All Forum Posts by: Kate Stoermer

Within the city limits, I believe STR are prohibited, so start with understanding the regulatory environment. Identify and work with a STR-knowledgeable realtor, and lean into understanding what it takes to succeed in STR. Its not just buy a place and toss it on Airbnb; its a business and it requires knowledge, resources, and recognizing that there are many different ways to have an STR business if you want the ROI. Spend some time to gain clarity about what you hope to achieve and what the path to achieve it; that will make the myraid of decisions easier.

I have a contact that is sort of like your builder - he manages the build, then he manages the property as well. He puts the deal together. Essentially, his partner (you, in that scenario) are providing the bank roll and you get interest and owner ship. I'll echo the idea I don't think its balanced as your propose it; you own the land and are already more involved than just as an "investor" it doesn't feel like a balance. You could just hire him to build; the PM piece shouldn't be tied to the JV - they get the business if they do a good job and it should be equitable fee's for the area. Good luck!

So, buried in this is a more important issue.  When you go to pick a new restaurant, you have some idea of what to expect based on the $ - $$$$  used. Those dollars signs tell us Beer and burger or steak oscar and champaign.  Now, those dollar signs and associated expectations are different be it New York City or Walla Walla, WA.  

We have the same in STR - people will have certain expectations based on the market and budget tier.

So, my recommendation is be clear on who you are serving in what budget tier and what kinds of amenities are expected.  I can assure you in in upscale and luxury, having a place to put clothing - be in nice closet organizers w drawers or a dresser, is likely a requirement to deliver on expectations in those price points.  While you are unlikely to get dinged for it if you don't offer it, there is a category called value that this type of issue can contribute to people marking down.  Maybe this is different in some markets, so you need to know yours, but just a point to consider.  

But again, it really depends on the expectations of those you are planning to serve. 

Quote from @Villy Ellinger:

@Emily Anderson Oh, dear mother, lol! Whoever, or whatever, conducted this "analysis" has clearly never owned or been to Okaloosa Island! Yikes :-)! I own, manage and sell there, so yes, I am partial. But I'm also looking to buy there more. There is a reason. Do some homework, but here are a few points to consider:

1) Most beachfront properties, the nice, higher end rentals on the beach side, DO NOT USE AIRBNB!!! So if this analysis is based on selecting properties based on how many Airbnb reviews they had, well that kinda figures. As a very personal example, I own a condo a Azure (one of the nicer beachfront condos). My unit grosses $115K in rent (clean of any other fees or cleaning fees). Of all the numerous reservations I have every year there, only two or three are through Airbnb. Airbnb is geared to the lower end properties on Okaloosa Island. I also own a townhouse across the street, which mostly books on Airbnb and a small unit at El Matador on the very west end of Okaloosa Island, also mostly rents on Airbnb. In other words, it seems to me that the data in this study is skewed and incomplete.

2) Okaloosa Island is a "tale of two cities": the south beach side of expensive condos and the up and coming north side, where only a small portion allows short term rentals. The analysis mentions the area around Breakers West. LOL. That complex is different from the ones around it. The area around it is the fastest growing in potential revenue per sq ft. That said, it is COMPLETELY different from the beachfront condo area in both guest characteristics and overall potential. 

3) My personal opinion (based on years of on the ground experience in the area as a living breathing owner and manager) - 2b/2b have the lowest per sq ft income potential. 3b+ units do better as do STUDIOS!!! 

4) Also a personal opinion, but based on experience: with the exception of a small area on the north side of Okaloosa Island around Bluefish, Bream and Commadores Landing, AirDNA or any other Airbnb-centered data metrics are garbage. Even if they are able to capture VRBO data as well, none of these capture OTO data. Keep in mind that a number of the larger, more expensive units on Okaloosa Island are managed by large vacation rental companies like Vacasa, Southern, etc OR by more sophisticated owner-managers who have their own direct websites. Contrary to popular belief, some of the management companies do bring large rental numbers. The end result may not be very profitable for the owner, because the management company takes a large comp cut, but for analysis purposes the gross rental numbers they produce are significant, and they are NOT captured by AirDNA or other similar services. Even PriceLabs specifically indicates that they are not able to capture data from direct bookings from vacation rental company websites.

