All Forum Posts by: Richard Ibeh

@Lynn MontangAirbnb works best in bigger cities: Chicago, Miami, NYC, San Franciso, LA, Seattle etc. In select locations, they have added taxes because those cities have raised their voices and demanded host/owners to pay taxes or fines would be issued.

Another plus about Airbnb is the brand is becoming stronger by the year and in my opinion, is the #1 site for millennials which is a big chunk of the travel business.

HomeAway, however, is becoming extremely greedy by now charging service fees to guests and increasing the subscription fees on owners.

In order to sustain this business long term eventually, you will need to create your own personal website and have your repeat guest book with you directly. Being 110% reliant on 3rd party channels is never the answer because at any minute they can increase their fees and destroy your business overnight.

I'm looking for a solid Palm Beach realtor with a good track record of deals specifically in the Palm Beach area.

My intent is to purchase SFH or townhomes to use as vacation rentals only. I'm not trying to rehab so must be move-in ready. Contact me if you know of anyone and also please ensure you/they know the basis of rental analysis/cash on cash return etc. If you're an investor too great but not a requirement...Thanks!

 I'm looking for a solid Palm Beach realtor with a good track record of deals specifically in the Palm Beach area.

My intent is to purchase SFH or townhomes to use as vacation rentals only. I'm not trying to rehab so must be move-in ready. Contact me if you know of anyone and also please ensure you/they know the basis of rental analysis/cash on cash return etc. If you're an investor too great but not a requirement...Thanks!

@Paolo Ruggieri Hi Paolo - as easy as it may sound based on above comments it does require some time/work especially if you have high occupancy. 

1. You need to be active responding to guests from inquiries all the way through check out..this means being able to head over to the rental at 2am because they cant find the breaker to turn back on the lights after repeatedly telling them where it is.
2. Need to make sure your cleaning crew is available all times you have a check out especially for back to back check-ins.
3. Soliciting reviews
4.Pricing your unit correctly so you are maximizing revenue through all seasons. Too many times I go online and individuals have 1 set rate for months at a time.
5. Screening Guest - alot of companies have a screening system in place that verifies identity of the guests so they're not booking homes with stolen credit cards which could lead to them gaining access to your home and stealing your amenities without a trace.

The list can go on and on but vacation rentals is more like a job than anything else...if you don't have time to commit or don't want to be bothered with constant calls/emails then I suggest hiring a manager. If you're the social type list your on Airbnb and try it out for a few months.

@Nancy Bachety owner keeps 100% of the cleaning fee they list on the website .
Vrbo/Airbnb and other listing sites get paid by taking a percentage of your rental rate and they also charge guests a service fee.

VRBO is the #1 vacation site at the current moment and it gives you a breakdown of the total payment so you know what you are actually paying for (pool heating fee, pet fee, damage protection, taxes etc). Airbnb does not have these additional fields to provide the total breakdown so often times the rental rate is inflated to cover all these expenses. I would do your research on VRBO in terms getting the true price.

@Nancy Bachety it's easy in the sense because I do a trial and error period and try out multiple cleaning companies which I source via google/yelp/thumbstack until I find one suitable in terms of efficiency, cleanliness, adequate staff etc.

Charge is based on size per home from studio up to your mansions and varies per the city you are in. My current rates I've negotiated in Fort Lauderdale  are the following: 

Studio - $55
1bed - $75
2bed- $100
3bed - $150
4bed- $200
5bed- $250

My cleaning company makes their money from me based on the high volume of cleans done everyday (my rentals are on 2nt minimums). Average market would charge $100 for 1 bedroom and add $50 per extra room and if you're in a prestigious area your rates. You can also go on VRBO and compare cleaning rates so you can get an average of what the most booked homes are charging.

Nancy Bachety I would definitely encourage it. I currently manage 110 rentals and growing so time is definitely not on my side but if I were to stop managing rentals a cleaning company specializing in vacation rentals would be my next move. All of us managers are waiting on the Hilton/Starwood of vacation rental cleaning with proper protocol/technology/staff. That space is wide open for someone to capture the entire market and own it so you should really consider it.

@Nancy Bachety Hi Nancy- unfortunately I do not know of any reputable vacation managers in your area. I'm pretty sure they are but more than likely your local boutique managers with 10-30 homes under their portfolio. 

Managers are becoming more popular by the year but still not to the point where there is extreme competition among us. 

Cleaning companies that specialize in vacation rentals are still non-existent at this point. That's a niche not many companies have focused on and it generates so much revenue due to daily rentals checking in/out every week. The housekeeping company we outsource our cleans to generates up to 10-15k (weekends alone) in fort lauderdale.

@Theresa Nelutescu Hi Theresa - I'm the FL project manager for Turnkey Vacation Rentals(3rd largest mgmt company in the nation). I'd be happy to connect you with the general managers in either fort lauderdale or west palm beach area to discuss more and see if we can be the right fit for you. Feel free to contact me and I'll be happy to connect you.

Hi @Alan Harry - I'm a vacation rental manager here in Fort Lauderdale and I'll be happy to answer your questions.

`1. January - April is high season here in fort lauderdale so you would lose a chunk of change but nothing drastic as you have the other months as well as the multiple events/holidays that to offset your personal vacation. It does not slow as one would expect - it's a matter of adjusting rates to meet the demand but you won't go months with no rentals that's for sure. Once the rate is competitive you'll have bookings every week.

2. Alot of condos are against it yes as well as the city of fort lauderdale and unfortunately there isn't a website(which would make a good business idea) that I can direct you to find vacation rental townhomes/condos for sale but I do manage a few townhomes/condos that allow it so it's not entirely impossible. You'll have to just simply ask the agent you're working with to inquire if the HOA allows it or not.

Any questions feel free to contact me - hope this helps!