STR Capital Short term rental in Columbus Ohio

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STR Capital Short term rental in Columbus Ohio

Curt Bixel
Rental Property Investor · Columbus OH (columbus, oh) · Member since 2020 · 143 posts · 71 votes

I listed one of my Duplexes on Zillow as being for rent and available. Shortly after that, I was contacted by a representative from STR Capital, a property management company in Columbus, Ohio. She sent the following message:

"Hello! My name is Chloe, I work with STR Capital, have you considered listing your units as a short term/corporate rental? If you are free I would like to come see the property and tell you more about how our company can help fill vacancy and increase revenue."

I figured I would ask a bit more about what they have to offer, and she replied:

"I pulled your property on our pricing algorithm and it looks like it would make an annual revenue of $26,157 with an average daily rate of $154, and an occupancy rate of 47%. Our system does lean on the more conservative side when it comes to numbers, and we have the capability to adjust daily/monthly rates when it seems fit to do so"

Currently, the gross rent for one side of the property is about $18,000 per year.  The idea that I could raise that to $26,000 seems absolutely amazing.  Even if they charged 20% for their services, this is a huge leap in profit.  Even if they charged 30%, it would be like getting property management services for free.  

Am I missing something here?  It seems to easy.

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
6y

Several thoughts here:

1. Your duplex very well could yield more income as a STR than a LTR.

2.  You probably don't need the management company to accomplish that.

3.  It is true, however, that a good property management co. can often "net out yield" what you can on your own - my experiences have proven it.

4. It is highly unlikely that local zoning allows your duplex to be utilized as a STR. Sorry to be a wet blanket. The management co. doesn't care about this because they aren't the ones on the hook for citations and the flack from your neighbors. You are.

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    Several thoughts here:

    1. Your duplex very well could yield more income as a STR than a LTR.

    2.  You probably don't need the management company to accomplish that.

    3.  It is true, however, that a good property management co. can often "net out yield" what you can on your own - my experiences have proven it.

    4. It is highly unlikely that local zoning allows your duplex to be utilized as a STR. Sorry to be a wet blanket. The management co. doesn't care about this because they aren't the ones on the hook for citations and the flack from your neighbors. You are.

    [email protected]806-672-7102
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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    Is the 26k before or after they take their cut? If its before I would pass.

    1Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    6y
    Don't forget as an STR, you'll have to furnish it, and supply linens, kitchen stuff, etc.  Along with paying all of the utilities, internet, cable, yard upkeep, and snow removal.  
    1Reply
  • Mark Miles
    Rental Property Investor · Philadelphia, PA · Member since 2016 · 543 posts · 716 votes
    6y
    Originally posted by @Curt Bixel:

    I listed one of my Duplexes on Zillow as being for rent and available. Shortly after that, I was contacted by a representative from STR Capital, a property management company in Columbus, Ohio. She sent the following message:

    "Hello! My name is Chloe, I work with STR Capital, have you considered listing your units as a short term/corporate rental? If you are free I would like to come see the property and tell you more about how our company can help fill vacancy and increase revenue."

    I figured I would ask a bit more about what they have to offer, and she replied:

    "I pulled your property on our pricing algorithm and it looks like it would make an annual revenue of $26,157 with an average daily rate of $154, and an occupancy rate of 47%. Our system does lean on the more conservative side when it comes to numbers, and we have the capability to adjust daily/monthly rates when it seems fit to do so"

    Currently, the gross rent for one side of the property is about $18,000 per year.  The idea that I could raise that to $26,000 seems absolutely amazing.  Even if they charged 20% for their services, this is a huge leap in profit.  Even if they charged 30%, it would be like getting property management services for free.  

    Am I missing something here?  It seems to easy.





    Glad to see they have whet your appetite for STR! The proper play here is to sell the duplex and take that money to buy something that will really earn you a lot of STR money down south. Search around to find my other posts, but if $26,000 in a YEAR seems like a lot of money, you ain't seen nothin yet.

    As I've said 100 times on here, if you pick the right spot down south, a 3+ BR house can bring in anywhere from $100k-$250k per year. You can only invest every dollar once. Sell that duplex & buy an STR down south. When you own a few houses that each earn $26k in a MONTH not a year (like I do), you'll thank me!

