Strategies for Self-Managing STR's
Developer · San Diego, CA · Member since 2012 · 133 posts · 114 votes
I'd like to compile a resource of strategies on self-managing STR's to maximize profits. I'm doing a lot of research currently but it's all over the place and as expected, very regional. So more than looking for any specific service I'm wondering what self-managers are doing to automate services related to their properties. Things such as:
If anyone could expand on what works and doesn't for them in regards to managing STR's I feel we could build a pretty good resource.
Pedro,
It's no mystery, to maximize profits you'll need to run a tight budget and yes, it's all over the place. Everyone will want a piece of your pie and because it's a "new" industry, there are all kinds of "solutions" that a lot of people will "save you money" or "make you more money". My 18-month experience is this: Control as much as you can yourself, e.g., find your own cleaning crew (preferably an individual or small group that you can work closely with), find a local laundry service (don't pay your cleaning crew to wait around for towels/sheets to dry), electronic locks (keys suck). If you're just starting out as a STR owner, you want to make sure your photos rock, you're providing everything that you have in your own home and make sure your guests are aware of it, charge lower rates at first, then after you have some positive reviews, start to raise them slowly. The other misnomer is unless you own more than one property it's going to be hard to make a lot of money. I own two and it's a challenge, especially in the off-season. No one's going to make you more money, or save you more money than yourself! There's a lot more and you can PM me if you want to exchange contact info and converse directly. I'm happy to share and can expand on Advertising and Calendar Syncs.
Mike
Pedro,
It's no mystery, to maximize profits you'll need to run a tight budget and yes, it's all over the place. Everyone will want a piece of your pie and because it's a "new" industry, there are all kinds of "solutions" that a lot of people will "save you money" or "make you more money". My 18-month experience is this: Control as much as you can yourself, e.g., find your own cleaning crew (preferably an individual or small group that you can work closely with), find a local laundry service (don't pay your cleaning crew to wait around for towels/sheets to dry), electronic locks (keys suck). If you're just starting out as a STR owner, you want to make sure your photos rock, you're providing everything that you have in your own home and make sure your guests are aware of it, charge lower rates at first, then after you have some positive reviews, start to raise them slowly. The other misnomer is unless you own more than one property it's going to be hard to make a lot of money. I own two and it's a challenge, especially in the off-season. No one's going to make you more money, or save you more money than yourself! There's a lot more and you can PM me if you want to exchange contact info and converse directly. I'm happy to share and can expand on Advertising and Calendar Syncs.
Mike
I use Homeaway.com
I started off below market rates to create demand and increase my 5 star reviews.
I no stay packed and push my price to the higher end. I am having more people come back every year. I also advertise on Criaigslist to advertise my Homeaway listing.
I may start an AirBNB listing but haven't previously because they have catered to room sharing more so in the past. They now rent the whole house. They just aren't very popular in my area.
I have a private maid service that cleans the house washes the sheets and remakes the beds. I have high capacity washer and dryer to help speed up the laundry. There is a cleaning fee included that pays for the house cleaning.
I use a lock box for the key.
I have wifi thermostats so I can save on the electric bill when no one is there. I can tell when people arrive because they adjust the thermostats once they arrive.
I will be installing a outdoor security camera in the near future. I have it setup and tested on my computer desk at my house now. It will record on motion and send me a picture of the motion via email. This will allow me to know if there is any fraudulent activity.
I require renters to send me a copy of their drivers license and they pay a $300 security deposit.
I still mow the grass myself even though house is an hour away because I like to check on things but I could easily outsource this and rarely have to visit property.
Homeaway takes the payments, maintains a calendar and website with pictures and details of the property.
I wanted to offset the ownership of a lake house, then very quickly it started paying for itself. Now I am even making money. I am being paid to own a lake house, doesn't get better!
thanks to both of you.
John, what advice could you offer regarding setting up your maid service? How did you find them?
Also, regarding your lock box, is this a combo lock box with a key inside? Do you change the code after check out? Who makes sure the key is there for the next guest, etc? Thanks again.
I was lucky in that my beach house was already set up with a maid, a VRBO account with many great reviews, furnished, etc. I have a remote key but when the battery dies then what?? I have a lock box as a back up. I have multiple sets of sheets an the check out procedures have most of the cleaning done by the renters. Makes it easy for my cleaning crew.
