BadaBing444 Posted July 25, 2021 Share Posted July 25, 2021 I’m thinking about dipping my toes in a short term rental (VRBO, AIRBNB) in Traverse City, MI. The market is booming, the area is a major tourist area and I only see the market growing. My realtor said the city just passed a law limiting the building of short term rental units in the future. I would hire a good property manager to handle the property, since I’m not local nor have the time to mess with it. Any feedback from you guys with experience would be appreciated! 1 Quote Link to comment Share on other sites More sharing options...
jdsky Posted July 25, 2021 Share Posted July 25, 2021 Run the numbers including all worst case scenario's and if the profit vs. hassle factor is worth it to you do it. Personally I don't want people staying in my vacation home and definitely bought the place so I could take off at a moments notice and not have to worry about a schedule or someone else staying there when I want to use it. Most people I know doing this simply use it as a way to offset their cost of ownership specifically when they don't have the time to use it that often. Those that are paying a management company to take care of everything including cleaning services, fix-it services, etc. are not making much or any profit after they pay all their bills. Again, just depends on what you feel a worthwhile return on your money is vs. the hassle. One thing I do know is no matter who you have managing it they never remove 100% of the pain and it's never a completely hands off investment. 2 1 Quote Link to comment Share on other sites More sharing options...
Zambroski Posted July 25, 2021 Share Posted July 25, 2021 53 minutes ago, jdsky said: Run the numbers including all worst case scenario's and if the profit vs. hassle factor is worth it to you do it. Personally I don't want people staying in my vacation home and definitely bought the place so I could take off at a moments notice and not have to worry about a schedule or someone else staying there when I want to use it. Most people I know doing this simply use it as a way to offset their cost of ownership specifically when they don't have the time to use it that often. Those that are paying a management company to take care of everything including cleaning services, fix-it services, etc. are not making much or any profit after they pay all their bills. Again, just depends on what you feel a worthwhile return on your money is vs. the hassle. One thing I do know is no matter who you have managing it they never remove 100% of the pain and it's never a completely hands off investment. Excellent post. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted July 25, 2021 Share Posted July 25, 2021 41 minutes ago, Zambroski said: Excellent post. It is Quote Link to comment Share on other sites More sharing options...
tnts4me Posted July 25, 2021 Share Posted July 25, 2021 Yes it was. We have a place up north that I would not even think about renting, but as stated above it depends on what you want. My wife cleans a couple of rentals during the summer for some extra cash and usually they throw in a week stay after the season is over. I can tell you from the cleaning side you have good renters and bad renters. I've seen where renters basically didn't give a fuck about the place to those that treated it like their own. Also I've seen where some maintenance needed to be done while some one was there renting and the owners were no where to be found. Also, I wouldn't leave out things or furnishings that you might not see again or broken. The last place she cleaned this summer they had her clean, then take a video of before and after she cleaned, told her that way the people renting couldn't come back on her if something happened. She said that this year is the last year for doing it as it's been a hassle ever since covid started. Quote Link to comment Share on other sites More sharing options...
1jkw Posted July 25, 2021 Share Posted July 25, 2021 I have 2 friends that do it or at least were doing it, the 1 is about a half mile from me, gets big money for corporate retreats, she has a beautiful log cabin in the woods anywhere from 800.00 per night to 2500.00 a weekend, she and her x have a few in a gated community they were like 400.00 per night, but that includes golf, pool, tennis and a lake in the summer months, indoor tennis and pool in winter. Quote Link to comment Share on other sites More sharing options...
Snake Posted July 25, 2021 Share Posted July 25, 2021 The wife and I always try to at least 'pick up the joint' after we stay somewhere.... throw all trash, all used linen in a pile, wipes out the sink and shower. She has an aversion to even people she doesn't know thinking we are 'messers uppers'... Quote Link to comment Share on other sites More sharing options...
Rod Posted July 25, 2021 Share Posted July 25, 2021 Farmland is better if you’re sitting on cash with nowhere to put it Quote Link to comment Share on other sites More sharing options...
teamgreen02 Posted July 25, 2021 Share Posted July 25, 2021 10 hours ago, BadaBing444 said: I’m thinking about dipping my toes in a short term rental (VRBO, AIRBNB) in Traverse City, MI. The market is booming, the area is a major tourist area and I only see the market growing. My realtor said the city just passed a law limiting the building of short term rental units in the future. I would hire a good property manager to handle the property, since I’m not local nor have the time to mess with it. Any feedback from you guys with experience would be appreciated! Read this part out loud to yourself 10 times and then ask yourself if this is a good idea. 2 Quote Link to comment Share on other sites More sharing options...
Zambroski Posted July 25, 2021 Share Posted July 25, 2021 3 hours ago, Snake said: The wife and I always try to at least 'pick up the joint' after we stay somewhere.... throw all trash, all used linen in a pile, wipes out the sink and shower. She has an aversion to even people she doesn't know thinking we are 'messers uppers'... yep. We do the same. We aren’t fucking pigs or feel entitled to mess shit up for somebody else because we “paid for the right” to do so. We aren’t liberal trash. 22 minutes ago, teamgreen02 said: Read this part out loud to yourself 10 times and then ask yourself if this is a good idea. I dunno, I guess it works for some. I had to rent out two rather expensive homes when the market crashed in 2009. These people beat the ahit out of them and frankly, I should have just left them vacant. These were people that were the “executive” types too. Unreal. I have buds that have had rentals…most soured on the venture over the years. I couldn’t imagine renting out property right now with the government being your unwelcome business partner. No thanks. Quote Link to comment Share on other sites More sharing options...
