the N GA mountains, but the quieter eastern side near N/S Carolina.

We Acquired in late November 22.December was 22 days, January 18, feb at 17 currently. We are very happy with that performance as it’s slow season in my area.

You must be in Rabun area... I live there and as a resident i can tell you its defiantly been slower this year, just less people on the weekend. Even in December.

[Andy Whitcomb]

We have three cabins along a river about an hour north of Seattle. We are 95%+ booked for the next 4 months, and around 80% booked until the end of 2023. We've been putting a lot of people on a waitlist in case we get cancellations. 

[Henry T.]

I'm relatively new to STR 3 months, but airbnb (which is all I use) has all of a sudden gone busy in the last few days. Before that very slow. I finally filled in the "about me" section and things seem to have picked up, ha ha. AS it picks up I'm blocking out more days on the Calendar becasue I really don't want it too busy. Over 4 days 2 confirms and 4 I rejected. (booking for others I don't allow). You pro's probably get 10 a day, but for this bumpkin it's busy.

[Brian Barch]

Quote from @Mike Anderson:

Quote from @Brian Barch:

I’m in the N GA mountains, but the quieter eastern side near N/S Carolina.

We Acquired in late November 22.December was 22 days, January 18, feb at 17 currently. We are very happy with that performance as it’s slow season in my area.

You must be in Rabun area... I live there and as a resident i can tell you its defiantly been slower this year, just less people on the weekend. Even in December.

I’m on screamer mountain in Clayton. I’m doing fairly well, but have heard the slow complaints from some peers

[Bruce Woodruff]

Quote from @Henry T.:

I'm relatively new to STR 3 months, but airbnb (which is all I use)

Why not VRBO? Much better customer service and a better class of guests usually...

[Kevin Luttrell]

Our cabin in Sevierville is quite slow right now. 61% occupancy for Jan. Lead time is also very short - maybe around 7-10 days on average currently. Most of our calendar is wide open. 

[John Carbone]

Quote from @Kevin Luttrell:

Our cabin in Sevierville is quite slow right now. 61% occupancy for Jan. Lead time is also very short - maybe around 7-10 days on average currently. Most of our calendar is wide open. 

 What size is your cabin? I think normal now is 50 percent for Jan and feb so you are above expectations at 61 percent.  This will be the new normal in Jan/feb

[Kevin Luttrell]

@John Carbone glad to know we're not doing anything wrong!

It's small, 1000sqft 2bed 1bath. No view but we're at the end of a dead-end road bordering over 100 acres of undeveloped forest, so that's our main standout. 

[Matt Mertz]

Gatlinburg TN, new build luxury cabin that sleep 16.  

Currently we're starting this year way better than last year (which was our first year and very good for us).  I think we're starting stronger this year due to a record of good reviews from last year.  

All weekends are taken January - April (40% - 60% occupancy those months).  This occupancy may not seem great but our ADR is very high and we're fine with that.  Bottom line is that if this trend continues this year, we're going to blow away our first year which was already great.

[George Mevawala]

Fairly well, my Scottsdale portfolio on avg is at above 80% occupancy, and booked out until end of April for most of the properties. I used to be closer to 90-93% occupancy across the board this season, but still happy to stay booked and cash flow well.

[JD Martin]

My lake (really a pond!) house in Four Corners, Florida is doing awesome. I'm booked nearly solid to May. Starting to pick up my summer bookings over the last week or so. I have 2 open days in February and 4 in March, which are about to get filled and give me almost 100% occupancy both months, and five open days in April which is about 85% occupied or so. May is more or less empty right now but that's considered a slow month here so not terribly surprising. 

[Henry T.]

Quote from @Bruce Woodruff:

Quote from @Henry T.:

I'm relatively new to STR 3 months, but airbnb (which is all I use)

Why not VRBO? Much better customer service and a better class of guests usually...

