All Forum Posts by: Chuck Kramer

Its expected by most, so I would say so. I have seen rentals get bad reviews for not having one even though it wasn't in the listing.

Sent link to ours. We take direct bookings in addition to AirBNB and Vrbo.

There are a number of models sold locally There and most use common parts. Problem with bringing one in from elsewhere is that when you need local support, repair folks may not be familiar with it or parts could be different or harder to get. Especially if you will rely on a handyman or maintenance company. 

I don’t think its worth the gamble, but its your call.

There are quite a few good ones. Justin has a great reputation and also adds drone shots if you desire. http://insightphotoandvideo.co...

@Lauren Havens makes a good point. In TN, they have to be explicitly called out and most PM contracts already cover the sale of a home. It is standard here for PMs to move bookings to other properties they manage.

But for future info, if the owner is self-managing you will usually be able to retain the bookings with a little work on your part. I was able to do that in all but 1 purchase - one where a PM was involved. 

Mostly good advice here already, especially from @Luke Carl (listen to him!). AirBNB will give you an option to discount first bookings (I think its 5) at something like 20% off. They give you better placement during that short time. Good chance to take advantage of that, but if you do then raise your AirBNB prices slightly so you are not running it too cheaply. Vrbo does something similar, sometimes. They are not consistent with that. 

Use your time to check out tools like iGMS and OwnerRez, amongst others, to minimize the amount of work you have to do in creating/updating/maintaining the listings and pricing. Most have a free trial period. These tools can automate much of your reservation workflow and communication with guests. 

Also, check AirBNB/Vrbo for similar properties to see what they are charging -- so you can better set your pricing.

Also, get your business licenses, setup tax accounts, etc. Or, use a service like Alavera to do it if you are intimidated by it. But definitely get it lined up in advance.

Avery has probably already pointed you to the right places for those, based on the property.

Try to put off paying for licenses and such until after you have passed the inspection phase. That is where most local deals fall apart (if they do).

@Maria King There are a lot of good private individuals or couples that clean cabins, and I understand most do a decent job. if you want someone larger, check out Mountaineer Cleaning & Maintenance. I use them for some of mine.

@Jeremy Guidry Airbnb’s position to you on that makes perfect sense to me. As they considered the reviews more of the host rather than the accommodation. But the funny thing is, it was Airbnb customer service they told me how to do this this way and that was his recent as September. It’s another inherent problem with both of these online sites; getting different information depending on who you talk to.

@Amy Haas - your experience is not too unusual here and underscores the importance of having a good realtor AND a good inspector. You can often find a big difference when the home is self-managed versus with a legacy area PM - in my experience. Self-managed homes are usually better but that is not written in stone.

@Ryan Lauretta - with higher prices, I would adjust that 2% monthly gross downwards a bit; perhaps to 1.5%. But that depends on the property (type, location, condition, size, etc.). As for time, you will spend some time getting setup, but if you use a mgmt platform (e.g. iGMS, OwnerRez, others) you can automate a lot of the process. Add a good cleaner and a handyman to that and it can be even better. Taxes are not difficult, but using a service like Avalera for $20/property per month can take that off your plate as well. As for realistically buying, it happens all the time so the answer is a resounding YES -- if you have a good agent.

@Patricia Watson - Julie McCoy is correct, but there are exceptions. Condos in certain areas here can return better than homes, especially if they have indoor pools in the complex. HOA or PUD fees here are becoming more common as new developments and resorts come online, so they are an issue regardless. BUT...be sure to research the HOA of any condo/home as many were not run properly for a long time and have had financial and legal issues that may not be resolved yet. HOA/PUDs around during the 2016 fires may also be artificially high due to special assessments from fire damage be sure to check that as well. A good realtor should be able to help with that, but Google can also be your friend. Ultimately, it is your responsibility as buyer to perform due diligence on the property and anything connected (HOA, PUD, etc.). Last thing, some condos, and even some cabin resorts, REQUIRE that you use their rental services and you cannot rent on your own. Be wary of that.

@Jeremy Guidry - For insurance, try contacting Tony Watts at Birchfeld Overlay in Sevierville. He is widely considered by locals to be "the man". During the 2016 fires, he had hundreds of buildings that were damaged and knows which companies stepped up and which ones gave owners a hard time. Foremost is the biggest underwriter in the area, but more rurally located homes may need a different carrier. Farmers is once again writing policies here (they pulled out after the fires) and supposedly have good rates. As for taxes, lots of people use Avalera, but I don't get it myself. Its not that complicated and I have always done my own for 4+ properties. There is a monthly submission to TN for sales taxes (later can change to quarterly if desired and TN approves), and a local submission for lodging taxes. In general, you only need 2 numbers for each property - Gross (rent + required fees) and AirBNB rent+fees. For sales tax you enter the Gross, then enter the AirBNB # as an exemption and TNTAP tells you your tax owed. On local lodging tax, you just report Gross. (Being in city limits adds a little depending on which city). Note: Sevierville is also a city, as well as a general postal "area".

@Jeff Piscioniere In talks with other local owners, trend to AirBNB and away from Vrbo seems to be across the board for the last 6-8 months. Not sure why, but AirBNB does a lot more advertising. of course, direct booking is the holy grail as you get to keep more $$ and stay in control of how you handle your property. AirBNB has become very "bossy" and threatening in the last few months, adding new requirements and penalizing search placement if you don't comply. Meanwhile, Vrbo is terrible. Site is incredibly slow, customer service for owners and guests is bad, booking fees are high.

@Jeremy Guidry re: existing listings

Avery's suggestion is the only way to handle Vrbo as they have a lot of archaic rules and processes. But try contacting them as they seem to be changing things almost daily to play catch-up.

As for AirBNB, there is hope. But you also need to decide if you WANT to keep the listing. Are reviews good? Is it optimized and placing well in searches?

For the AirBNB listing, get the current owner to agree to this IN WRITING: Add you as a Co-host. After a few days and AirBNB is happy with you, have the seller swap with you, making you the primary host. Then go in and change the banking and other account info to your own. Wait until at least 1 deposit is made to ensure all is ok. Then remove the seller as a co-host. There are a few legacy things that will not change (like the AirBNB referral code), but they are small things.

In the process of doing that, some deposits early on might still be made to sellers accounts, so have in the agreement that they will send you that money. Also, make it easy for them to do that (Zelle, PayPal, etc).