Woodtick Posted July 25, 2021 Share Posted July 25, 2021 I personally think it’s to late. The prices on stuff is way to high. ROI is now twice as long. I would only do it if I was local and could do Maint and repairs myself. The bubble is going to burst on them I think as well. Once the cruise ships are back in full swing and the tour busses are full in Europe. I’ve rented 3 Vacation rentals this year. Lots of inventory months out. It tightened up the closer you got to your dates. The area you are looking in will be dead several months out of the year. Jump in maybe when a bunch of them start hitting the market when the bubble explodes. Quote Link to comment Share on other sites More sharing options...
Gold Member Kivalo Posted July 26, 2021 Gold Member Share Posted July 26, 2021 My mom owns a cottage on the lake and my brother and I turned it into income property just this summer. Its been rented for every week so far and no problems. We have the lease structured so there are no parties and no one sleeps there other than those on the lease. No pets also. Its lake front, with a/c in all the bedrooms so its been doing well so far. 1 Quote Link to comment Share on other sites More sharing options...
Guest Posted July 26, 2021 Share Posted July 26, 2021 I knew a lady that had an " apartment-like " condo, near Lake Winnipesaukee. She used to rent it out occasionally, and I don't remember her ever complaining of problems. This was over 25 years ago. People I know that rented houses all had MAJOR problems. One big damage renter, would piss me off beyond belief. Quote Link to comment Share on other sites More sharing options...
Edmo Posted July 26, 2021 Share Posted July 26, 2021 My tour as landlord was brief. Too much hassle for me. I had a job and enough of my own problems without people calling me with theirs. Sold my rentals and parked it in the market years ago. I know some guys that did really well with it. Just not for me. 1 Quote Link to comment Share on other sites More sharing options...
Rice Posted July 26, 2021 Share Posted July 26, 2021 I live in TC myself and have considered the possibility of renting my lake house. The possibility of terrible renters and Garfield Township zoning prevents me from doing so. Good luck with it if you move forward with this. It’s definitely a hot market for it. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted July 26, 2021 Share Posted July 26, 2021 Keep it as a dedicated rental rather than a shared use. Quote Link to comment Share on other sites More sharing options...
snoughnut Posted July 26, 2021 Share Posted July 26, 2021 2 minutes ago, Rice said: I live in TC myself and have considered the possibility of renting my lake house. The possibility of terrible renters and Garfield Township zoning prevents me from doing so. Good luck with it if you move forward with this. It’s definitely a hot market for it. I have a cottage on a lake also and as others have said in the past, I don't like the idea of another man nailing his wife in my bed and getting his DNA all over the place. 1 2 Quote Link to comment Share on other sites More sharing options...
Rice Posted July 26, 2021 Share Posted July 26, 2021 1 minute ago, snoughnut said: I have a cottage on a lake also and as others have said in the past, I don't like the idea of another man nailing his wife in my bed and getting his DNA all over the place. 😂😂 I didn’t spell that part out exactly, but that certainly is a factor! I’d probably be severely grossed out upon a blacklight inspection. 1 Quote Link to comment Share on other sites More sharing options...
Anler Posted July 26, 2021 Share Posted July 26, 2021 Also realize you would be buying in a peak market. If things take a shit you could get rekt. Quote Link to comment Share on other sites More sharing options...
Rod Posted July 26, 2021 Share Posted July 26, 2021 1 hour ago, Edmo said: My tour as landlord was brief. Too much hassle for me. I had a job and enough of my own problems without people calling me with theirs. Sold my rentals and parked it in the market years ago. I know some guys that did really well with it. Just not for me. Get prepared to deal with the dumbest assholes on earth if you want to do rental homes. Especially lower rent homes. 1 Quote Link to comment Share on other sites More sharing options...
Anler Posted July 26, 2021 Share Posted July 26, 2021 1 hour ago, ACE said: Get prepared to deal with the dumbest assholes on earth if you want to do rental homes. Especially lower rent homes. The coloreds are especially fun to deal with... Quote Link to comment Share on other sites More sharing options...
Mag6240 Posted July 26, 2021 Share Posted July 26, 2021 I rented my house out about 10 years ago for ~20 months in Central Sconnie, Stevens Point area. It was quite the money maker - but I came back after every weekend, and cleaned the place. I had my own sheets and linens that I kept separate from the renters. I made a shit ton of money doing all the work myself. With that said, I can tell you without exception, Asians and Latino's were the BEST renters I had! Most of them washed their linens and bedding before they left, cleaned bathrooms and the kitchen, most times better than I did. Always left cash on the desk as well, no checks. I'm not sure what the market has done since then, but I don't plan on doing that again. It was a financial situation that pushed me to rent on weekends when I was gone. Quote Link to comment Share on other sites More sharing options...
Rod Posted July 26, 2021 Share Posted July 26, 2021 Short term high rents are something I’d get the kids to look after for experience Quote Link to comment Share on other sites More sharing options...
Edmo Posted July 26, 2021 Share Posted July 26, 2021 21 minutes ago, Anler said: The coloreds are especially fun to deal with... Had the best luck with women. They weren’t loud. Didn’t wreck the place. Guys are assholes. Quote Link to comment Share on other sites More sharing options...
Rod Posted July 26, 2021 Share Posted July 26, 2021 I’d seriously need to make like 20% net to bother with more rentals 1 Quote Link to comment Share on other sites More sharing options...
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