All Forum Posts by: Collin Hays

Well, I own two businesses, including a property management co that manages my own properties, and another non-RE franchise with four locations.  They are both passive because I am essentially just an investor - I am not involved in anything day-to-day other than an occasional "hi how are you" phone call and a look at the books once a month.  Both of these co.s do pay me a small salary because there are times now and then when I do have to get involved.  I would guess I spend 5-10 hours a month on them combined.

So, since it is "mostly" passive, I don't take deductions such as mileage reimbursement or home office. About the only deduction I'll take is travel expenses to go and inspect my own properties which are 1100 miles away.  I try to go a couple times a year. 

I never take a home office deduction.  I do know that there are two schools of thought on the treatment of STRs among accountants.  The first being that they are treated as rentals, the second that they are treated as hotels.  I'm not sure how my accountant does it; I just do what he tells me.

 Brightside.  I love it.  It is integrated with VRBO which means you get to use your own credit card processing which saved us about $12,000 a year in CC fees, and no more waiting around on our payments or coughing up another 3 points for “advance pay”.

I am uncomfortable with how VRBO is eating more of the pie as time goes along, so we are actively working on a way to eventually divorce.  Work in progress.

VacationRentalDesk.com is quite good for a few properties.  I used it for years.  We outgrew it and had to transition to something with a lot more horsepower.  

I liked it because it also had a cool website tool that you could use for your properties.  It is way cheap - probably 50 bucks a month.  If I had 3 properties VRD would be my pick hands down.

I guess that's why my property management company isn't in Ohio!

You don't have to be a broker to learn and follow laws.

How does have a brokers license qualify someone to manage properties, any more than a marriage license or drivers license would?

Why is it assumed that the OP doesn’t want to get licensed and operate correctly?  If he was wanting to operate slipshod, I doubt he’d be posting questions.

Couldn’t agree more. I think we could be reaching a threshold within few more years if trends continue.   If VRBO doubles their fees (again, or again), then it becomes untenable. 

eBay is being held in check by new legitimate competitors of various types.  

Somewhere along the way things got derailed here.  There is no question that VRBO and Airbnb are the gold standard for driving business.

There is also no question they are hogging a bigger slice of the pie, year by year.  

Fees charged to guests DO impact rent.  When guests make a reservation, they are looking at the bottom line.  

If rent is $100 a night for 3 nights and there are $80-100 in various fees, and then taxes on top of that, you have a problem.  

As i said, VRBO and Airbnb are the Amazons.  Of course you have to use them.  They have a monopoly and are squeezing the homeowners accordingly. 

A 3% charge for advance pay is advertising?  A service fee of 8% per booking is advertising?   

No one said they are “doing nothing”.  My point is, they are grabbing more of the pie, one year at a time.

Yes, I’m complaining!