Quote from @Dina Schmid:
If all goes well with Monday's post-repairs inspection, we should close later in the week on a cabin that we want to use as a getaway for us + STR when we're not using it. It was a new build, shown completely furnished and the builder listed it for use as a STR after we saw it. We knew the place was special, that's why we jumped with a full-price offer. We had no idea just how many other people would think it's special.
The next available weekend is June 6th! There are bookings for the other weekends in June and only five random open days in March. While this is a good problem to have, I'm starting to stress about it for a few reasons I'll put below. I want to note that bookings will transfer, but we're under no contractual obligation to honor them. I'm trying to figure what the best thing is to do moving forward.
Reasons why I'm stressing:
1) There's a drone photo showing no other cabins around. It looks completely isolated. Except that this spring there's going to be a cabin built next door. By fall there might be others. Imagine showing up to a cabin you thought was isolated and finding construction going on?
2) I don't like the idea of renting out a cabin I haven't stayed in myself. I don't know if there's anything missing. It will be a royal PITA to do a one-night stay on a random Wednesday, but it could be done.
3) It's currently listed as pet-friendly with only a $30 pet fee. I'm highly allergic to cats (like super-allergic) and also allergic to most dogs. An extra $30/stay isn't enough for me to have to make myself a zombie on Benadryl in order to sleep there and not wake up with my eyes swollen shut because someone let their dog sleep in the bed.
4) I think it's been priced too low. It's led to incredibly high occupancy rate in the off-season, but I'd rather have a slightly lower occupancy rate in order to reduce wear and tear and leave some weekends open for personal use.
I'm at a loss on what to do about this. On one hand I like that it will probably cash flow (we expected to break even at best) and know there's issues with canceling reservations. On the other hand, I want to be able to enjoy this place too. Any suggestions? How have you handled it when you've purchased a popular existing STR?
1. I wouldn't publish the drone photo.
2. It's a good idea to stay in your own place a few days before you rent it out.
3. Unless you are going to be staying at the place, I would leave it as pet friendly. Folks are going to bring their kitties and dogs regardless of what your policy is. Over 50 percent of travelers are traveling with pets.
4. A high occupancy in the off season is really good. You didn't buy the house to preserve it, but for it to produce income. Reminds of a friend of mine - bought a brand new Camry but kept it in the garage the whole time because he was afraid someone might scratch it. Kind of defeated the purpose.
5. If it is breaking even, you are doing better than most. You don't want to cancel reservations; that will give you a bad rating. Make your own reservations in advance.
6. When you stay there, you are essentially renting it from yourself, because you are giving up lost rents while you are there.
