Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
Is there any hybrid models for short term rentals? I have serval single-family houses that would be a great location for short term rentals. The challenges if I paid 25% to a property manager paid all the utilities, the mortgage, and all the amenities that goes into this Then it appears that the only person that would make money is the property manager. I have multiple houses that I already own manage, but they are not short term rentals.
So my question is this... is there a hybrid model where someone else would manage my property without charging 25%?
Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
5y
@Joe S. The closest thing I have seen/done is use a company like Evolve who takes only 10% for managing bookings, payments, calendars, etc. and you handle everything after the guest checks in. I managed remotely (few hours drive) successfully for several years under that model, but to be honest, there is no reason you can't self manage if you have the right local resources and systems in place.
Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
5y
@Joe S. The closest thing I have seen/done is use a company like Evolve who takes only 10% for managing bookings, payments, calendars, etc. and you handle everything after the guest checks in. I managed remotely (few hours drive) successfully for several years under that model, but to be honest, there is no reason you can't self manage if you have the right local resources and systems in place.
Is there any hybrid models for short term rentals? I have serval single-family houses that would be a great location for short term rentals. The challenges if I paid 25% to a property manager paid all the utilities, the mortgage, and all the amenities that goes into this Then it appears that the only person that would make money is the property manager. I have multiple houses that I already own manage, but they are not short term rentals.
So my question is this... is there a hybrid model where someone else would manage my property without charging 25%?
Yes, that someone else is you. Most of us on here self manage.
@Joe S. The closest thing I have seen/done is use a company like Evolve who takes only 10% for managing bookings, payments, calendars, etc. and you handle everything after the guest checks in. I managed remotely (few hours drive) successfully for several years under that model, but to be honest, there is no reason you can't self manage if you have the right local resources and systems in place.
It appears that you no longer manage or own short term rentals?
Is there any hybrid models for short term rentals? I have serval single-family houses that would be a great location for short term rentals. The challenges if I paid 25% to a property manager paid all the utilities, the mortgage, and all the amenities that goes into this Then it appears that the only person that would make money is the property manager. I have multiple houses that I already own manage, but they are not short term rentals.
So my question is this... is there a hybrid model where someone else would manage my property without charging 25%?
Yes, that someone else is you. Most of us on here self manage.
Is there any hybrid models for short term rentals? I have serval single-family houses that would be a great location for short term rentals. The challenges if I paid 25% to a property manager paid all the utilities, the mortgage, and all the amenities that goes into this Then it appears that the only person that would make money is the property manager. I have multiple houses that I already own manage, but they are not short term rentals.
So my question is this... is there a hybrid model where someone else would manage my property without charging 25%?
Yes, that someone else is you. Most of us on here self manage.
How many short term rentals do you manage John?
I have 1 currently, looking to buy another 4 hours away.
Property Manager · Columbia, SC · Member since 2017 · 121 posts · 163 votes
5y
Thinking about it creatively, maybe you could do a profit sharing agreement with a manager? Let's say your expenses are $2,000 after everything each month... Manager would get 50% of every dollar after $2,000? This way you always make at least your expenses back, and PM is highly incentivized to maximize revenue.
I was recently looking into short term rentals. I live in California and just can’t afford to start one here. Which led me to wonder how I would manage one out of state without having to pay a PM a good chunk of my net income. I came across a forum with a comment by Mike Miles (I think that’s his name). He said he used an over seas virtual assistant. He said it was both cost effective and going very well. She was in charge of scheduling and of any calls that came up during someone’s stay. He had gone through the trouble initially of finding a cleaner, plumber, etc. and of setting up a lock pad and then she had access to the codes and numbers of people to call when a situation arose.
I’ve added the link to a blog post he wrote on the topic
Thinking about it creatively, maybe you could do a profit sharing agreement with a manager? Let's say your expenses are $2,000 after everything each month... Manager would get 50% of every dollar after $2,000? This way you always make at least your expenses back, and PM is highly incentivized to maximize revenue.
That is an unique idea. How would you suggest finding a property manager that would agree to that kind of arrangement?
Why can’t you self-manage? It’s easy to do remotely, just develop relationships and pay your cleaner well.
What systems do you personally have in place for remote management? Also how many units are you managing remotely? I’m probably thinking it is more time-consuming than it is. Please share your experience.:)
Thinking about it creatively, maybe you could do a profit sharing agreement with a manager? Let's say your expenses are $2,000 after everything each month... Manager would get 50% of every dollar after $2,000? This way you always make at least your expenses back, and PM is highly incentivized to maximize revenue.
That is an unique idea. How would you suggest finding a property manager that would agree to that kind of arrangement?
I don't do short term rentals, but if you were thinking if something like David suggested, why not contact others in the area who have short term rentals? They might be willing to do it. If they have places that are normally full, it would be easy to direct guests to your place and they'd be making money.
