All Forum Posts by: Ken Boone

@Michael Baum  Thanks again Michael - was able to refresh everything with the stop at Costco tonight!

The fact is that more and more new people are moving to AirBnb and VRBO so it is actually not uncommon at all.

Justin - you just got to deal with it man.  You can put one or two large bait stations outside against the foundation of your cabin.  Set traps during vacancy - if you have any.  That has been my problem.  I'm booked pretty constant.  We have set traps in places that won't get a kid.  i.e. under the stove, under kitchen sink, behind refrigerator etc.  Have your cleaner check them regularly.  You have to deal with it cause at some point your guest is gonna see mouse droppings and depending on where they are from they might freak out or they might realize that they are in a wooded outdoorsy environment and mice just happen every now and then.  If you have mice you might end up with a dead mouse smelling in the house anyway.  Smell should go away in a few days - which it stinks for guest (literally) - but you definitely have to do something.  Long term solution for us is to leave a large bait station outside and clear back some of the brush closer to the cabin.  Short term, you gotta set some traps and get them out of there.  A good pest control team can help you as well and do some periodic checks for you too.  Oh yea if you are in a bear area, they tend to take the bait stations if it is not staked down some how.

@Jennifer Schultz Unfortunately, in my opinion and you can take that for what its worth - just my opinion, that those kind of rules don't mean much. It comes down to your goals - why are you investing in STR, how much your time is worth, and if the net per year that you will get is worth it to you. Your 100k for 10k/yr only has a Cash on Cash of 10% the first year. Me personally for the worth I put into an STR I want a much higher return. In my market I can get close to 10% on LTR which I let someone else manage and so I can earn 10% almost 99% passively that way.

However, part of your goal is to use it through the winter.  There is an intangible value to that as well.  So you just have to crunch the numbers figure out your return and compare that with you goals and other investment options.  There is not one rule that works for everyone is what I am trying to say and whatever rule you create for yourself and I do at times, may change based on market, time, location, etc..and my goals.

Crazy people or just don't know better.  Not to mention the extra liability that your insurance probably wouldn't cover without significantly more $$$, but the thought of someone who potentially doesn't know what they are doing tearing up your stuff or getting into an accident is what would drive me nuts.  

But I like the idea of taking your guests out from time to time.  I bet that just solidifies a 5 star review right there!

@Dave Stokley - David that is exactly my point. Self managing an STR requires an active investor. Not passive at all. So you basically have to decide is your time worth the extra dollars if you want to convert an LTR to an STR and self manage.

@Patrick Gledhill - Yes Long term rentals are pretty much a passive investment.  Short term rentals are a business and needs to be run like a business.  It is definitely no where near a full time job by any means, but it does take work.  That is just something you have to decide how much your time is worth. If you are making enough money by going the short term rental route to make it worth your time then by all means go forward with that route, however, if your time is worth more than the extra dollars you collect, then just go the long term rental route like you have been doing.  Hope that makes sense.

Yep.. feeding frenzy continues...no end in sight.

Michael Plante - I only know my market but I would say hitting it out of the park would be doing at least a 30% cash on cash return or better which is getting harder and harder to find.  My guess is you will only be able to find that kind of return in a destination vacation rental market not a city/suburb market but I could be wrong.  But again, this number is different for every person based on their goals and objectives as well as how much their time is worth.

@Leon Lee Here is my two cents...  Forget the rules.  I have LTRs and I have STRs.  My LTRs have done well for me but in comparison my STRs are out of the park.  Now let me back up.  I am totally fine with my LTRs netting me about $250 - $400 month.  I let a management company handle it for 8% and it takes up almost ZERO of my time.  LTRs in my book the way I do it is strictly a 98% passive investment.  The STRs on the other hand are a business and need to be run like a business.  We manage those ourselves.  STRs are not passive they require some work.  My rule of thumb is I need to make enough money on my STRs each month to compensate for that extra work.  - And that my friend is different for each person.

Now this is just my opinion but the good measure on whether or not it makes sense to turn an LTR into an STR is not based on a rule but on your goals. Work the numbers up like you have and determine your reasons for doing it. Does the extra money you will produce with an STR adequately make up for your time involvement to justify going that route in your situation? That is only something that you can decide.