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San Francisco Bay Area Vacation Rental Tip For Property Owners: Don’t Go It Alone

bay area property management

It’s one of the most enticing – and challenging – vacation rental markets.

We’re referring, of course, to the San Francisco Bay Area.

AirDNA has revealed a set of extremely attractive statistics for San Francisco vacation rental owners – including, on average, a $234 daily rate, an 85% occupancy rate, and $3,863 in monthly revenue.

Earlier this year, Airbnb reported 44% year-over-year growth in guest arrivals in the five counties surrounding San Francisco, with a 43% increase in the number of nights hosted.

But with a median single-family home price in San Francisco of around $952,000 and a corresponding monthly mortgage payment of $4,254, property owners on Airbnb need to optimize every major element of the vacation rental process if they want to operate in the black.

And of course, San Francisco Bay Area property owners in the vacation rental game have competition. Airbnb has more than 7,800 listings in San Francisco alone. What’s more, the competition is by no means confined to Airbnb. Hundreds of new hotel rooms have recently been completed or are being built in the city of San Francisco.

The second most expensive U.S. city to live in also has burdensome restrictions for Airbnb short-term vacation rentals. Legal requirements cover owner residency, insurance, compliance with building codes, registration, reporting, taxes, certification, and more.

All of this points toward a recommendation from the experts: don’t go it alone. By choosing the best full-service vacation rental property manager you can find, you’ll receive invaluable advice on making the math work in the tricky San Francisco Bay Area market. In the process, you’ll discover how to obtain the competitive edge you need to stand out from the crowd. And this may be the best part: you’ll gain a resource capable of handling all the stuff most owners would rather not do themselves – from responding to inquiries on Airbnb to housekeeping, so you get more five-star reviews – while you largely sit back and collect a direct deposit each month. That’s what we do at One Fine Flat.

Schedule a complimentary consultation with a One Fine Flat Airbnb expert on short-term vacation rental management in San Francisco. If you qualify, you’ll receive a free revenue projection for your property. And you’ll learn how One Fine Flat – an innovator in Airbnb vacation rental management – makes the entire process surprisingly easy for owners.

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Short-Term Vacation Rental or Long-Term Rental: As a Property Owner, What’s Best for You?

Long-Term Rental airbnb company

With Airbnb’s enormous popularity, many property owners are wondering whether to rent to short-term vacationers or lease to longer-term tenants. We’ll discuss the advantages of each here.

But first, a couple of key definitions: in the Airbnb world, a short-term renter is someone renting for under 30 days (for example, a vacationer who rents a property near the beach in Santa Monica, California, for 10 days). And as you may have suspected, a long-term renter is someone who leases a property for 30 days or more (for example, an advertising pro who accepts a job in Lower Manhattan and signs a one-year lease for a condo unit across the river in Hoboken, New Jersey – which, by the way, happens to be Frank Sinatra’s hometown).

In some cases, the decision is fairly easy. If your property is located in, say, Camden, New Jersey, even with its proximity to Philadelphia, that city’s low demand level among vacationers translates into a well-below-average vacation rental opportunity. In that case, long-term rental will probably be the best bet. But if you own a residence 4,900 miles away on the beach in Waikiki, Hawaii, upon receiving a revenue projection, you may quickly conclude that renting to short-term vacationers is your best way to go.

In other cases, even where demand among vacationers is strong, regulatory issues may prevent owners from getting their property listed on Airbnb and related sites. Some city ordinances lay down specific geographic boundaries for short-term vacation rentals inside city limits. And even when no city regulation locks out vacation rentals, HOA bylaws may include a requirement that all renters sign an agreement for 30 days or more. Because the vast majority of vacationers rent on Airbnb for under 30 days, such terms all but eliminate a short-term vacation rental opportunity.

What’s more, personal preferences often tip the decision in one direction or the other. For example, if your vacation home in Asheville, North Carolina is enjoyed by you, your spouse, children, cousins, and friends for, on average, one month each year – during different times of the year – you probably aren’t going to want a renter to sign a lease for a year or more (Asheville, incidentally, is in high demand among vacationers).

Here are key advantages of each option:

LONG-TERM LEASE ADVANTAGES

Greater Revenue Consistency

A long-term lease usually runs for one year or more. This can create a highly predictable revenue stream. One key tradeoff in comparison to vacation rentals: average revenue over each day of occupancy may be considerably lower with a long-term lease. But for less risk-averse owners – including many seniors – this option is often attractive.

Fewer Financial Responsibilities

Long-term leases often enable owners to hold renters responsible for utility bills. In areas with high heating and air conditioning bills in the winter and summer, that can translate into substantial savings.