 I didn't want to take part in their payment system, if I recall it was a Paypal owned processor or something like that. If there's a way around that I would try again. I'm reluctant to sign up with yet another bank/payment system, especially one related to Paypal. Airbnb easily processes payments to my credit union, I like that. Thanks.

[Bruce Woodruff]

Quote from @Henry T.:

Quote from @Bruce Woodruff:

Quote from @Henry T.:

I'm relatively new to STR 3 months, but airbnb (which is all I use)

Why not VRBO? Much better customer service and a better class of guests usually...

 I didn't want to take part in their payment system, if I recall it was a Paypal owned processor or something like that. If there's a way around that I would try again. I'm reluctant to sign up with yet another bank/payment system, especially one related to Paypal. Airbnb easily processes payments to my credit union, I like that. Thanks.

I understand the aversion to PayPal, I quit a few months ago after one of their stunts....Is there no other way to pay them? I do it guest by guest just like AIR....I get a lot of bookings from VRBO.

[Pete Galyon]

Quote from @Mark S.:

@Pete Galyon You are probably the only owner in Pigeon Forge/Gatlinburg running at 80-90%. I own in that area and know many other owners and no one is running at that level. What is your approach to drive that occupancy rate? Thanks

 Hey Mark. No, not by a long shot. MANY of our clients are still fully booked for the most part and getting in to do maintenance is the biggest issue thus far this year. Honestly the things that the clients had done ON THE FRONT END are  SO important. Getting a property that stands out with a feature like an incredible view or water of some sort. THIS HAS BEEN HUGE!! Once find that right property we do an analysis of the property and what is wrong with the property as a whole and make a budget for it. This will dictate how we offer and how much do diligence is needed to prevent and unforeseen cost that could destroy the cash flow model. Also, the quality of the furnishings, presentation and finishes are super important. The details  

[Clay Asplundh]

Pleasantly surprised, running at about a 90% occupancy for the prime winter season in South Florida. The real question will be if we can keep those levels high over the summer. I am optimistic however as we are already starting to book some of the early summer months and pricelabs has our daily rates higher than expected!

[Neil Doldo]

Quote from @Pete Galyon:

Quote from @Mark S.:

@Pete Galyon You are probably the only owner in Pigeon Forge/Gatlinburg running at 80-90%. I own in that area and know many other owners and no one is running at that level. What is your approach to drive that occupancy rate? Thanks

 Hey Mark. No, not by a long shot. MANY of our clients are still fully booked for the most part and getting in to do maintenance is the biggest issue thus far this year. Honestly the things that the clients had done ON THE FRONT END are  SO important. Getting a property that stands out with a feature like an incredible view or water of some sort. THIS HAS BEEN HUGE!! Once find that right property we do an analysis of the property and what is wrong with the property as a whole and make a budget for it. This will dictate how we offer and how much do diligence is needed to prevent and unforeseen cost that could destroy the cash flow model. Also, the quality of the furnishings, presentation and finishes are super important. The details  

 I agree with Pete.  My wife and I own three in the BR market and all have performed very well.  The key is setting yourself apart with your amenities.  Funny, our cabin with a view (spectacular, top 5%) is actually our lowest performing, doing $113k gross for 2022.  Our others are big, sleeping 16 and 19 respectively and have amenities like movie theaters, arcades, pools, hot tubs etc.  I'm not saying you need all of these to be successful, but the more you can do to standout will separate you from the rest.  My wife is a real estate agent in the area and helps investors find the right property.  She has to steer alot of people away from the standard cabin in the woods.  If you're looking for cash-flow, these just won't cut it anymore

[John Carbone]

Quote from @Neil Doldo:

Quote from @Pete Galyon:

Quote from @Mark S.:

@Pete Galyon You are probably the only owner in Pigeon Forge/Gatlinburg running at 80-90%. I own in that area and know many other owners and no one is running at that level. What is your approach to drive that occupancy rate? Thanks

