[00:00:02] Speaker A: This is short term rental management, the show that is all about short term rental property management with your hosts, yours truly, Luke.
[00:00:13] Speaker B: Carl, welcome to short term rental management. Life is wonderful. I'm fixing my hair.
[00:00:21] Speaker C: It is Tuesday morning and you are so good looking today.
[00:00:26] Speaker B: We are here to talk about cash flow, better reviews, higher occupancy, bigger price.
[00:00:34] Speaker A: Per night, and all of the above. Today's topic with Luke, the long hair.
[00:00:41] Speaker B: Extraordinaire, cash flow Carl. Today's topic is, are you working too hard?
Are you spending too much time on your short term rental?
[00:00:54] Speaker C: We're going to dive deep on this.
[00:00:56] Speaker B: Subject after a word from these wonderful folks.
[00:01:02] Speaker A: This episode of the short term show has been brought to you by your friendly short term shop real estate agent.
We are hyper local and totally dedicated to your success.
Whether you want to buy your next short term rental or sell the one you currently own, we would be honored to earn your business.
We are in all of the best vacation markets in America. Find
[email protected] that's the shorttermshop.com brokered by Exp.
[00:01:39] Speaker B: Here we are, my friends. Here we are.
[00:01:43] Speaker C: And we're here to talk about rental.
[00:01:44] Speaker B: Real estate and freedom. How do I get to where I want to be?
[00:01:48] Speaker A: Well, where do you want to be.
[00:01:49] Speaker C: And where are you? That's what you got to ask yourself.
[00:01:51] Speaker B: The hard part is figuring out what.
[00:01:53] Speaker C: You want to do. The easy part is figuring out how to do it. You just got to act, man.
[00:01:58] Speaker B: Take action.
[00:02:00] Speaker C: Massive action is what it takes.
[00:02:03] Speaker D: Go out there and get it done.
[00:02:05] Speaker C: Simple as that.
[00:02:05] Speaker B: But I feel that a lot of folks are getting it done.
[00:02:08] Speaker C: A little too much.
Little too much.
[00:02:11] Speaker E: Be honest.
[00:02:12] Speaker D: I've been getting some emails lately from.
[00:02:14] Speaker C: Folks that are sending me their listings.
[00:02:16] Speaker B: Luke, can you take a look at my listing, tell me if I'm doing.
[00:02:19] Speaker C: Any good, and I'm sitting there like.
[00:02:21] Speaker B: This listing is like picture perfect.
[00:02:24] Speaker D: It's got every detail.
[00:02:26] Speaker C: They've been listening to, every podcast, and I love that, and I appreciate that. A lot of that info that they're.
[00:02:31] Speaker D: Getting is coming from me, which makes me very honored. But sometimes lately I'm thinking, did you send me this listing to show me.
[00:02:42] Speaker B: How good you are at this, to tell me that you're better at this than me?
And that's cool, man.
[00:02:49] Speaker C: I want you to become the ninja. I want you to become the instructor.
[00:02:54] Speaker B: That's how I know I'm doing my.
[00:02:55] Speaker D: Job is when the things that I'm.
[00:02:58] Speaker C: Saying are rubbing off on you. And it's affecting the way you're running your business, and that's wonderful. But I do think that you got to be careful.
[00:03:08] Speaker B: I'm starting to see these crazy listings.
[00:03:09] Speaker C: With all this stuff.
[00:03:13] Speaker B: I'm almost starting to wonder if there's.
[00:03:14] Speaker C: Going to be a damn petting zoo in the backyard or a helicopter pad.
[00:03:17] Speaker D: On the roof or a submarine under.
[00:03:20] Speaker C: The house where you can take the kids for a ride.
Be careful with that.
[00:03:25] Speaker B: You're going to get to the point.
[00:03:26] Speaker C: Where some of that stuff is a diminished return. There's going to be a certain point where it's like, wow, did I really need to spend all that money on this thing? I don't even have any specific examples.
[00:03:40] Speaker B: But you better make sure that your house, if you're going to go out.
[00:03:43] Speaker C: And spend thousands and thousands and thousands of dollars on furniture, like high end stuff, West Elm and all that, you better make sure that that's a house that's worthy of such a price per night. The location needs to reflect that price per night. The market needs to reflect that price per night.
[00:04:05] Speaker D: If you're trying to do high end.
[00:04:08] Speaker C: Luxury.