So VRBO does my calendar, and mentions additional amenities provided as well.
You can get an idea by looking on line and looking at properties to see what they are charging, how many days they are vacant and see if you can calculate how much you need during the off period.
I make decent money just off of one property, it pays for itself and then some.
I am putting together some systems and teams to bring a few furnished rentals online, but out-of-state. In my first locale I've got a handyman (will find another 1 or 2, just in case), a PM who can run errands for me on a per-visit basis (I am not paying a PM in the normal sense though), a cleaning company and few other things. As mentioned above, an electronic door lock with WiFi will allow me to control access, and I'll have a lockbox in the garage that guests can access. I'll probably have some ADT signs thrown up but I'm not getting an alarm.This probably won't apply to most people but I'm hiring a home stager to furnish the property for me. I'll buy the furniture and pay her by the hour to go in and set up, then a photographer to take some really good photos.
I'm torn on allowing pets. Since I can't be there to closely inspect things (such as leftover pet odors, bite marks in furniture) I'd love to stay away from it but on the other hand I don't want to lose too many renters.
For marketing I will start with CHBO and maybe one or two other sites. There are a few local lead sites that I've spoken with but haven't decided yet. My current stage is market research, building a team and cold-calling as many local people as I can to get input. Since I am targeting the corporate crowd (and relocators), I've talked to some of the major employers in the area to understand what their needs are. Now if I can only find the right property!
duplicate post. Sorry.
If anyone happens to run across this thread again I'll detail what I've done:
The homes I built are primarily on AirBnB. I've automated as much as I can and am still looking for automation solutions for a couple of things. Below are the tools I've used as well as others I've looked into:
Message Automation
The tool I'm using is http://yourporter.com
I currently have it set up to automate the following via AirBnB message and email:
It allows you to insert fields into the message such as guest's names and check-in dates that it populates into the message for you so it doesn't seem like a robot sent the message.
yourporter can automate messages via AirBnB, email and SMS
Cost is $5/mo/listing
I'm also using http://avivaIQ.com which is currently in beta and FREE and also does message automation but only through AirBnB's messenger. It sends a message to my guests inviting them to stay an extra night if a vacancy exists immediately after their checkout. yourporter has yet to implement this. AvivaIQ works through AirBnB messaging only.
I also looked into http://guesty.com which is much more than a message automation tool and has some robust property management features it seems but costs between 3%-5% of your booking. I'm very wary of tools that take a percentage based cut. They don't seem to want to pay me if I have a vacancy, assuming no risk, so I don't know why I'd reward them for the upside. Guesty is a PMS system that connects to multiple booking channels
Pricing Automation
I'm currently using http://outswitch.com. It has a lot of features for pricing automation the best of which is a matrix that sets pricing up or down based on occupancy rates and immediacy of vacancies.
It also automates my minimum night stay requirements based on how far away reservations are made. For instance, between 60-90 days it requires a 4 day minimum, drops to 3 days between 30-60 and 2 from 0-30. It's smart enough to recognize gaps made by these minimums and will allow bookings that don't adhere to the minimum stay requirements for gaps.
I manually set holidays and special events in outswitch and apply a multiplier to the base rental rate for that period of time.
Outswitch can connect to multiple booking channels but HomeAway/VRBO connection can only be done through RentalsUnited, a booking channel aggregator that I'm currently demo'ing but don't have enough experience to comment on yet.
Cost for outswitch starts at $11/mo/listing but there are breakpoints. I'm currently paying $63/mo for 7 listings.
I also tried out http://beyondpricing.com which has a really nice interface and seems to have a good finger on the pulse of local events. It has an elegant calendar view that shows you exactly what it's doing to your price for any given day. Its cost is 1% of your bookings and I ultimately decided to stop using it because of what I wrote above about percentage based services.
I never tried out http://usewheelhouse.com because of the percentage pricing structure.
Guidebook
I've been using http://coral.life for a nice guidebook that I send along with my check-in message via yourporter. It works nicely on both desktop and mobile and for whatever reason it's free. I don't know if it will stay free forever. Its interface however is painfully slow in setting up the guidebooks but at that price, who can complain?