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    6y
    $800 plus a night. Woot!
    2Reply
  • Curt Bixel
    OP
    Rental Property Investor · Columbus OH (columbus, oh) · Member since 2020 · 143 posts · 71 votes
    6y
    Originally posted by @Mark Miles:

    Glad to see they have whet your appetite for STR! The proper play here is to sell the duplex and take that money to buy something that will really earn you a lot of STR money down south. Search around to find my other posts, but if $26,000 in a YEAR seems like a lot of money, you ain't seen nothin yet.

    As I've said 100 times on here, if you pick the right spot down south, a 3+ BR house can bring in anywhere from $100k-$250k per year. You can only invest every dollar once. Sell that duplex & buy an STR down south. When you own a few houses that each earn $26k in a MONTH not a year (like I do), you'll thank me!

    Mark,  that sounds pretty interesting.  When you say down south, are you talking about a point south of my duplex that is closer to the center of Columbus?  It actually sounds more like you mean somewhere in the southern part of the country.  In any case, making $100k - $250k per year seems quite nice.  Can you tell me more?  My experience tells me that if anything were super easy, everyone else would have piled on already and taken the easy profit out of the venture.  

    Nevertheless, I would love to hear more.  :)

    1Reply
  • Benjamin Vail
    Real Estate Broker · Columbus, OH · Member since 2016 · 181 posts · 244 votes
    6y

    @Curt Bixel You definitely should consider doing short term rentals in Columbus! I run Housepitality, a licensed brokerage that specializes in short term rental management. We operate about 65 short term rentals in Columbus, and they are very profitable compared to long-term rentals. Just FYI, there is a website called AirDNA.com that is basically Zillow for short term rentals. My friends at STR capital simply typed in your address and those are the numbers that the algorithm will spit out.

    Choosing to have a management company handle your rental will make it a hands-off and profitable venture on your part, and IS something you should consider with the property you currently own. You should probably not listen to the naysayers above (@Mark Miles). I brought in over $1.2 million on Airbnb for my clients in 2019 in Columbus Ohio. It IS a great market for short term rentals. When you mix the appreciation Columbus is seeing, along with the STR cash-flow, I have some properties that I sold this year, and made a combined ROI of 100%+ annually.

    Things to consider are the cost of furniture, the cost of utilities, and the overall performance of the manager you choose. I would be happy to connect if you have any questions!

    2Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    6y

    Hey @Benjamin Vail, just curious, what do you charge for property management of the STR's and what does the client receive?

    Personally I feel that self management is the way to go. The costs of a property manager for our vacation rental would keep us far in the red with no real benefit.

    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    This might be possible, where is the duplex located in Columbus? @Curt Bixel

    1Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    @Curt Bixel

    I operate a short term rental hosting company that handles dozens of rental units in Columbus and we’ve seen great performance across our clients. Your operating expenses will be closer to 50% of gross short term rental income if you use a management company. Also I advise you USE a management company and not self operate as it’s a lot of work and details to iron out.

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  • Curt Bixel
    OP
    Rental Property Investor · Columbus OH (columbus, oh) · Member since 2020 · 143 posts · 71 votes
    6y
    Originally posted by @Zeke Liston:

    This might be possible, where is the duplex located in Columbus? @Curt Bixel

    The duplex is near the corner of Calumet and Tibet Road in Clintonville.  

    https://goo.gl/maps/ube9oS6Nca...

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Curt Bixel:
    Originally posted by @Zeke Liston:

    This might be possible, where is the duplex located in Columbus? @Curt Bixel

    The duplex is near the corner of Calumet and Tibet Road in Clintonville.  

    https://goo.gl/maps/ube9oS6Nca...

     Yes this is possible. @Benjamin Vail manages my Airbnb. I have one unit in my 4 unit and I am trying to convert them to all airbnbs. I do think it will level off as more and more people enter the market but not for a while.

    My Airbnb is about 4 blocks south of where your double is

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  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    I think that would be a good location to Airbnb, I would reach out to @Benjamin Vail

    0Reply
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