Let’s Get Real!
If you want an amazing space, you have come to the right place! This might be one of our most important topics yet. Starting your very own STR Business can be a daunting process. You may have purchased a fixer upper and have visions of its grandiose transformation, maybe this is a place you used to call home but have decided its now your ticket to financial freedom. Perhaps this is a second home where you plan to enjoy special getaways, but you want to offset the cost by letting your guest foot the bill-we like how you think!
Whatever journey led you here, we’re so glad you came. Now let’s get down to brass tacks…this segment is all about managing expectations, setting realistic goals, determining which budget is right for you and the art of learning how to let go.
What’s your ‘Big Picture’ goal?
I know what you’re thinking, this is a no brainer right? Wrong. The easy answer here is obvious, to make money. You see all of the amazing homes with their super cool designs, insta worthy moments, glowing five star reviews and you want to be a part of ‘The Club’. Well, just like entry to any club, it involves some effort. These otherwise normal seeming homes next door didn’t just appear on the street as super successful money making machines. What we can assure you is, the most successful rentals have owners who have a very specific goal in mind. They do not let their personal emotions get in the way of their business. Take a moment and identify your goal, beyond the income. Get specific and do the research. Use sites like AirDNA to understand what you should expect to earn. Check out your competition and develop your unique selling proposition. Hire a professional team (like us…hint hint) you don’t need to go about this alone, and shouldn’t. In most cases, it won’t cost you a penny more to enlist the right team that saves you countless hours and mistakes you will inevitably make-trust us. Creating a long lasting, profitable rental portfolio from the start will save you thousands in the future. Who is your renter? Are you targeting couples, party goers, sports fanatics, families with children? What are they coming to your area specifically for and how will you meet their needs? If this is your second home, which you plan on living in part time, are you willing to be flexible on your personal style? Designing for a rental means appealing to everyone. Much like selling a home, your buyers don’t want to see your personality or feel like they are buying YOUR home, they want to envision themselves there. Renting your property is the same concept, no one wants to feel like they are encroaching on your personal space, they want to make their own memories in their favorite BNB ever! We will dive into this a little deeper so read on…
ALL THINGS DESIGN
Now that you have thought long and hard about your goals and you’re clear on what that looks like for you. Let’s discuss the all important, (and fun part) the design details. If you are in a market that is a hotspot for STRs like we are here in sunny Arizona, it is especially important to brand your property to set it apart from the thousands of other homes vacationers have to choose from. Creating a specific identity for your property so it feels cohesive and tells a story is a great place to start. For example, if you are in an area like Downtown Scottsdale which attracts tourists mainly during the fall-spring months for various sporting events, non-stop sunshine, shopping and world class golf courses. They are often looking for a hip, chic and fun environment to take tons of pictures to make all of their friends stuck in the snow jealous. Ha-no but seriously, this is true. We live in the age of social media and everyone wants to share their experiences with their followers and this can be used to your advantage. It is proven that people will spend more money nightly for properties that have this dialed in. This means accent walls, murals, wallpaper, amazing backyards, games, plush beds and personality! Unless you are a naturally gifted designer and have nothing but time on your hands, this should be left up to the professionals. We know how to achieve these details within the budget you have set and as quickly as possible so you are up and running and ready to rent!
ESTABLISHING A BUDGET
Budgeting is often the hardest part of the process. How much should you invest initially to get your home suitable for guests. Most, if not all of our clients get that ‘deer in the headlights’ look when we ask if they have thought about a budget. Sometimes we get asked to determine the budget for our clients. YOU GUYS, we are nothing short of magicians for sure but we aren’t psychics. We don’t have a crystal ball that looks deep into your finances to determine what’s comfortable for you. This is the part of the homework for you as the investor and should be done, preferably before you purchase your investment home. Most people have purchased new items throughout years to fill their homes, closets and kitchens, but it can be very challenging to guess what the cost is to start from scratch; we can certainly help you with a range to consider that’s specific to your property and vision. You should also be considering quality of products you are receiving. For example, here at Turnkey, we have over 45 vendors that we work with directly to buy in all price points so we can meet our clients budgetary needs. We’ve all heard, you get what you pay for and that is so true when determining what to spend. Cheap is not often the way to go, it may be lighter on the wallet now, but when you start racking up negative reviews and are forced to constantly repair or replace items in your property, you’ll really wish you would have considered the quality. Be realistic, consider how many heads in beds you would like, the design elements and style extras, patio/pool furniture. It’s always OK to add more along the way. Sometimes we suggest getting up and running and then adding the extras once you start generating some revenue.
4. THE ART OF LETTING GO
Remember when we said we would get back to the design details and personality in your property? Here we go, and we mean this in the nicest possible way, but this is not about you (or maybe this is and we do offer personal interior design services as well). There’s no better time than in the beginning of this process to establish your expectations and manage your emotions. If you determined that your end goal is to have a successful STR business and you have hired a professional to guide you through the process, it’s important you listen to their recommendations. Assuming they have done the correct research, understand your neighboring competition and are experts in this field, pay attention to what they are saying. As designers who are experts in the Vacation Rental Industry, we know how important establishing trust with our clients is from the onset. We are all rowing in the same direction and our success hinges on your success. What that means is, we aren’t going to recommend anything to you that will cost you more than you can expect to earn as a return. We are going to, along with you, come up with a successful design plan that you will have an opportunity to approve. Every purchase is well thought out and carefully planned to make sure that your reviews reflect your hard earned work and your earnings are high and vacancy is low. Remembering that this won’t always include your favorite color or style but it’s the right one for YOUR business. We think of every detail, big and small so you don’t have to. Trust in the process, give it an opportunity to work for you and create wealth. Build systems that run all by themselves and keep your focus on the big picture, the financial freedom that this amazing investment opportunity will afford you… and don’t sweat the small stuff!