 Hey Mark. No, not by a long shot. MANY of our clients are still fully booked for the most part and getting in to do maintenance is the biggest issue thus far this year. Honestly the things that the clients had done ON THE FRONT END are  SO important. Getting a property that stands out with a feature like an incredible view or water of some sort. THIS HAS BEEN HUGE!! Once find that right property we do an analysis of the property and what is wrong with the property as a whole and make a budget for it. This will dictate how we offer and how much do diligence is needed to prevent and unforeseen cost that could destroy the cash flow model. Also, the quality of the furnishings, presentation and finishes are super important. The details  

 I agree with Pete.  My wife and I own three in the BR market and all have performed very well.  The key is setting yourself apart with your amenities.  Funny, our cabin with a view (spectacular, top 5%) is actually our lowest performing, doing $113k gross for 2022.  Our others are big, sleeping 16 and 19 respectively and have amenities like movie theaters, arcades, pools, hot tubs etc.  I'm not saying you need all of these to be successful, but the more you can do to standout will separate you from the rest.  My wife is a real estate agent in the area and helps investors find the right property.  She has to steer alot of people away from the standard cabin in the woods.  If you're looking for cash-flow, these just won't cut it anymore

Interesting you mention that the one with the view is your lowest performer, but then you say cabin the woods won’t cut it. Please elaborate 

[Robert Finn]

I have 3 here in San Antonio TX, and 2 properties have stayed around 70% during the winter months the third has been 100% booked due to mid term stays. It's a great strategy during off peak! Throw in complimentary bi weekly housekeeping! This has been one of the services I add to set my self apart, and also get eyes on the property. We also have many attractions (theme parks, riverwalk, zoo, etc) here in San Antonio, so I throw in a package booking to draw in more inquiries which has also been helpful. Self managing and creativity has kept me in the game this off season. 

[Bruce Woodruff]

Boy, I am mystified. My property downtown has only 1 booking for 2023 as of right now. Last year and the year before, it was booked EVERY weekend of the year and some weeks as well. Well, hmmmm... we'll see how it goes for a while longer. May be time to decide on another use for the property.

[Neil Doldo]

Quote from @John Carbone:

Quote from @Neil Doldo:

Quote from @Pete Galyon:

Quote from @Mark S.:

@Pete Galyon You are probably the only owner in Pigeon Forge/Gatlinburg running at 80-90%. I own in that area and know many other owners and no one is running at that level. What is your approach to drive that occupancy rate? Thanks

 Hey Mark. No, not by a long shot. MANY of our clients are still fully booked for the most part and getting in to do maintenance is the biggest issue thus far this year. Honestly the things that the clients had done ON THE FRONT END are  SO important. Getting a property that stands out with a feature like an incredible view or water of some sort. THIS HAS BEEN HUGE!! Once find that right property we do an analysis of the property and what is wrong with the property as a whole and make a budget for it. This will dictate how we offer and how much do diligence is needed to prevent and unforeseen cost that could destroy the cash flow model. Also, the quality of the furnishings, presentation and finishes are super important. The details  

 I agree with Pete.  My wife and I own three in the BR market and all have performed very well.  The key is setting yourself apart with your amenities.  Funny, our cabin with a view (spectacular, top 5%) is actually our lowest performing, doing $113k gross for 2022.  Our others are big, sleeping 16 and 19 respectively and have amenities like movie theaters, arcades, pools, hot tubs etc.  I'm not saying you need all of these to be successful, but the more you can do to standout will separate you from the rest.  My wife is a real estate agent in the area and helps investors find the right property.  She has to steer alot of people away from the standard cabin in the woods.  If you're looking for cash-flow, these just won't cut it anymore

Interesting you mention that the one with the view is your lowest performer, but then you say cabin the woods won’t cut it. Please elaborate 

Hi John, I mean the run-of-mill log cabin doesn't work any more in this market.  There is alot of competition and renters want high end amenities.  Our house with a view is a little more remote, and and feels more like a cozy cabin and less luxurious.  We still have a large theater room and a hot tub, so those amenities have been able to set us apart.  It still does very well and we bought before things got too crazy, but it is by far our lowest performer. 

