Yes, I understand it will take a lot of time. I’m no couch potato and I like running around to get things done. In fact, I just remodeled the kitchen in a rental (I did hire someone for the granite counters though). I find there is satisfaction to building things with my hands. I’m about to do the bathroom and all the wood floors so the place has a unified look, in the style of a W hotel suite.
My friend owns a 4-plex in Fl near the beach and he has tremendous return. Nothing luxurious, just plain but in a good location.
Taking your advice, I’ll give the VRBO style rental a whirl and see how it goes. I’m about to close on a “luxury” condo so I’ll add it also.
We pilots, in the airline industry have “crashpads” that we share in base cities. The owners make tremendous ROI. Some crashpads are very nice with only a few people sharing. Other crashpads are filthy and disgusting. But the returns for property owners are great.
I’m pretty detail oriented so it will be a challenge rather than a chore for me.
Also, what style of decoration goes best with most renters? I want to do it so that most renters would agree that it’s nice. I like your suggestion of the “luxury” feel.
Thanks again.[/quote]
You are certainly welcome FlyerinHi.
I’m not saying you have to answer them yourself but generally speaking you can cut down on a LOT of time if you make customized templates on your Outlook program. So for every response, you automatically click a button and it responds. You just need to customize their name, the # of nights, price, deposit amount but everything else will be filled out. It literally takes me about 10 seconds to respond just filling in those template items.
Also, you can make a template responding if you’re already booked. Template for confirmed confirmation once they send the deposit, etc. You will just find things that cut WAY down on the time it takes you. Like I said, you almost become an expert after a while. You find little tricks that work.
Remodeling is a good idea. I almost always do a renovation and upgrade it. Something that works for me is trying to get something in the best locations yet get properties that might need a lot of work. If the floor plan works for a rental then I’m willing to gut it completely and spend money. You can always change the property but you can never change location.
The W style modern place is what I find is the most popular bookings. People tend to book renovated modern properties that are furnished well. You can go modern but not too modern on the furniture. But people appreciate the latest technology.
Hardwood flooring is GREAT and I think a great investment. Carpet is always a NO NO for a rental. People think they are saving money using carpets but at the high end, imagine if people spill wine and you have to get it replaced. It’s not a question of the rental guest not paying to replace it… but if you have a luxury rental and you kill a day or two not being able to rent it out, that “spill” can cost you hundreds/thousands of dollars in lost income.
People that are paying for a luxury experience won’t put up with a wine stain on the floor. So always have that mindset. Remember a rental night is like life…once it goes by you can NEVER get it back. 🙂
Funny you mention crashpads. I have several pilot friends/clients that own crashpad rentals. Some do VERY well.
What I’d suggest is modern decor, neutral colors. Don’t make the mistake of thinking what YOU like as far as decor works for everyone. The biggest mistake I see owners that also use their properties is decorate/furnish it in a style THEY like. But if it’s a true investment you have to furnish and decorate it in a style/manner that won’t offend the masses.
That means neutral colors, nothing loud, NO religious decorations/photos of any kind. Well decorated and not bare. So if you have a big bookshelf don’t just keep it empty. Fill it in with books or decorations.
For bedrooms I always go with Large King size beds. For single businessmen they like them and for couples they also almost insist on them in a luxury rental. Go with one of the most comfortable on the market. Don’t scrimp on an excellent mattress. It’s the #1 reason why guests tell me they came back. The vast majority of short-term rental owners out there use cheap, uncomfortable mattresses. Not many rental owners are willing to spend $1,500 to $2,000 on a mattress. It’s hard for them to see the bigger picture.
What I like to do is stay a night or two in the poshest 5 star hotels in the town you own in. See what features they have. See what you like and don’t like in those rooms. Also, see what kind of mattress they use there and in many cases, you can even advertise in your VRBO/Homeaway/etc. listing that you have the same mattresses as “X 5 star hotel”. Use what works and avoid what doesn’t when it comes to the 5 star hotel.
Take note of how many sq. feet their luxury suite is and compare it to your property. If you do it right, the hotel won’t really be able to compare to your set up.
Also, definitely try to have a washer/dryer in your place. Even if it’s a small place try to find room for it. It opens up a lot of possible rentals.
You will find the clientele for that kind of property are GREAT as they take excellent care of the place. The more affluent types are typically are older so I avoid the cheap backpacker types that can’t afford my places for the most part and NOT the clientele I’m looking for.
Also, when you stay at that 5 star hotel, chat up the concierge and ask him/her how much corporate travel they have and ask them what are the busiest companies. I’ve never had problems getting the name of companies that have a LOT of corporate travelers in town. If you are nice and tip well the concierge or front desk will typically give you that information.
Then you can send targeted mailings/brochures to the companies in town that constantly have corporate executives in town (obviously this wouldn’t apply if you’re a 100% vacation city) but even those cities typically have conferences, etc.
If you set it up right, the vast majority of people would rather stay in a bigger property that offers so much more. (full size fridge/freezer, local cell phone, unlimited calling locally as well as internationally, free wi-fi internet that is faster than hotel, printer, stove, kitchen, washer/dryer, etc).
And of course companies would like to pay less vs. expensive suites at hotels. You can think outside of the box a bit to make it more of a success. What you will find if you do it right is things can snowball fast. Word gets around, company exec talks to other company execs and you can find your place busy.
Also, for any of you corporate executives out there that travel over and over to the same city and your company picks up the bill, you might even want to think about buying your own place and then staying in your own place.
Many companies don’t care if you stay in a short-term rental vs. a hotel. To them they give you a maximum per diem accommodation credit per night. I’ve helped clients structure this before. Where I’ve helped clients buy a luxury pad and he stays in his own place and charges himself the maximum nightly rate.
NO rules are being broken and it’s allowed. He would have spent the money anyway in an expensive hotel suite that he normally stayed at. (His per diem was like $650/night as he was a C-suite executive). Well, let’s just say his place makes a GREAT return. He almost has the place completely paid off with his own “stays”. Also, the funny thing is he has colleagues that stay in it. He never mentioned that it’s his. All invoices are in the name of an LLC billing him.
Like I said..sometimes it’s great to think outside of the box on these rentals.
