How to Start a Short Term Rental - Part 1 Three Considerations

In this video, How to Start a Short Term Rental - Part 1 Three Considerations, home renovation brothers Dave and Rich go over 3 very important topics to consider to help you decide if getting into the short term rental business is a good idea for you.

First we go over the pros and cons.

Second we talk about the specific property. It has to be special. What's so special about it?

Third we discuss your preliminary budget. For this part you need to estimate how much you think you can earn. Also, you need to estimate every expense.

We renovated a massive 6,000 square foot lake house. We sold the property and now we do property management there for the new owner, who has turned it into a vacation rental property.

She shared the spreadsheet that she uses to estimate her budget.

For income, she has listed:
Vacation Rental income
Cleaning Fee income
Sales Tax collected
Short term Insurance collected from the renter

For Expenses, she has listed:
Rental discounts
Property taxes
Insurance
Utilities: gas, electric, water/sewer, trash, Cable/Wifi
Lawncare
Landscape Maintenance
Landscape Supplies
Property Management
Repair
Maintenance
Contract Labor
Extermination - inside and outside
Cleaning Supplies
Welcome gift
Renter supplies - toilet paper, paper towels, condiments, soaps, shampoos, etc., think of everything you will need, this category can really add up!!!
Advertising and Marketing
Furniture & Fixtures - 2 year life
Kitchen, bedding, other replacements
Outdoor misc. supplies
Legal/Professional fees
Cleaning Expense
VRBO/AirBnB fees
Renter Damages
Laundry - sheets and towels

The list above should give you a good start. Be sure to add any additional categories that will be necessary for your particular short term rental.

We will be making two more videos in this series:

Video # 2 will go over the exact steps you need to take to start a successful short term rental business.

Video # 3 will covers topics for after you are in business. This video will show you how to do an analysis to figure out if you are making a profit or not.

Hope this helps!

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Видео How to Start a Short Term Rental - Part 1 Three Considerations канала HouseBarons