The other service out there I know of for guidebook is http://hostfully.com which seems like a nice service but I didn't spend much time on it as the price seems kind of steep for what it is to me, especially with coral doing it for free.
Task Automation
I'm still looking for a solution to automatically email my cleaners a list of check outs over a the next two week period, weekly. Yourporter has told me they're working on something like that.
Also, I wound up finding my cleaning service in a small hotel down the street from us. They've been a life saver. They provide our linens and wash them at their facilities rather than using our machines. I set up Amazon subscription items to be delivered to the hotel and they restock our supplies with them. That arrangement turned out better than I could have imagined.
Automated Entry/Keypads
I wound up going with Kwikset 910 locks with Z-Wave. They've had their ups and downs. The bigger issue I think is the Z-Wave protocol which seems to be clunky and wrought with problems.
I got a VERA Edge Z-Wave hub to control 5 locks. Its interface is terrible and its Android app is completely useless. This thing may be the weak point in the system. I'm considering switching the hub to something else but the thought of re-programming the 6 locks makes me want to gouge out my eyes.
Currently I add the guest's last 4 digits to the locks as a code remotely a few days before their check-ins. That process is pretty quick. I do have the ability to assign a working window to the codes but that process is slow in the Vera controller. I don't know how it is with other hubs. I'm considering just assigning a single code I could maybe change monthly remotely instead and use that same code for the whole month so it's not nearly as laborious adding every guest's phone number to the locks.
There's an alarm system company: Vivint that's been targeting AirBnB hosts in my area. They install an alarm system for something between $40-$50/mo with a controller that doubles as a Z-Wave hub. They have integration with AirBnB that automatically adds the guest's phone number as a code. It's pretty tempting but so far the price is just a bit much for my needs.
Calendar Syncing
I wound up just using the native tools within the rental platforms so far. I rent out the downstairs separate from the upstairs as well as the whole unit in my homes. It's not really that complicated:
Whole House: A
Downstairs: B
Upstairs: C
A has B&C calendars synced
B has A calendar synced (not C)
C has A calendar synced (not B)
When a reservation is made on A it blocks the dates on both B and C
When a reservation is made on B it blocks the dates on A which in turn block them on C
When a reservation is made on C it blocks the dates on A which in turn block them on C
If you sync B's calendar to C and vice versa, a reservation on B would block C which is not what you'd want
Thank you for coming back and sharing what you decided to use!
Sincerely,
Shelly
@Account Closed Great to see the tools you're using. Here are mine for each - just my two cents:
Hope this helps and best of luck!
Wow! These are all good ideas!
I use Airbnb for the upstairs of my home. I'm always at the home so I'm able to get everything cleaned and washed as soon as a guest leaves. I also have a cleaner that comes through to clean a couple of Sundays out of the month.
As far as locks go I use the Schlage Sense locks which are controlled via bluetooth. We are interested in the remote locks that are integrated with the Airbnb platform and Wi-Fi. You can change the codes on these anywhere in the world.
I have set up several saved messages on Airbnb for inquirers and instant bookers. I also use Beyond Pricing for my pricing tool that updates my listing automatically. I set up a minimum price so I have control over how low they can price the room.
@Account Closed's threads as he has his business almost completely automated which gives him time to travel the world. Goals! :)
I have 22 furnished houses/apartments in this town. 82 beds. Refinery contractors are 98% are the people I rent to.
About half the time I will know up to 48 hours in advance if someone wants to rent a house. I leave the front door unlocked and keys on the table. Lights on, tv on, heat or a.c. on.
The other half of the time I get a call from someone who just came into town or I give them a drug screen in the morning to get into the refinery. We go to the houses together and I unlock the door and give them a tour.
Cleaning: my wife quit her day job to clean houses whenever they are empty.
Laundry: I do all the sheets, blankets, towels, and anything else in the washer/dryer of the house that was vacated. Rule of thumb: For every bed there will be 3 loads of laundry. I generally do 2-3 loads in the house that was vacated, then take the rest to any other of the 22 vacant houses. My 3 biggest houses have 2 washers and 2-3 dryers in them. So I can get everything washed and dried in 3-4 hours.
