All Forum Posts by: Collin Hays

Originally posted by @Joe Splitrock:

Originally posted by @Collin Hays:

Originally posted by @Joe Splitrock:

Originally posted by @Collin Hays:

Originally posted by @Joe Splitrock:

@Michael Baum the property layout is living room and kitchen in front with two bedrooms in back. It is all one level. There is a fenced backyard too. It is a small house, but completely private since it is not attached to a larger home. Many of the properties in our market are one unit in a multifamily or people renting out their basement. 

Thanks for the suggestion on insurance. I reached out to Proper to get a quote. My agent is working multiple sources too, so it will be interesting to see how they compare. I did find some of the questions on the web form interesting. 

They are asking about noise detection and water leak systems. Based on the questions, it implies that having those things reduces insurance cost. Are these common in STR?

 Just out of curiosity, I got a quote from Proper yesterday and compared it to my renewal.  Identical coverage.  Proper was 47% higher.

 When I spoke to the agent, he indicated that Proper would be more expensive. The policy is really expensive, even when I take the replacement value down to the lowest per square foot and highest deductible. It is still 3X what a landlord policy would be for the same property for LTR. I expected to pay more, but that is probably out of budget.

Over the years, I have found that rates are all over the map - not unlike any other insurance I buy. 

 I agree, I have changed insurance twice over the years, saving 25% each time. My regular agent came back with a company that was less than half the cost. The coverage is a little different, but should be better for me based on what I need.

 Yes, for some, Proper may be...improper.

Looks like there are hundreds of STRs in Hot Springs right now, so it appears to be working.

https://www.vrbo.com/search/keywords:hot-springs-arkansas-united-states-of-america?adultsCount=2&petIncluded=false

Originally posted by @Joe Splitrock:

Originally posted by @Collin Hays:

Originally posted by @Joe Splitrock:

@Michael Baum the property layout is living room and kitchen in front with two bedrooms in back. It is all one level. There is a fenced backyard too. It is a small house, but completely private since it is not attached to a larger home. Many of the properties in our market are one unit in a multifamily or people renting out their basement. 

Thanks for the suggestion on insurance. I reached out to Proper to get a quote. My agent is working multiple sources too, so it will be interesting to see how they compare. I did find some of the questions on the web form interesting. 

They are asking about noise detection and water leak systems. Based on the questions, it implies that having those things reduces insurance cost. Are these common in STR?

 Just out of curiosity, I got a quote from Proper yesterday and compared it to my renewal.  Identical coverage.  Proper was 47% higher.

 When I spoke to the agent, he indicated that Proper would be more expensive. The policy is really expensive, even when I take the replacement value down to the lowest per square foot and highest deductible. It is still 3X what a landlord policy would be for the same property for LTR. I expected to pay more, but that is probably out of budget.

Over the years, I have found that rates are all over the map - not unlike any other insurance I buy. 

If you market to a college sorority audience, you might be sitting on a gold mine.

 Sorry Michael.  I’m on the road and don’t have the policies handy - didn’t mean to come across evasive.

I have investigated this area extensively.  It is a great area for STRs, but you are buying for long term price appreciation, not income.  That being said, since you own a property outright, it's obviously going to rent, and rent well.  Without a mortgage, the rent will easily pay all other expenses and then some.  I hope you do it!

The one I looked at was right on the beach, and it was priced at $1.1 million.  We were figuring possibly $80K gross revenue on it. 

I call it "listing bankruptcy".  We have taken on properties that had poor reviews, but there were underlying problems that resulted in those reviews - rickety furniture, washers and dryers that ruined clothes, things terribly out of date. We insist that these issues are taken care of prior to their joining us, but yes, after that, we will re-brand the property.

If you have a 4.2, that is still a good rating.  Another 5 or so 5-star ratings will bring that up to where it is no issue at all.  I wouldn't de-list and re-list.  Just work hard to earn some good ratings going forward and be very attentive to guests.

It varies. 

Michael, I own 6 properties, and I have two different agencies in TN that I have been happy with.  Consolidated Risk in Knoxville, and Bullard Insurance Agency in Morristown TN.

 Given our occupancies, it isn’t necessary.