Year One and Done

[00:00:02] This is Short Term Rental Management, the show that is all about short term rental property management with your host, yours truly, Luke Carl. [00:00:16] Short Term rental Management. Luke Carl, grateful to be here. New year, new you. [00:00:22] My mailroom is stacking up, haven't gotten any packages or whatever. It's okay, don't worry about it if you happen to be looking on YouTube. But I'm grateful that you are here. We are in a new year and the Cash cave. Welcome to Luke Carl's Cash Cave. Today we're going to talk about second year doldrums, mistakes that can be made by second year hosts, landlords, vacation rental property managers, and all of the above on short term rental management. [00:00:59] So what you need to be careful, need to be careful of is getting bored and complacent and comfortable. I see this all the time. I see it all the time. People get into this biz, real estate in general, rental real estate, trying to find a better life, trying to figure out a solution for working for the man and having some side hustle, etc. And it's a wonderful thing and I see it time and time again where people get shot out of a cannon. [00:01:27] They are electrified. They want this so bad and they are working so hard. And it is wonderful and I admire it and I'm that guy. I did it myself and I still do it. I still try to keep that fire going, man. [00:01:41] But what can happen is you're so fired up, you're so laser focused, you're like completely focused on that down payment, getting the, getting the mortgage, getting the deal, closing the deal. Now we've got to figure out how to manage this thing. We go to Management Monday with Luke three times. We join Short Term Shop plus, we get all our ducks in a row. We get all rocking and rolling, we get guests coming in, the money's doing okay and we're starting to feel like we get somewhere. And then we take it to the next level, dive into all the deep dive stuff, really try and push this property to the peak of its ability. You know, get this thing to a smoking, awesome gross income level. [00:02:33] And then reality sets in and we go back to work and we forget all that awesome stuff. We did not necessarily forget, but, you know, you just get comfortable. And honestly, that's a great place to be. You want to be comfortable. [00:02:46] You are working towards this person that I'm talking about and that is who you want to be the comfortable person. [00:02:54] But it's a fine line because there is definite possibility for you to get too comfortable and too busy in the new year and work stress rolls back around and the holidays are wearing off. And now we're trying to lose £15 for beach season and everything else and get things in order for spring break. And then next thing you know, it's summertime, end time, you know, life just moves on. [00:03:21] So we've put this property into service, We've learned every trick in the book. Our gross income is looking really good. [00:03:30] We've been doing it for a year, maybe 18 months, and now we're comfortable. [00:03:38] Okay, so my point is there is a very fine line between shot out of a cannon and complacent. [00:03:49] And really, after 18 months, I want you to be leaning towards this comfortable person. I want you to be that comfortable person. That's who you need to be. Because now it's time to forget about this damn property and move on to the next down payment, which is, I've said a thousand times, that's the hard part. [00:04:11] You buy a property, you put it in service, you move on to the next property. And we set a goal. You know, an average human should really probably try and do this like 10 times. You probably really need about 10 rental properties in your life for a regular person. And it might take you until you're 65 to get to that point. Throwing out all kinds of good goals today. You could write all that down. 10 properties by 65. I know there's one or two folks listening right now that are like, I want 10 next week, brother Luke. Well, let's go get it. Let's do it. All it takes is cash and some time and some hard work, you know, it is hard work. It's hard work, my friend. [00:04:52] So in 2025, I need you to walk the fine line between the guy that or the girl that you were at month 6 to 8, 6 to 12 of the process, like completely shot out of a cannon and losing your mind, obsessed with this thing, this property. [00:05:17] And then we've learned everything we need to learn. We're putting it in service. It's again, it's about 12 months. You need about 12 months in short term shop plus, you know, I would say to really give birth and, and know what you're doing and move on to the next. Of course, then you're going to need short term shop plus again to learn how to, you know, do all this, the second property stuff and work them together and then work on the next property and the next property. But anyway, don't fall into that 18 month comfortable trap. [00:05:53] You don't want to be one of These people, that's year one and done. [00:05:59] I'm a year one and done. [00:06:01] That's all you're going to get out of me. I worked hard, I put it in service, I moved on and now I'm obsessed with a boat. That's not good. [00:06:11] Because in order to make it in real estate, if you want to shine in real estate, you've got to keep it. [00:06:18] All right, so I want you to tow that line in 20, 25 between I put it in service, I've given birth, it's now a soldier, it goes out and it does its job. [00:06:30] And completely forgetting all about it. [00:06:35] Are you worried about your market being saturated? [00:06:39] Too much competition? [00:06:42] Well, join us at short term Shop plus and we can teach you to be the best in your area. [00:06:49] Stsplus.com to sign up for on demand online courses, one on one live coaching, weekly group calls, everything you need to know about being the best in your field. In the world of vacation rental and short term rental, we say saturation smatteration. [00:07:16] Stsplus.com Think of it as in a good employee, this house you purchase is an employee. It's going out to make you make your business better, make your life better. But you do have to keep training it occasionally and steering it in the right direction and motivating it. [00:07:35] If you just let it go off into the world to do its own thing, next thing you know it's smoking weed on the couch and playing video games and it's costing you money. Okay, so after year one, 18 months, the bulk of the time you want to spend on the property is going to be on pricing, keeping sure. Keep making sure that calendar is full. Do not think that your property is worth more per night than it is. I see that all the time. [00:08:02] All the time. Every day I have people sending me their listings. I can't get any bookings and they're charging $400 a night and they should be charging 2, $200 a night. [00:08:12] I don't know where they get this information. I have no idea. But I'm happy to help. So you're one and done. Stay away from it. It's a new year, it's 2025. You got to be careful. You got to stay focused and make sure that you are paying a little bit of attention to the property, but most of your attention to the next property. [00:08:33] Do not neglect properties you already own. Go walk them, go smell them, go touch them, but don't let them consume you. Okay? I see it all the time. I see it all the time. I'VE owned this property for two years, Luke. I'm not getting any bookings. Well, you're not paying any attention. You've moved on. [00:08:54] And this would not be any different if it was a long term rental. A retail center, an apartment, a storage unit, a trailer park, mobile home park, they would all. It'd be the same thing. [00:09:07] You got to pay a little bit of attention. You do. [00:09:11] All right, so in 2025, I don't want you to get bored and lazy with the properties that you already own. [00:09:19] Send them to the gym, work them out, make sure they're doing their job. Pay attention. [00:09:28] All right. No. Year one and done. We're not having that around here at short term rental management. I love you, long hair. Luke. Carl. Cash flow. Carl, asking you to not overthink it.