Advertising: Craigslist, 3 billboards by the refinery, calendars of scantily clad women I give to every renter, pens with my ad on it to everyone I give a drug screen too. I also send cover letters and flyers to every welding school, instrumentation school, and refinery in Kansas, Oklahoma, Texas, Louisiana, Arkansas, Missouri, Mississippi, Illinois, Indiana, Tennessee, Ohio, and Alabama.
Amenities: Washer/dryer and laundry detergent, kitchen with all appliances and utensils, cable tv in every room, wifi, sheets blankets and towels, soap, t.p. paper towels, outdoor grill. Bigger houses will have a streaming bluray and HDTV, outdoor entertainment like a fire ring or horse shoe pit, indoor entertainment like a poker table electronic darts free weights kegorator. Everyone get concierge service...check cashing, flat tires fixed, trip to and from a dentist, loan-a-tool, jump start a dead battery, etc. Living rooms and kitchens are filled with guy related artwork. Bedrooms have tasteful artwork of naked women.
@Account Closed,
Congrats on getting your biz going. I haven't got much, if anything, from my CHBO subscription, unfortunately, but get tons of business travelers from Airbnb. IMHO, there is NO reason to not be on Airbnb, unless you have a goldmine site that keeps you booked up, and you don't have enough time to handle all the leads from Airbnb (if you have too many leads, then you have a different "problem" of your prices not being high enough typically.)
@J. Martin I looked into Guesty but wound up finding other flat rate services to replace what I most wanted out of Guesty. Namely yourporter for the message automation. I still think 3% sounds steep.
@J. Martin I looked into Guesty but wound up finding other flat rate services to replace what I most wanted out of Guesty. Namely yourporter for the message automation. I still think 3% sounds steep.
Pedro,
I agree 3% of revenue is steep, but hadn't found a single (one) service that handled the things I wanted.
I took a look through the yourporter website, and it looks like they just straight up ripped off Guesty - but nothing proprietary about that. So I will be looking into yourporter more, and try to squeeze Guesty down on pricing based on their service..
Thanks for the tip! :)
Has anyone tried MyVr.com? Not associated at all, just know someone who is using and likes it.
AirBnB has now added the ability to "Link" calendars. This is different than Syncing or Synchronizing them. It allows you to add subordinate listings under a main listing and is really easy to use. In my case I used it to link the upstairs and downstairs portions of my listings to the main house. When either subordinate listing gets booked it blocks the main listing but not the other subordinate listing. This is a great addition.
https://www.airbnb.com/help/article/1864/how-do-i-link-airbnb-calendars-for-multiple-listings
Just buy a good property and get your hands dirty. You'll learn your lessons as you go. @Avery Carl can find you something in the 200k range that will gross 3k per month. Be patient though she's very busy.
I've been using Amazon subscriptions for common items I need to replenish within my rentals for several months now and it's mostly been working well. I've coupled it with Amazon Key in order for the Amazon deliveries to be delivered directly inside a garage I dedicated for storage. I basically estimate how often I'll need the item and adjust it from there. In instances where there's an immediate need for something I'm not also using Instacart to quickly get items to my cleaners or my guests. For specialized items I've used Postmates to deliver things so I don't have to make the trek such as a mini-fridge, coffee-maker and hair dryer on separate occasions - all from Target.
Yourporter, a messaging automations service I detailed above now has a permanent link for my cleaners with a 15 day outlook of checkouts. I now also automate an email that gets sent to my cleaners at 7AM daily with the following day's checkouts so there are no surprises. This update has made it immensely more valuable as far as I'm concerned. Creating the cleaner's schedule weekly was one of my larger annoyances.
Thank you for sharing your "systems" and follow-up on their implementation.
Great value from Pedro Tavares and other contributors!
Regards,
Rui
I operate two furnished rentals in the Bay Area! I am planning on joining forces with a cleaning service called Maidthis, which allows you to auto-sync your airbnb calendar with their cleaning service. It will automatically schedule cleanings, as well as cancel when needed. I currently use Smartbnb for messaging automation and leaving reviews, and I have found it to be wildly effective. They price based on listing, starting at $18/month for two listings, with a $9 or so increment for each property.
Thanks for the tips @Pedro
@Account Closed undefined on the Amazon subscription! :) that was huge. Curious to know how your business is chugging along now?