[00:04:11] Speaker D: Even in Gatlinburg, it's a fine.
[00:04:15] Speaker B: Line there because you got to know your clientele.
Have you been to Gatlinburg?
[00:04:21] Speaker C: That's another thing.
[00:04:22] Speaker B: You know, they send me these listings.
[00:04:24] Speaker C: And there's all this crazy stuff.
[00:04:29] Speaker E: Putting.
[00:04:29] Speaker D: Greens and outdoor saunas and indoor pools.
[00:04:35] Speaker B: And all this crazy stuff. And I'm thinking, like, have you ever been to Gatlinburg? These are regular folks.
[00:04:43] Speaker D: These are regular, blue collar, hardworking people.
[00:04:48] Speaker C: Walking around in the streets in that area. Branson, Missouri, same thing. That's where I grew up in the know.
[00:04:56] Speaker D: You go to Branson?
[00:04:58] Speaker E: Yeah.
[00:04:58] Speaker C: There's going to be some folks that want luxury, but it's kind of a limited number of them.
[00:05:04] Speaker D: You don't need to go over the top.
I mean, even, dare I say, the car charger?
[00:05:13] Speaker E: I get the car charger because it.
[00:05:16] Speaker C: Doesn'T really cost that much to put that in.
[00:05:18] Speaker A: What are you looking at?
[00:05:19] Speaker C: $1,000 maybe, to throw in the car charger.
I made that up. I don't know, maybe it's ten grand. Who knows? But $1,000, why not give it a try?
[00:05:28] Speaker D: I wouldn't do the car charger.
[00:05:30] Speaker B: Unless you have an electric car that needs charge when you go to your.
[00:05:35] Speaker D: House, then okay, let's do it.
[00:05:39] Speaker B: But adding that amenity, I feel like we get to the point of a diminishing return there. Did you spend a bunch of money you didn't need to spend.
[00:05:45] Speaker D: Did you work harder than you needed to work?
[00:05:49] Speaker B: At the end of the day, it's just a house.
[00:05:51] Speaker D: Cute, clean and comfortable.
[00:05:53] Speaker B: That's all you need.
[00:05:54] Speaker D: That comes straight from Avery, Carl.
[00:05:58] Speaker E: And.
[00:06:01] Speaker D: Again, look at your clientele.
[00:06:05] Speaker B: If you're trying to go super high.
[00:06:07] Speaker D: End, top of the market luxury.
[00:06:11] Speaker E: You.
[00:06:12] Speaker C: Got to be careful with that word.
[00:06:13] Speaker B: Because if you put the word luxury.
[00:06:15] Speaker D: In your headline, they are going to expect certain things.
[00:06:19] Speaker B: They're going to want it to be.
[00:06:20] Speaker C: A five star hotel with ducks swimming in the water out front.
[00:06:26] Speaker B: So a lot of times you can't.
[00:06:27] Speaker C: Even accommodate that because you're at a distance.
[00:06:30] Speaker B: Everybody's at a distance. That's the whole point.
[00:06:33] Speaker D: You rent the house when you're not there.
[00:06:37] Speaker C: If you want to get into high.
[00:06:38] Speaker D: End luxury, go buy a five star hotel.
[00:06:42] Speaker E: That's just me. I get it.
[00:06:44] Speaker B: I do think we need to focus some energy on the amenities. Nice coffee system, got nice coffee station.
[00:06:50] Speaker C: That kind of thing. Maybe a waffle station or whatever you want to do.
[00:06:54] Speaker B: But I just don't know that we.
[00:06:56] Speaker C: Need to go over the top with all this stuff.
[00:06:59] Speaker D: I mean, where does it end?
What, are you going to put a.
[00:07:04] Speaker B: Race car track around your house and let the kids do the lightning McQueen ride around your house with a real gas powered car?
[00:07:14] Speaker D: We're going to get the roller coaster.
[00:07:15] Speaker B: From goats on the roof and put it on your property.
[00:07:17] Speaker D: I mean, come on, where does it end? You're working too hard.
[00:07:21] Speaker C: It's too much for me.
[00:07:22] Speaker D: It's too much. It's too much.
[00:07:24] Speaker B: Focus that energy on the next house. How much money did you spend on.
[00:07:28] Speaker C: That roller coaster and could that have gotten you another piece of property, another.
[00:07:33] Speaker D: Piece of real estate?
[00:07:35] Speaker C: You know what I mean?
