All Forum Posts by: Anand S.

I was told that pilings add about 10% to total cost so don't see that as a major factor. We're relatively conservative on windows as well. 

Cost of $450/SQFT is just for the GC -- does not include land or plans. 

Based on the majority of responses, demand seems to be the biggest factor. What do you think of waiting it out? The NAHB index just came out and had an unexpected drop so hopefully things will cool and so will the ridiculous building costs. 

Hi Folks,

We are in the process of finalizing our plans for a Spec home in Fort Lauderdale. Specifics are:

- 4200 SQFT

- 3 stories with a rooftop deck

- Elevator

- 5 Bedrooms

- 5 Full baths, 2 Half baths

- Requires 30 FT Pilings

- Block construction

- Impact windows

- Retail price point of $2.5MM+

We are in the process of obtaining GC bids and are looking at experienced contractors with solid track records. I am shocked at some of the initial estimates. I've received quotes of $450/SQFT for end-to-end construction including finishes. Their rationale for this price point are the increased tariffs and demand.

My question is twofold 1) What $/SQFT are you seeing for new construction for a similar home? and 2) would waiting for the tariff war to abate and for demand to slow affect pricing, or are these typically ratcheted up with no hope of correcting substantially?

@Benjamin Vail have you ever considered Alibaba? Given your scale it might make sense.

We have a similar issue here in South Florida but with lizards and other native species. I add the following language to my listing so there are no surprises. I'm sure you can do something similar:

LIVING IN THE TROPICS: When accepting this agreement, the tenants confirm that they understand that the home is in a tropical and hot weather location and that occasional wildlife and insects not ordinarily seen in other climates may be on property. Tenants also understand that the weather is unpredictable and owners will not refund rents due to inclement weather.

Be fact based and call them out for breaking your house rules of max guests and no pets. However, it appears that you need to double-click with your cleaners on their quality. 

It's quite common for folks to undestate guests.

I'd be leery of any manager with over 10 properties. I just don't see them being able to give your property the attention it requires. Also, I see property managers pricing at the bottom of the barrel because all they want are the booking so they can take their 25%. 

Hi All,

Thanks for your interest in creating a Mastermind group focused on the Short-term Rental Niche.

To ensure that there's a healthy give-and-take amongst the members I'd like to set the following requirement: Members should have either Annual Revenue of at least $250K (after occupancy taxes) OR own/manage 5 unique units (not a 3 BR home where numerous iterations of the bedrooms are rented out as different units).

The goals of the group are to share best practices of:

- Marketing

- Pricing

- Operations

- Channels/Tools

- Lead Generation

- Acquisition Strategies

- Market Insights

In my view the last item would be extremely beneficial as many of us would like to expand to other markets, but would benefit greatly from understanding the expected numbers and nuances of the target market.

I envision this as a group that has periodic meetings where at each meeting a member presents their market, thier operation, best practices and insights, followed by open discussion.

Please PM if you'd like to take this further.

If those are the numbers to expect then I'd say it's not a cash flowing town. You may want to check a different property type and location to see if you get higher nightly rates and occupancy. Here in FLL the bigger homes do better, as they cater to larger groups.

Also, I see you break out the occupancy tax as a line item. Shouldn't this be a pass-through expense (although it wouldn't make the overall better)?

This is a good topic. I'm data driven so always looking for new insights. The MOM/YOY are essential. What  other insights are you mining from your data? I look at:

- Revenue/Profit by Channel to understand most valuable channel

- Revenue/Profit By Month to understand seasonality

- Booking Lead time to understand behaviours -- important to know to determine ideal time to drop prices

- Days booked/month and average daily rate/month

I'll update if I start mining others

Lake Ridge is up and coming. Well located.

My homes are in the area closer to the beach.