Short term rentals

[Ben Nicholson]

Any of you have experience with owning a short term rental property? Specifically, one that isn't close to you? I'm considering getting one, but would love to hear some first had experience.

 

[DouglasR]

Leave it for the lift ops

 

[DouglasR]

One of the most important things to remember about purchasing one of these is that you’re going to need a son in his mid twenties to early thirties to work for you as a “property manager”

 

[Straight Arrow]

One of the most important things to remember about purchasing one of these is that you’re going to need a son in his mid twenties to early thirties to work for you as a “property manager” and maintenance man, FOR FREE!

 

[TheGreek]

One of the most important things to remember about purchasing one of these is that you’re going to need a son in his mid twenties to early thirties to work for you as a “property manager”

Would that son's name be @DouglasR ?

 

[Deleted member 28227]

Any of you have experience with owning a short term rental property? Specifically, one that isn't close to you? I'm considering getting one, but would love to hear some first had experience.

Dealt with one for my family after the death of some family members. PITA will never own one myself.

If it's in a city or something probably not as big of a deal but this one was in CO in the mountains, there are no management companies up there, hard to get cleaners because everybody wants to AirBnB their house and there was only one company doing cleaning in the county. Dealing with paying quarterly state/county/ and town taxes quarter was a pain... bookings were a pain, some guests were great some sucked butt and trashed the place.

I know people say it's a great source of "passive" income but IMHO there is nothing passive about it and it's a giant time suck.

 

[Deleted member 18333]

Dealt with one for my family after the death of some family members. PITA will never own one myself.

If it's in a city or something probably not as big of a deal but this one was in CO in the mountains, there are no management companies up there, hard to get cleaners because everybody wants to AirBnB their house and there was only one company doing cleaning in the county. Dealing with paying quarterly state/county/ and town taxes quarter was a pain... bookings were a pain, some guests were great some sucked butt and trashed the place.

I know people say it's a great source of "passive" income but IMHO there is nothing passive about it and it's a giant time suck.

Surprising that there are no rental property management companies covering the CO mountain areas. Quite a few to pick from even in the lesser know areas of Wyo.

 

[Deleted member 28227]

Surprising that there are no rental property management companies covering the CO mountain areas. Quite a few to pick from even in the lesser know areas of Wyo.

Short term or long term, there are a couple of long term management companies in the area but none that will run your place as an AirBnB.

The real money is in the short term, esp if you can rent it both summer and winter.

 

[ashersdad]

I echo what @wllm said. Wife and I bought/built one in Southern Utah (we live in Oregon) in 2018. Had a management company lined up before we bought it. We figured we could let my parents use it in the Winter and just rent it out the rest of the year. "Passive" income my ass. Seems like we were dealing with crap every week and by we, I mean my wife. Finally last year she had had enough. We sold it for almost double what we paid for it so that part worked out well, but the rest was a giant pain. I'll never do that again...

 

[Tiredofthebickering]

Management company, with a contract that is basically all inclusive, is the key. For 20% of bookings, our management company covers/covered:

• Professional photos and Aibnb/VRBO/Etc. listings
• All booking details including getting guests access, dealing with complaints, etc.
• Keeping the place stocked up with basic supplies
• Coordinating cleaning
• Repairs/maintenance up to $600/month

I think I covered the important parts. Most months, I basically get an ACH from the management company and pay my mortgage, utilities, pool guy, and a lawn guy. I hear from the management company for bigger items: we had to buy a replacement dishwasher, authorize some more expensive plumbing repairs, and provide video from our Ring camera to dispute a guest claim.

Our house was built in 1977 and none of the repairs were really a surprise. Our management company also offers a 15% contract that doesn't cover repairs/maintenance for owners which feel their property won't require much in that regard.

Without a management company it simply wouldn't be worth our time. You have to be on call 24 hours a day for guest concerns. My wife and I both work full time, and we're out of state, so that's not an option.

The property has effectively been breakeven in terms of real cash flow. However, the appreciation in value of the property has been significant since we moved (it was previously our primary residence) in 2021.

 

[Wildabeest]

I’ve got a condo in Park City and have done both nightly and tenant rentals. I can make more money on nightly, even after paying the 30-40% management fees, but overall it’s not worth it for me. I’ve had the same tenants in there for over a year now (empty nester couple) and they are great.

If you are not local, and especially if you don’t have good contacts for cleaning, maintenance, etc, I would highly recommend using a management company. Most of them suck ass and rape you with their fees, but trying to deal with all of the booking stuff, financials, cleaning and maintenance, etc can be a total PITA to manage remotely.

 

[Ben Nicholson]

I’ve got a condo in Park City and have done both nightly and tenant rentals. I can make more money on nightly, even after paying the 30-40% management fees, but overall it’s not worth it for me. I’ve had the same tenants in there for over a year now (empty nester couple) and they are great.

If you are not local, and especially if you don’t have good contacts for cleaning, maintenance, etc, I would highly recommend using a management company. Most of them suck ass and rape you with their fees, but trying to deal with all of the booking stuff, financials, cleaning and maintenance, etc can be a total PITA to manage remotely.

Thanks, UT is where we are thinking, but over in the Ogden Valley area.

 

[Letthemgrow]

We have one in Seattle, where I live.
Short term=more money.
Long term=less headache (with the right person.)

Just had a long term move out last week and would prefer to get another.
As wllm noted, there are some great people . . . and some absolute asshats.

 

[Wildabeest]

Thanks, UT is where we are thinking, but over in the Ogden Valley area.

Good year-round potential in that area with Pineview Reservoir in the summer and skiing at Snowbasin in the winter. However, Snowbasin is more of a locals mountain, so gets far less tourist traffic than Park City or the Cottonwoods (Alta, Snowbird, Brighton, Solitude). Expect to pay 30% or more if you go with a management company. That’s the going rate out here.

 

[Tradewind]

you sound like you could use some irritation in your life.
You should go for it

 

[Ben Nicholson]

Good year-round potential in that area with Pineview Reservoir in the summer and skiing at Snowbasin in the winter. However, Snowbasin is more of a locals mountain, so gets far less tourist traffic than Park City or the Cottonwoods (Alta, Snowbird, Brighton, Solitude). Expect to pay 30% or more if you go with a management company. That’s the going rate out here.

That’s why we like snowbasin (and powder) so much. Good to hear there’s potential for summer traffic. Ultimately we’d turn it into our residence in a few years when we retire.

 

[Deleted member 52098]

F short term rentals!

Sincerely everyone living out west

 

[LopeHunter]

Rule 1:
Never own one rental property. Own enough to hire a manager.

Rule 2:
Never live more than 30 minutes away from a rental unit.

Rule 3:
Hire a good divorce lawyer now if think this is something which will typically only take an hour or two per week.

Rule 4:
Don't re-marry, see Rules 1 and 2.

 

[Tradewind]

Rule 1:
Never own one rental property. Own enough to hire a manager.

Rule 2:
Never live more than 30 minutes away from a rental unit.

Rule 3:
Hire a good divorce lawyer now if think this is something which will typically only take an hour or two per week.

Rule 4:
Don't re-marry, see Rules 1 and 2.

Pretty accurate, from my experience
Rule 5. Water problems only happen after 10 pm
Rule 6. Kiss your weekends goodbye

 

[Wildabeest]

That’s why we like snowbasin (and powder) so much. Good to hear there’s potential for summer traffic. Ultimately we’d turn it into our residence in a few years when we retire.

Your last point is the key here. If it’s part of a longer term plan, then go for it. Things are not getting any cheaper here. Buy now, cover your costs and then live your dream when you are able. Then it makes sense.