[00:07:36] Speaker B: Because you're talking a lot of dough.
[00:07:37] Speaker C: To put this stuff in these houses and I'm seeing that a lot lately.
[00:07:40] Speaker B: I think we could tone it down.
[00:07:41] Speaker D: A little bit with the amenities, folks. All right.
[00:07:46] Speaker C: And then the website. The website. Everybody wants to talk about my website. I've got a website. This, that, the other. I'm posting it on this page and the other page. I'm spending all this time, sit there.
[00:07:58] Speaker B: And think about that. How much time are you spending on that website?
How much time would you need to.
[00:08:05] Speaker D: Spend on that website to compete with.
[00:08:09] Speaker B: The millions and millions and millions of dollars that Airbnb and verbo and booking.com.
[00:08:13] Speaker D: Are spending on marketing? That is a lot of dollars that they're spending that you don't have to have the website, have the amenities.
[00:08:24] Speaker C: Don't go over the top.
[00:08:25] Speaker B: There's no reason for you to be.
[00:08:27] Speaker D: Spending 20 hours a week working on this stupid website for what?
[00:08:33] Speaker B: How many bookings are you going to get? It's a point of diminished return.
If you've got a super unique property.
[00:08:43] Speaker D: That'S going to be the exception. If you've got a property that's in.
[00:08:48] Speaker C: A really crazy location and it is.
[00:08:51] Speaker D: Set up really crazy, like it's an authentic 1823 castle or something, we need a website.
[00:09:01] Speaker C: At that point. It becomes more of a bed and.
[00:09:03] Speaker D: Breakfast, old school style, which, by the.
[00:09:07] Speaker C: Way, bed and breakfast are freaking awesome.
[00:09:09] Speaker B: When's the last time you stayed in.
[00:09:10] Speaker D: A bed and breakfast?
[00:09:12] Speaker C: Avery and I love to do that.
[00:09:13] Speaker D: My wife and I, we love to pick.
[00:09:17] Speaker C: It's been a while. We haven't done it in a long time, but we used to do it quite a bit. We would go to whatever town we were going to and we would search.
[00:09:23] Speaker D: Bed and breakfast, and we would book.
[00:09:26] Speaker C: The coolest old house in town. And they got a lady that cooks breakfast and everybody sits at the table in the kitchen at the same time in the morning and tells their story.
[00:09:36] Speaker D: And we were the young hungover couple.
[00:09:39] Speaker C: That went to the rock concert the night before.
[00:09:43] Speaker D: And then you have the old drink and coffee couple, and we're on a family reunion couple, that kind of thing.
[00:09:53] Speaker C: And those houses are just amazing. They're gorgeous. And they've been there for 150 years. And somebody really loves that home. Bed and breakfast. A good old fashioned b and b. Like a real bed and breakfast. They're so cool.
[00:10:07] Speaker B: If you've got one of those, you need a website.
If you don't have one of those, if you just have a regular old.
[00:10:15] Speaker D: Cabin in the woods or a regular.
[00:10:17] Speaker C: Old house on pillars on the beach.
[00:10:23] Speaker D: Is it worth it?
Isn't your website verbo.com at that point?
[00:10:28] Speaker C: Are you spending too much money on.
[00:10:30] Speaker D: Your Sally's beach cabin?
[00:10:33] Speaker C: Beach.
[00:10:33] Speaker D: Sally's beachhouse.com probably spending too much time on that.
And systems.
[00:10:44] Speaker B: I do feel that folks are going a little crazy now. Maybe I've got the cream of the.
[00:10:48] Speaker C: Crop coming through my inbox.
[00:10:50] Speaker D: I get that.
[00:10:52] Speaker B: But some folks are putting all these.
[00:10:54] Speaker C: Crazy systems in place and I don't.
[00:10:55] Speaker B: Have any specific examples.
[00:10:57] Speaker C: But, man, what in the world? I think my systems are pretty badass and pretty bulletproof.
[00:11:05] Speaker D: But a lot of folks are going over the top with all aspects of the business.
[00:11:12] Speaker C: And I think a lot of it is just boredom.
[00:11:14] Speaker E: You're bored?
[00:11:16] Speaker B: I think a lot of it has to do with the fact that you.
[00:11:19] Speaker C: Don'T have another down payment yet.
[00:11:23] Speaker D: I think that's the real truth here.
[00:11:27] Speaker B: The truth of the matter is, you're.
