Self managing STRs from long distance
Investor · Seattle, WA · Member since 2021 · 16 posts · 8 votes
Self managing STRs from long distance
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Investor · Cincinnati, OH · Member since 2023 · 139 posts · 81 votes
2yOkay, unpopular opinion: if you are new to STR, self managing from far away is not setting your property up for success. You are starting from the beginning on learning how to do STR and that's something the property manager in the area have been doing for years. I would recommend finding a great property manager and they will be able to generate more revenue than you would be able to do. The hardest part of managing a STR is the boots on ground work and how are you going to find someone to trust to do the work - when it needs to be done & done correctly - if you are not there to vet people constantly? Don't worry about "saving" property management fees. Great property managers will generate a lot more revenue than someone who is new to STR. They have the experience and systems and people to get things done.
18 Replies
- Real Estate Broker · Kaneohe, HI · Member since 2020 · 193 posts · 163 votes2y
Aloha Adhirai,
What type of property are you looking to invest in as your first vacation rental? I have clients and know other investors who own vacation rentals in Hawai'i and self manage from both East and West Coasts and it was worked out well for them. Yes, saving the management fee certainly helps the numbers.
To your main question, first, planning and preparation goes a long ways. I recommend having multiple handymen, plumbers, cleaners, etc. on your vendor list that you can call if an urgent issue arises. When you are vetting service providers, ask them if they will be able to deal with urgent issues, if they work holidays, do they charge extra etc. If you have enough vendors on your list, good chance one will be available to quickly deal with the issue. Worst case, call a 24 hr emergency service provider if they are available in your area.
However, if your vacation rental is in a condo or townhome, you might be able to find someone onsite or in the neighborhood who will agree to deal with any urgent issues. I have one client who befriended a person who works in the building that he owns a unit in, to help him if he is ever in need. So once you decide where to buy, perhaps ask your real estate agent for service provider recommendations, or someone who can serve as a local point of contact, and also network on your own try to find people who can assist you in such an event.
But since this is will be your first STR and you and your husband both work full time and you have a child, I highly recommend you talk to other STR owners to get a better understanding of what it is like to self manage a unit from long distance so you can determine whether this is the best course of action you want to take.
Wish you luck. If you have any other questions, I'm happy to be of service to you. Aloha
- Portland, OR · Member since 2020 · 65 posts · 37 votes2y
Quote from @Adhirai M.:
Hello all, I am looking to invest in STRs out of state (from West Coast to East Coast). My biggest concern / worry is how to self-manage the property, considering that I am brand new and I have no experience in any sort of real estate niche. I want to hire a property manager but the 20-30% fee messes with my numbers.
I've read other forum posts and looks like most people successfully self-manage from out of state. My main question - What happens if there is an urgent issue with property and my handy man is not available to get there immediately? Also both my husband and I work full time jobs and we have a toddler who keeps us occupied as well.
I really don't want my venture into short-term rentals and real estate investment to turn sour. Please advice how you all successfully self manage STRs from long distance.
To answer your main question - if it’s truly urgent, you’ll find someone. You pay someone enough, they’ll get the job done.
There are plenty of folks on Craigslist, task rabbit, etc. that are always looking for work. I’m sure you can find someone in a pinch without having to pay them an arm and a leg.
Aside from that, continue building relationships with the folks that are already on your team - your cleaner and handyman in particular. Get to know them on a personal level. Send them birthday gifts, Christmas gifts, give them a bonus. Do something they’re not expecting but you know they’ll appreciate.
When an urgent issue comes up, you’re no longer just a customer, you’re a friend.
- Portland, OR · Member since 2020 · 65 posts · 37 votes2y
FWIW, I own a STR that I manage out of state. My wife and I also both work full time. Oh, and we have a 6 month old.
It’s not rocket science. I guarantee you can figure it out. It just takes work ethic, determination, and proper prioritization.
- Atlanta · Member since 2022 · 706 posts · 634 votes2y
depends on where your property is at, but there are a couple of strategies.
1 - develop a 2nd contact for services
2 - identify 24/7 companies in the area that you can call if your first contact is unavailable. i had that happen, had a plumbing issue and my normal plumber wasnt available, so i had to call a 24/7 one. I also work a regular job while managing. Once you build your team and put your processes in place, it shouldnt take too much time up from you
- Property Manager · Tampa, FL · Member since 2020 · 20 posts · 15 votes2yHi Adhirai,
Quote from @Adhirai M.:
Hello all, I am looking to invest in STRs out of state (from West Coast to East Coast). My biggest concern / worry is how to self-manage the property, considering that I am brand new and I have no experience in any sort of real estate niche. I want to hire a property manager but the 20-30% fee messes with my numbers.
