Category: Vacation Rentals

9 reasons why local vacation rental property managers are better

9 reasons to use a local property manager for vacation rentals. Recently, internet-based property management companies have been advertising their services on Google. Property owners who are looking for a rental property manager often surf the web looking for a rental manager. When they find an internet-based property manager advertising that they manage thousands of properties, you stop and think. It may seem that the internet-based rental management company is the real deal. Local property managers exceed what internet-based property managers can do for their clients.

Before you decide on hiring any rental property management company consider the property management services that they can provide and what you need. To help you understand what you need in a manager for your rental properties I have compiled a list of nine key areas that you should consider. This assumes that you want a short-term rental manager that does everything for you, not just some things. You want a full-service property management company.

Our list starts below then I will drill down into some of the most important of the important points below, there is a lot of work involved in managing short-term vacation rentals. The items are not in any order of importance.

At least 9 reasons why local property managers are better

1. Permits

More communities are requiring permits to locate your vacation rental property in their city. You may also find that a permit cannot be issued on your property because it is located in a zone that does not allow short-term rentals and there are more of these zones than you may imagine. Vacation homes are not permitted in most residential areas. At least rentals of less than 30 days. Should your property be located in an area where you can obtain a permit, who will do this for you?

Biloxi short term rental permit
Example of a city Short-Term Rental application

In fact, from what I have seen, none of the boiler room internet-based companies have any idea if your property is located in an area where you can obtain a permit. If it is in an area where a permit can be issued, they do not advise the property owners of this fact. They start listing the property for rental and when the property owner is fined for not having a permit, the internet company claims they are not responsible. 

Local property managers insure that your property can be legally offered as a short-term rental is one of the first things a local property manager will do for you. Christies Gulf Beach Rentals for example generally knows the zoning without checking from experience but does so anyway. If a permit is required, Christies completes the application and submits it in person to the municipality.

Proper fees are paid and that government inspector is met with your local property manager on site. That internet company has no clue about this process or any ability to make it happen. Operating without a permit can cost you. Fines of $500 per day are not uncommon.

2. Manage Cleaners

That internet property manager tells you that there is no problem with keeping your property clean, they have remotely hired a cleaner who does a good job. How do they know the cleaner did a good job? They learn from the comments people leave. It may take more than one 3-star rating to determine if they need a new cleaner. I have found that they also expect the cleaners to fix things or supervise repairs. They are not property managers.

Local property managers such as Christie’s Gulf Beach Rentals will supervise the cleaners meaning that they check their work. Properties are inspected regularly for not only cleaning but to insure items that are broken and worn are replaced. The internet property managers again are not on site and have no idea that the towels in the bathroom are faded because their cleaner did not tell them.

Your local property manager will immediately replace broken and worn things not wait for the remote property manager to ship something in. If you want high ratings from guests, cleaners must be supervised.

3. Legal Issues

What happens when someone is injured on your property? You call those people 10 states away and try to relate what the police told you. Remember your internet property manager can not be on-site in a short time to supervise and mitigate the issue for you. How about the fact that the hazard may have been avoidable if the internet property manager had seen that broken tree limb outside the front door? When law enforcement is called by neighbors, who are going to respond, the cleaner?

legal team
Will you need a legal team without a local property manager

Local property managers are required by some cities for these reasons. A client related an issue where the guests were having a party on their property. The police were called to solve the problem. The property owner was contacted by the police and not being local, they could not tell the guests to leave or shut down the party. Now that they have a local property manager, any issues with law enforcement, code enforcement, the fire department, or others will be solved quickly.

4. Neighbors

When is the last time your internet property manager met with the neighbors to inform them to call if there are any issues? Meaning, to call the property manager before they call the police. Never. You may have met with the neighbors but if they call you then this is not a full-service management program is it?

Neighbors have a big impact on vacation rentals
The local property manager meets the neighbors and works with them

Local property managers meet with neighbors and give them cards. They are asked to call the local manager for any reason which includes much more than police issues. Many cities that permit short-term rentals and ones that allow it without a permit will shut down your business if there are too many complaints. The local property manager working with the neighbors is your best defense against this happening. 

5. Emergency/Storm

Of course, your internet property manager will check your property after a major weather event or even prepare it for a hurricane or storm. You know that the internet property manager will not send signals to close your shutters and windows. What about after the storm, will they be able to check your property for damage and help get it repaired? No.

Emergency/storm support from local property manager
Will that computer at the corporate office respond to your property in the event of an emergency?

Local property managers will close shutters and possibly install plywood for large wind storms. They will make sure that outside hoses are shut off and stored for freezing events. After a storm or event, they will check for fallen tree limbs and other hazards. You will be able to rest easy knowing that your property is looked after during emergencies. If there is a wildfire, they will check on your property when possible.

6. Maintenance

This is a key area, things get worn out and break. Internet companies try to manage this by calling a maintenance person out to do work that they are aware of. This is not a bad thing to do but who checks on the maintenance person’s work? Not the internet manager. Perhaps they ask the cleaner to see if the pipe was welded properly or if the AC system was fixed and a new filter was installed. 

Maintenance person
Your local property manager works with local repair people who charge reasonable prices and can be trusted to do good work.

Local property managers understand much about routine maintenance. They know enough to supervise workers and make sure they show up promptly, don’t overcharge, and do good work. They know this because they put their eyes on the job. The maintenance person knows that the property manager will check their work, an incentive to do it well. Plus and this is important, maintenance people respond to people they know. Rental guests may be waiting for that AC repair tech who goes to another place because they know the local manager there and don’t know the rental owners or internet property manager.

