PMC Companies: Why Tenure Matters
The short term rental industry has seen significant growth in recent years. With so many companies offering their services, it's easy for property owners, developers and investors to be lured by Property Management Companies that promise the world: low fees, robust operations and smaller portfolios. But as I like to tell many of our soon-to-be clients, "anyone can be a brain surgeon for a year". Maybe it's an exaggeration (I sure HOPE it is!) but managing a property for the first year is EASY.
In the first year, there are of course things that can go wrong, but the likelihood of a fresh property needing the kind of maintenance and attention of a property that's had a successful 5+ year track record as an STR is extremely low.
Additionally, the STR market has, and will continue to shift with every global event: pandemics, weather patterns, election cycles, economic conditions and more, and having a PMC partner who is not only prepared for that, but accustomed to it, is of the utmost importance.
STRs are fueling hospitality industry growth.
STRs are a growing market and have become an important part of the travel industry, especially since they're not just for business travelers anymore: many people are now using STRs as their primary source of international travel. In fact, STRs have grown so much that they've become a major influence on tourism in many countries around the world; we estimate that about 10% of all tourism happens through STRs, which isn't bad considering how young this industry is!
In addition to their impact on the tourism industry, STRs have also begun to affect real estate markets—and this trend is expected to continue into the future. As more investors purchase properties with STR potential in mind (for example), it becomes easier for homeowners and landlords alike to transition from traditional long-term rentals into short-term ones over time.
Growing competition across the STR space.
In the STR space, competition is rapidly growing. Ten years ago, you wouldn't have been able to rent out your home for more than a few nights per year if you wanted to earn extra cash. Nowadays, it's common for homeowners to rent their homes hundreds of nights per year—in some cases even thousands of nights.
The STR industry has grown from zero competition into a booming marketplace in just under two decades; and with more properties being added into this new market every day and more people wanting to get involved than ever before, there are real opportunities available for those who want them.
The problem with self-managing.
When you look at a home owner and ask, "Can you be a property manager?", the answer is almost always yes. But when you look at the actual work of managing a property, it's clear that this isn't something that all home owners are prepared to do—and there are good reasons for that.
Your STR is already a complex and risky business, so you may be wondering why you should care about the length of service of your PMC. After all, it only affects the price they charge. But there are several reasons why this information can be important to you.
First, it’s a measure of how long a PMC has been in the industry and whether they have experience navigating its changing landscape. As we’ve seen above, PMCs have to continually adapt their business models as jurisdictions change laws or new technologies emerge. The longer they’ve been around and able to do this successfully, the better chance they will have continued success moving forward.
Additionally, more established firms tend to have bigger teams with more diverse skillsets than newer companies who don’t yet need such breadth because their focus is narrower. This means that if one person drops out for some reason—whether due to illness or family leave—there would be others on hand who could step up instead of leaving everything unfinished until someone returned from vacation.
Investing in a PMC with a long track record of success can help you achieve your goals.
The truth is, not all PMCs are created equal. Some have more experience in the STR space than others; some may have more expertise in certain types of properties than others; and some might even be committed to the STR space longer than others. These differences can really matter when it comes to your goals and objectives as an investor who wants to maximize returns on investment (ROI).
The STR space is rapidly evolving and changing. The best PMC is one who is constantly looking forward and finding ways to redefine and refine the industry, but who has the experience to back up their vision with SOPs, policies and track records.
Our Favorite Cyber Week Deals
With Black Friday and Cyber Monday deals upon us there is no better time to make some impactful upgrades in your short term rental. From big ticket items to small, thoughtful additions, we’ve created a curated list of our favorite steals right now.
Must Haves For Bedrooms
A beautiful escape with a comfortable bed is one of the most important guest amenities that can really make a huge difference in your guest's experience. These are our favorite most reliable items that we come back to again and again.
Another high impact necessity that is often overlooked is coffee. Go the extra mile for your guest and leave a few coffee pods and coffee grounds out for them to make the mornings that much easier.