[00:11:29] Speaker C: Hooked on real estate, as you should be.
[00:11:31] Speaker B: Everybody gets there.
[00:11:32] Speaker D: I'm hooked.
[00:11:35] Speaker C: You want the next house, but you don't have the next down payment. So you keep fiddling with the house.
[00:11:40] Speaker D: That you've got, and you're going to.
[00:11:44] Speaker C: Fiddle yourself right out of that down.
[00:11:46] Speaker D: Payment by nickel and diming the crap.
[00:11:49] Speaker C: Out of the house you already own.
Oh, if I could just upgrade this tv to five inches bigger.
[00:11:55] Speaker D: All I need is one more kitchen gadget, and then it'll be all perfect.
[00:12:01] Speaker C: And then the next one. And then the next one. I'm preaching to the choir here. I do this stuff, too, but I'm.
[00:12:05] Speaker D: Seeing people going way over the top with it. You don't need a $700 espresso machine.
[00:12:14] Speaker B: You got a bed and breakfast with a lady cooking waffles in the morning.
[00:12:17] Speaker D: For all of your guests, and she's.
[00:12:21] Speaker B: Going to run that espresso machine for a guy that does the espresso machine.
[00:12:24] Speaker C: Okay, go get you the $700 espresso machine.
[00:12:27] Speaker D: But if you're just renting a house.
[00:12:28] Speaker C: That you rent it when you're not.
[00:12:30] Speaker D: There, just a regular old verbo, you.
[00:12:33] Speaker B: Don'T need all this stuff.
[00:12:34] Speaker D: And if you're bored, focus that energy.
[00:12:37] Speaker B: On your bank accounts and your numbers.
[00:12:39] Speaker C: You got to get your money right. If you don't keep it, I say.
[00:12:43] Speaker B: This all the time. If you do not keep your eye on your money, your mind on your.
[00:12:47] Speaker D: Money, like Snoop Dogg, it's gone. It's going to disappear, and you're going.
[00:12:53] Speaker C: To spend it on a house that you already own.
[00:12:55] Speaker B: Focus that time and energy on properties.
[00:12:58] Speaker D: That you don't own, telling you that's.
[00:13:01] Speaker C: Where the benefit is.
[00:13:02] Speaker E: I'm bored.
[00:13:03] Speaker C: I'm spending all my time on this house because I'm obsessed with houses, and I can't afford the next one yet. Just come to terms with that. Admit it to yourself.
[00:13:12] Speaker B: Admit it.
[00:13:12] Speaker D: I can't afford the next house.
There's nothing wrong with that. There ain't no shame in that game, baby.
[00:13:18] Speaker C: Admit it to yourself that you can't.
[00:13:20] Speaker B: Afford the next house and spend your.
[00:13:23] Speaker D: Time focusing on that energy.
[00:13:26] Speaker B: Focus on that next down payment.
[00:13:29] Speaker D: That is the secret.
How many times I got to tell you?
How many times I got to tell you?
[00:13:36] Speaker B: The down payment is the hard part.
[00:13:39] Speaker C: You already own the house.
[00:13:41] Speaker B: Don't blow your next down payment money.
[00:13:44] Speaker C: On all this freaking petting zoo crap you put in a carousel.
[00:13:47] Speaker D: I mean, come on.
[00:13:50] Speaker B: Plus, you're making my jobs more difficult at this point, friends.
It's like I created all these monsters that build all these mega houses, and now I can't compete.
[00:14:00] Speaker E: So knock it off.
[00:14:01] Speaker B: Take that money, go spend it on.
[00:14:03] Speaker C: The next house, and make Luke's job easier.
[00:14:06] Speaker F: Hey, guys, if you're enjoying the content of our podcast but you have additional short term rental questions, we host a weekly live question session that you guys can join for free. It's at 01:00 p.m. Eastern on Thursdays, and if you head over to strquestions.com, you can sign up. So, not only am I the host of this show, but I also own and manage my own properties. And I'd be happy to answer any questions that you have about short term rental investing. So please join us anytime for a free weekly live Q and A on Zoom. Sign
[email protected] and then pricing.
[00:14:43] Speaker B: I want to talk about pricing. Now. Pricing is the one where I'll give.
[00:14:46] Speaker D: You an exception to the rule.
Pricing you do need to spend a.
[00:14:53] Speaker C: Lot of time on.
[00:14:54] Speaker B: All right, I think that 50%.
