Do Turnkey STR company's exist?

21 Replies

Absolutely, I see properties listed all the time that are existing vacation rentals with a track record and an existing PM.

Problem is a PM has to work to fill all their properties so yours is not the top priority ever. You can almost always do better to self manage as no one has more motivation to be successful than you plus you are saving the PM fee to boot!

Some day I will be selling all my 23 STRs with their contents along with my phone number.  Refinery contractors are my tenants.  There are 1800 previous tenants, many of them call me for repeat rentals.  83 beds, about 30 refridgerators, 40 bathrooms.  $200 a week per person is my going rate.

Originally posted by @Paul Sandhu :

Some day I will be selling all my 23 STRs with their contents along with my phone number.  Refinery contractors are my tenants.  There are 1800 previous tenants, many of them call me for repeat rentals.  83 beds, about 30 refridgerators, 40 bathrooms.  $200 a week per person is my going rate.

 We already sold your phone number. 

Originally posted by @John Underwood :

Absolutely, I see properties listed all the time that are existing vacation rentals with a track record and an existing PM.

Problem is a PM has to work to fill all their properties so yours is not the top priority ever. You can almost always do better to self manage as no one has more motivation to be successful than you plus you are saving the PM fee to boot!


Thanks John,
Do you recommend a company with listings or are you saying you just find them on mls, realtor, zillow etc? And I agree with self managing, I'm just trying to weigh the pros and cons. Never done a long distance STR, but I want to explore that idea so as to not limit myself to my community. Not sure if I could manage better from out of state than a local PM could. But maybe I could, and maybe it doesn't matter.

 

Originally posted by @Tyler Smith :
Originally posted by @John Underwood:

Absolutely, I see properties listed all the time that are existing vacation rentals with a track record and an existing PM.

Problem is a PM has to work to fill all their properties so yours is not the top priority ever. You can almost always do better to self manage as no one has more motivation to be successful than you plus you are saving the PM fee to boot!


Thanks John,
Do you recommend a company with listings or are you saying you just find them on mls, realtor, zillow etc? And I agree with self managing, I'm just trying to weigh the pros and cons. Never done a long distance STR, but I want to explore that idea so as to not limit myself to my community. Not sure if I could manage better from out of state than a local PM could. But maybe I could, and maybe it doesn't matter.

 

Correct, just find them advertised on MLS, zillow, fb marketplace etc.

@Tyler Smith . Short term PMs are not worth dealing with. Short term shop does what you’re looking for but teaches you how to manage from a distance.

Originally posted by @Paul Sandhu :

Some day I will be selling all my 23 STRs with their contents along with my phone number.  Refinery contractors are my tenants.  There are 1800 previous tenants, many of them call me for repeat rentals.  83 beds, about 30 refridgerators, 40 bathrooms.  $200 a week per person is my going rate.

 I'm disappointed the package does not include the (used) wife-beater.

Originally posted by @Mike Dymski :
Originally posted by @Paul Sandhu:

Some day I will be selling all my 23 STRs with their contents along with my phone number.  Refinery contractors are my tenants.  There are 1800 previous tenants, many of them call me for repeat rentals.  83 beds, about 30 refridgerators, 40 bathrooms.  $200 a week per person is my going rate.

 I'm disappointed the package does not include the (used) wife-beater.

 I'll throw in all my embroidered FR shirts.

@Tyler Smith I have a property management company that we started to help people achieve financially independent like we have through STR's that is turnkey if you buy a turnkey property. We have top  revenue properties in the Big Bear CA market and you can choose to include everything including furniture furnishings and getting the permit and pictures as well as SEO optimized listing. We don't really sell many of our own properties although I have once and have another properties I will be selling soon so I can get more capital out to do more BRRR's. We expected about a 10+ cap rate after are management fees for our properties in a massive appreciation market. We treated everything properties the same as if we owned it in fact are cleans and communicating people often don't even know which property we own and which we manage. We manage with the 99% approach which is that we want to be the best option for 99% of owners we achieve this be optimizing revenue being more efficient than an individual owner could possibly be and not making that much profit per property. Less than 1% of owners in our market would make minimum wage for the time they have to put into a property for extra money they would get from having us manage it. They would literally have to be a top property clean it themselves and fix everything to get more take home pay than we offer passively per property.

