All Forum Posts by: Maura Paler

We have had the same issue with a property that is valued very low as it is a 1966 mobile home, which as a piece of RE is basically worth, well, not much. 

We have renovated it with lots of windows looking over a lake, it's clean, cute and a very successful year round vacation rental bringing in approx $23,000 a year. Let's say our expenses are half that (they're not, but let's be conservative) - it's a $12,000 yearly profit 

So, to sell it for less than $100,000 would be unwise, where else could we make that return? But who would pay that for something that, on paper, and according to comps, is worth not much?

So we are "stuck" with this unsellable, but profitable little home. We have it up for sale by owner, and our schtick about it is - that the only way it makes financial sense for the buyer is if they continue to rent it while using it. 

We now have 2 additional successful vacation rentals nearby, so it is not a hassle for us to continue with this one (vacation rentals, when done right, can be a lot of work!). But we would like to sell and start buying more VR properties in a warmer climate.

Any tips would be helpful!

Hi Zachary, 

Here are some resources I find helpful for vacation rental advice: 

Book: How to Rent Vacation Properties by Owner by Christine Karpinski 

Blog: Matt Landau's Vacation Rental Blog (he's funny too) http://www.vacationrentalmarketingblog.com/help-do...

Forum: HomeAway.com owner forums have lots of great advice

Sounds as though you are interested in multiple properties. Here is some advice from my own experience: 

- get them close to each other so you can share resources (housekeepers, repair guys, lawn care). If you need to use a property mgr/rental agent, I'd suggest finding a reliable one first and then choosing your area to invest. There is a LOT of detail that goes into weekly rentals, if you are not doing it yourself you need very reliable help. Not easy to find. 

- get them in an area that you can visit regularly, stay in each one yourself every now and again.

- vacation renters expect an immaculate home, new construction or good renovations are necessary. Trying to make $ first and renovate next will build bad reviews which is a killer

- if you are relying on seasonal rentals be sure the numbers make sense, and what is your plan for the off season? Keep in mind you will be paying for all furnishings, utilities, maintenance and yard work year round.

- I own VR properties and also manage the reservations for other peoples VR properties, and can tell you responding to inquiries can be a full time, 7 day a week job. Be available or hire someone who will be dedicated to your properties reservations.

- peruse listings on Flipkey, HomeAway, VRBO, Vacationrentals and Airbnb in the areas you are considering. Pick a couple listings that look similar to what you are thinking of doing, follow their calendars throughout the year and see how booked they get. Read Reviews!

- make sure weekly rentals are legal in the area you are considering - many towns are banning them or putting on a 30 day minimum. 

- get specific vacation rental insurance, otherwise a claim could be denied - try CBIZ 

- we have seasonal lake and mountain rentals (summer is peak). We get fully booked spring through fall which is all we need to make us happy. The icing on the cake is that many winter weekends get booked by lowering rates, having great photos, houses have great views and nice interiors so the "in the house" experience is nice. Good reviews are key to off season rentals also. 

You can see ours here, they are different price points which also helps...if a guest says one is over their budget, we refer them to another: 

Piseco Lake Cabin

http://www.homeaway.com/vacation-rental/p3165887

Lake Algonquin

Our experience for great occupancy for weekly rentals has been to be in a year round destination (like South Beach FL), but of course you pay top dollar for that. 

Or find a seasonal home that is unique and nice enough that people like the idea of visiting in the "off" seasons. What unique qualities you ask? Amazing water or mountain view, privacy, excessive charm, romance, hot tub. Maybe stay within 4 hours driving distance from a big city so the expense of a flight is not needed for an off season rental.

We own vacation rental lake houses in a small town. The problem with appraisals on them is that they are based on "comparables" nearby which are not at all comparable. There are 2 types of homes here, local homes (inexpensive) and vacation homes (expensive). Comps on the vacation homes might be based on the recent local sales nearby which bring the numbers down - appraisals don't always take into account views, quality of constructions, etc, mostly based on square footage. 

The vacation homes often sell for much more than they appraised around here. 

Hi Scott,

Great advise from Shaun - do check with your condo association to make sure they allow weekly rentals. This may be a deal killer for you as many do not allow it, other owners don't want transients coming and going.

