Foundations

 ⚡Let's get started. For this inaugural edition, I'm going to set some expectations as well as give you some of the background and motivation for starting the STR Recap. Moving forward, you'll find a brief observation, a question for the audience, or an ice breaker in this space before we get into the main event. 

A section for this edition and this edition only...Background & Motiviation. Learning the do's and don'ts of short-term rentals (STRs) can seem overwhelming. That's how my wife and I felt when we started our STR journey. With a lot of fights passionate discussions, hard work, and support from our friends and family, we were able to accomplish a lot in our first year as short-term rental owners. We renovated a house, listed it on AirBnb, became a superhost, turned a profit, and began hosting mid-term stays during the off-season. Sifting through the sheer volume of information (some fact, some fiction) available was intimidating when we had questions. New print, audio, and video tips and how-to's are published daily in addition to all of the "guru" courses out there. *queue analysis paralysis* What seems like a long time ago, my full-time job was to review, evaluate, and analyze a crazy amount of intelligence reports each day to send out one coherent summary report explaining the "so what" of all that information to decision makers. That's what I aim to do here: boil down all the content I digest during the week to one audio, one video, and one print item to share with you. Oh, I'll include one potluck item as well that may not be exactly STR content. The goal being for you to leverage my time. For free. What do I get out of it? 1) A creative outlet, and 2) a sense of community. If any part of the newsletter is going to be monetized, I'll let you know. No surprises here.Without further ado, let's go!

🎧 Listen

This week's Listen comes from Thanks for Visiting. (9 minute podcast episode)

I've subscribed to this podcast for a while and really enjoy its authentic and practical approach. 

Our STR is only listed on AirBnb now and we plan on listing with VRBO this spring. These platforms are called OTAs (online travel agencies). A lot of hosts aim to move away from OTAs so they can cut out the platform fees and take more control over their STR business. The Thanks for Visiting hosts breakdown some ways you can convince guests to leave the familiarity of the OTA and start direct booking your STR. Including:

• More attractive pricing;

• Free add-ons like late or early checkout, reduced cleaning fees, etc.; and

• Having a clean, professional booking website.

The Thanks for Visiting hosts also get into more of the inspirations for hosts to go the direct booking route. One insightful tip for building trust with your directly booked property is to encourage guests to leave Google reviews for their five ⭐ stay.

📽 Watch

This week's Watch comes from Codie Sanchez on YouTube. (24 minute video)

Since we stayed at this incredible AirBnb in the Bahamas last year with multiple small homes sharing a private beach, we've been thinking about how and where we can make that concept work closer to home. (All credit to Adrian for finding that gem)

In this video, Codie goes on site with operator Isaac at Live Oak Lake where his team operates seven tiny home cabins on some acreage in central Texas.

Beyond the "wow" factors of the property's visual aesthetic and how fast they went from closing to operational, Codie and Isaac get into some actions making the venture so successful. Including:

• Using influencers and micro-influencers to drive direct bookings, with words of caution;

• Balancing automation vs. actual human touches to offer a premium experience alongside efficiency; and

• Not being afraid to spend a little extra money to add design features that will make your space feel special or unique.

📖 Read

This week's Read comes from BiggerPockets. (less than 10 minute read)A nicely executed Instagram post of a Twitter thread - extra fancy - eventually took us to this blog post.

This is a relatively quick read (the blog says it's 4 minutes, I think it's a bit more than that) signaling what could be a big opportunity for would-be STR hosts that can't quite afford purchasing a property outright. AirBnb is looking to enroll whole apartment buildings in aboveboard rental arbitrage agreements.

Rental arbitrage is a strategy where a host takes advantage of the difference between long-term and short-term rental rates by leasing a long-term rental and then effectively subleasing it as a short-term rental. Some hustlin' STR hosts have done this on the fringes of legality and platform terms and conditions since AirBnb's inception - including the BiggerPockets blog post's author. 

The article gives a good perspective on the practice of rental arbitrage and how the move by Airbnb could be a way towards ending up on the right side of metropolitan regulations in the future.

☘ Potluck

To hot tub or not to hot tub, that is the question.     - Us, every time we think about the back patio of our STR

We debate this question every few months. So far, we have not given in to the hot tub hype.From a dollars per night perspective, we know that having a hot tub would probably generate a higher nightly average. We just aren't ready to deal with the maintenance and "the hot tub isn't working" messages at 9:00 PM on a Saturday night. It doesn't help that there is not a guaranteed net profit increase when factoring in the increased maintenance and utilities expenses.Generally, most articles on the web suggest adding a hot tub to your listing will add 15-20% to your total revenue (like this article from Vacasa). You can find some decent pros and cons articles if you scroll beyond the countless SEO optimized blog posts from pool and spa companies. I liked this one from the Carpe Diem MD blog that is simple and to the point. (5 minute read)

They take you through five questions to determine if it's time to join team jacuzzi.1. Do you need it or do you want it?2. How will you power it?3. Who will clean your hot tub and how frequently?4. How to keep your hot tub clean/sanitized? Chlorine or Bromine?5. Wi-fi or NOT to Wi-fi?Even after answering those soul-searching questions, we're still on the fence. I'll let you know if that changes.

That's it. Whether this is hitting your inbox on the original publication date or you stumbled upon it days, months, or years later, you've now witnessed the beginning of STR Recap.

Thank you for letting us share the STR journey with you. Please let us know if there is anything you would like to learn more about from this edition or anything you would like to see in the next edition. If you reach Until then, keep moving forward.

p.s. If you have someone in your life that has a short-term rental, is interested in short-term rentals, or you think could just use some extra homework, please forward this email their way. That is the best thank you we can ask for.