[00:14:56] Speaker C: I'm throwing you a percentage everybody likes to know, statistics and percentages.
[00:15:02] Speaker B: 50% of your time, which is what.
[00:15:05] Speaker D: We'Re talking about today, needs to be spent on pricing.
[00:15:10] Speaker B: All the rest of these jobs, the.
[00:15:12] Speaker D: Cleaners schedule, the calendar, the restocking of.
[00:15:18] Speaker C: The toilet paper, the coffee system, all.
[00:15:21] Speaker D: This other crap, all those however many.
[00:15:25] Speaker C: Other things you're doing on a day to day basis need to be split up over that other 50% of your time.
[00:15:33] Speaker B: And maybe you set a goal.
[00:15:34] Speaker D: Maybe you set a goal. Maybe you put it on your schedule, put it on your calendar. I do my reviews every Tuesday at 10:00 a.m.
If you got a day job. I do my reviews every Tuesday at 07:00 p.m..
I do pricing every Wednesday at 05:00 a.m. Before I go to work.
[00:15:57] Speaker E: Put it on a schedule.
I'm telling you, good things will happen again.
[00:16:04] Speaker D: Preaching to my own choir right now.
[00:16:08] Speaker B: But it's very important. Get a calendar system going.
[00:16:12] Speaker C: There's a couple of options out there.
[00:16:14] Speaker D: I use cozy. It's just an ical.
[00:16:17] Speaker C: It's a fancy ical where you can integrate multiple icals. There's another one called fantastical.
[00:16:24] Speaker B: And put it on a weekly rotation.
[00:16:28] Speaker C: Figure out exactly how much time you're.
[00:16:30] Speaker D: Spending on this thing.
[00:16:33] Speaker E: Hell, I don't know.
[00:16:34] Speaker B: Maybe you've got material participation requirements, maybe.
[00:16:38] Speaker C: You need to spend x amount of time on this thing. So put that on a schedule. I need to spend this much time.
[00:16:43] Speaker D: On this thing every week.
[00:16:48] Speaker B: But I feel that folks, there are some folks that are working a little too hard.
[00:16:53] Speaker C: At the end of the day, it's just a damn single family house. The whole point of this thing is.
[00:16:57] Speaker B: To get you freedom back, get your time back.
And I do feel that some folks.
[00:17:02] Speaker E: Are taking it right back.
[00:17:04] Speaker B: Giving it right back, man. Oh. I just got all this time back by buying real estate and I'm giving it right back.
[00:17:12] Speaker D: You got to find a happy medium.
[00:17:14] Speaker B: You got to find that, walk that.
[00:17:16] Speaker E: Line, be careful, be obsessed, do better.
[00:17:19] Speaker D: Than everybody else, but don't overdo it.
The time needs to be spent on property you don't already own, not on buying rhinoceros for the house we already own.
[00:17:35] Speaker E: Okay?
[00:17:36] Speaker D: Simple as that. Put it on your calendar, make some.
[00:17:41] Speaker B: Changes, do the best you can. I love you. I'm going to wrap it now.
[00:17:50] Speaker D: Let me give you a book on time saving.
[00:17:54] Speaker E: There you go.
[00:17:54] Speaker B: I got you a book on the subject.
[00:17:56] Speaker C: This is a wonderful book that I thoroughly enjoyed.
[00:18:02] Speaker D: And I want to say it's not that old.
[00:18:04] Speaker C: I think it came out. No, it came out 2013.
[00:18:07] Speaker B: Twelve week year. Do more in twelve weeks than others.
[00:18:11] Speaker C: Do in twelve months. In other words.
[00:18:15] Speaker D: Get your whole year done in three months.
Did I do the right math on that?
[00:18:20] Speaker E: Yeah.
[00:18:22] Speaker D: Brian P. Morgan with Michael Lannington.
[00:18:27] Speaker C: I really did. I love that book. It's a New York Times bestseller, it's got a ton of reviews.
[00:18:32] Speaker B: Twelve week year. Stop listening to the reverend, go read.
[00:18:36] Speaker C: That book and you'll thank me, man.
[00:18:37] Speaker B: I appreciate you. I love you preaching about cash flow rental. Real estate will save your soul, my friend.
[00:18:45] Speaker E: All right?
[00:18:46] Speaker B: The multifamily madman, the shaman of short.
[00:18:49] Speaker D: Term, as always, saying, please don't overthink it.
