All Forum Posts by: Collin Hays

Moron Poster of the year.  

what kind of deals "make sense"?

The biggest thing you get for your 25% is time.  Time often translates into dollars gained, or dollars lost.

We just added a former self manager to our program.  He has a property in pigeon forge TN and lives in Indiana.  He’s actually done a good job with his property.  But time is money:

His hot tub quit working the first week of October.  So call the hot tub repair people, right?  Well, those guys are completely overwhelmed.  In December, he finally told them “Look, I’m losing my shirt in lost rents...I’ll just buy a new hot tub if you guys will just bring it out.”  

They said “sure thing...you’re on our list and you’ll have your tub in May.”

Well he joined our program, and within 48 hours, our repairman had his hot tub going.

So...how much did the self manager save in the two months that he couldn’t get his hot tub fixed?  And how many hours did he spend trying to find someone to fix it, explain the problem to guests, issues refunds, etc.?

We charge 25%.  But just because you self manage, you aren’t pocketing that 25%.  You still have to advertise, pay AB&B commissions, etc.   So you might be saving 14-15 points at best.

But when your guest calls on thanksgiving and says that the hot tub is broken, or they are locked out of the place, or the toilet has flooded out into the kitchen, don’t count on your off-shore $4 an hour dude to do anything.

The reality is, without a mgt co that can address these items on the spot, you just lost a rental - or a chunk thereof, and may have a literal s*** pile in your kitchen come Monday to clean up.

Most of our clients are former $4/per/hour self managers.  They figured out they make a lot more money having someone look after their place, and they get their lives back.

PS - all three of these things happened this thanksgiving, and all were addressed by a real person, in person, that day.

Gatlinburg TN area.  You would have to work really hard to screw it up.

Good work Paul. I would hope that some of these other STR owners are inspired by this and make their own hot tubs. Squirrel launcher is a very nice added touch, too. Guests appreciate these sorts of amenities.

Thanks for sharing.

 Yes, I believe we are on solid footing with them being classified as independent contractors.  Each state is different; I was hoping some TN folks might have a knowledge base of this.  

Sounds like you've found a plan that works for you!

 Don't forget your expense for the hot tub you made!  Can you explain that again?

We spend substantially more than this, as we are believers in buying high end furnishings, appliances, and decor.  We spent $4000 for a handmade hickory dining table and chairs alone.  But our guests appreciate the quality and treat our things with great care most of the time.