All Forum Posts by: Mike Shemp

I think it depends on your market.  

If you are in a vacation destination, I would do AirBnB and VRBO and link the calendars, while at the same time building your online social media presence to help advertise it and get direct bookings.

If you are not in a vacation destination, I would go with offering a furnished rental.

Mike

For our cabin in the White Mountains we got lucky at some estate sales.  One was cleaning out a late 1800's farmhouse and we picked up some nice cabin decor items there.  We also put in some antiques, but you have to be careful because there is the risk they will be damaged by the guests so you have to find the right balance.  We picked up some antique paintings from artists that were local to the area 50+ years ago, and some other antique wall decor.   We've also had some luck on Facebook marketplace and Etsy with finding unique/craftsman style decor.  

For dishware, bakeware, cookware, utensils, etc. we are big fans of TJ Maxx and Home Goods.  You can get big coffee mugs for $3.99 typically.  Don't get the small coffee mugs with the little handles..people want a real coffee mug! ;-)

 Mike

My personal opinion is to make sure that at least you, or your partners, is familiar with the area you want to invest in with a short-term rental.  There are many great markets to invest in, but every market (especially vacation areas) have their places that just aren't as great for one reason or another.   I think it is important that you or someone on your team you are putting quite a bit of trust in other folks.

As an example, we invest in the Outer Banks and White Mountains and there are certain areas, streets, etc. that I would not invest in, even though we love these markets and invest in these markets today.  This is because we have been going to these areas for years, different seasons/times of the year, and have literally driven every single road that exists in these places over and over to the point when we see a home on a real estate web site we say "Oh, I know where that is".

Mike

I would not mess around with the regulations...just not worth it.  Maybe consider different kinds of questions like "What can I do to my rental that will give me an unfair advantage against my competition, and justify raising the rates more?"

A simple example - could you put in a low-end hot tub and increase your nightly rate and have it pay for itself in x number of months? 

For us we are trying to make sure each property we buy has something, and if it doesn't we'll create it, that gives us a leg up on our competition (a view, privacy, acerage, whtever) and then focus/market to that to help stay at the higher end of the rates.

Mike

I think that you just have to tell her that since she doesn't provide certain services that your guests need and value to make you competitive, that you are no longer a good fit for each other.

Mike

We have a short-term rental in the Outer Banks and it has done very well, and seems to be more in demand post-covid.

We book it year round, with the slow months being January/February.  Being in a salty environment, there is a bit more maintenance, so the slow time is used to do repairs, etc.

Mike

In the post-COVID world, we are seeing higher demand with our short-term rental.  Also, the real estate in our markets is doing very well right now as people are buying these properties to live in themselves, or to have a vacation place to go to and rent out when not being used.

I think this is because people realize they don't have to live in the same city or state where their work is anymore.  That leads them to questions like "why can't I work at the beach? why can't I work from the mountains? why can't I work at the lake?"

If the economy goes bad, my opinion is that people generally don't say "well no vacation this year" and instead they DOWNSIZE their vacation from the trip to the islands or a trip to Europe, and instead do a trip to the nearby beach or lake. 

Also, make sure to research any short-term regulations in the markets you are thinking about, and think about what your exit strategy might be if that happens.

Mike

This reminds me of the Napoleon Hill quote "Within every adversity is the seed of an equal or greater opportunity."

When I stay at a short-term property, like @Mindy Jensen, I always check the bad reviews first.  I want to see if the host was dismissive about the issue, or takes ownership of it (the way Jocko Willink discusses in his book "Extreme Ownership").  If the host takes ownership of the issue, and commits to addressing the problem, I am even more inclined to book with them.  

Mistakes and problems will always come up.  I want to see the true character of the host by how he or she addresses it.

Mike

I've lived in NJ my whole life.  My first thought when I saw your question was "Why Jersey?"

WIth the right team and processes in place, you can manage short-term rental properties remotely.  I don't want to be negative, but wanted to mention that possibility to you as an option.  Just because you live close to NJ, etc. doesn't mean you can't invest in Texas, or Florida, etc.

If you really, really want to do one in NJ, I would look toward the shore towns if possible.  People just love the Jersey shore, You'll have strong demand (and competition) and can probably do a long-term rental in the off-season.  I would focus on some of the quieter shore towns (Lavalette, Ortley, Sea Bright, etc).

Mike

I would hold and tell him it doesn't sound like your unit is a good fit for him, and to reconsider you when his circumstances change.