Ensuring that your rental is fully stocked with everything a guest may need is imperative to preventing late night calls, negative reviews and overall lackluster guest experiences. That’s why we only stock properties with products we would use!
The Great Outdoors
Outdoor space is such a valuable selling point of any home and extending patio season is always appreciated by guests. Here are our favorite ways to enjoy your outdoor space when nights turn chilly.
Clean and Tidy
When it comes to providing the best possible experience, cleanliness is one of the most important factors. Allowing guests access to vacuums, brooms, etc will ensure that they’re able to keep their space clean should they need to.
Splurge vs. Save: Smart TVs
These days, a Smart TV is the standard across short term rentals, and we love outfitting all bedrooms with TVs so guests can escape to their own spaces. While you can definitely choose to splurge in this area, there are definitely excellent affordable options that your guests will love.
Happy shopping this weekend!
Outfitting a new investment property or vacation rental home can be an overwhelming task. How do you outfit a kitchen from scratch? What items will make your guest's stay go from good to great? How do you balance a great guest experience with maximizing your bottom line?
Luckily, we've exhaustively researched, field tested and crunched the numbers to compile a thoughtful list of items that we highly recommend to keep your short term rental (or your home!) running like a well oiled machine. We intend to keep this compilation on our website for future reference, but below you'll find a hyperlinked list of our favorite Prime deals to invest in on October 11 and 12 to prepare your home for holiday guests!
Still overwhelmed with the idea of outfitting your own home or simply don't have enjoy hours in the day to manage it all? We'd love to help! Click here to get started!
Not ready to jump in with us yet, but want to learn more about investment property management or investing in your own Airbnb? Follow us on our social media channels linked below!
We research and choose only the best investment items to recommend to you. When you buy through our links, we may earn a commission.
Over the 6 years Beckon Homes has been up and running, our team has been given the distinct privilege of helping real estate investors from all over the country (and beyond!) grow their portfolio of Short Term Rentals, Airbnbs and Vacation Rentals. Our focus has always been on serving clients who have a vision of owning and operating high-end, luxury level properties around Nashville, The Smoky Mountains, Cape Cod, California, Florida and beyond. While we've been lucky to be their partner to create nearly-passive income streams with and for them, sometimes our clients have proven to be our best teachers. Here are some of the pieces of advice we've either learned, or taught, as an all-inclusive Airbnb/Short Term Rental Property Management Company:
It's STILL All About Location
The traditional real estate motto is, and has been for decades: "Location, location, location!!"
And while Short Term Rentals and Airbnbs don't follow all the traditional real estate rules (more on this in another bullet point!), picking the perfect location is the one tried and true advice we dole out on a regular basis.
Of course, the location "rules" for an Airbnb or Vacation Rental are different than residential real estate. Residential real estate might look at the best school systems, or huge, rolling green spaces. It might favor an HOA community, and shy away from city streets. But with Airbnbs, the goal is to be IN THE ACTION as much as possible, and as much as is popular for that city.
In Nashville, for example, besides the typical Honky Tonks and neon lights tourists flock to bike by on their pedal taverns, there are numerous universities that host thousands of students (and their visiting parents!) every year. There are trade shows and events. There are weddings and concerts. To be nestled in one of Nashville's sweet suburbs just wouldn't make sense for most travelers. Instead, we look for locations that will allow our guests to unwind after a long day in the city, but make it easy for groups to split off if half of our guests want to keep exploring and the other half is ready for some R and R.
Our best advice to find the perfect location? Work with an awesome Realtor (who knows the area AND the legislation behind short term rentals, which can be intense and expensive if not paid attention to), and ask around! Ask Property Managers, universities and locals where they love to hang out and where they'd want their family to stay if they were visiting!
Amenities that go Beyond Home Ownership
When you go to buy a home, some things might be a definite perk: A giant walk-in closet, for instance, or a HUGE, fenced backyard. Maybe an HOA that oversees lush green space or a community pool.