Our other two have no view, but have a ton of extras that most don't.  One has a finished garage (with apartment over) that we converted into a 1100 sq.ft. mancave/arcade--three full size arcade machines, pool table, fooseball, air hockey, 70 in tv and lounge space.  We also have a separate theater room and hot tub. It is pretty remote as well (25 min to downtown), has no view, but grossed $143k last year.

The last one we just started in November, but it will easily be our top performer.  It has similar amenities as above but also a pool and is 7 min to downtown.  So far we have $95k on the books with the majority of the prime summer and fall still open.  We anticipate $200k gross this year.

My point is to make your property stand out.  Views and water are a great start, but there is more competiton now.  We have found making the house an experience for your guests has been very successful

[John Carbone]

Quote from @Neil Doldo:

Quote from @John Carbone:

Quote from @Neil Doldo:

Quote from @Pete Galyon:

Quote from @Mark S.:

@Pete Galyon You are probably the only owner in Pigeon Forge/Gatlinburg running at 80-90%. I own in that area and know many other owners and no one is running at that level. What is your approach to drive that occupancy rate? Thanks

 Hey Mark. No, not by a long shot. MANY of our clients are still fully booked for the most part and getting in to do maintenance is the biggest issue thus far this year. Honestly the things that the clients had done ON THE FRONT END are  SO important. Getting a property that stands out with a feature like an incredible view or water of some sort. THIS HAS BEEN HUGE!! Once find that right property we do an analysis of the property and what is wrong with the property as a whole and make a budget for it. This will dictate how we offer and how much do diligence is needed to prevent and unforeseen cost that could destroy the cash flow model. Also, the quality of the furnishings, presentation and finishes are super important. The details  

 I agree with Pete.  My wife and I own three in the BR market and all have performed very well.  The key is setting yourself apart with your amenities.  Funny, our cabin with a view (spectacular, top 5%) is actually our lowest performing, doing $113k gross for 2022.  Our others are big, sleeping 16 and 19 respectively and have amenities like movie theaters, arcades, pools, hot tubs etc.  I'm not saying you need all of these to be successful, but the more you can do to standout will separate you from the rest.  My wife is a real estate agent in the area and helps investors find the right property.  She has to steer alot of people away from the standard cabin in the woods.  If you're looking for cash-flow, these just won't cut it anymore

Interesting you mention that the one with the view is your lowest performer, but then you say cabin the woods won’t cut it. Please elaborate 

Hi John, I mean the run-of-mill log cabin doesn't work any more in this market.  There is alot of competition and renters want high end amenities.  Our house with a view is a little more remote, and and feels more like a cozy cabin and less luxurious.  We still have a large theater room and a hot tub, so those amenities have been able to set us apart.  It still does very well and we bought before things got too crazy, but it is by far our lowest performer. 

Our other two have no view, but have a ton of extras that most don't.  One has a finished garage (with apartment over) that we converted into a 1100 sq.ft. mancave/arcade--three full size arcade machines, pool table, fooseball, air hockey, 70 in tv and lounge space.  We also have a separate theater room and hot tub. It is pretty remote as well (25 min to downtown), has no view, but grossed $143k last year.

The last one we just started in November, but it will easily be our top performer.  It has similar amenities as above but also a pool and is 7 min to downtown.  So far we have $95k on the books with the majority of the prime summer and fall still open.  We anticipate $200k gross this year.

My point is to make your property stand out.  Views and water are a great start, but there is more competiton now.  We have found making the house an experience for your guests has been very successful

Got it, makes sense to me. 3-5 years ago people could get by with just the view, but now it requires putting a lot of money into the place for guest experience.