All Forum Posts by: Adam Tyer
Adam Tyer has started 6 posts and replied 15 times.
Post: Cleaning Services Needed - San Diego
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Hi everyone!
Did you know that 81% of short term rental guests consider cleanliness to be the most important factor in their satisfaction in their stay?? It's true! It is the TOP REASON you could go from a 5-star review to a 1!
Luckily, there is a solution (if your rental is in San Diego LOL)! ASENT Clean is the premiere cleaning company in San Diego for short term rental Hosts. With a 5-star rating on Turno, and our Hosts have a 5-star rating from their guests, don't just take my word for it, take theirs!!
If you are looking to level up your cleaning services as we head into the busy summer season, let me know and let us elevate your home to a 5-star rating as well!
Post: STR/MTR Biggest Hurdles
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Quote from @Dan H.:
Quote from @Jake Baker:
Every market is different and unique when it comes to ADR and regulations. I am also in San Diego. There are regulations in place, but it eliminates a lot of competition if you have the right property. Since the licenses came into effect last year, my ADR has jumped significantly. That being said, the biggest hurdle right now is finding good properties with favorable financing.
Even though 2 of my San Diego STRs are in mission beach where quota was hit and many STRs had to convert to not STR (MTR, LTR, sell, etc), my ADR is down compared to past results. This off season, mission beach was the most dead since the Great Recession (excluding COVID lockdown periods). My other San Diego STRs also have lower ADR than historical expectations.
So I looked up our occupancy compared to market occupancy where our STRs are located. We were way above average occupancy on one, and slightly above average on the others. These occupancy rates local to my STRs is down significantly from years before the quota (esp compared to 2019 and 2022)
In addition, only mission beach has hit its quota. The rest of San Diego still has STR permits available.
I am hoping for a good peak season to offset how poor the off season was.
You are doing something very well if your ADR is up (or you previously was doing something terribly wrong).
Good luck.
Yeah, that is what I have heard from most Hosts/Owners right now, that their ADR and occupancy are both much lower than they had been in recent years prior. Hope your business is still doing great though Dan!
Post: STR/MTR Biggest Hurdles
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Quote from @Jake Baker:
Quote from @Adam Tyer:
Quote from @Jake Baker:
Every market is different and unique when it comes to ADR and regulations. I am also in San Diego. There are regulations in place, but it eliminates a lot of competition if you have the right property. Since the licenses came into effect last year, my ADR has jumped significantly. That being said, the biggest hurdle right now is finding good properties with favorable financing.
Yeah that makes a lot of sense about the financing. This market is much tougher to find deals than other times in the recent past.
It’s interesting that the licenses increased your ADR. Do you think that’s because of a reduction in competition?
Indeed, I beleive the reduction in competition was the main factor in driving up my ADR. Dan's point is very interesting though. I am near downtown. Prior to the permits, I believe there was oversaturation there... seems like every out property was an airbnb.
Post: STR/MTR Biggest Hurdles
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Quote from @Jake Baker:
Every market is different and unique when it comes to ADR and regulations. I am also in San Diego. There are regulations in place, but it eliminates a lot of competition if you have the right property. Since the licenses came into effect last year, my ADR has jumped significantly. That being said, the biggest hurdle right now is finding good properties with favorable financing.
Yeah that makes a lot of sense about the financing. This market is much tougher to find deals than other times in the recent past.
It’s interesting that the licenses increased your ADR. Do you think that’s because of a reduction in competition?
Post: STR/MTR Biggest Hurdles
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Quote from @Jon Martin:
IMO the bigger challenge is Quality Control at scale when it comes to cleaners. It's tough to instill that level of work ethic and enforce it consistently. Plus, once you get the cleaners to that level they will realize that they can simply start their own companies and take home more money. Similar to plumbers and other trades i would imagine.
How do you manage the QC of scale?
Post: I am a newbie and I will admit I know nothing
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Welcome to the BP and Real Estate Investing communities!
Looking forward to where your journey takes you from here :) If you ever have any questions or need help with anything, don't hesitate to reach out!
Post: STR/MTR Biggest Hurdles
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Quote from @Aubrey Maldonado:
Quote from @Adam Tyer:
Seriously, thank you all for the responses so far everyone! These are incredible insights and a lot of the things I have heard from everyone I have met in this industry.