Do they have executive rentals down there? They are not long term, but longer term and higher end and would have less turn over.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
5y
I self manage my 23 STRs with a total of 83 beds. I've used to have a good deal with my cleaning lady. She'd clean the places for free and I would get to sleep with her. Now she wants a cut of the rent, but I still get to sleep with her. I think that's still a pretty good deal.
I self manage my 23 STRs with a total of 83 beds. I've used to have a good deal with my cleaning lady. She'd clean the places for free and I would get to sleep with her. Now she wants a cut of the rent, but I still get to sleep with her. I think that's still a pretty good deal.
I self manage my 23 STRs with a total of 83 beds. I've used to have a good deal with my cleaning lady. She'd clean the places for free and I would get to sleep with her. Now she wants a cut of the rent, but I still get to sleep with her. I think that's still a pretty good deal.
I take it your wife used to help you clean.
Yes, and if we are in a rush to get 3-4 houses ready quickly she'll call her adult daughter to help. Sometimes 3-4 houses get empty on the same day at the same time when a big group finished their work and leaves. Then another big group is coming in to continue the work where they left off.
Rental Property Investor · La Quinta, CA · Member since 2018 · 263 posts · 95 votes
5y
@Joe S.
As most have said, self managing is the best route to go for STR's and keeps the most money in your pocket. If your concern is the managing/turnover, you may want to consider month to month furnished rentals. I'm seeing a huge demand for that type of housing with more people having the ability to work from anywhere. Less turnover, better rates compared to long term leases and less work compared to STR's.
As most have said, self managing is the best route to go for STR's and keeps the most money in your pocket. If your concern is the managing/turnover, you may want to consider month to month furnished rentals. I'm seeing a huge demand for that type of housing with more people having the ability to work from anywhere. Less turnover, better rates compared to long term leases and less work compared to STR's.
I see on your profile that you had to short term rentals. How many do you feel like you could self managed and still work a full-time job?
Rental Property Investor · Rohnert Park, CA · Member since 2014 · 306 posts · 160 votes
5y
@Joe S.
There are so many options for short term rentals.
Airbnb /VRBO daily rentals
Month to month corporate rentals
Traveling nurse with 3 month rentals.
Airbnb is by far the easiest, since all the marketing is done in their website. You only need to set up your listing, then find your cleaner and ask if they can stock the house with supplies when they clean. You can easily self-manage with the airbnb app. With 1 rental, it is very easy to have a full time job and text to guests and the cleaner, and an occasional text to the handyman.
No one has mentioned Guesty, yet.
That is a service that handles all the guest requests and conversations so you don’t have to. They charge 3%, but you have to have 4 or 5 rentals before you can work with them. Just shows that when you have 3 rentals and under, it is doable to manage them yourself.
Airbnb also has a space for saving responses to send to guests, so when they ask things, you choose a saved response, and if the app doesn’t let you save all the typical responses, use google docs to save the typical responses, so you just copy and paste for all the guest questions.
Airbnb is by far the easiest, since all the marketing is done in their website. You only need to set up your listing, then find your cleaner and ask if they can stock the house with supplies when they clean. You can easily self-manage with the airbnb app. With 1 rental, it is very easy to have a full time job and text to guests and the cleaner, and an occasional text to the handyman.
No one has mentioned Guesty, yet.
That is a service that handles all the guest requests and conversations so you don’t have to. They charge 3%, but you have to have 4 or 5 rentals before you can work with them. Just shows that when you have 3 rentals and under, it is doable to manage them yourself.
Airbnb also has a space for saving responses to send to guests, so when they ask things, you choose a saved response, and if the app doesn’t let you save all the typical responses, use google docs to save the typical responses, so you just copy and paste for all the guest questions.
Wow. There’s probably people that would charge $500 for less information than what you just gave.
Rental Property Investor · La Quinta, CA · Member since 2018 · 263 posts · 95 votes
5y
@Joe S.
Yes I have 2 with a full time job and kids. If you have systems and automations in place, it definitely helps. There are some owners on here with multiple properties doing the same thing. I think if I had 5 or more it may require a little more work and follow up on my end.
Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
5y
@Joe S. You're right, it is not as time consuming as you think. We manage four STR's, two are local to us and two are 1000 miles away. The systems are the same 1) Ring and August camera's (exterior only) 2) currently using iGMS for automated messages 3) pricing using the newly-coined "enemy method", courtesy of @Luke Carl 4) make friends with local contacts and area hosts. Hosts don’t have to be local either. 5) Do your HW. Reading the STR forums will have you managing confidently soon enough. You have to be confident and prepared to spend money for things you could do yourself if you were local. Others on this forum who manage dozens of properties write about their systems in place. Study them and understand them even if you’re not there yet or have no intentions of scaling. Systems are necessary for any manager. If you pay 25%, some else will cheer you on, on the way to their bank.