Tag: short term rental

Beach or Mountains…oh where should I have a vacation rental?

There are so many amazing destinations to choose from for a vacation rental! Florida tends to be the most popular state for them overall, but that doesn’t necessarily mean that it is the most profitable!

There are so many amazing destinations to choose from for a vacation rental! Florida tends to be the most popular state for them overall, but that doesn’t necessarily mean that it is the most profitable!

Don’t get me wrong, I LOVE Florida! That is why we owned one there (our very first one) but realized over time that we could buy other properties, at sometimes half of the price and make double the money! Yes, double the money or more even, with half of the expense, from the initial down payment to monthly overhead to keep. For example, our Florida property was a $430k property when we purchased it and did have an in-ground pool, canal access and was in great condition, but only grossed between $30k-$40k/year. That doesn’t leave much left over at year’s end for a net income (which is partially why we sold it, and mostly because the prices went up so high).

I do think that beach area vacation rentals are a great buy but would highly recommend that you are sure of your projections, especially in very seasonal areas, so that you are not in over your head. So many folks in the beach areas use them primarily as second homes, and if that is the case, that is awesome because any extra income is just icing on top. If that is the sole reason that you are buying one there, do your due diligence and possibly try to find an area that has year-round vacationers so that you can sustain the annual steady flow of guests. I also do know that there are properties that are VERY profitable and that make a ton of money, but for newbies, those properties may not be attainable, depending on your finances and willingness to take risk.

Our Florida home had a steady flow year-round, but the nightly rate was dramatically different. Winter months, we could charge $300+ a night, while in the “off-season” summer months we were down into the $100’s/night. That is a HUGE difference when it comes to the monthly breakdown. The summer was also tough because of it being so warm and the electric bill being so high from the air conditioning. I LOVE the beach and do plan on an ocean front property someday, but for those starting out, it’s ok if that isn’t for you!

The mountains on the other hand offer an entirely different angle of potential expense, income, and seasons. They can be very “seasonal” also, especially if it’s in an area that doesn’t offer winter sports like skiing, snowmobiling, or isn’t close to attractions. Our properties in more rural, mountainous areas have blown the others out of the water. The area and average list price of the properties still do play a factor into it all of course. In our area for an example, you can pay anywhere from $200k-$400k for a great mountain home/cabin with seclusion and possible views and expect for it to gross anywhere from $45k-$90k/year depending on amenities, location, views, access etc. The same goes for our cabin in Gatlinburg, Tn. Both areas offer year-round opportunities for guests and a steadier flow of monthly income.

Now to circle back around, I am not saying that you must do either to start. You can start very small and wherever you are (if they are allowed there) and scale up over time. I do offer a module in my Vacation Rental Academy Course that teaches you how to find the perfect property, so if you haven’t taken that yet, please make sure that you do! It will offer you valuable insight regardless of what area you happen to choose, from location, to features, attractions, and so much more. Make sure that it is affordable and that the projections will be profitable, so that it can be a long-term fun investment! My course will give you all of the tips from how to buy, where to buy, how to furnish, market, customer service, how to find a property manager, and how to grow it so that you can have more eventually!

For more tips and insight on all things vacation rentals, motivation, and abundance, make sure to continue to follow my blog, and connect with me on Instagram (@christinavandergrift) and FB (@MsChristinaVanDergrift).

Chris

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Self-Management vs. Hiring a Property Manager

What should I do?… Should I just try to save money and do it myself? What does a property manager even do anyway?… Maybe I should try for a while myself and then go with one if it doesn’t work out… Maybe I should go with one and then try to do it myself…

I get this question ALL the time! Should I try to manage my vacation rental myself, or should I hire someone to do it for me?

What should I do?… Should I just try to save money and do it myself? What does a property manager even do anyway?… Maybe I should try for a while myself and then go with one if it doesn’t work out… Maybe I should go with one and then try to do it myself…

This blog post isn’t going to spell out how you do it yourself or to hire one (you can find this in my book Vacation Rentals: The Ultimate Guide or in my VRA Course), but this will help you decide which direction what is right for you!

We hired a property manager for our first one since it was 1000 miles away from our home (Villa Bella Mermaid). They handled everything – pictures, marketing, communication with all guests for problems or access, coordination with the maintenance and cleaning companies, etc. We just had to keep our bills paid and property maintained, and they sent us money every month. For our second one, (Sky High Chalet) we started from scratch ourselves and managed it ourselves – everything.

 Before you choose either, I want you to think for a minute…

  1. What do you currently have on your plate with your job, family, schedule, etc?
  2. Can you be readily available for guest calls? (Bookings, requests, maintenance, and sometimes emergencies)
  3. How close do you live to your desired location?
  4. Are there VR property managers available in your desired location?
  5. Can you consistently make time to manage it?
  • Clean/schedule with cleaning company?
  • Schedule turnovers for maintenance?
  • Market it?
  • Strategically price it?
  • Network to local organizations to link your VR to

I always say – Time is Money! And if your time is worth money, can your property be promoted better if you have someone else handle the less glamorous side of owning and operating vacation rentals, or should you really be the one to manage it?

After self-managing the Chalet, I realized that for me to scale and add more, I needed to change my plan. We own and operate multiple businesses and there are only so many hours in a day. For me to really enjoy the best perks of owning VR’s I needed to work smarter, or I would hold us back with my schedule and time to be able to dedicate to it all. That is when I decided to have any future ones that I own locally be managed by the new company that I had created. We also, of course, use property managers for all other areas around the country too.

I am NOT saying to just go hire a property manager, and I am definitely not saying to start an entire company, but I am saying that it is good to be realistic with what your individual needs and availability are.

If you could have someone to do the more tedious jobs for a percentage and you get to reap all the rewards, would you? Or do you truly have the time to dedicate to this amazing endeavor 100%?

Refer to my book and course for more in-depth information on both options and please share this on social and connect with me on there, if you get a chance! Don’t ever hesitate to message me if you ever have a topic that you want more info or clarity on.

Chris

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