Recommendations for a Short Term Rental Manager

6 Replies

I'm trying to get started asap with rental arbitrage in the area around Atlanta, GA. I've found some great properties, and I'm interested in partnering with a manager on them. The manager doesn't have to be in Atlanta personally, as I know some STR managers work remotely. If you yourself would be interested or have had a good experience with an STR manager in the past -- or have any recommendations -- I'd be grateful for the lead!

Someone is going to make money. Probably not the guy you see in the mirror when you shave.

@John Underwood I'm actually pursuing buying and owning as well. But there seem to be some great arbitrage deals out there - properties not available for purchase but re-rentable at a much higher rate than I'd have to pay to get them under long-term lease. So I'd like to pursue both routes.

@Paul Sandhu There's a finite amount of time and energy I have available to research real estate, find deals, negotiate, and secure financing. The thing about arbitrage with a manager is that although I'll make less money on a single property with a hired manager than I would if I managed the property myself, I'll also save 99% of the work I'd otherwise have to do. I'd rather get paid $1,000 for 1 hour of work than $50,000 for 100 hours. I can take those 99 extra hours and invest them in more research, etc.

Originally posted by @Richard Davis :

@Paul Sandhu There's a finite amount of time and energy I have available to research real estate, find deals, negotiate, and secure financing. The thing about arbitrage with a manager is that although I'll make less money on a single property with a hired manager than I would if I managed the property myself, I'll also save 99% of the work I'd otherwise have to do. I'd rather get paid $1,000 for 1 hour of work than $50,000 for 100 hours. I can take those 99 extra hours and invest them in more research, etc.

 Fair enough.  I know you sort of made up the numbers in your post, but making $1000 for an hour of work each month seems unrealistic.  But if you can do it, more power to you.

@Paul Sandhu Just as an example, I might spend 10 hours researching a property and negotiating with the owner and an STR manager. The property might cost $24k/year to rent with $60k annual revenues. The manager takes 25% (that's $15k), there's 8% residency tax (so $4.8k), $2k in annual repairs, and another $5k in utilities, yard service, and so on. If it cost me $12k to outfit the property with 10% interest, then that's another $1.2k of debt service. I think these are realistic numbers: neither a fantastic property nor a terrible one (and notice I've set the manager's fee at the top of the usual range). All that gives me $8k profits, so about $800/hr for my actual work. I'm not there yet -- I've never actually done this -- but I think these are realistic numbers.