Couple other things: 

- get weekly vacation rental liability insurance, most normal policies will not cover claims if they can prove you rent more than 3-4 weeks a year. CBIZ is one insurance source. 

- keep an eye on comparable rentals in the area, look at their calendars and see how booked they get in fall, winter, spring so you can get an idea of the off season rental market. 

- when doing your finances plan for housekeeping, rental management fees, upkeep, supplies and off (and on!) season vacancies.

- keep in mind that things like spices, towels, sheets, tp, paper towels, propane for bbq's, cleaning supplies, coffee filters, soap, have to be kept up to date, clean and refilled when you have weekly renters. Lot of work and need someone to be responsible for this. Guest spills on sofa, rug, comforter cover? Who takes care of that?

- provide a rock solid lease - those are easy to come by online

- good advertising venues are HomeAway, VRBO, FlipKey, Airbnb, and believe it or not Craigslist has always been a solid provider of guests for us.

- be better than your competition - put up GREAT photos (spend $ for professional ones it's worth it!) nicer furnishings, more attention to your ad, update rates, provide great local info, make it easy for the guests 

Hope that helps!

I take weekly rental reservations for a variety of vacation properties for a living. We frequently request payment prior to filling in and sending the lease, especially if it's over PayPal or by Credit Card - these are all safe transactions for everyone involved. 

If guest is paying by check we email the filled in lease (it has dates, names, contact info of guest and host, addresses, house rules, cancellation policy, disclaimers, etc) for guest to sign and mail in with the check payment. 

I suggest asking for a lease regardless of how you pay. Just so there are no mistakes - it's easy to overbook someone, forget to document a payment, etc. 

Look at how long they've been on the site (Trip Advisor, VRBO, HomeAway, etc) and look at the reviews. These sites will not allow a scammer to advertise. They also have fraud protection for the renters - but you'd have to read more about that not sure how it works.

I have a friend with a 5 bedroom vacation rental with pool in Kissimmee. It's tough for her to make ends meet and she bought it at a good price - there's lots of competition. 

She suggests at least 5 bedrooms, ensuite baths and tv's in each room. 

@Matt Rosas:

I like the idea of vacation rentals. More work but more fun/mula. The surfing warm water areas are kind of far. What are your geographical limits?

Matt - we have checked out surf beaches in Nicaraqua, Costa Rica, Panama, Dominican Rep, Florida, St Croix. Heading to Eleuthera next. We've found places too pricey (if I had only started this 10 years ago!), not having enough infrastructure or lack of community.

Anyone have any ideas?

We are considering partnering with a neighbor to purchase off the grid lakefront land, renovate the run down cabins, put in solar and vacation rental the cabins. 

The neighbor brings construction and landscape expertise (lots of trees to come down!) and are local so could manage it. Their intent is to eventually own it outright for their personal use. 

We bring more $ and expertise in the seasonal rental market. Our intent is to protect our nearby property by controlling what goes up on that property - and would be happy to sell our share to them or let them work off their payments via the rentals over time. 

How could we financially structure such a deal? We have land purchase, renovations, landscaping, solar, septic and well to dig. 

We own three properties ourselves, but have never partnered. We trust these folks. But need to have a solid something worked out. Any suggestions greatly appreciated.

Hi All! 

I am an owner and manager of vacation rental properties that rent by the week. We own 3 rentals in the Adirondacks (and yes we use them a ton too!), and I manage weekly vacation rentals for apartment complexes, single and multi families for clients all over. 

Am looking to invest in more properties - open to all types - working on narrowing down the plan, BP has helped a ton! Have listened to all the podcasts, LOVE THEM!

One fantasy is to find an area in a warmer climate, preferably near surfing (for the husband!) and purchase multiple small properties. Vacation rental them for the next 10 years or so - then sell to friends for an instant fun retirement community. Haven't found the spot yet, but have enjoyed the hunt!

My husband David and I live in NYC so local markets are out of reach for yearly multifamily and single family rentals. Trying to figure out how to research up and coming areas surrounding us for opportunities. Have gotten involved with our local REIA which is helpful, and hope to pick up more tips and get going soon thanks to BP.

Thanks for being such a great resource! 

Maura