Question: What is your management fee? I’m sure it varies, but can you provide some sort of range?
Question: What is your typical occupancy rate? I’m sure that varies by month but, again, any info would help.
- A) I can rent a home out and gross $100,000 and we make $27,000 with 250 days a year
- B) I can rent a home out and gross $60,000 and we make $15,000 with 120 days a year…
In each case, you might net $30,000 depending on utilities and wear and tear. Proposition A is better for me, proposition B is better for you and a better long term solution for both of us. The process of putting down 20% and trying to generate cash flow, for the most part, is over in Big Bear. The prices have gone up too much. There are many buyers that have bought homes for $500,000 in the past two years with cash, and the homes gross $60,000 and they net $30,000 after commissions, utilities, wear and tear and before property taxes (off set with depreciation). Homeowners are then very happy with $30,000 on $500,000. 75% of your revenue can be generated during the busy winter season from 11/15 to 3/15…and if you plan on using it during those times, it will be tough to generate high revenue.
Question: Do we notify home owners via email about bookings?
Answer: We historically have not notified owners of bookings. Due to flexible cancellation policies, being able to cancel up to 24 hours after a booking is made, and all other changes and additions to reservations, homeowners received a mass amount of messages. Due to the influx of messages, communication would get challenging, details in the messages would get missed about guests adding a day, switching weekends, etc. and caused a great deal of confusion. Now, owners can see everything necessary that they need in our Homeowner’s Portal.
Question: I am looking to purchase a vacation rental home and want to know what my potential revenue could be. The home is currently listed at $499,900.00 (example: 140 Oriole Dr. Big Bear Lake, CA ) Any updates and suggestions to maximize profits are appreciated.
Answer: If you are thinking about making an offer, check out My Happy Place, a home on our program that is similar in size and set up ideally for maximum rentals. Revenue can be $28,000.00 – $50,000.00 depending on days rented and how the home is set up. Suggestions include removing carpet, making the third stall garage in to a game room, and getting the max number of beds in each bedroom. Ideally, you would like to be able to accommodate 3 families comfortably.