All Forum Posts by: Michael Greenberg

@Sid Payne I'm tagging @James Carlson on this subject.  He's the local expert for the Denver market and will have some solid input.  If he doesn't surface, just search for jamescarelsonrealestate on the web.

It is possible @Christine N., however you're receiving some sound advice, especially from @Luke Carl, a seasoned STR veteran. On the surface, this business seems really simple (the OTA's con-game to get you to drink their cool-aide). Don't be fooled, this is a HARD and monotonous business (I wasn't nearly this grey 4 years ago). I do know of a few local PM's in my area, however they have leveraged this business as a "bolt on" to their existing real estate practice, a nice model that has worked well for them, but there are constant and ongoing challenges. With just 4 properties of my own that I self-manage, I receive daily (and nightly) requests from guests, my cleaning crew, handymen, etc.... I am on call 24x7x365. I eat, drink, and sleep thinking of all the little things that need to be done. So, multiply this by "X" properties and you're adding staff and resources to manage this I assure you. If you believe you can charge 25-40% commission (the going rate for most PM's depending upon your market), you may be able to grow this business, but it's going to be a steep learning curve and may not be enough return to justify the effort.

Please keep us posted on what you decide and sorry to be a bearer of dissuasion.  

Hi Ben!

Great place!  Nothing jumps out and @John Underwood has some good suggestions, but maybe a digital antenna might work if you can pick up the channels.  A few of your photos are fuzzy.  I also like to take photos of my amenities, inside kitchen cabinets, etc.... I recently purchased a little label maker as well and label the cabinets and locations of items. it can be frustrating to hunt for things when you're not familiar with the space.

Best,

Mike

I was able to roll my STR's under my Allstate Homeowners plan and then purchased an umbrella policy to cover liability. https://www.allstate.com/tr/home-insurance/rented-...

 Now we're talking....

@Kevin Lefeuvre, thanks!  Oh, I've seen those retargeting ads, just login to your ABB account, look for a property, select your dates but don't book.  You'll get a taste for them and they are appetizing.

Good topic, got my blood flowing this morning, even after the coffee wore off.

You are correct @Julie McCoy, but just the "noise" it creates is an erosion of the market, no matter how small.  I too have a "nice declining statement", I just like to get a little snarky on BP at times.

@Luke Carl does it have to be LV?  There has to be something more interesting in the wanderful life experiences.

@Paul Sandhu that is unbelievable and to build on what Lucas stated, I'd hate to see the other guy.  Reminds of the jokes "3 guys walk into a bar...."  you can tweak and finish the rest.

@Luke Carl hahaha, we need to meet sometime.  Oh, and to add insult to injury.... look at what ABB just put on my property pages this morning:

"Something for everyone

Guests will choose one of these options on your listing page:

Flexible

FULL PRICE

OR

Non-Refundable

10% OFF"

Hey @Kevin Lefeuvre, 

You've poked the bear and I've only had one cup of coffee!  Yes, indeed this is happening and I agree with @Account Closed inferred is that they really are are just "visitors" and we have no real relationship with them as the OTA's would like us to believe.  They try and create this false impression by dressing up their websites, changing their marketing spin, and collecting reviews of "US" and not really our properties because the reviews follow us and we are labeled as SuperHosts and Premier Partners.  We try so hard to build a relationship so they leave us a 5 star review.  We hope they might return and book directly with us the next time, which happens occasionally and does start to build some relationship.  That's a good thing and I certainly provide discounts to them, without them having to ask.  Wouldn't it be great to have returning visitors, that became "guests" for every stay?  Would you pay an OTA 3% if you could book direct, maintain your price, control your own "experience" and reviews and would market only your property if they were looking to return to the same location?  It is so counter intuitive in that they market your competitors before they even book!  That's messed up!  Talk about market and price erosion!  I define a guest as someone I already know and care for that I would allow to stay at my own home for free, not someone who wants a glorified hotel room or BnB that might include a pool, basket of goodies, well appointed kitchen, etc... that "rents" my home.  These people are really visitors but the OTA's like to soften it and pitch that they are creating these "experiences" to differentiate themselves in the travel industry; trying to convince the municipalities that they are different in some positive way.   It seems that the people that are asking for discounts and paying the least are the high maintenance visitors, complain the most, and ding us on reviews for not having "Olive Oil" or that the place doesn't have "creature comforts" (barf).  This is a serious business and I struggle every day with these requests and conflicting, almost crazy making" messages from the industry.  Take your discount requests and shove them where the sun doesn't shine.

I need more coffee,

Mike

Hi @Julia Bykhovskaia - I don't pay a lot of attention to revenue, it's really net profit that matters.  I net out my take on a nasty spreadsheet for every guest stay.  I find if I drop my rates too much, I do book more often, but the guests can be unsavory and I have "high maintenance" guests as well.  I have (2) large homes and (2) condos right now, combined occupancy is just shy of 80%.  You might check out an up and coming tool designed by @Alan Da Costa called RentyBump. He's designing an interesting tool to price your STR's that PL, BP, and WH don't provide the same level of transparency and competitive data. He's still in BETA / Design mode but so far, so good and his road-map for additional functionality will be really great.

Cheers,

Mike