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DGS 115: How to Be Successful In the Short Term Rental Market with Rob Stephens
Description
What do most skiers and snowboarders dream about? Owning mountain property. But most of them don't have the necessary wealth or money to purchase a second home, especially in expensive real estate markets.
Today, I am talking to Rob Stephens of Avalara MyLodgeTax. As a Denver resident and lifelong skier, Rob was fortunate enough to buy a three-bedroom condo in Vail about 20 years ago. But even then, it took Rob, his wife, and wife's brother-in-law to make the dream a reality.
You'll Learn...[02:57] Short-term Rental Market Options:
- Hire local property manager/real estate agent.
- Post property online via VRBO, Airbnb, Expedia, etc.
- Rent-by-Owner: Book guests, collect money, and provide on-site services.
[03:48] Complex Tasks: Apply technology and manage challenges for property owners, managers, and operators. Know what taxes to charge, collect, file, and pay to agencies.
[05:50] Lack of Awareness: Property owners trying to manage their short-term rentals have never dealt with these types of transactional taxes.
[06:20] It's not rocket science, but multiple layers of government are involved. State and local tax rates and requirements are specific to rental property location and address.
[07:10] Avalara MyLodgeTax: Online hosted, Cloud service similar to TurboTax but for short-term rentals with vacation, occupancy, resort, and other taxes.
[09:27] Penalties to Avoid: Long-term, multifamily operators getting into short-term rental space need to understand rules and risks involved.
[11:40] One less thing to worry about. Partnerships with property management companies is when Avalara handles everything occupancy tax related.
[13:02] Common Questions and Concerns: Shortcuts and consolidation for creating awareness and understanding the mechanics of administrative work.
TweetablesIncreasing scrutiny and regulation on the short-term rental space, makes for more paperwork and forms to be filed.
Lack of Awareness: Property owners managing their short-term rentals have never dealt with some types of transactional taxes.
Short-term rentals involve multiple layers of government. State and local tax rates and requirements are specific to rental property address.
Resources TranscriptJason: Welcome, DoorGrow Hackers, to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing your business and life, and you are open to doing things a bit differently, then you are a DoorGrow Hacker.
DoorGrow Hackers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you're crazy for doing it, you think they're crazy for not, because you realize that property management is the ultimate high-trust gateway to real estate deals, relationships, and residual income.
At DoorGrow, we are on a mission to transform property management businesses and their owners. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. I'm your host, property manag