Reduced Number of Variables

When renting to long-term tenants, owners don’t have to list their property, respond to inquiries, stock basic supplies, ensure housekeeping is taken care of, and so on. One outstanding tenant may stick with you for years.

SHORT-TERM VACATION RENTAL ADVANTAGES

Higher Net Income

Your daily rate for vacation rentals from Airbnb may be MUCH higher than your rate from a long-term renter. How much more? Lots of factors contribute to the difference, but you could net 50% or even well over 100% greater income by renting to short-term vacationers.

Lower Degradation Rate

In many cases, vacation rentals earn owners more income while reducing wear and tear on the property in comparison to long-term tenants. That’s because unlike long-term rentals that are generally used every day, even under the best of circumstances, vacation rentals aren’t occupied 100% of the time.

More Fulfilling Interactions

In Airbnb listings, you have the option of renting your entire property or a private room/area. Fact is, many owners love the company and thoroughly enjoy meeting new people regularly. Others who rent their entire place derive considerable joy by reading reviews from vacationers who had an amazing time.

Greater Property Availability

Many owners of vacation homes want their property available for personal use. Very often, it’s the main reason they made the purchase in the first place. With short-term vacation rentals on Airbnb, you’re able to block out days, weeks, or even a full month for personal use of your property, while enjoying the income advantages of short-term vacation rentals.

Improved Scalability Opportunities

Yes, it’s possible for an ambitious property owner to scale a business consisting entirely of long-term leases. But lots of entrepreneurs have started with a single property on the Airbnb platform, and in a relatively short amount of time, grew a substantial property portfolio. Very often, these Airbnb moguls found the best Airbnb property manager available to maximize their income while minimizing stress.

On that note, a recommendation: schedule a complimentary consultation with a One Fine Flat Airbnb expert. If you qualify, you’ll receive a free revenue projection for your property. And you’ll learn how One Fine Flat – an innovator in Airbnb vacation rental management – makes the entire process surprisingly easy. So you mainly sit back and collect a direct deposit each month.

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Texas Property Owners Go Gaga (No, NotThat Gaga) Over Airbnb Vacation Rentals

Texas vacation rental property management service

The Lone Star State is having a full-blown love affair with short-term vacation rentals. Thanks in part to popular vacation destinations like Houston, Dallas, San Antonio, Austin, and Corpus Christi, this booming industry poured more than $3 billion into the Texas economy last year.

In “The 150 Best Places to Buy a Vacation Rental Property in 2018,” a total of nine Texas cities appeared in the ranking, including San Antonio (#12), Corpus Christi (#18), Galveston (#23), Port Aransas (#49), El Paso (#68), Austin (#82), Fort Worth (#86), Dallas (#95), and Houston (#101).

A big driver of the passion for short-term vacation rentals on sites like Airbnb among Texas property owners is (no surprise) good old-fashioned greenbacks.

A vivid example of the added income advantage is found in the Cockrell Hill area of Dallas. A peek at its 75211 zip code from 8/18-7/19 revealed median annual revenue for short-term rentals of $30,120 vs. $16,740 for long-term leases – a $13,380 difference and 80% improvement in revenue.

Texas tourists choose short-term rentals on Airbnb over hotel rooms for a variety of reasons beyond the obvious ability to prepare one’s own food, sleep more people, and very often, save money. For example, Austin, a festival mecca with world-class entertainment, offers vacation rentals where owners encourage guests to enjoy their records and books; play the piano; and bang away on the pinball machine.

Throughout America’s second most populous state, property owners with small and substantial investment portfolios are catching vacation rental fever. One well-known Waco couple, Chip and Joanna Gaines of HGTV fame, offer “Magnolia Stays” for fans. These include the historic Hillcrest Estate that commands a $995 daily rate; the Magnolia House at $795 per day; and the Carriage House, with a $545 weekday rate.

Of course, most vacation rental owners lack the Gaines’ market knowledge and other advantages. With a wide variety of factors contributing to success when renting to vacationers on Airbnb and other sites, many Texas property owners are relying on a full-service Airbnb vacation rental management company.

By working with the best Airbnb vacation rental manager you can find in the state of Texas, you’ll be rewarded with enhanced listings, wider exposure, greater turnover, higher revenue, consistent cleanliness, better reviews, full compliance with regulations, and more.

One Fine Flat is a Texas vacation rental property management service that optimizes every aspect of the process on Airbnb and many other sites, from daily pricing to communication with guests at every phase and housekeeping that enables you to offer hotel-quality cleanliness.

Whether you’re in Houston, Dallas, Austin, San Antonio, Corpus Christi, or another great Texas city, One Fine Flat enables you to maximize your income – and peace of mind. Schedule a free consultation with an Airbnb vacation rental property management expert – and request our complimentary guide, Capitalizing on the Vacation Rental Boom: 8 Keys to Success: