Get unstuck and get one step closer to making short term rental real estate a real thing for you. Get answers to your questions so that you can keep moving forward towards your financial and business goals.
Questions and Answers
- We are entering into the slower winter season, what additional things can we give to our guests so they book with us over others?
The first time experiencing a slow season can be a challenge. The caller has been leveraging his membership with his local BNI group which is a great place to start. Another potential avenue is to connect with the travel agent in the group and ask them about working together. It’s possible to start generating instant book specials that allows you to acquire a guest at your advertised rate while also creating a referral for the travel agent
- How would you pitch to a BNI group?
It takes a while to get any sort of response from a BNI group because their reputations on the line. As you build your relationships in that group you want to focus on creating a power team, where each individual has different strengths.
Think about your centers of influence like doctor’s offices, that are members of the BNI group and start building those relationships.
- How do you deal with a secured building?
There is a module is the Mastermind Course that members of Cashflow Diary can access that helps with this issue. The key question to ask is “if I order food, how does the food delivery guy get to the front door?”. Whatever the process is, that’s how your guest will access the unit.
- How can we have properties in a state that we are not even in?
To have a property all you need is a lease, so it doesn’t matter where you are located. If you run the system properly, it only takes around an hour a day of your personal time to manage your business. If you have to do everything yourself, you don’t really have a business, you have a job. With the short term rental model the business is completely location independent. That being said, start where you live.
- How would you offer the instant book special on the platform?
You would simply change up the title and description of your listing to describe what your extra offerings are. It’s also possible to set up an automatic sequence that connects the guest to your offering once they make a reservation and then sets up the connection with the travel agent as well.
- How soon should I be negotiating for first right of refusal for a property?
Since the caller is willing to purchase the remainder of the units in a multifamily property, it should be very simple to ask the landlord for the first right of refusal if at some point in the future they consider selling. Now’s as good a time as any to start negotiating.
- What are your feelings about incorporating in another state?
This is not legal advice, but since the person resides in California incorporating in another state may save them some costs. They should consult an attorney.
- What are some ways to identify the city and zip codes near me so I will be profitable?
Rather than focusing on the money, think about the person you are going to serve. Profits can become a function of additional services regardless of zip code. Think about what your customer is coming to do, and then think about how you can be near where and what that is. That will tell you what area you should be looking at.
- Do we have a master tech guru playbook?
Most of this information can be found in Module 3 of the Mastermind Course. Once you work through the info you may not even need the tech guru.
- How can I find a runner to do some physical tasks?
You will have to go through a number of vendors before you find the right one to handle your physical operations. It’s unavoidable but necessary to do the work.
- A question about a short term rental opportunity
The caller is considering an opportunity to create a short term rental in his parent’s basement. The caller should look up CPTED if they go this route to make sure the unit itself is more secure. He would also have to consider the noise levels and if that would be an issue. Trash will also become a challenge.
One of the caller’s concerns was the walk score of the unit, but that may not be an issue depending on who they want to serve and what those potential guests expect to do.
Between the two units, the only difference is the commitment, since he will be spending roughly the same amount of money. A good resource to check out is episode 320 of the Cashflow Diary podcast.
- How do companies have multiple units in Denver when they only allow one primary resident?
These companies are much larger and usually VC funded, but they are running a very similar model. In the case of Denver, always read the ordinance because most of the ordinances will cover the where and the how. Very few of them completely restrict the model entirely. Short term real estate is often zoned differently and is not covered by the ordinances posing the issue. A minimum stay requirement can also help you deal the problem.
- Do you think a short term rental with a walk score of 0 can work if it’s a 20 minute drive to most local attractions?
The short answer is yes. It’s not about the real estate, it’s about the experience on the piece of real estate. A walk score does not determine whether a property will work or not.
- Can I get a cosigner to get an apartment and what percentage is good to return the favor? What happens if the landlord learns that the property is being used for a short term rental?
We always operate transparently, the landlord should already know what the intent is so there are no surprises. A cosigner is definitely an option. Check out the Mastermind Course to find out more and listen to episode 548 of the Cashflow Diary podcast.
- I just started Airbnb three weeks ago and am having a challenge of not having any guests?
We don’t do Airbnb, we’re in the short term rentals business. Airbnb is one of the marketplaces that we use to market the business. In the case of not having guests, without knowing what system you’re running it’s hard to give specific advice. The first thing is to always start with who you want to serve and then building your business out from there. Check out cashflowdiary.com/star to learn more.
- How much would you pay a virtual assistant and for how many hours a day?
Instead of just hiring a virtual assistant, you should think about what role you want them to play. In J’s case he has a team of managers and customer service agents that are available 24/7 that he sourced through Upwork.com.