All Forum Posts by: Michael Greenberg

Great topic and conversation from everyone - thanks! It has taken me nearly 3 years to sort out what's most important to me. I have been tracking ADR (all in), ADN (avg daily net inclusive of cleaning fee as I bump my cleaning fee up to cover "consumables"), and ANR (less cleaning fee), Occupancy and all the other "stuff" the industry thinks I should be tracking. It is A TON of spreadsheet work for a handful of properties. Other than "it's interesting" it hasn't provided much value other than trends and validation of my approach. STR's are now the most significant source of my income so I am adjusting my focus and working backwards, e.g., "What are my monthly financial goals from this source and how do I maximize them?" In a seasonal market I am increasing rates on a nightly basis with moderate minimum stays (3 - 5 nights depending upon property type) in high season; weekly to monthly discounts for low season with longer minimum stays (capture traveling professionals since it's 115 degrees in AZ in mid-summer); and a variation of such for the transition month. I love spreadsheets so I'll continue to track my data points and not allow the "industry experts" to cloud my judgment and goals.

I'll post it now and see if the results differ from BP.

Mike

If you're not on FB, let me know and I can post it for you and send you the responses I receive.

Mike

Hi John,

I am curious about these as well.   You might want to post this to a group on FB called "Say no to VRBO Service Fee".  Don't be fooled by the name, it has become a very large group of HA/VRBO owners.

Mike

Hi John,

This is all great information from these seasoned vet's. If your looking at a remote location, consider replacing appliances and HVAC systems if they are old.  I replace any appliance that is 8-10 years old is a must replace (or if it's beat up) and HVAC systems can be a nightmare when they have trouble.  Can be a chunk of change out of the gate but well worth it in the long run.  

Mike

Hi Justin,

I too have some interest in this area though I have never been.  We are considering a road trip the next time I'm in Phoenix to check it out.  I do have a bit of concern over what has been transpiring politically/crime in MX right now so I would make sure to take your time and research that piece right now.  You might want to check-out airdna.co (not dot com) and do a little research with them.  Would like to learn more about your experience during your visits if you would like to connect.  I'll send you a request.

Thanks,

Mike

Hi Jeff,

Yes, most definitely this can be done as I do so on 5 properties now.  I rarely receive late night calls/requests and I think it has to do with spending some money upfront to make sure things are in good working order, e.g., new appliances, new water heater, newer HVAC system, etc....  Be cautious about cameras, this can turn off a lot of potential guests.  I would put one at the entrance and maybe in common areas, but I would not recommend placing them near bedrooms or private areas.  Get your "sources" lined up, e.g., cleaner, handyman, etc....  Most VR guests realize that you're not running a hotel and while their expectations are high, if you're "giving it you're all" they're still likely to give you high ratings even if there is an issue outside of your control.  Be super responsive to requests and you'll be fine.  As for the finances, I agree to not put your family at risk, however run your VR business effectively and efficiently and you'll far outpace any other investment in your portfolio.

Best of luck,

Mike

Hi John,

It's not always the case the bigger is better, but I think it is in this circumstance (with a few caveats).  I recently purchased a home that is far outpacing my condos... so much so that one of them will be sold this spring to make room for another house.  I think the sweet spot is 4-5 bedrooms, 3-4 bathrooms, a fabulous Master Sweet (since they are likely footing the bill), sleeps 12 - 20, tons of activities (installed a pool table, corn hole game, etc...), and in my location of AZ a pool.  I have another home coming on line next month that will have an outdoor kitchen, pool, putting green and sleep 15.  I am also of the opinion that too large may be overkill.  Happy to discuss further any time.

Mike

Now the larger issue, when (or will) the city change it's legislation?

Hi Greg and thanks for the plug @Jon Crosby.  I do have properties in Scottsdale Greg so PM me and we can connect about resources.

Mike