All Forum Posts by: Mason Hickman

@Cheryl Vargas 

I have a STR/vacation rental up in Cape Cod Massachusetts. My wife and I are in the process of re-designing and increasing the "luxury" feel. Not going after the luxury-only market, just looking to push the ADR up for now.

@Paul Sandhu - sounds like quite the place! Some of those are not possible in my location but I'll shoot for the others. 

@Cheryl Vargas - where are you planning on carrying out your plan?

@Tim Schroeder - thanks for the thoughts! 

Good afternoon!

I'm currently in the process of putting up vacation/STR listings into numerous online booking engines and some of them (like OneFineStay) tout themselves as "luxury properties only." When I think of luxury properties, I tend to think of the size, setting, and high quality design finishes (feel) as the major defining factors of "luxury." Are there any amenities or features you would expect to have in a luxury vacation rental that without them you would no longer consider the property "luxury?"

If they were cooking meth, there are serious health hazards. Same is true if there was Fentanyl in the house. Hazmat needed to properly dispose of contamination in the house. I'd do a quick search of your local town police record to see if you can determine what was being done in the home. Neighbors of the property will also be a good source of information. 

@Patrick Brodeur

Yes, go up as in more vacant. 5% is basically 18 days of vacancy per year. When I budget, I usually use a month of vacancy per year. I have had good luck turning over my rentals in Chester County quickly, but I'm not too familiar with Montgomery country and what the demand is like. If you get one bad tenant that requires renovations or if the property goes vacant during the winter, it can quickly sit on the market for a longer period of time. 

@Patrick Brodeur

What town is this in? Based on tax rates, I'm guessing somewhere in Delco?

The reason I ask is because your vacancy of 5% can quickly go up in some of the B and C class areas in Delco. 

I realize I'm a little late to this thread, but I wanted to see if there is any firsthand knowledge of the impact the new taxes are making on STRs on Cape Cod. Between the new taxes and filing obligations, I'm curious if the competition has dropped or if the demand has been impacted based on the added cost to consumers. 

@Mark Fries

What do your typical purchase price, renovation and rents look like in 32254? 

Welcome, Kat!

You came to the right place to learn and start the education process. The forums will have answers to any question you may have. I highly recommend the podcasts, as well.

Hope to see you around BP,

Mason

You should only be paying for the value of the current rent that is being charge and not for the "market rent." Since the tenants have been there so long, the seller can't expect to sell you on the benefit of having long term tenants and below market rents. It sounds like the landlord has traded the incremental rent for the consistency of tenants and extremely low turnover. Be prepared that if you raise the rents considerably up to "market rates" you run the risk of losing those tenants.

Don't let the seller have it both ways.