Has anyone developed an excel based model for showing cashflow and payback for vacation rentals? I'm thinking about buying something, but I need to take into account all of the variables. Is there a good resource for first time researchers?
@Ryan Mann Check out the File Place, under "Resources" at the top of the website. There are many spreadsheets people have created, so hopefully one fits your bill.
It looks like you're new to the site! Welcome! Don't forget to introduce yourself in the New Member forums and to set up your Keyword Alerts. "Vacation Rentals" might be a good one to start with. If anyone mentions this phrase on the forums, you'll get an email! Under "Learn", you will also find Free How-To Guides as well as the BiggerPockets Podcasts for tons more information. There are over 100 podcasts to date, 104 is coming out this week, that cover every aspect of real estate investing. I believe I remember listening to one on vacation rentals..... yes, it was Podcast #57, An Introduction to Vacation Rentals with Matt Landau.
@Drew Thanks for the feedback! I am new here too. We are jumping in head first on a vacation rental (2/2 duplex on Cape Canaveral Beach, Florida) and your advice on where to begin here is great!
I just uploaded a file to the fileplace section of the resources tab.
It shows the vacation rental performance of our Austin duplex compared to current long term rental rates.
This is the way we determine our property strategy. By determining how much additional money we'd receive by renting short term vs long term. ROT (return on time) calculation. It's the cell titled "STR Advantage" in the spreadsheet.
The combined cell is for times that we rent both A and B simultaneously to the same group.
The cleaning value was a SWAG but we've started doing a better job of tracking it.
Maintenance and repairs is higher than average due to deferred maintenance.
Shameless plug: Checkout podcast #114 on vacation rentals.
@Scott Sutherland Hey Scott, thank you for sending this spreadsheet. I would love to use this strategy in the Austin area. I work a full time job and don't have a lot of free time during the week. How much time does it take to look after a short term rental? (I would live in one side of the duplex and rent out the 2nd unit)
Currently we have 4 STR units in Austin. During peak times (SXSW, ACL, etc) my wife stays pretty busy managing these units. Probably 20 hours per week.
But in your scenario, your biggest time commitment would be getting the unit ready to rent. Once you get it furnished and equipped, you could do it in 2-3 hours per week which is primarily responding to booking inquiries and coordinating your cleaners.
You can respond to inquiries in the evening. Most bookings are Thursday to Sunday so you'd have Monday to Wednesday to coordinate your cleaning and make any repairs or upgrades.
Hi Scott. I've been reading your posts and enjoyed your podcast. Thank you for sharing your wealth of knowledge. We are also doing vacation / short term rentals in Los Angeles. We are hitting critical mass with our calendar system. Having a couple units up was not a problem, but now we have 6 up and need an automated calendar system. Any suggestions?
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