What happens when you get a problem guest?
This can run the gamut from the annoying, overly-picky, unreasonable guest; to drug users; to the downright destructive spousal-abuse couple.
Do you feel VRBO is an ally? Or an adversary when you get such guests?
I don’t deal with problem guest. I provide a nice product that I would be comfortable staying in which I do from time to time.
I am not managing my VRBO directly as I use a local company that handles all the details to include interaction with VRBO. I think they have the same POC team at VRBO which they work with. This local set up also does or coordinates the maintenance. Having these networks set up is huge in this area. In fact when I go over to stay I don’t even clean it I pay them to have our normal cleaners take care of things. I want the same set of eyes on that property every time it turns over. I am not looking for a J O B.
This cabin is 3 bdrm and will sleep 12-14. Most of what I get in this one is multi generational families coming for a visit of a family with kids. Maybe two families at the most. The price in this one is enough that tbh it knocks a lot of people out of renting it. It tends to rent to what you would expect with school schedules and weekends. So if I use it it’s usually early week hanging out with the locals. I only rent to over 25 years of age. I would never have anything over this size as then you get into the wild party issues. Plus I never rent single night. Some of those people are looking for a place to party.
With the insurance coverage that every guest must purchase or put up a $1500 plus deposit it keeps things ok for the most part. Prime dates are booked up far in advance and I think those guests are more prepared than the last minute ones. In fact I seldom have last minute guest as I will let it set empty vs giving it away. Wear and tear is better this way and you make the revenue up with a premium on key dates that are usually booked months in advance. With overnight rentals you have to look at the numbers over a year not each month.
In my smaller cabin 1 bed with a loft it Sleeps 6 but mostly it’s couples or a couple with small kids I have had things damaged that the Mgt company covers thru their protection plan that the guest purchase. I had a honeymoon couple that took the bedspread which was probably a good thing and a new set was purchased. Any issues the Mgt company has several departments that address the issue. I do have the same cleaning crew thru the Mgt company that I see on a regular basis. They want to make sure they notice everything because it is their reputation. This cabin stays rented most of the time so sometimes I have to block days to get in and get ground truth. But again my cleaner really keeps on top of issues. Sometimes they are so busy that things fall below my expectations to make updates or maintenance timelines. So you do what you can.
With either set up what falls thru the cracks is little things that if someone was there all the time would see the pattern and address. For example a sticky toilet handle. It’s spring break time and we’re slammed so a 6 hr turn doesn’t always catch everything. We had to get a plumber out last week while the guest was in to repair as we couldn’t get it done on the turn.
This past year getting work done and parts has been a challenge. Mgrs interacted with guest to control expectations at the large company. Last year we ran into a couple situations where we had to increase minimal rental days due to not enough cleaning crews. With the local Mgt company for the small cabin I have a dedicated owners rep who after a few months she knows my expectations and my hot buttons. Her and I typically talk strategy what they are seeing across the board etc. about once a month unless something urgent comes up. We go over monthly statement a and review charges to see patterns. It’s a trade off as the Mgt company has more redundancy and distant than the hands on with the local one.
Make no doubt these Mgt companies know the market trends and set dynamic rates. If your a last minute guest making your reservation for a to good to be true price it probably is. You might get lucky but there are always stories on the local
Facebook groups about people getting taken on what they thought they were getting vs what they got to include the property not even being legit.
Someone made a comment that if I combined both at the same Mgt company I could probably negotiate a lower rate. I have had multiples at the large company and get that rate now. The one with the VRBO small company I purchased was already with who it is with now and they wanted to keep it as it’s a good producer. They were happy to give me the current rate I pay with the larger company. The production numbers were within 5 percent so if it’s not broke don’t fix it. It is a valid point for people just starting out doing this approach.
As an owner you can ring more out of your properties if you micro manage everything. But again I ain’t looking for no J O B. I have seen cabins when they are up for sale that you can tell the owner has never seen them and is just milking them for all they can get. I have used the run up in the market to 1031 into more desirable long term newer properties to hold for the next 30 years. In the current market the investors that maybe luckily find a property and are financing are gonna be hurting unless they have deep pockets. Most sales still are cash purchases with multiple offers. My realtor tells me it’s big money or 1031s grabbing up everything they can.
