All Forum Posts by: Sarah Kensinger

Quote from @Katie Konner:

Thanks for clarifying. How do you earn more returns on a locked-in monthly rate? Is it through a higher rental rate – $2.4k vs $1.8k, for instance? How would one determine this?

I need a bit more clarification on this question but if I'm understanding right, here is my answer. If not let me know and I can clarify...
If it's an arbitrage agreement then no you wouldn't have a higher return, it would be your typical LTR amount for the area. But if you have a STR and then hire a property management company to manage the STR, it could yield higher returns then self-managing. That is if you partnered up with the right PM company.

Quote from @Jay Breitlow:

Quote from @Sarah Kensinger:

Quote from @Jay Breitlow:

Quote from @Sarah Kensinger:

Like was already mentioned...any STR extra fees should be baked into the ADR, for a MTR it could be an option. Unless all the guests request to have the amenities and pay the fee, in that cause you might as well bake it into the monthly rate.

 yes here all guests have to pay resort fees

Oh, I see that now...due to Airbnb's "less fees" soap box, all extras should be baked into the ADR. Plus, guests usually book a property that has no/less extra fees, then those that have extra fees.

 This doesn't apply in this community b/c it's a resort fee paid on site to the resort.  If it were payable by you (taxes electric fees etc) that would be different.  and even then you can still have optional grill, pet, pool heating fees etc.  early check in...

the only thing you would be doing by paying the resort directly on their behalf would be a competitive advantage with it baked in.  But then u need to offset that with rent prices. 

Sounds like it's not an idea community for a STR.

Quote from @Jay Breitlow:

Quote from @Sarah Kensinger:

Like was already mentioned...any STR extra fees should be baked into the ADR, for a MTR it could be an option. Unless all the guests request to have the amenities and pay the fee, in that cause you might as well bake it into the monthly rate.

 yes here all guests have to pay resort fees

Oh, I see that now...due to Airbnb's "less fees" soap box, all extras should be baked into the ADR. Plus, guests usually book a property that has no/less extra fees, then those that have extra fees.

I too would recommend learning from those who have gone before and managed for a number of years. Courses like what your considering, don't always teach the actually nuts and bolts of day-to-day operations. If you would like some more options on learning from experienced operators, I would suggest checking out Michael Sjogren and Bill Faeth. Their conference in Nashville may be a good event to attend as well! 

Like was already mentioned...any STR extra fees should be baked into the ADR, for a MTR it could be an option. Unless all the guests request to have the amenities and pay the fee, in that cause you might as well bake it into the monthly rate.

I only knew of Proper offer arbitrage insurance, particularly for the arbitrager. From my understanding the owner would just need a typical landlord policy, then the arbitrager would have their special policy and with Proper the homeowner automatically had additional coverage. Since Proper wouldn't cover the property, it might be a good idea to give them a call again and get clear on what you need and what the homeowner needs, then shop around. Proper knows the laws and best way to cover STR if litigation comes along.

Quote from @Katie Konner:

@Sarah Kensinger Who wouldn't want to up their returns, but how do I if the STR Manager is paying a set monthly rental rate?

Because STR managers have the systems and processes in place that can yield upwards of 20% more in revenue then self-managing. Plus, their entire "9 to 5" is dedicated to managing a STR, not squeezing it into their life and in-between other work. Unfortunately, not all STR PM companies bring exceptional results, since there are plenty that bring mediocre work and guest experience to the table. But if you can find a company that has surrounded themselves with A+ players in the industry and has the dedication to making the STR a 5-star experience for everyone, it's worth their 20-25% fee!   

The only time you can be certain a city won't totally ban STR, is the heavy vacation markets, to where they would take a hit if the tourism left. Otherwise, you'll always run a risk of policies and laws changing. Some hosts won't touch urban areas for that reason, but others feel like they can pivot if needed and do quite well. You would need to decide what you're comfortable with and then choose an area that you would enjoy traveling too.

I know many MTR hosts only offer 28-day contracts, then if the guest needs the property longer, they would have to sign another 28-day contract. This works for the states that have strong tenant rights as well.

Haha, I know of some but not sure if I want to tell that info to thousands of people. There goes the hidden gem pretty quickly! Personally talk with people, call vacation home realtors in areas that have caught your eye, call STR PM companies, and do lots of research. The internet is loaded with vacation ideas on where to travel next.