All Forum Posts by: James Alderman

@John M. you'll need a management company that specializes in full-service STR management, which should include pricing strategies, guest communication, etc. There are some services like Evolve (https://evolve.com/real-estate...) that can help you find a home to purchase then manage it for you. 

I'm sure that you have photos for potential guests to view through the booking platform. Will you wait until all the rooms are finished to update the property photos? I wouldn't want to post photos of the renovated rooms, and then have a guest upset because they get an older room. 

You could create "updated rooms" as one booking choice at a higher price point. You'll need to carefully manage the booking allocation as rooms are finished, and have solid schedules that are stuck to, to maximize cash flow. Or only switch the allocation as rooms are finished, lose some of the potential increased rates, but have some happy, surprised guests when they get an updated room after paying for an older one.

I hope that makes sense.

 +1 on that!

Are they past-due and have you posted any letters to "pay or vacate"? Did the lease have any terms regarding firearms?

This sounds awfully similar to my first BRRR that we're completing now. We hired the contractor in August with a mid-October completion date, which dragged through January. I was happier with the GC's work that it sounds like you were. I'll be leaving some money in this deal and learning a ton as well. Best of luck!

That's awesome! Congrats! Are you covering your mortgage with the rent from the other two rooms?

Are you saying that you would gut and renovate units incrementally until all the rooms are done?

What would most motivate your brother? Does he need the hourly cash? Or could you cut him in on some of the equity? 

Giving a property manager (your brother in this case) some ownership can help motivate them to keep the property in good condition and select the best tenants, rather than being motivated by things going wrong and vacancies where he earns the hourly wage. Or worse, if you pay per service-call, a manager may go out for every single minor issue that really the tenant should take care of. (I'm not trying to say your brother would do this, just a general warning)

You could also give him a set percentage of the monthly rent, with or without bonus pay for vacancy turnover.

My one contractor friend lives in Bratenahl just across the freeway, and I'm in the area about once a month. Feel free to reach out anytime.

Would you be managing the STR yourself? Like communicating with guests and cleaners. Or would you be hiring a property management company?

Managing multiple STRs can be a 5-10 hour weekly job at minumum, and compared to my LTRs, there's more late-night emergency calls about where the toaster is. 

If you hire out the management of the STR, you might be paying them 25% of the revenue for that service.

I love interacting directly with my guests (and the higher cash flow that come with it!). It's about your personal preference.