I've read other forum posts and looks like most people successfully self-manage from out of state. My main question - What happens if there is an urgent issue with property and my handy man is not available to get there immediately? Also both my husband and I work full time jobs and we have a toddler who keeps us occupied as well.
I really don't want my venture into short-term rentals and real estate investment to turn sour. Please advice how you all successfully self manage STRs from long distance.
Two main things that are absolutely crucial to your success managing long distance.
1. A rockstar "boots on the ground team"
2. Very robust systems and processes
To answer your question about when an urgent situation arises; you need to have a built out team of vendors that will be able to help in any "urgent scenario" You should have a backup, a backup to the backup, and then even a 3rd backup to that backup. You should also have people on your boots on the ground team to accomplish small tasks that we call "runner tasks" things like restocking, building furniture, bringing boxes into storage, ect. You can accomplish these things by very detailed interviews to see who is a good fit.
Robust systems, automations, processes that you repeat with every guest to create that 5-star experience is also very important. A couple bad reviews could make or break your listing and your profitability. If you have any specific questions for me I'm happy to help! - Real Estate Agent · Ulster County, NY · Member since 2020 · 201 posts · 173 votes2y
I agree with a lot of what is said before.
The communications can all be automated which is 90% of the work. So can the locks, temperature control, etc.
While you do need people on the ground, you find them over time. When you set up the place initially, meet your neighbors and build a good relationship with them. They are your best resource and they want to see it smoothly run for their own sake. So usually they are more than happy to refer people they use or offer to help in a pinch themselves. Lots of these sub contractors though will become friends as long as you treat them well, pay them quickly and refer them to others. Also, ask them to begin with, if I need extra help for other stuff not necessarily related to your trade, are you available? You'd be surprised how many are more than happy to help because they want cash jobs that can be paid out quick.
Your cleaner is everything so spoil them. They will be the first to tell you if there are any issues.
And lastly, have cameras on the exterior of the house so you can monitor it.
Many people, including myself, manage remotely. And honestly, this isn't something I would pass off to someone else yet at this point in my investing career because what they say is true: no one will care more about your property than you do.
So good luck! You got this!
- Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes2y
Hey Adhirai, you really have three options so let's look at what those look like. I run a STR in Detroit alongside my LTR portfolio and self-manage it. While I'm not an expert on the STR space I've been doing this for over a year and a half now.
1) Establish your STR where you have existing relationships. This could be friends or family in the area. That way, if you have a true emergency you can hopefully rely on your personal network.
2) Spend a lot of time in the market you're planning to enter. Find a cleaner, a backup cleaner, handyman and backup. Network with other investors in that area so you may be able to lean on their folks if yours fail you in times of an emergency.
3) Pick a different strategy... likely LTR's. That's where I started, and if options #1 or #2 don't make sense for you this may be your best bet.
- 2yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
There are property management companies that do offer a la cart services/unbundled services/on call etc. I would look into this. It should not be too hard if you are investing in a popular vacation area to find people to help. Sometimes I have seen people spend quite a bit on unbundles services that just hiring a full service PM probably would just make more sense IMO.
The one red flag to me in your post is you wrote that you and your spouse are busy with a young child and full time jobs. This is a 24 hour business and if you are not extremely responsive you will lose money. If a guest arrives at your house and (for whatever reason) they cannot enter due to a lock malfunction or user error, they will call Airbnb, give you about 10 minutes and then issue a full refund. If the AC breaks down and the guest does not hear from you immediately, you will get bad reviews, etc etc.
I just want to manage your expectations for what you are looking to get into. If you cannot fully commit I do recommend hiring property management. If you can fully commit, the tools and manpower are out there for you to be successful.
Vacation Rentals of Florida53 Reviews - 2yCollin HaysBusiness MemberProperty Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
Quote from @Adhirai M.:
Hello all, I am looking to invest in STRs out of state (from West Coast to East Coast). My biggest concern / worry is how to self-manage the property, considering that I am brand new and I have no experience in any sort of real estate niche. I want to hire a property manager but the 20-30% fee messes with my numbers.
