I’d like to thank you for reading this post,
I work full time out of province with fly-in fly-out work so I am rarely home (once or twice every couple months).
I have been pondering the idea of purchasing 1 or 2 condos in the West Kelowna or downtown Kelowna area.
I am familiar with running long term rentals but have not tried the STR yet and I think it may be a good idea to use my primary residence to earn extra cash while I'm away. Using this method would allow me to book my 3/4 nights home every couple months to stay in my property and earn income while I'm away.
All the properties I am looking at allow for STR and have in house STR management in place with the strata company.
Has anyone had any experience with the supplied management companies at resort like condominiums? Any pros and cons?
If you have any experience in these areas using STR and you have some advice I would greatly appreciate it.
Thanks for reading, I look forward to hearing from you!
I would review the property management companies with a fine tooth comb. What is their track record: vacancy rates, online reviews, # of properties, experience, how they advertise, etc..., & most importantly, what is their % take? I'm not sure about Kelowna, but in Whistler, some companies take upwards of 45%. A real cash flow killer.
Hey Michael thanks for getting in touch!
That’s a big thing for me right now. Finding out who is charging what, and what they offer compared to other companies.
I was just listening to a recent BP podcast where they stated you can barter with vendors on prices for their services. I think getting some quotes from different managers would be helpful when negotiating a % cut on the property income.
I wouldn’t say I’m “worried” about cash flow, as this property still has to break even but in the event it doesn’t, I am still living for cheap or free, and in the event the numbers are right I will turn profits every year.
Hey Tanner in my opinion buildings with in-house management companies are not a great investment. They typically charge a larger commission, around 45% as Michael mentioned, plus they have worse contracts that limit your use and make it impossible to exit.
Look for buildings that allow for self-management and/or for you to pick your own management company. Of course, the cheapest management company is not always the best but there are lots of great companies that charge much lower fees than 45%.
Hi Tanner, Thats great that you are looking into another unit or two in the Okanagan to invest in for short term rentals! Feel free to message me if you want to chat more about the buildings you are interested in learning more about and I can pass on the info I have. I also have clients who own in various buildings in West Kelowna, Downtown Kelowna and the Lower Mission who do short term rentals. Some are self managed and others are run by the in house management companies so I can pass on their reviews/experience as well. All the best, Saskia
All the properties I am looking at allow for self management, and I have heard about the large cost associated with them! Thanks for reaching out to me on this, I’ll make sure I’m doing my due diligence before making a move on anything.
Thanks for reaching out! I’d love to get in touch with you. I’ll send you a PM :)