5) There are a lot of "pundits" currently proliferating various analyses based on a small window of data fluctuation: those who got into the business in 2020 and are now drawing various conclusions based on a very short time span. If someone is looking at Okaloosa Island (or any other area) with the goal of finding of investment options where they can make instantaneous cashflow or overnight appreciation .... well they are a dreamer or an idiot (sorry for the language, lol). The analysis above is short-sighted. Whether this is a good area to invest or not, should be based on more than that. Any analysis into Okaloosa Island should look into the current infrastructural developments in the works in Fort Walton Beach - a lot coming up - that will have both positive and negative repercussions. It should also look into demographic shift expectations and demand projections. The analysis only  looks at past numbers (incomplete and skewed, in my opinion).

If I sound harsh, it's not because I'm advocating one way or the other. It's because I believe there is more to market analysis than having a machine pull out some numbers out of its *ss and produce a conclusion :-). Anyone interested in Okaloosa Island investing should study it deeper and broader. Same for any other area.

I feel so much better now that I have this off my chest, lol. 

Good luck :-)

If I could triple up vote I would. Nothing replaces deep diving into a market with your own eyeballs after pulling data as a starting point. Data can't be sourced from a single platform, some markets (especially resort markets) have direct booking cultures, equally as many bookings on VRBO, and interesting nuance that no AI can detect. 

Take time to learn! STR are all about understanding the market - buy right, set up right, market right. Good luck!

Stacey St John's Female STR if you want a group option, there are lots of 1:1 mentors (I've been doing this work for 3 1/2 years). The things I would suggest is to understand your goals and pick a mentor who understands and has achieved similar who can guide you. Some people want an Aibnb biz, in which case the Airbnb Host Program might work. If you want to own a STR (vs just an Airbnb) and grow a portfolio, you want someone doing the same which is very different than just being an Airbnb. You can certainly learn through free resources and online forums like this but a mentor can help cut thru the noise, provide clarity specific to your goals, and provide support to achieving them without the trial and error. I personally have a very small portfolio and I help manage a few; I've focused more on the coaching, consulting, and education side, first as a coach in someone else's high end program and for the last 2 years on my own - building a life more reflective of my goals today in my post 9 to 5 corporate life. Good luck, happy to chat if it's helpful.

Good advice here but I'd like to take one step further... its a crowded market and buying the right property, setting it up right, and ensuring it is run well is key. STR success is understanding the nuances of the market, price drivers, and positioning in order to stay in demand. Out of state completely feasible.. I've had clients buy without ever seeing the place or seeing it hours before closing...the right boots on the ground is key but, while most realtors are ethical, no one has more invested in your long term success than you so don't rely on information from others who could profit from it. I've had clients come to me to figure our why they aren't netting what they thought they should be only to learn that revenue level was never going to happen for that particular house. Happy to chat if helpful, I do have some resources I can share. - Kate

AirDNA + a deep dive just looking at the market via the booking platforms to understand the nuances of what drives price 

Okay, just to counter the perspective; if you are buying as an investment did you plan to take on a job? Self-management isn't just about hiring cleaners, its very much learning the nuance of the STR market, how to navigate all the various software, how to market the property - from photos, to listing copy, to policies, etc and then staying on it. Also, its being on call 24/7. How much is your time worth? What's the opportunity cost of putting you time into managing vs putting your time into other endeavors.

I just wanted to validate its okay to run your business and your life in accord with your goals and the value you put on your time, and it's just fine to outsource. 

For the question you actually asked -  Use AirDNA to find the top grossing properties in the market, see who is managing them and call those PM.  I don't know the market, but that's how I'd find the best PM.  I find smaller, more boutique managers often do the best job; they know the nuances of the market, and they can eek enough out of your property to cover their salary vs if you did it yourself. 

There are a couple of courses out there to train co-hosts - and likely those programs help you find leads to get started.  I know Bill Faeth has a program for sure.  I'd advise starting there. 

I'll note co-host is a pretty broad description and it will be up to you and your clients to refine what the job is. That said, the key - number one role, of any STR is to optimize revenue and STR is all about marketing and positioning the offer (the listing) - getting the pricing, photos, and copy correct in addition to delivering an A+ experience. A co-host will be expected to know this and how to achieve it and execute on it in order to be successful.

Also, keep in mind some states are very strict about what it means to be a co-host.  

Good luck!