All Forum Posts by: Angela Marquez

Quote from @Andrew Steffens:

We use a simple, but attorney drafted rental agreement that is fed through our PMS and must be signed by all guests regardless of platform.  Airbnb (or any other platform) will not have your back if litigation is needed, on either side.  It looks like you are in Orlando, and there are for sure plenty of attorneys who can do this for you and keep it sound for FL law.  It will cost a few hundred dollars but it will be used in perpetuity so worth the cost.

Thank you Andrew. Excuse my ignorance, what "fed through our PMS?" Also, any recommendation on the tyope of attorney/law firm to use? Do you believe they should specialize specifically in STR or just have a general real estate area of practice? 

Jon,

We aren't  looking for long term tenants on AirBNB. When someone rents on AirBNB, our understanding is they have to agree to our 'rental agreement' so to speak. Thats what we were seeking advice on. 

Thanks.

We would like to know what others have done, or did, to create their rental agreement used for platforms like AirBNB. We just purchased our first investment property and are getting it ready for AirBNB. Have not created a listing yet, so if there are templates on there, and folks here think they get the job done, great! However, is it smarter to go for a lawyer-drafted document for example? Are there other resources worth considering? Does AirBNB (or other platforms for that matter) have any requirements, parameters or nuances we should consider? Thanks in advance!

We will be self-managing. It's only one property and we're only an hour away. We see the value in learning from experience, but also understand that over time as our portfolio grows, we'll need to consider a management co.

Investment Info:

Single-family residence buy & hold investment in Orlando area.

Currently under contract for a single family home that we will be utilizing as a short-term rental.

What made you interested in investing in this type of deal?

The property's location is ideal for short term rental (Orlando area theme parks and convention centers.)

How did you find this deal and how did you negotiate it?

Found through lots of online research and connecting with an agent who works with investors. We negotiated less than asking since the property had recently reduced price and the sellers were motivated.

How did you finance this deal?

We are using a Debt service coverage ratio (DSCR) loan.

Lessons learned? Challenges?

Not all insurance is the same. Fortunately I work in the insurance industry so I generally knew what to watch out for. However, I still learned a lot since short term rentals have unique insurance needs that aren't always met with traditional policies. Also, pools are going to be expensive. I think there's a lot one can do on their own to maintain it, but it does require diligent effort. Otherwise, hire a pro to help maintain it.

Hello! Newbie investors here. We are looking at smart locks for our STR. There are so many to choose from. Which brands do you find reliable and recommend? Any we should steer clear of?

Hi,

Regarding your questions:

#1) I highly recommend you consult with a licensed insurance professional in your area, especially one experienced with landlord-specific insurance. Liability will be a huge factor, but there are other considerations that a licensed agent can discuss with you.

#2) You can, and should always, vet the financial stability of any insurance carrier on A.M. Best's website. Anything less than an "A-" rating should probably be avoided. If they have a "NR" or non-rated rating, also avoid. Pricing is important but should not be the deciding factor. Keep in mind the old adage "you get what you pay for." Customer Service? Here's a quick test... call the company yourself, see how long they take to answer the phone and how they answer the phone. It will speak volumes. 

#3) See Above

#4) Again, consult with a professional but some of the obvious differences that come to mind would be the needed coverage for your contents (personal/business property) as well as the liability differences. 

#5) We cannot speak to the claims questions. Fortunately we have not yet had to deal with that.

#6) Here's an excellent, objective resource that may help further: https://www.investopedia.com/articles/personal-finance/06151...

We hope this helps!

Hi Desstani,

We recently found ourselves in a similar position. We sold our TX home and relocated to Orlando so my son could attend school and save money by living at home. This was an opportune time to start our REI venture. We knew we wanted to invest the money from the house sale.

We decided to rent first to become familiar with the area before buying. Our initial goal was to buy a duplex and house-hack it. However, that would mean a long commute for my son. Our other option was to purchase a multi or SF to rent. To avoid falling into analysis paralysis, we started touring homes, meeting realtors, and running numbers. Talk to the realtor and see if they invest themselves or have done deals with investors. Does the realtor have a good team behind them (lender, home inspector, contractors)? After living here for 2 months, we are under contract! Our realtor showed us a house that should make a good STR investment. I am excited and nervous at the same time. We are still in the beginning stage so I have lots of questions and am here seeking the advice of seasoned investors.

Being a newbie, I can't offer much insight. The only two things I can suggest are: 

1. Don't get emotionally attached to a property you tour. STRs are cute and fun. I had to stop envisioning personal family events at the property. I had to remind myself this is a business purchase only. I will get the luxurious dream vacation home down the line. 

2. The numbers don't lie. Make sure the numbers make sense. 

This is an exciting time. Best of luck! 

Angela

Hello Investors!

I'm thrilled to be part of the BP community. Recently, my husband and I sold our home in TX with one objective - to kick off our real estate investment journey. Our youngest is off to college, leading us to the greater Orlando area. Initially, we planned on house-hacking a multifamily property. However, the ones we viewed were expensive, needed renovations, and would have been a long commute for my son. 

We connected with a local agent who introduced us to a property we felt would be profitable as a STR. After residing in FL for two months, we are excited to be under contract.

Now, we are seeking advice on the next steps:

• Should we engage a CPA or lawyer for setting up our LLC?
• How can we effectively vet contractors? Do you find your contractors here on BP?
• What initial upgrades should we prioritize?
• Is a solar pool heating system a wise investment?
• What are your thoughts on providing infant gear like pack 'n plays and high chairs?

My husband loves this saying, "You don't know what you don't know."  That's why we are here on BP, to gain insight and recommendations from seasoned investors. Learning from your successes and challenges would be invaluable. 

To fellow new investors, we would love to connect and share experiences on this journey.

We look forward to participating in local real estate investment meetings.

Thank you in advance!

Angela