The one answer I hadn't heard before was about designing, but that makes a ton of sense. For everyone who finds that to be a challenge what have you done to overcome that?? @Andrew Steffens?
@Aubrey Maldonado do you feel the cost of cleaning services is the biggest prohibitor from finding reliable cleaners? Do you think that it is because the quality, dependable cleaners cost more than is affordable?
The cost is at least a big part of it. It's a tough job to do and there are only so many people willing to do that type of job. So, cost and the type of work both play into finding reliable cleaners.
Yeah, that was my thought too! It is not really a job a lot of people are willing to do. It is such a big opportunity for someone to establish themselves in that space, but finding the people talent is not an easy proposition.
Post: STR/MTR Biggest Hurdles
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Seriously, thank you all for the responses so far everyone! These are incredible insights and a lot of the things I have heard from everyone I have met in this industry.
The one answer I hadn't heard before was about designing, but that makes a ton of sense. For everyone who finds that to be a challenge what have you done to overcome that?? @Andrew Steffens?
@Aubrey Maldonado do you feel the cost of cleaning services is the biggest prohibitor from finding reliable cleaners? Do you think that it is because the quality, dependable cleaners cost more than is affordable?
Post: STR/MTR Biggest Hurdles
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Hi Everyone!
I'm relatively new in my STR/MTR journey (but have extensive LTR property management and investing experience). For anyone who is in the STR industry, what would you say is your biggest obstacle to success?
A few areas I've heard are challenges are finding cleaners, increased regulation, and over saturation of the markets… STR managers and owners would you say that one of these is the case or something else?
Post: Cheaper Housing Locations
- Investor
- San Diego, CA
- Posts 16
- Votes 17
Quote from @Dan H.:
Quote from @Adam Tyer:
Quote from @Dan H.:
Quote from @Mathios Yonan:
Does anyone know a few markets where the cash flow is decent but the purchase price is low? I live in San Diego and it's practically impossible to get a good ROI.
>I live in San Diego and it's practically impossible to get a good ROI.
This statement is very incorrect. Case Shiller shows San Diego to be #3 in nation for total return since 2000. Neighborhoodscout shows San Diego to be 10/10 in appreciation this century. I challenge you to find and post a single reputable reference that does not show San Diego to have historically produced outstanding returns for a modest length hold.
Some easily verified facts:
- San Diego appreciation has been great
- San Diego rent growth has been great
- prop 13 protects against exorbitant property tax increases
- San Diego has one of the lowest eviction rates in the country
- San Diego has one of the lowest delinquent rent rates in the country
- San Diego has a very low vacancy rate
- historically for long holds, San Diego has produced near top in nation return.
I challenge you to find a legitimate source that any of the above statements are not accurate. I will word your statement to be historically more accurate: it has been historically difficult to not get a good ROI.
best wishes
Fully agree! Although it is highly expensive here in San Diego, that doesn't mean there aren't deals. It is all relative and the return is great in SD because of the appreciation and rent growth we have seen historically.
Do you have a neighborhood you prefer Dan?
I live inland north county so my investments are north of I8 (many are in Escondido) but I do not necessarily expect them to outperform the area.
The 2 areas I believe are most likely to outperform the general San Diego market are
1) west Chula Vista. Can you name any other city where by the ocean/bay is cheaper than more inland? The bay front development is a virtual certainty to lift area. I almost consider this a cannot miss for out performing the general local market.
2) Imperial Beach. It is the cheapest ocean properties in this country for hundreds of miles. The Mexican sewage problem constantly is getting more attention. It likely has never been closer to having funding that can significantly improve the situation, but it is still a ways from being a reality (but once the problem is resolved, the discount due to the issue will quickly vanish).
Good luck
Yes! I fully agree here!
I live in the inland Chula Vista area and I am looking into duplexes in the west CV area because of that exact reason you mentioned. Nearly nowhere else is it cheaper to live near the beach than inland - so much so that I can find a duplex in west CV for the price of a condo in the new CV areas. I am looking to house hack duplexes in that area now, so I am glad you agree with that assessment.
Thank you so much for your advice and insight!!