I've read other forum posts and looks like most people successfully self-manage from out of state. My main question - What happens if there is an urgent issue with property and my handy man is not available to get there immediately? Also both my husband and I work full time jobs and we have a toddler who keeps us occupied as well.
I really don't want my venture into short-term rentals and real estate investment to turn sour. Please advice how you all successfully self manage STRs from long distance.
No one really answered the question. If you can't get a major repair fixed immediately, you are going to be refunding some or all of the stay, and you will then need to cancel future stays until the item gets fixed. That can happen even with a property management company, but far less likely.
Here are the types of things we have encountered just this last 12 months that can potentially cause refunds/loss of rent due to the cabin being off market:
1. Driveway washes out due to rain.
2. Major leak that needs expensive repair (roof, flashing, etc.)
3. Sudden rodent or insect infestation (it happens!)
4. Heating/air conditioning. Compressor gone bad or similar.
5. Problems with water well.
6. Problems with septic system.
7. Can't get road cleared of snow in time.
8. Fallen trees can't be cleared timely.
9. Major appliance failure.
Luckily, we have people to take care of most things stat.
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Hey @Adhirai M., so you can mitigate some of the usual issues by making sure you keep up on system maintenance. Service the AC and furnace 2x a year, flush the water heater yearly, that sort of thing.
Make friends with the neighbors. My neighbor on the lake is awesome. He lets me know what is going on. He goes into the house to take care of small things etc.
- Investor · Cincinnati, OH · Member since 2023 · 139 posts · 81 votes2y
Okay, unpopular opinion: if you are new to STR, self managing from far away is not setting your property up for success. You are starting from the beginning on learning how to do STR and that's something the property manager in the area have been doing for years. I would recommend finding a great property manager and they will be able to generate more revenue than you would be able to do. The hardest part of managing a STR is the boots on ground work and how are you going to find someone to trust to do the work - when it needs to be done & done correctly - if you are not there to vet people constantly? Don't worry about "saving" property management fees. Great property managers will generate a lot more revenue than someone who is new to STR. They have the experience and systems and people to get things done.
- Rental Property Investor · Mukilteo, WA · Member since 2017 · 52 posts · 53 votes2y
@Adhirai M. It can be done but it will lock your a$$. Huge learning curve then you have to assemble a reliable team, but like others said it can be done. You just have to love hospitality and managing guests. Wasn’t for me, so I switched to LTR, but lots of people do it.
If I had to start over again I won't start with STR. Too many variables like design, anti-STR regulation, occupancy taxes, but the biggest factor is the up and down of net profit. That said, If you love the hustle and want to put in the work go for it!
- Member since 2022 · 2 posts · 0 votes2y
Hey Adhirai,
Managing STRs remotely can definitely work; you just need the right approach and a bit of planning.
First off, understanding your market is key. Keep an eye on local STR rules and trends. You'll want to stay ahead of any changes in regulations or market shifts. Google Alerts can be a lifesaver here. Just set them up for your rental area, and you'll get updates straight to your inbox.
For urgent issues, having a solid list of local contacts (like handymen or plumbers) is crucial. If your regular handyman isn't available, having backups can save the day. Also, consider having someone locally, like a co-host, who can step in when needed.
Tech can be your best friend in this. Keyless locks and smart home devices make life so much easier. They let you manage things from a distance and keep an eye on your property without being intrusive.
Regular maintenance checks are super important, too. It's all about preventing problems before they happen. And don't forget the right insurance – it's a must.
Understanding what your guests expect in terms of amenities can set you apart from the competition. Keep an eye on what others are offering and try to match or exceed that.
Good communication can really enhance your guests' experience. You'll want to be clear and timely in your responses to guests and your team on the ground. Make sure your cleaning crew knows exactly what you expect and that your guests have all the emergency info they need.
As for bookings, think about how instant booking works for you. Longer stays can mean less stress with turnovers, but you'll want to balance that with what's common in your market.
Lastly, try to visit your property when you can. It's the best way to keep everything up to your standards and to stay connected with the local community.
I hope this helps, and good luck with your STR journey! - Real Estate Agent · Raleigh NC · Member since 2023 · 38 posts · 29 votes2y
STR's would be a lot to self-manage from afar. Let me know if you're interested in the NC market, and even if not would love to help!
- 2yJake BakerBusiness MemberFlipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
Have you considered hiring a co-manager of the property? I have done with an STR. You manage the listing and tenent communication, but have a "boots on the ground" person to show up at the property if needed. You can pay them a smaller %.
Happy Investing!
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