Chicago, IL · Member since 2018 · 7 posts · 4 votes
Hi all-
Getting close to closing on a prop about 90 miles from where I live. My first STR, and plan on splitting between self use and renting to help offset costs. We've sent out a cohost request and most hosts are asking ~22%, which is higher than what ABB suggests - but seems to be in line with what traditional local prop management places charge.
My question: Long term obviously it makes sense to learn to do this all myself and be self sufficient. Should I use a co-host just to get off the ground on a good foot and rack up some solid 5 star ratings, then transition to self sufficient down the road? Or cut to the chase and try to get my team set from day one and learn on the fly? My biggest concern is just having boots on the ground in case something goes wrong. I have leads on a cleaner. Who else do I need to confidently manage remotely?
Someone to stock supplies, an appliance repair person, heating/air conditioning repair, plumber, lawn care person, carpenter, salesman, and occasionally an electrician. If you do all that yourself, I call it 3M talent. Mechanic, Magician and Mindreader.
@Nick Kraska - It really depends on how much you want to get involved in building a team/network, minor maintenance while you're there, etc. I think @Paul Sandhu captured the list of skills you need to find, and that you can probably find someone with "3M Talent" (or at least "2M Talent" to cover several areas.) I love it! You can also make your place more trouble-free by fixing things up front that are most likely to break (new light fixtures, light bulbs, door locks, etc.). And you can "automate" the place with things like a smart thermostat, combo door locks (no lockouts!), clear laminated instructions inside the unit, etc.
Also very important to consider scale--if you are planning to have several STR's in the same area, then it's wise for you to invest time now to build your team there and manage the place without a co-host. But if this is a one-off, it's probably better to pay a local co-host who already has the local connections.
Talk to @J. Martin and Julie McCoy--they are both very good at remote STR management.
Thanks guys! I think in a perfect world I have the connections and can scale them up or down as needed. @Paul Sandhu your list definitely helps to at least start calling some people, or ask some locals for some good reccos. The co-host route is the easier route, but then you pay for it obviously! @Ethan Cooke love the suggestions about bulbs/locks/etc. And I suppose the likelihood of us getting more STRs in the area is directly tied to how good/bad our experience with this one is!
@Nick Kraska - It really depends on how much you want to get involved in building a team/network, minor maintenance while you're there, etc. I think @Paul Sandhu captured the list of skills you need to find, and that you can probably find someone with "3M Talent" (or at least "2M Talent" to cover several areas.) I love it! You can also make your place more trouble-free by fixing things up front that are most likely to break (new light fixtures, light bulbs, door locks, etc.). And you can "automate" the place with things like a smart thermostat, combo door locks (no lockouts!), clear laminated instructions inside the unit, etc.
Also very important to consider scale--if you are planning to have several STR's in the same area, then it's wise for you to invest time now to build your team there and manage the place without a co-host. But if this is a one-off, it's probably better to pay a local co-host who already has the local connections.
Talk to @J. Martin and Julie McCoy--they are both very good at remote STR management.
Good luck!
I think once you have 10 or more, it's probably smart to have your own people.
But I also like it because my team is there, available, to do other things for me.
With that said, it's best to START it like you're going to outsource everything, so it will be easier once you decide to make that transition. May consider software until then. Guesty is 2% of revenue now instead of 3%...
As an STR/MTR host and co-host, I recommend using a co-host initially to help manage tasks locally, especially if you're remote. It provides a solid foundation and ensures smooth operations.
Additionally, you might want to explore marketing to corporate and insurance partners for mid-term rentals. This strategy can provide 2-3x the long-term rent with steady, less stressful income and no turnover.
Good luck with your first STR! Feel free to reach out if you need advice.