All Forum Posts by: Kenneth Rolfe

Quote from @Laleh Omaraie:

I am looking at a condo in a resort area that has the potential to be a good deal with the right occupancy rate. I’ve confirmed the nightly rate, which averages out to be $135 per night. This has been confirmed by multiple sources (AirDNA, Mashvisor, Evolve, looking at comps). However, I’m getting all sorts of numbers in regards to the occupancy! I called Evolve to see if they would quote me their numbers, and they said that occupancy at their properties in this area are 30 to 40%. When I looked at the spreadsheet from Mashvisor, that also came out to around 40% on average.  AirDNA estimates 56%.

I need a total revenue of about $25,000 for this deal to be worth my time - in other words, if we are using the $135 average, I need it to come in at about 54% occupancy.  The comps that I pulled on AirDNA are supposedly making $25,000 at the low end, and some that are more updated/better designed are making quite  a bit more. I noticed that these particular comps weren’t listed on the spreadsheet provided by Mashvisor.

So now I’m confused and frustrated because this completely makes or breaks the deal.  What data points should I be trusting here? On the one hand, I feel like it’s safest to be conservative and assume that if I can’t make the numbers work at 40%, then the deal is dead. But on the other hand, if AirDNA is correct, then I’m missing out on a great opportunity due to cold feet. Any advice? What would you do? 

I agree with what the others have said.  Additionally, keep in mind that the daily rates are likely higher during times the occupancy is higher, so I wouldn’t recommend simply calculating based on the average daily rate and the occupancy for the year.  Getting a little more granular should help you get a little closer to an accurate projection that you feel more comfortable with.  Good Luck!

Quote from @Maddison Gobble:

Hi everyone! 

I own a short-term rental company and a property management company named Lively Stays Management LLC. I am curious how everyone is finding short-term rental co-host clients? Any advice would be helpful, and if I could return the help by answering any of your questions, I would love to help.

Thank you so much in advance. 

Maddison 

Hello Maddison, this isn’t something I’ve tried myself, but have you considered looking for houses in your area on Airbnb and VRBO and reaching out to any owners who have low reviews?   I would imagine if you could show them how you could help them improve their reviews, and in turn make more money, you could potentially find some people that are interested in your services.

@Jon Crosby

I know this thread is a couple years old, but great work on this article! I was searching through the forum and didn’t find many posts about the off season, so was very grateful to come across this! If you, or anyone else, have found more ways to drive business in the off season I would love to hear them!

Originally posted by @Pam Smith:

@Kenneth Rolfe pretty much all of the little towns are discussing putting in new restrictions such as how far an owner/property manager can live from the property, parking restrictions, minimum night restrictions, etc. Our places are in Ephraim and Bailey's Harbor. Feel free to message me and I'd be happy to connect with you via phone if you have additional questions.

Great, thank you!  I'll probably take you up on that.

@Pam Smith

My wife and I are currently looking for a property in Door County. We’ve been monitoring the shifting regulations you mentioned. I’m curious which town your properties are in and if you’ve changed your approach in anyway as a result of the he regulation changes?

We would welcome any other insight or advice you might have for us as well!

@CJ M.

My dad had a very similar problem a few years ago at his personal residence and I thought he had a good twist on his approach. He knew who the kids were that were doing it, so he made a point to be outside one day when he knew they’d be walking by. He approached them in a non-aggressive way and told him about a problem he was having with people throwing rocks at his house and offered them each twenty dollars to look out for and essentially protect his house. They accepted but a day or two later admitted it was them and apologized.

Not sure it would work here since the kids are running away when you approach, but figured I would share in case it helps.

Good Luck!

@Kim Hopkins

Oh gotcha, definitely a bigger problem thanks for clarifying.

@Kim Hopkins

I’ve never purchased commercial real estate and recognize it’s a different kind of beast, but have you considered what it might cost to replace the current doors with an overhead door? That may help you determine the value and could be used as a negotiating tool.

@Jonathan Greene

Thanks for your thoughts on when to use it and when not to, very much appreciated. Do you have any examples of when it was successful for you or when it wasn’t?

@James Galla

Thank you for your insight and congrats on the deal that came from your experience. I hadn’t thought about how it could generate dialogue on other properties, but it makes sense if it’s an investor with a portfolio.