Originally posted by @Zachary Beach :

we achieve this be optimizing revenue being more efficient than an individual owner could possibly be and not making that much profit per property. Less than 1% of owners in our market would make minimum wage for the time they have to put into a property for extra money they would get from having us manage it. They would literally have to be a top property clean it themselves and fix everything to get more take home pay than we offer passively per property.

 1% of owners would make Minimum wage? What is your fee and how smart are you or how “busy/inexperienced” are your owners? Those are big statements. 

Most STR self managers here could be turn key STR owner-sellers...if we weren't so successful.

@Tyler Smith I am getting ready to sell one of my properties in Steamboat springs, CO. It’s turnkey furnished, ready to go. I can continue to manage for you if you’d like. It’ll do about 90k gross this year. Price is $850,000. 2 units about 1 Mile from the base of the mountain. Fully renovated 3 years ago when we bought it. Feel free to reach out if you are interested.

@Nancy Bachety we focus on value and being the best in the algorithms and pricing with the approach that each night is either 100% booked or 0% booked and we have efficient systems to get each night booked at the highest possible price. Because of this our properties on average revenue 20% above the 90th percentile for there comp class. We also provide paper towels TP sheets towels comforters sugar tea and about 50 other amenities that we have whole sale deals for. Plus we have full time cleaners that save us tons over having a cleaning service or even a cleaner that would clean for just one property. We also only make 5-10% of the revenue. So if an owner can revenue 10-15% over 90th percentile get wholesale deal on everything they buy and get cleaners at 25% of the average cost per cleaning with the cleaning companies and spend 0 hours doing it. They would make the same amount of money we pay them. I can’t take credit for the pricing and algorithms as my wife is the one that designed those. So maybe she is the super smart one but she did marry me so that’s up for debate. Good luck and I’m happy for you and your success.

@Zachary Beach Logical explanations. No matter what, success and profitable comes down to finding that perfect pricing algorithm. Airbnb doesn’t have it, wheelhouse, beyond pricing, and even pricelabs claim to have it. Kudos to your smart wife. 

Originally posted by @Zachary Beach :

@Nancy Bachety we focus on value and being the best in the algorithms and pricing with the approach that each night is either 100% booked or 0% booked and we have efficient systems to get each night booked at the highest possible price. Because of this our properties on average revenue 20% above the 90th percentile for there comp class. We also provide paper towels TP sheets towels comforters sugar tea and about 50 other amenities that we have whole sale deals for. Plus we have full time cleaners that save us tons over having a cleaning service or even a cleaner that would clean for just one property. We also only make 5-10% of the revenue. So if an owner can revenue 10-15% over 90th percentile get wholesale deal on everything they buy and get cleaners at 25% of the average cost per cleaning with the cleaning companies and spend 0 hours doing it. They would make the same amount of money we pay them. I can’t take credit for the pricing and algorithms as my wife is the one that designed those. So maybe she is the super smart one but she did marry me so that’s up for debate. Good luck and I’m happy for you and your success.

 Can you gross the purchase price of the property with 6 months of gross rent?  Do you have a cleaning lady that does it for free, and you get to sleep with her?  I know this guy in a refinery town with 23 STRs that can answer Yes to those 2 questions.  He's a genius redneck ruffian.

Turnkey Vacation Rentals manages in those areas.  I actually oversee the Florida Panhandle.  Most of the homes on the market here are turnkey ready from a vacation rental standpoint.  Just last month I added 20 more homes to our portfolio and 18 were turnkey and 2 were new construction.  I know that a lot of people on here will recommend managing it yourself, and it's true you keep a larger percentage when not paying a property manager, but you are also doing more work.  Not all investors have time to self manage and would rather focus their time and energy on their primary business, family and finding their next deal.  Traditional property managers in the area are charging anywhere from 20-35%.  At Turnkey Vacation Rentals we only charge 18% for full service with distribution on over 50 listing sites, 24/7 reservations and guest experience, revenue management, housekeeping and maintenance plus lots of bells and whistles like noise monitoring, occupancy monitoring, bank level identity screening of guests and fraud protection.  Regardless of what direction you decide to go I'm more than happy to assist with revenue potential analysis once you narrow your search, and would definitely recommend connecting with a local realtor like @Matt 'Roar' Gardner or @Avery Carl who have both been great to work with.

@Tyler Smith  Certain markets will be easier to get someone's 2nd home or vacation rental with all the belongings than others. Many turnkey vacation rentals will have future bookings that convey with the purchase so it's a great way to get some money from the start!