Property Manager · Reno, NV · Member since 2019 · 4 posts · 1 vote
Hi there! I am new to short-term rental property management in RenoTahoe and looking to acquire new homes to manage. My Partner and I currently manage 5 properties (through prior connections) and looking to manage 10 in the next year. We previously worked for a property management software so are experts in the industry in terms of management, however, could always use tips and tricks for marketing. We have a website and social media accounts. Trying to stray away from advertising too much up front because of the cost. Thanks! :)
Rental Property Investor · San Francisco, CA · Member since 2016 · 227 posts · 365 votes
6y
@Elise Leben - It sounds like you have strong PM experience. I'm sure once you take on managing a few STRs, you will have more demand for your services than you can handle! I manage 25 furnished rental units in the San Francisco Bay Area and can finally pick and choose which units I take and which ones I pass on. My business is a combination of "rental arbitrage" (medium risk, variable reward) and straight-up property care (low risk, medium reward).
In terms of marketing, I recommend that you approach landlords through craigslist and see if they want to rent their home to you OR let you manage it for them as a furnished rental business partner/co-host. I have had great results approaching landlords from CL and renting their places from them. They have then referred me to other landlords. Some want to rent their homes directly to me, and others are happy to have me care for/co-host the properties.
My most profitable properties are 2-3 unit "rental arbitrage" homes where I pay the rent, buy the furniture, market the property and assume all the risk to keep the property rented. My occupancy rates are 90-95% since I keep pricing fairly low. The biggest benefit to the landlord is free property care and maintenance since they receive full market rent from me.
The straight-up property management deals are also a win-win, because the landlord gets to be a business partner and benefit from higher revenues when occupancy and rental rates are higher. I also benefit since I get a straight 10-15% of the revenues without bearing the risk of needing to cover the rent every month.
Please put up another post in 6 months--if you keep beating the bushes, you will be killing it by summer!
Property Manager · Reno, NV · Member since 2019 · 4 posts · 1 vote
6y
@Lucas Carl Hi Lucas! I appreciate your input, however, Vacasa and TurnKey both do not operate in Reno. They do in areas of Lake Tahoe- however they are more pricey than what my partner and I charge for full management. Evolve also is not full service property management- they handle everything up to the booking taking place. While I’m sure their marketing is successful, handling guest problems/cleaners and maintenance issues is not something they do- they refer you to local vendors to partner with. They also advertise they take 10%, but fail to make it known they charge a 2.5% Stripe fee. Since my partner and I charge 15-18% for full service property management (pre, during, post stay- as well as cleaners and maintenance) our model allows Owners to be completely hands off if they wish! Also, based on experience selling property management software to traditional property managers themselves who took over management of properties previously managed by larger 3rd party companies, I feel confident that being located in Reno/Tahoe and a local, we can provide best recommendations and on the ground services.
Rental Property Investor · San Francisco, CA · Member since 2016 · 227 posts · 365 votes
6y
@Elise Leben - It sounds like you have strong PM experience. I'm sure once you take on managing a few STRs, you will have more demand for your services than you can handle! I manage 25 furnished rental units in the San Francisco Bay Area and can finally pick and choose which units I take and which ones I pass on. My business is a combination of "rental arbitrage" (medium risk, variable reward) and straight-up property care (low risk, medium reward).
In terms of marketing, I recommend that you approach landlords through craigslist and see if they want to rent their home to you OR let you manage it for them as a furnished rental business partner/co-host. I have had great results approaching landlords from CL and renting their places from them. They have then referred me to other landlords. Some want to rent their homes directly to me, and others are happy to have me care for/co-host the properties.
My most profitable properties are 2-3 unit "rental arbitrage" homes where I pay the rent, buy the furniture, market the property and assume all the risk to keep the property rented. My occupancy rates are 90-95% since I keep pricing fairly low. The biggest benefit to the landlord is free property care and maintenance since they receive full market rent from me.
The straight-up property management deals are also a win-win, because the landlord gets to be a business partner and benefit from higher revenues when occupancy and rental rates are higher. I also benefit since I get a straight 10-15% of the revenues without bearing the risk of needing to cover the rent every month.
Please put up another post in 6 months--if you keep beating the bushes, you will be killing it by summer!
Real Estate Agent · Charleston, SC · Member since 2018 · 37 posts · 29 votes
6y
If I ran a PM company for STR's, my strategy would be to back door getting business through an awesome cleaning service. By far the #1 priority and need for those that run STR's is a quality cleaning service that is reliable. By way of cleaning, you can start offering a la carte menu of services like supplies (paper towels, toilet paper, soaps...), then amenities like flowers, coffee, snacks, bottled water, staging (light PM tasks), and the next thing you know you're managing their listing and bookings.
I don't know why this isn't a more popular business idea, but I guarantee that if you took to social media and some online advertising saying you have a cleaning service geared specifically for STR's, you'd get a lot of attention. I know this isn't exactly what you were looking for, but hey, you're going to need a cleaning service for your PM company anyway, so what the heck : )
If I ran a PM company for STR's, my strategy would be to back door getting business through an awesome cleaning service. By far the #1 priority and need for those that run STR's is a quality cleaning service that is reliable. By way of cleaning, you can start offering a la carte menu of services like supplies (paper towels, toilet paper, soaps...), then amenities like flowers, coffee, snacks, bottled water, staging (light PM tasks), and the next thing you know you're managing their listing and bookings.
I don't know why this isn't a more popular business idea, but I guarantee that if you took to social media and some online advertising saying you have a cleaning service geared specifically for STR's, you'd get a lot of attention. I know this isn't exactly what you were looking for, but hey, you're going to need a cleaning service for your PM company anyway, so what the heck : )
Thats a great idea. If you are going to commit to it go for it.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
6y
@Elise Leben post a link to the 5 properties you manage currently, so we can see what types of properties you are good at managing, and get a feel for your operations? I know a number of vacation rental owners in Tahoe. Reno is a tougher market, given the competition from all of the hotels/casinos, unless you have a niche product or angle.
Property Manager · Reno, NV · Member since 2019 · 4 posts · 1 vote
6y
@John D. Hi John! Here is a link to one of my props I manage- you can see my other listings on there! https://abnb.me/ISJltz0qx1 . Would be great to get in touch with more investors in the area and see if they’re looking for reliable management for a decent percent! I hope Bigger Pockets lets me post that link- they’ve sensorsd my website before: Nomadik Properties