What’s holding you back?

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What’s holding you back?

Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes

Curious, you can consider this market research, but what's holding you back from hiring someone else to manage your STR(s)?

I know the obvious answer, too costly?

But what else? Do you just enjoy it? Maybe time isn't an issue? You don't think anyone could do it better?

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Collin HaysBusiness Member

Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes

The most profitable way to own a rental is to manage it yourself. That’s a pretty good reason.

[email protected]806-672-7102

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
1y
The most profitable way to own a rental is to manage it yourself. That’s a pretty good reason.
[email protected]806-672-7102
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- John UnderwoodPro Member
  Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
  1y
  Quote from @Collin Hays:
  
  The most profitable way to own a rental is to manage it yourself. That’s a pretty good reason.
  
  The best reason.
  4 Reply
- Daniel McDonald
  OP
  Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes
  1y
  @Collin Hays fair enough. But a lot of investors get into this too for "passive" income and STRs definitely aren't that. At some point I'd assume we all say, I'll let someone else take control.
  0 Reply
- Collin HaysBusiness Member
  Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
  1y
  Quote from @Daniel McDonald:
  
  @Collin Hays fair enough. But a lot of investors get into this too for "passive" income and STRs definitely aren't that. At some point I'd assume we all say, I'll let someone else take control.
  
  It's all a matter of how you value your time. I could save quite a bit of cash mowing my lawn, changing my car oil, and ironing my shirts. But I don't want to.
  We manage properties, but I would never try to talk someone into it. Number one, I'm a poor salesman, and number two, I only want clients that truly want someone else to fool with it. Co-managing is the worst.
  [email protected]806-672-7102
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Grant Woodward
Member since 2021 · 47 posts · 42 votes
1y
Quote from @Daniel McDonald:

Curious, you can consider this market research, but what's holding you back from hiring someone else to manage your STR(s)?

I know the obvious answer, too costly?

But what else? Do you just enjoy it? Maybe time isn't an issue? You don't think anyone could do it better?
All of the above for me personally, but I think it depends on individual investment goals (e.g., cash flow, tax advantages, passive vs active investing, etc.).
1 Reply
- Daniel McDonald
  OP
  Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes
  1y
  @Grant Woodward makes sense. What do you think, if anything, would be the thing you'd look for most then if you chose to hand over the reigns?
  0 Reply
- Grant Woodward
  Member since 2021 · 47 posts · 42 votes
  1y
  Quote from @Daniel McDonald:
  
  @Grant Woodward makes sense. What do you think, if anything, would be the thing you'd look for most then if you chose to hand over the reigns?
  
  If I handed over the reigns I'd do a deep dive into the other properties they are managing. I'd want to see a strong record of positive reviews and things like maintaining "guest favorite" status on Airbnb. I'd also want to see some financial performance data on other listings to ensure they are well equipped on the revenue management side of things. I would also probably want to talk to some other owners that they are working with. I'm not sure how much of this info they would be willing to share but if they are strong in all those areas and their other owner clients are happy I don't think it would be an issue.
  3 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
1y
I do what I enjoy. Money isn't a driving factor for me anymore.
3 Reply
Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
1y
some people need to control every situation and are not good prospects for management
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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
1y
Quote from @Daniel McDonald:

Curious, you can consider this market research, but what's holding you back from hiring someone else to manage your STR(s)?

I know the obvious answer, too costly?

But what else? Do you just enjoy it? Maybe time isn't an issue? You don't think anyone could do it better?

Oversaturation which drives the profits lower than a lot of long-term rentals.

Usually nonprofitable after you hire management.

When I was serious about doing it, the MANAGEMENT that was recommended to me wouldn’t even answer his phone.

To costly to furnish the property for test run.

HOAs have banned them in a lot of areas that I have owned properties.

That’s the short list. Any work around on those and we might do business. :-)

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- Daniel McDonald
  OP
  Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes
  1y
  Quote from @Joe S.:
  
  Quote from @Daniel McDonald:
  
  Curious, you can consider this market research, but what's holding you back from hiring someone else to manage your STR(s)?
  
  I know the obvious answer, too costly?
  
  But what else? Do you just enjoy it? Maybe time isn't an issue? You don't think anyone could do it better?
  
  Oversaturation which drives the profits lower than a lot of long-term rentals.
  
  Usually nonprofitable after you hire management.
  
  When I was serious about doing it, the MANAGEMENT that was recommended to me wouldn’t even answer his phone.
  
  To costly to furnish the property for test run.
  
  HOAs have banned them in a lot of areas that I have owned properties.
  
  That’s the short list. Any work around on those and we might do business. :-)
  
  I agree, it's a commitment. Running STRs or MTRs isn't a let's just test it out idea. If you don't go all in it's not going to work.
  
  That's really unfortunate about that company. I'm not in the San Antonio area, but I know someone there who would answer your calls if you ever wanted to revisit that conversation.
  1 Reply
- Joe S.Pro Member
  Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
  1y
  Quote from @Daniel McDonald:
  
  Quote from @Joe S.:
  
  Quote from @Daniel McDonald:
  
  Curious, you can consider this market research, but what's holding you back from hiring someone else to manage your STR(s)?
  
  I know the obvious answer, too costly?
  
  But what else? Do you just enjoy it? Maybe time isn't an issue? You don't think anyone could do it better?
  
  Oversaturation which drives the profits lower than a lot of long-term rentals.
  
  Usually nonprofitable after you hire management.
  
  When I was serious about doing it, the MANAGEMENT that was recommended to me wouldn’t even answer his phone.
  
  To costly to furnish the property for test run.
  
  HOAs have banned them in a lot of areas that I have owned properties.
  
  That’s the short list. Any work around on those and we might do business. :-)
  
  I agree, it's a commitment. Running STRs or MTRs isn't a let's just test it out idea. If you don't go all in it's not going to work.
  
  That's really unfortunate about that company. I'm not in the San Antonio area, but I know someone there who would answer your calls if you ever wanted to revisit that conversation.
  That's really unfortunate about that company. I'm not in the San Antonio area, but I know someone there who would answer your calls if you ever wanted to revisit that conversation.
  
  sure send over the contact. :-)
  0 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
1y
I never considered management. It would kill my profitability and I enjoy interacting with the guests. Making sure they have a great time.
1 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
1y
Also, not listed here, but using professional property management has the capacity to eliminate some of your tax benefits depending on how your setup is structured.
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