Typical First Time Vacation Rental Start Up Story

This is an exciting time of year with families all across the country traveling home and on vacation to see loved ones to celebrate the holidays. This is also a very exciting time for the Coachella valley. This time of year, represents our biggest tourist surge. This surge brings tons of opportunity into the Coachella valley and no business feels the holiday spirits in the desert like the hospitality industry. With thousands flocking to the desert each season the opportunity skyrockets for local home owners and investors to provide the service of unique amazing experiences in local accommodations; IE AirBnB, Vrbro, bookings etc.

I’m sure as a property owner in this area you have heard stories of friends and family members or perhaps you yourself listing a property of on one of the various rental booking sites for a big event such as Coachella or Stage Coach. They can tell you if they got through all the head ache of learning the do’s and don’ts, familiarizing themselves with the local STR (Short Term Rental) laws, getting the proper paper work filed in time, as well as actually listing the property. They will probably tell you they made a pretty penny off the booking which is great and it leads many people to thinking, why not keep renting out my home.

For those of you who have did try to rent out their property full time probably realized its not nearly as easy as a quick guest stay for an event. Now that’s not to say renting out your property is a nightmare, but it can be a rather big undertaking without the proper support and knowledge. A lot of people might look into a property management company to handle the operations of their property rental. Which may seem like a great idea and may solve your need for support on the day to day side of operations; it can come with some pretty glaring issues. I discus this topic in another article titled Top 10 mistakes most management companies are making and how it affects you. Solved! I highly recommend checking that article out as it has tons of good information on this subject.

The short version is that many property managements companies don’t have owner focused thinking and typically will not run your business of home rental as detailed as you would. Many property management groups represent thousands of clients, all over the country, in hundreds of cities across thousands of counties. This means hundreds if not thousands of different county and city ordinances, laws, and best practices to keep up with. Most of these companies fail to keep up with these demands and leave you the owner to suffer the consequences. This can come many forms from property neglect, miss managed utilities, vendors and or amenities, property damage, over charges, fines, and even rental permit suspension or termination. The worst part is for all the gaps that most property management companies still leave in your STR business they can charge upwards of 30% of your profits for their services. Luckily there is now another solution to these problems.


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