Questions About Being A PM For Vacation Rentals

[Corina Eufinger]

I'm hoping some active PMs who manage vacation rentals for investors can shed some light on this.  

I have the opportunity to manage vacation rentals as part of my PM company in Wisconsin.  The part I can't quite seem to figure out is how the sales and room taxes work.  Does my company set up a sales tax account with the Department of Revenue and collect and hold the taxes due quarterly? Do we hold it for the owner and then pay it towards a sales tax account they have set up with the DOR?

Any software recommendations for vacation rentals?

Any pieces of advice in general about doing this?  I've done a lot of research on amenities, advertising, concierge services, etc but I know that doesn't mean I know it all. LOL!

[Ryan Foster]

@Corina Eufinger It depends on the state.   AirBNB and VRBO have agreements now with most states to collect the taxes.  You still have to have a TPT license but you file as null (at least in AZ)

Here is the AirBNB article for WI - https://www.airbnb.com/help/article/2337/occupancy-tax-collection-and-remittance-by-airbnb-in-wisconsin

VRBO - https://help.vrbo.com/articles/What-lodging-taxes-do-you-collect-for-Wisconsin

 You can also use a service like Avalera - https://www.avalara.com/mylodgetax/en/index.html

As for software - for one STR - just using the tools in VRBO/AirBNB is sufficient.

Re: Advice:  If you have done PM then you have a good start.  A little more coddling, quicker turn-around on stays.  Make sure you hav a good responsive team - cleaning, maint., etc.  Communication is key.

Lastly, in the end, it is all about reviews.  Make sure the guest has a good experince and you will have no problem.  Be sure to ask for them.  Good luck!

[Cheryl Vargas]

I’m hoping to get some insight on what do PMs charge to manage STRs. What is your fee?

Thanks!

[Ken Latchers]

Managing STRs depends on the region, the demand, the services you offer. PMS can bill for maintenance calls, etc

I have seen people claiming 15-20%, 30%, or more. 

I would call up a few in your area and ask their rates and services provided. 

[Paul Sandhu]

It helps to have 3M talent.  Mechanic, Magician, Mindreader.