[quote=bearishgurl]
Yes, ER, I’m familiar with vrbo.com but never stayed in one myself. I’ve stayed in other people’s timeshares a few times, however, a week at a time, just by covering their HOA dues for that year.
I’m wondering about a few things, though.
The mgmt of a vrbo property seems like it must be labor-intensive … like lodging. Fresh sheets and towels, clean dishes and the like. Cleaning frequently in between tenants. Am I wrong on this?
How many weeks (realistically) could you rent a place out for per year? Is the demand there for all year-round in SD (minus cleaning days, of course)?
And do you friends who rent their homes out for special events ever live in them themselves? If so, do they take a trip or move in with relatives while their house is occupied? And what do they do with their personal belongings and valuables while they’re frequently and intermittently gone from home? Is it customary to lock off a room such as a personal study from vrbo guests?
It sounds like a bit of a hassle for the owner but I guess the money is there if your property is in the “right” location, depending on events going on ….[/quote]
Oh we LOVE VRBO! We travel around the world typically 100+ days each year and we almost always rent a house/apartment. We’ve used VRBO many times over the past decade. GREAT!
$2,200 per NIGHT and they have only a minimum of 2 nights! They don’t even need to discount for weekly or monthly stays. LOL.
Yes, management of a short-term rental is NOT easy and very time intensive. It’s NOT for everyone. In fact, most property owners aren’t suited for it. Especially at the luxury level because these guests paying oodles of money per night demand a HIGH level of customer service.
Yep it’s alot of work but many of these owners might own a few properties in the same city. For example, I know a few people here locally and they own a few rental properties where they rent out short-term. They just have a maid (most times Mexican so you’re not talking an arm and a leg) on salary that cleans their home but also cleans the other homes. Some have additional staff. Or some houses might have a cottage on the grounds where they live free in exchange for working.
As far as check-ins you can utilize technology like this –
Amazing what is available these days! Although personally I always have a staff member deal with rental guests. When people are paying that kind of money per night they don’t want to deal with a lock in a box. But I know many people that use lock boxes, electronic locks, welcome guides, phone/computer to do a “virtual check-in”.
As far as occupancy it’s going to be different for each property. It all depends as you have properties that have established clientele that will rent the property EVERY year. Plus they tell their friends and family about it and word of mouth sometimes really causes their rental to be full all the time. Pre Great Recession in some of them believe it or not I’d rent 25 days out of the month. Those were the glory days!
You don’t always have to offer maid service but you’ll find many times owners already have “staff” on the payroll so it makes sense to pamper your guest and provide it daily. It just depends.
Many owners of these short-term rentals operate it like a business. They don’t keep ANY of their personal stuff in it. It’s all for the guests. While others will keep an “owner’s closet” where they lock their stuff. It just depends how formal of a business you make it.
Even though I don’t have my stuff in it, I take the time and expense to put El Safe professional programmable safes in each bedroom. You can fit a laptop in it and each rental guest can put their valuables in it. While on vacation many times people vacation with friends or friends of friends.
Also, you have to consider that at that luxury end of the spectrum, the clientele type is NOT the type that will steal your toilet paper. LOL. I’ve rented for over a decade and not once have I ever had a guest take something. That’s why I like the upper end of the rental market vs. the low end where you deal with questionable cheapo types.
I own several properties in different countries and I don’t keep any personal belongings in any of them. I will only buy where I have family living however as I can’t trust anyone else besides family. It’s a LOT of work and almost impossible doing it remotely unless you have someone 100% dependable (which most people aren’t).
A few times I’ve moved family member to manage the property in another country if I own more than one in that city. It can make sense paying them vs. hiring an employee. Plus they have a steady “job” as I never plan on selling these properties.
But the ROI can be INCREDIBLE if you do it right.
Again, not for everyone and VERY expensive if you do it right. I have houses I’ve spend upwards of $150,000 furnishing on furniture, art, electronics alone. And studio apartments that I’ve spent $35,000 furnishing it. At the high end of the market they want great stuff.
I’m actually kind of in the process of maybe rolling out something here in San Diego in the future. Stay tuned.
