Questions for those that manage other people's STR properties

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Questions for those that manage other people's STR properties

Chris O.
Member since 2018 · 69 posts · 11 votes

Wondering how you handle consumable supplies that you don't cover yourself. I'll be covering soap (dish, laundry, hand, dishwasher), toilet paper, paper towels, kitchen/small garbage bags coffee filters, scouring pads/dish pad.

The ones I can think of that I won't be covering  - Kitchen/cooking (tinfoil, parchment, saran wrap, baggies), shampoo/conditioner, Food (coffee, tea, sugar, salt/pepper, spices), dryer sheets/fabric softener, general cleaner (like a Lysol spray), Kleenex.

Any differences for you between what you do cover/what you don't? Anything I'm missing?

How do you replace the goods you don't cover - just like replacing a broken toaster, you pay and pass the charge through and fill up yourself? Do your cleaners fill up just as they would toiler paper etc? 

Specifically regarding Shampoo/Conditioner - do you refill each visit so the bottles are always full, or replace with a fresh each time (seems expensive)

Are you going to a grocery store to buy salt, spices etc? Filling up each one? 

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y

When I managed a STR for others, my company provided the consumables you offer, plus a few.others like coffee and bottled waters. It was part of our management fee, we stocked the cleaners and the cleaners stocked the homes.

This allowed us to purchase in bulk and some of the items we're personalized with our company logo.

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  • Gururaj Iyer
    Edison, NJ · Member since 2017 · 115 posts · 34 votes
    5y

    basic things like toilet paper and kitchen rolls are placed by cleaners - limited quantity , dishwashing & laundry soap as well..depending on stay duration inventory can be arranged..  for shampoo and conditioners, my cleaners generally refill and place those miniature ones - although most guests bring their own .  For other things which run out , I generally order them in via Insta cart

    1Reply
  • David Bergmann
    Property Manager · Columbia, SC · Member since 2017 · 121 posts · 163 votes
    5y

    My preference is to have a set amount of consumable budget in the contract with the owner.  For example, $100 per month for consumables to cover all miscellaneous consumables during the month, which always would be invoiced to the owner each month.  It's too much effort to try and itemize receipts each month, especially if you are buying in bulk for multiple properties & owners.  I wouldn't personally cover any of the consumables out of my own fee, the fee just covers labor cost of purchasing & restocking the house, not the materials themselves.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    Are you talking about being a licensed Property Manager so that you can legally manage someone else's property?

    1Reply
  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y
    Originally posted by @John Underwood:

    Are you talking about being a licensed Property Manager so that you can legally manage someone else's property?

     no, I'm talking about managing short term vacation rentals that do not require a licensed property manager. Not sure if you are being cute with your response, but where I live at least, anyone can manage vacation rentals. Long term rentals require a licensed property manager. 

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  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y
    Originally posted by @David Bergmann:

    My preference is to have a set amount of consumable budget in the contract with the owner.  For example, $100 per month for consumables to cover all miscellaneous consumables during the month, which always would be invoiced to the owner each month.  It's too much effort to try and itemize receipts each month, especially if you are buying in bulk for multiple properties & owners.  I wouldn't personally cover any of the consumables out of my own fee, the fee just covers labor cost of purchasing & restocking the house, not the materials themselves.


    I'm trying to go with an all in commission % with no ancillary charges (or at least bare minimum). Anything else I'm trying to make pass through - I don't want to eat the cost of the expanded consumables though.

    I get your point though, especially when buying in bulk for multiple properties. Have to give this some more thought. 

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  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y
    Originally posted by @Gururaj Iyer:

    basic things like toilet paper and kitchen rolls are placed by cleaners - limited quantity , dishwashing & laundry soap as well..depending on stay duration inventory can be arranged..  for shampoo and conditioners, my cleaners generally refill and place those miniature ones - although most guests bring their own .  For other things which run out , I generally order them in via Insta cart

    Limited options here for ordering - but that makes sense - just get from Amazon delivered to my office and then take next visit rather than going to a grocery store as a separate excursion. Do you charge your owner for replacement sugar for example? 

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  • Nancy Bachety
    Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    5y

    Skip the other consumables. Not necessary but maybe you think it is in your market. 

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    When I managed a STR for others, my company provided the consumables you offer, plus a few.others like coffee and bottled waters. It was part of our management fee, we stocked the cleaners and the cleaners stocked the homes.

    This allowed us to purchase in bulk and some of the items we're personalized with our company logo.

    The DIY Landlord Book4.7248 Reviews
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    2Reply
  • Carlos Carbajal
    Property Manager · San Francisco, CA · Member since 2017 · 74 posts · 71 votes
    5y

    Hi Chris-

    I manage about 30 STR units in the San Francisco Bay Area for other people. This is a good question I have struggled with but the short answer is I supply all the "consumables" if the commission rate is high enough.

    In my own business if I am getting 17.5% to 20% of the gross income then I will be happy to supply all the TP, paper towels, shampoo, soap, and cooking basics like salt, pepper, olive, oil, etc.  However, linens and towels and any appliances that need to replaced like a toaster is charged to the owner.

    If I am getting 12% to 15% of the gross income then I will generally charge the owner for all of the consumable unless it is a strategic property or owner that I feel very eager to land.

