All Forum Posts by: Michael Greenberg

 Takes one geek to know one geek Jon :-)

 Good stuff Paul and thanks for the ideas / links to  your listings - you have a great niche!

Hi Ryan,

I would take a look at other providers similar to Lodgify, there are quite a few options before you commit.  You might also reach out to the folks at Vacation Soup, they are doing some interesting work with online marketing (they're on my list for f/u this coming year) and at one point one of their founders taught a short Wordpress class on building a simple VR website where a potential guest can simply reach out to you for a request.  I think if you're trying to create an entire booking engine site, you're going to spend a fair amount of time, & money creating and managing a site; more than what Airbnb is charging in commissions.  Also, check out a website called getapp, they allow you to search for apps that provide some features you may be looking for.

Best,

Mike

Another reason to work towards listing independence @Kevin Lefeuvre, and push to get your ranking up on VRBO/HA.  I believe we will continue to see more and more of these policies in the near future.

•  I think this is a lousy metric.  Just because people are "possibly" looking to stay at your place, there isn't any detail information beyond this semi-arbitrary number that AirBnb displays.  Remember, they are only interested in you lowering your price so you're booked 100% of the time - that's how they are paid.  I just check one of my places and it's at 1.5%, yet I'm booked 80% of the time on this place via all channels I am using (VRBO, ABB, Direct).  Don't drink their cool-aide, do your own hard pricing research and update it monthly.  You'll find your own price for success.

@Jennifer Asuncion Similar to @Jon Crosby, I too have had these requests, just about a week ago was the most recent.  I offer a few options.  If another guest books the place for the dates they are cancelling, I will refund their reservation (either the same $ or if the difference if it's lower).  I also offer a future booking date as an option.  Further, at times it feels cold-hearted to refuse and stand firm if either of these options are unacceptable to them, but this is a business and it's not personal (even though they are pulling on your heart strings).

Best of luck,

Mike

Hi Alan,

Sounds like a good opportunity, but you've got some work to do.

1.  Yes, No, Maybe

Just like with any real estate, it's dependent upon location.  Add great amenities, beautiful photos, clean and new(er) furnishings.  Analysis of competitive nearby properties.  You said "stuff" twice in your posting, so you're going to have to clean it out and provide what is necessary, possibly hire a staging company to assist since you are a realtor and must know of one.

2.  If home is good and snowbirds come, then it's a definite "probably".  Do your research!!!!  Be honest with yourself about the condition of each house and how they are priced.  You'll need additional resources like an amazing cleaning crew, handyman, etc....  If the appliances are dated, replace them.  Money spent now is money saved later.  Same goes for HVAC systems, TV's, electronics, etc....

3.  As with most locations, it is likely seasonal so be prepared that it could be vacant during off-season, or at least your rates will be a lot less.

Start with this expense/asset items and analysis.  If it looks good, you've likely got a gem.  Just remember, VR's are a LOT more work that LTR's, but the returns are indeed better (in most locations - that's why you need to do some research).

Best of Luck!

Mike

This is an excellent point Sarah, thanks for pointing this out. I took a 1.2% decline in revenue from 2017-2018 as the market exploded from 3,000 - 7,000 STR's in the Phoenix/Scottsdale area. Honestly, I thought it was going to be a lot worse. This is a good overarching number to track, but I think there are a number of variables to consider beyond future prices and I have started to swim upstream into higher end property investments which have a lot less competition and the prices are much higher.

@Patrick Britton - as @Brandon Sturgill indicated it does vary by location.  I average 78% in my market, but it's also a HIGHLY seasonal in AZ, rates vary dramatically.  While occupancy is an important stat, I think you're 2nd questions is more important.  Airdna is a decent investment tool and I've used it before, but I prefer to do my own analysis.  I want to know my "net" per night, per stay and per property.  It takes first hand experience to get to these numbers as it can vary, again by location, amenities, etc...  

Here's the categories I track by property:

Supplies

Utilities

Maintenance

Cleaning HOA

Insurance 

Mortgage (not applicable anymore)

Cable-Internet

Pool Expenses

Here's what else I track for combined properties:

Advertising

Travel

Promotions

Other

I also track assets for depreciation.  Some are section 179, others can be expensed immediately so check with your CPA.

Hope that helps,

Mike

Hi @Skip Saldan!  Not a lot of thought, but curiosity???  

Mike