In Airbnbs or Short Term Rentals, amenities need to be different, and sometimes, things we'd really value in a forever-home, we'd steer our clients away from in an Airbnb.
For example: While we have a handful of rentals with amazing master closets, the majority of the time, our guests would have preferred to have functional space- more room to sleep, perhaps a lit vanity to get ready, or extra space in the master to add a pack and play more easily. A giant backyard is similar, in that, most of the time, our guests would prefer a rooftop deck over a fenced in yard that we'd have to ensure was pristinely (and expensively) maintained.
When our clients ask us what will "sell" an Airbnb to guests, here are the amenities we help them search for:
Make a Management Plan
No, we're not (just) trying to sell our services. But, we do work hard with property owners and investors to dispel the myth that owning investment properties is 100% passive.
Of course, it can be passive, but only if you have a management partner. More on that below. But first, consider:
Get To Know Nashville, With Us.
Whether you just purchased your dream home in music city or decided to work here remotely for a change of scenery, you want to feel the comfort of home. Beckon Homes can offer furnished mid and long term rentals to fit within your budget and needs.
These homes are designed for comfort and located in the neighborhoods you want to get to know. Our responsive, easy to work with staff will walk you through the easy booking process and beyond. We are here to provide the best service to make your work and life transitions seamless.
If you know that this is where you want to be for now or forever Call us at 833-4BECKON or book HERE
Get Your Home Ready For Winter
It's hard to believe that fall is around the corner, especially since it's a crisp 90 with 100% humidity. Getting your home winter ready this fall will be the Christmas present you will be glad you bought early. These tips will save you time, money and make your home more efficient. Contact us at Beckon Homes if you would like to pass these chores off to someone else. We offer monthly a la carte maintenance packages that fit your specific needs.
Gutter Cleaning - These bad boys drain thousands of gallons of water away from your home every year. Cleaning them will not only give them a longer shelf life, but save you thousands in roof repair if the get clogged. We use local, insured companies for all our homes.
Soil Samples - Instead of panic gardening next spring, I will learn from my Covid mistakes and send in soil samples to The University of TN to prepare early. For $15, you can learn what your garden needs to thrive.
HVAC, Plumbing and Electrical Inspection - Don't get caught with your pants down. At Beckon, we highly recommend a maintenance plan for our homes that offer free systems checks. Having a bi-annual inspection for these is essential to catching problems before they occur
Have Your Flue Cleaned - A few years ago, I turned my whole Christmas tree into a Yule Log. Standing in my yard like Cousin Eddie, watching the flames come out of the chimney was NOT the way to clean our flue.
Change Your Batteries and Air Filters- Once a year, replace all your homes batteries. Never in the history of the world has a smoke detector battery beeped in warning in the middle of the day. It only happens at 2am after you finally got the baby to sleep. Just like everyone else, I like the convenience of Amazon but don't go cheap. Find a good battery and you can't go wrong. Quarterly change out those air filters or breathe in all the allergens and dust the city has to offer.
Winterize Your Outdoor Faucets - Living in the South often leaves us feeling safe from the effects of cold weather. Those random 20 degree days can be catastrophic to your pipes. Disconnect and drain your hose and check for any potential leaks. Seriously.
The Beckon Dog Blog
Spinach, Gypsy, Moana, Hank and Otis
Our team at Beckon Homes LOVE our pups and we know you do too! This guide will direct you to our favorite pet care providers, companies and activities around Nashville for you and your pet to enjoy. We also look for sustainable ways to give back to the community by donating our unusable linens to the Nashville Humane Association and East C.A.N. These wonderful companies work tirelessly to improve the safety, health and happiness of their pet guests just as we do for ours.
Stay and Play
Contact us HERE to stay in some of our pet friendly BnB's. Are the In-Laws looking for a place nearby to stay for the holidays, but are having trouble finding a place for their pooch? We have many properties available. Inquire on the link above or click the links below and get started early on your holiday plans.
Book your stay below
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