Advise for a STR newbie

17 Replies

Hi Anyone has STR in Navarre Florida or knows about this area could give me some advise. I found a nice beach house that I contemplate to move forward as the current occupancy rate doesn’t provide the positive cash flow but it is a very nice property. It has just recently renting out and it seems to produce more income compare to last year. However by adding up the number it still provides a negative profit. Would the number improve if I increase the bed to fit more sleep? Or should I ReDuce the Rental fee Eliminate the PM? Is it manageable if I live out of state? Do you know the occupancy rate currently for Navarre? The reason I like Navarre is that It’s not as commercial and more affordable Than Other parT Of Florida Any adviSee For This NeWVie IS GReAtlt Appreciated !

Answer a few questions first.  What is your level of education and your current and previous modes of employment?

Generally adding more beads can increase the daily rent amount. This allows more than one family to vacation together and split the costs.

VRBO and Airbnb make it easy to remote manage and eliminate the PM cost which can make the difference between making or losing money. 

It is critical to have a dependable support staff, namely the cleaning staff.

@Jenny Bui to me it would be difficult to remotely manage a STR. Reverend @Lucas Carl would disagree.  I have about 2 dozen in a 7 minute radius from my house.  My wife does the cleaning, I do the repairs.  We both show the houses.  I find the renters.  My average stay is about 3-4 weeks, but it's not unusual to have some renters stay 6 months or longer.  Would I rent a place out overnight or for the weekend?  No way.  The work involved to clean it back up is not worth the small amount of money we would make.  My minimum stay is 7 days, payable when moving in.  If people leave before the 7 days are up, I give them credit for the next time they rent from me.  

With all that in mind, I suggest you find some sort of renters for your property that will be there at least a week.  Preferably 1-3 months.  That way your cleaning and restocking expenses will be minimized. Plus you'll have cash flow for longer than just a few days. Who will be there 1-3 months?  Travelling workers such as nurses, professors, or people doing skilled labor.  98% of my renters are travelling contractors.  They are the people you see working on the large upright structures of steel at a petrochemical refinery and associated nitrogen fertilizer plant.

@Jenny Bui Hello! If you can’t get your monthly number close to 2% of PP (at least 1.5%) with self management don’t bother. Self managing a VR is not for everyone. That being said I do it with 5 of them that are far away and some might say I have zero customer service skills 

@Jenny Bui I live and work in this area. I actually lived in Navarre beach for a year. I currently live about 5 minutes away from it. Feel free to message me I can probably tell you what you need to know about the area!
@Paul Sandhu . Thank you so much for your advise! How do I go about to advertise to get those traveled workers? I’m not sure if Navarre has quite big of hospital jobs for nurses and such but of course I’ll reach out of some local investors to ask for some inputs.

How do I advertise?  I distribute calendars of scantily clad women (by mail or in person) to potential renters.  Most of the time it's a failure.  When it's not a failure, it's a grand slam home run.  My definition of a grand slam home run is renting to at least 25 people from the same company at the same time.  I also distribute metal pens with my advertising on it.  Every day you'll see a fresh ad of mine on Craigslist.  I have a billboard in the parking lot where potential renters must park.  I have a magnetic sign on my truck, my dumptruck, my maintenance guys truck and my daughter in laws truck.  I have an 8x4 foot advertising banner I put on the side of the bed of my dumptruck and park it in strategic locations.  I put business cards and flyers on the bulletin boards of local restaurants and convenience stores.

@Jenny Bui I lived in Southern CAlifornia for the past 15 years and self managed properties here in Pigeon Forge and also in St George UT. You have to find what you feel comfortable with. Because to be honest that is what it is all about. Everyone can give you advice that has worked for them but you need to find what works for you. You may not feel comfortable talking to contractors on the phone or messaging and paying cleaners online. I LOVE getting the airbnb questions so that I can connect with my guests. I love that they text me and Say Rhonda we had the best time. My Utah properties I knew the tenants and I used the method of making them responsible for the property as their job which worked really well. They stayed on all the deferred maintenance issues. Anyway.. .Hope this helps because at the end of the day we all want to make MONEY with the least amount of effort. I currently LOVE what I do and Love to share. 

@Lucas Carl what is the PP percentage? Is that the booking rate of people that view your property? Or is that talking about the rental income compared to the home value?

Originally posted by @Wes Short :

@Lucas Carl what is the PP percentage? Is that the booking rate of people that view your property? Or is that talking about the rental income compared to the home value?

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