All Forum Posts by: Neal Z.

What previous guys said, it's just part of the game. Once I cut rates as deep as I'm willing, I just make minimum stays significantly longer and try to minimize the overall hit for the month. Keep expenses low. Tends to be a battle. 

You nearby there? 

One thing I'll say regarding your reference to a "strong Airbnb history" is past performance is no guarantee of future results. Everywhere crushed it 2021-2022. Everywhere got hit 2023. Who knows what 2024-2025 gonna bring. 

From my perspective, if I'm looking at a currently operating Airbnb, I gotta know why they're selling. But, my guess would be, 2023 made them feel like it may not be as good as they once thought. 

My thinking tends to be finding underutilized properties in high demand STR markets. House that's been owned for ages, same owner or tenant for years. Has some open land I can play around with. A garage I can convert, awkward layout I can reconfigure, etc. I want value add in the deal from day one. Operating as a STR is icing on the cake.

If just buying an already performing asset, I'd expect that to be baked into the price. Need some meat on the bone. Hard enough to operate effectively long term, gotta be compensated for that effort.

 If just one spot, you really won't be calling on maintenance guys much. When something happens, you'll scramble to find someone to solve the problem at reasonable cost. Whoever does, becomes your go to guy until they can't solve something, then cycle repeats. It's a challenge in new markets to establish these things, but cleaners often have someone they know, pool guy knows someone, photographer knows someone, agent knows someone, etc. Sort of just run thru your list of contacts and ask around if/when something comes up you don't already have a contact for. 

I can't tell you how many random contacts I have in my phone that just say "Handyman (City)", "HVAC (City)", "Pest Control (City)", etc. Many are guys I used once. Some contacts came off vans driving on the highway in my area. Others were parked in Home Depot lot when I ran in to get something. That's easy way to build up plumbing contacts and other trades. 

I often use a neighbor on the block to handle trash/recycling for me. They keep an eye on things.

 Biggest operational challenge is likely based on how experienced you currently are. If not experienced at all, everything will feel challenging. Your first complaint will physically hurt. But, you get over this and adapt over time. Just now I got a text from my cleaner that guest punched a hole in one of the bedroom doors. Years ago, this would bring some angst and panic. Now, it's a text to one of the maintenance guys and a claim filed on airbnb. Keep it moving.

In terms of operations, a lot of guys mention a "tech stack". Basically, Property Management Software (there's a ton), Dynamic Pricing Tools (Also, many, but I like Pricelabs. I've had it for years). Airbnb's backend platform and a dynamic pricing tool is really all you need with just one property. 

To ease headaches, a cleaner you can count on is a must. This is challenging with just one listing because your not enough business to that company to get highly tailored focus. But, you'll overcome this by building a personal relationship with them so they know you care. Same goes for maintenance guys. Craigslist early will be your best bet. You'll expand your contacts for various trades and specialties over time. 

In the end, unless you're hiring an outside management company, it's something that will take up time and energy from your day to day. It's a business, not passive. 

Awesome, thanks @Ken Boone

Hired VA this year to build out social media presence, post daily, interact with people, etc. We'll see where it leads.

Co-hosting is good way to get in the game. But, you're going to have to get your foot in the door and learn the ins and outs specific to short term rentals. Using the platforms, talking with guests, solving problems, etc. 

If you don't have the experience now, offer to co-host someone's property for free or small piece of the profits. Work your tail off and you'll be surprised what that brings. Basically, make it a deal they can't refuse. Offer to do a performance review. Suggest how to enhance their profile, learn dynamic pricing tools and offer to optimize them for hosts. I hired someone to do this for me just this year and I've personally operated over 100 properties. Just didn't have time or energy to dig into the software beyond the basics I was doing with it. 

Once you know the game, you'll be much more confident approaching current owners and you'll see where they are lacking. That help will lead to partnerships and future business.

 Cool, and a resounding yes to all the headaches the big platforms now place on hosts. Just gets tougher and tougher with them.

You collecting a security deposit with these direct bookings? If repeats, probably not a big deal. but new guys, maybe?

Basically, the funnel for a guest to do a direct booking seems to be "Find listing on Airbnb/VRBO etc. Check if listing shows some kind of branding. Google brand, contact direct, get discounted stay" 

Is there another marketing play to get deal flow, i.e. SEO, Google Ads, Social Media, etc or not worth it as the expense this creates just strips whatever premium you'd get with higher rates?

Seems like logical thing to build out, and I've certainly done direct deals in the past without issue.

Guess in the end, it's just a long term play. Build some long term client relationships that continue to visit year after year. This happens regardless as previous guests just call or text me routinely. 

The platforms just seem like a necessary evil and dealing with their nonsense will always be a requirement. 

I'm reaching out to seasoned vacation rental operators in the Phoenix and Scottsdale area with a unique opportunity. I currently operate five well-located vacation rental properties that I'm looking to place under new operational management.

Properties Overview:

• Scottsdale (3 units): Situated near the entertainment district, a 3-bed, 2-bath unit with 4 queen beds and a pool and two 5 Bed 2 bath units with pools.
• Tempe (1 unit): Located on the border of Scottsdale, this property is a 3-bed, 2-bath unit with 4 beds and a pool.
• Phoenix Biltmore Area (1 unit): A 3-bed, 2-bath unit with 7 beds and a pool.

I am seeking partners who are familiar with the Phoenix market and currently manage vacation rentals. The ideal collaborator would be interested in taking on these properties under a sublet agreement. I offer this arrangement at a slightly higher rate than my current expenses, along with options to rent or purchase the existing furniture.

I'd encourage new operators to make improvements to design and update the property listings with fresh photos. Due to my involvement in other projects, I've decided to step back from these properties, making this a perfect opportunity for someone looking to expand their portfolio.

What I'm Looking For:

• Proven experience in vacation rental operations in the Phoenix/Scottsdale area.
• A willingness to enter into a sublet agreement with a reasonable premium.
• Enthusiasm for enhancing property appeal through minor design improvements and updated photography.

If you're interested and meet these criteria, I'd love to connect and discuss this opportunity further. Please reply to this post or send me a direct message, and we can arrange a time to talk.

Looking forward to potentially working with you!

For rental arbitrage, I only take/took deals that were profitable year 1. Unless signing a multi-year lease, there's no guarantee you'll be renewed a second year. 

Don't really look for these anymore and ones I've done lately were brought to me from landlords I worked with previously. In those situations I'm in a position to get better terms. 

#'s wise it's your up front expenses: rent, furniture, decor, etc plus your ongoing maintenance and cleaning expenses. Then, whatever you estimate your revenue to be over the coming months/year. Account for seasonality in your numbers to come to a final anticipated profit figure. 

Make sure it's a healthy profit as a margin of safety in case things go sideways. If possible, have some out clause in your lease that allows you to bail before it really goes south. This isn't always possible. 

I know rental arbitrage is an attractive thing from those on the outside, but the real $ in this was made before everyone was talking about rental arbitrage. It's much much tougher now to find a deal that'll actually compensate you for the work. Remember, you're not building any equity, you're not getting any big tax advantages, you're simply renting and operating for X price, and banking that Y revenue is going to be significantly more. It's a strictly cashflow play, and the margins are much slimmer than they were years ago. 

Am I willing to put my full time attention on this at times?

Is there value add in this deal so I have a strong built in equity position?

Do I understand the STR rates seasonality of this market? Can I weather the down months?

In the end, STR is no different than other real estate options. How well do you know the numbers of the deal and how confident are you in those numbers.