All Forum Posts by: Trent Reeve

Quote from @Patricia Andriolo-Bull:

There is no end in site for these platforms to play games. They just don’t want guests to see how much they charge. I’m on the higher end and guests end up paying Airbnb $2-3k which is outrageous. Now they want to disguise that fee and make it look like I over price. Hopefully more will come to my direct booking site now. 

 From the view of the consumer WHO CARES?   The customer is just concerned with their total cost, not how the pie is divided.  It’s not like the customer is going to say, well, since the host is only getting $200 of the $275 then I’ll go $75 over budget because it’s not their fault.  The point (from the users point of view) isn’t that the Airbnb fees aren’t disclosed separately; it’s that those fees increase the cost to a certain amount.   Since Airbnb fees increase the total charge, either of the following result - (1) host lowers amount charged so TOTAL amount still attracts customers (2) total amount is enough to decrease demand and hence increase vacancy time while consumers find cheaper alternatives either through less expensive platforms, direct with host, or at hotel, or (3) consumer stays home or goes somewhere else. 

Here's what I don't understand. How can someone be in the STR business for the long haul and NOT do everything possible to establish a business model where they're almost exclusively direct to customer of through low fee platforms? I understand that 10 years ago (when I owned some STRs) competition was less, Airbnb fees were lower, and Airbnb was all you needed to have an outsized profit - if you were in the right location. But now? It will only get worse as Airbnb growth slows down - they will look to "make it up" by "squeezing" hosts even if it's detrimental to themselves long term.

I think it is ridiculous they are targeting hosts who use PMS... I mean whats even the thought behind that?

Quote from @Denise Supplee:

I think many investors will start leaning toward direct booking instead. It actually came up in a meeting I had about a boutique hotel investment, and the consensus was that relying too much on Airbnb just eats into profits.

While I want this to be true, the reality is that it's pretty tough with a single family home unless you really have a differentiator like a special view, location, unique design featured in a magazine etc. Whereas hotels have more OTA options, where a 10-room boutique hotel can land right under a brand name luxury hotel in the search listing, plus more ways to market themselves independently. 

Hi everyone, go easy on me! It's been three weeks of drinking from the fire house of real estate investment.  Looking to buy my first property and launch by EOY so looking for something pretty turnkey.  My thought is to start off self managing in 2025 for bonus depreciation against my W2, and then switch in 2026 to MTR so my kids don't feel so neglected (kidding, not kidding :).

My focus to start is tax strategy and taking losses against my W2, then with mid term it would be to avoid headache of turnover and focus on light cashflow and holding for appreciation.

Was thinking Bradenton FL, PCB or Poconos, so i can reach all fairly quickly from the NE.

How difficult is it to switch from STR to MTR and then what are the implications if i did a cost seg in year one and took bonus depreciation, then switched after those 1st year losses?

@Trent Reeve oh yeah, I want to host a safe place. We haven’t been given notice that it’s a requirement, but every inspection has a different person come out and tell other owners different things. They wouldn’t pass us the first time because we didn’t have a “ground” on our outlets. Which when the building was built ground wasn’t a requirement. There is no “ground” anywhere. I had to hire an electrician to come out and state that and then submit it before they approved.

@Trent Reeve smoke alarms yes. I am all for safety. My complaint is that they are misinterpreting the life and safety code. Also, my condo building was built before many building codes existed in the area. The city informed us that the association may have to have install sprinklers into every room. Our building is concrete. And the alarms I was talking about were for an entire building system that is monitored. We have fire pull boxes.

That is reasonable. 

A guest should be able to get in or reach someone.

Yes I still LOVE Vrbo.

It’s beginning to be clear that Panama City Beach, Fl does not want lower end vacation rentals. We had invested in an older beach front condo building. Originally a motel. Our place is a 300sqft studio with a kitchenette. Affordable beachside vacations. The city has begun onerous regulations. I get having to pay the taxes. But restrictions on occupancy has really hit our potential guests. The city council and fire dept, have misinterpreted a life and safety code and is restricting 1 person per 150 sqft. They are allowing us to round up, so we are only allowed to have 3 persons, regardless of age. We had to turn away a military family of 4, we were the only place in their budget that was on the beach. Panama City beach is the only municipality I can find that has made these occupancy restrictions. Others are 4 people per bathroom in Florida. I understand over crowding vacation rentals or party houses in residential neighborhoods. But they don’t require these restrictions on hotels and motels. We once stayed in a hotel with several bunk beds, 4 showers. In a space that was just a bit larger than 300sqft. They are also now requiring fire sprinklers and fire alarms regardless of the building type if it’s more than 1 story tall. Pool inspections, deck inspections, Florida business licenses and Florida hospitality license.

Does anyone know what profession can set a building and space’s occupancy? I have read and watched videos on the life and safety code and it’s not based on square footage but by space design. Door width, stair width, exit width. And the 150sqft per person is just the minimum occupancy not the maximum.

Sorry for the length, but we are loosing money and need help!

Jeremiah

Do y'all watermark your photos with logo or anything? Wondering about doing this as we have so many properties in our complex that share common items, pool, laundry facility, golf cart parking, etc. This would save people from using the photos we have paid for.

Also wondering about putting a small QR code to the direct booking site but I am sure that will be flagged by AirBNB or VRBO as against their policy. Just wondering the best way to drive traffic to these direct booking sites besides repeat guests & social media.

I am referring to a small image in the bottom of a corner that is partially translucent. Nothing that takes away from the photo itself.