    In my experience covering the cost of the consumables is worth it as the items that are high consumption like TP and paper towels are not expensive if bought in bulk from CostCo or amazon (although supply chain is spotty during COVID as we all know)

    One thing I have noticed is that guests will buy kitchen items like soy sauce, tabasco, salt, pepper, olive oil, etc and leave them there so in a way the kitchen items are often "self-replenishing" but of course that is not 100%.

    2Reply
  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y

    Much appreciated Carlos - 

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  • Robert GilstrapPro Member
    Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
    5y

    We just bill the owner for consumables as needed but we buy in bulk and store at the property in a locked supply closet then the cleaners replenish when they are there. 

    We only do small hotel size conditioners, shampoos, etc. 

    Anything that breaks we just bill the owner as it occurs.

    [email protected]770-480-7301
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  • Nancy Bachety
    Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    5y

    Note that in this current covid19 climate, best practice is to not leave any food/spice/condiment consumables. 

    1Reply
  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y
    Originally posted by @Robert Gilstrap:

    We just bill the owner for consumables as needed but we buy in bulk and store at the property in a locked supply closet then the cleaners replenish when they are there. 

    We only do small hotel size conditioners, shampoos, etc. 

    Anything that breaks we just bill the owner as it occurs.

    How do you bill for the consumables if in bulk - just a flat fee per guest/fill up? 

    0Reply
  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y
    Originally posted by @Nancy Bachety:

    Note that in this current covid19 climate, best practice is to not leave any food/spice/condiment consumables. 

    Good point

    0Reply
  • Robert GilstrapPro Member
    Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
    5y

    when I buy a 24 pack of paper towels at costco and a 48 pack of toilet paper and AA batteries and coffee pods, tide pods, dish soap, cascade pods, light bulbs, etc. then we just bill the owner for it (marked up slightly to account for our purchase and delivery) and then stock the supply closet on site with the supplies. When it gets low, rinse and repeat.

    [email protected]770-480-7301
    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    We bought in bulk through a major supplier.fir hotels/motels. Cheaper than Costco. We did not charge owners for it; it was paid for out of management fees. I can't remember exactly, but it was maybe $10 per reservation.

    The DIY Landlord Book4.7248 Reviews
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  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y
    Originally posted by @Robert Gilstrap:

    when I buy a 24 pack of paper towels at costco and a 48 pack of toilet paper and AA batteries and coffee pods, tide pods, dish soap, cascade pods, light bulbs, etc. then we just bill the owner for it (marked up slightly to account for our purchase and delivery) and then stock the supply closet on site with the supplies. When it gets low, rinse and repeat.

     that's a great idea for light bulbs and batteries to have on site. I'm trying to think what other consumables I'm not thinking of. 

    0Reply
  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y
    Originally posted by @Nathan Gesner:

    We bought in bulk through a major supplier.fir hotels/motels. Cheaper than Costco. We did not charge owners for it; it was paid for out of management fees. I can't remember exactly, but it was maybe $10 per reservation.

     That's nice to have a rough estimate what the consumables end up costing - if I read your previous post correctly that $10 average is covering paper towels, toilet paper, all types of soap, Shampoo, Conditioner and coffee correct?

    0Reply
  • Chris O.
    OP
    Member since 2018 · 69 posts · 11 votes
    5y

    Does anyone resupply (either free of charge or billed to the owner) kitchen cooking items - parchment paper, saran wrap, tin foil, zip lock baggies? Apologies for getting quite specific but that's one example I haven't seen show up yet and am curious what others are doing 

    0Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    5y

    I would not think that the other things you mentioned would be needed, except for the small shampoo and conditioner and coffee in individual packs along with the creamer and sugar pouches.  Baggies, foil, etc,  I do not think that currently the tenants would like to share with previous tenants.

    0Reply
  • Robert GilstrapPro Member
    Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
    5y

    I think the more little things like that you have in a kitchen the more it feels like a home and think about how cheap it is. We're starting to put olive oil/cooking oil, salt/pepper, basic cleaning supplies, etc. So far people aren't stealing anything (yet) but we learned to ration out most things like tide pods, trash bags, cascade pods, batteries, etc. Either way the owner gets charged for the stuff but there are a LOT of little things that add up in a home. HVAC filters, sugar packets, splenda packets, tea, coffee pods, creamer...the list goes on....

    [email protected]770-480-7301
    1Reply
  • Nancy Bachety
    Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    5y

    So to add more detail to this question, we just switched, literally, from a cleaner charging $85/clean which included restocking paper towels, tp, dish and laundry starter soap to a cleaner charging $100/clean which will include all that plus refilling stylish pump shampoo, conditioner, and soap containers, plus a linen service. They’ll replace tired linens and towels throughout the year and we won’t replace “our” supply. This makes it much easier for them and convenient for them. Previous cleaner was going to charge $50/month for this service. I just want my hot tubs cleaned and five star clean reviews- how they get there is up to them and the cost is pretty much the same. No coffee, salt, cooking oil is supplied though sometimes left behind by previous guests. New current cleaner throws it all away though. No expectations is better for me. “Hot tub was awesome, views amazing, but there was no vegetable oil” said no one ever. 

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