7. Property Protection

Customer service is the key element with professional property managers. Internet property managers can promise super host status for example but they can not protect your property. Cameras can do only so much as everyone knows such as capturing someone wearing a hoodie. They can call the police too. They can’t walk your property to make sure that vacation properties are secure when guests leave. Can they remotely lock a window that was left open?

Local property managers provide full-service vacation rental supervision. They visit your property periodically checking on the cleaners, maintenance workers, pest control employees, and for many other reasons. Because they are local, stopping by your property their team members can check doors, windows, lights, water, etc. There have been several times when the toilet just kept running and a check by the property manager saved the owner on the water bill or potential flood. Making sure that security lights were not turned off by guests and that trash is collected are important best practices. 

8. Rental Income

Internet property managers do a fair job of setting prices for guest stays. Services such as Airbnb and VRBO permit anyone to scan and calculate approximate rental prices for an area. Researching public domain information is how most property owners and internet property management companies derive their pricing. This is all good except if your property is in an area with lots of events that can demand higher rates. The internet managers do not have this local information nor it is applied to pricing. Yes looking at public pricing may help determine the numbers but averages are used which may miss key dates when higher pricing is expected.

Local Property managers often have years of experience in their market and understand the rental market well enough to price on individual dates. For example, on the Mississippi Gulf Coast every year there are a large number of events that draw guests to the area. Potential guests understand that they will pay more when Cruisin the Coast comes to the area.

People book one year out for this event which is completely transparent to internet property managers. They may see some bumps in rates but do not understand why and how much they can get. Internet property managers do not understand the extra charge you can earn by providing other services.

Local short-term rental management companies help their clients earn more money because they understand the rates. Most rental management services companies know other local companies and they share guests. If a property is full, a local property manager may refer that guest to a competitor. This networking is good news for guests who need a place to stay.

9. Property Management Fees – Value

Some internet management companies know their shortcomings and price their services accordingly. Prices range from low to high depending on the company and what they are offering. Often the internet management company is lower in cost than local property managers. This is the one area where they can meet or better the local competition. However, the internet property manager may not be the best choice for yet another reason.

property management fees based on value
Property management fees = Value Received

Local Property Managers are a good option and a better option for all of the reasons listed above. When it comes to the best vacation property management services, a local property manager will usually charge fees commensurate with the services they provide. What I mean is that you need to look beyond the property management fee as just dollars. Look to the value that a local property manager delivers. Consider the entire list of things above and calculate the hours that a local property manager will invest in your property vs someone sitting behind a computer screen at the corporate office.

It’s always a good idea to evaluate what you get for the money you spend. Christie’s Gulf Beach Rentals has earned the business of clients who were with a big internet management company. Christie’s price as it happens was exactly what the big company charges. Other local property managers often charge more but even then, those fees are based upon all of the items discussed above. Hours and hours invested in clients’ properties by the local staff. 

Examples of what property managers do on site

A good example and a not uncommon one is this. A guest was staying at a vacation property. The air conditioning system stopped working partway through their stay. They had an 85-year-old grandmother who was suffering from the high heat. This issue occurred on a Saturday night and the part would not be available until Monday. The Christies Gulf Beach Rental property manager went out at 10:00 PM on Saturday and helped the guests pack their car.

They followed him to another vacation rental a couple of streets away. He let them in and helped them get settled. They were allowed to stay there for the next two days without paying the higher charge on the new property. The guests reported a great experience with a five-star rating.

Another example involved guests staying at another Christies property. The neighbors were having a party (property not managed by Christie’s) and the noise was terrible. The police were called but that did not fix the problem. The guests had a small dog and the Christies property manager found a hotel not far that would accept a dog, as it happens the very last room on the coast. Christie’s paid for the room for the night without charge to the guest. Their rental experience was very good according to their comments.

How would the internet vacation rental manager have handled the above issues? When you work with people, anything can and does happen. The right company, meaning the local company should be prepared to provide these essential services.

Calendar management

I have not mentioned the calendar or scheduling guests. Managing the calendar is an important task. Your local property manager will manage your calendar and communicate with guests. This is what internet property managers can do for you also except for meeting guests in person when necessary. Your local property manager can fill your calendar with available dates and prices based on what I discussed above. Guest communication is managed in a variety of ways.

vacation rental calendar
One property calendar. Your property manager consolidates all calendars for you to view at one time on their website

New guests should receive instructions about how to gain access. Christie’s Gulf Beach Rentals includes wifi based electronic locks on entrance doors. This permits the property manager to issue unique codes to guests before they arrive. Guests receive a phone call from the property manager before they arrive to discuss the rules, directions, and other things that guests may want to know. Some of this can be done by the internet property manager except by telling a guest about a great new restaurant.

Some internet property managers recommend or encourage owner participation in rental homes by having them manage the calendar. In my experience, the property manager should perform all tasks otherwise there may be communication and other issues. For example, one client may have a friend that cleans houses and they want theirs to be cleaned by that person. This situation may become difficult for the property manager if the cleaner is not doing a good job.

Local property managers should have their website to provide more income opportunities. Christie’s for example will permit guests to ask for amenities such as firewood for the beach or a fire pit in the yard. They can also buy insurance against damage or breakage through the website. This extra local service can not be provided through Airbnb and VRBO or by some internet property managers.

Financial and accounting process

Internet property managers provide lots of reports, they are good at this. Anything that can be done by a computer alone is in their area of expertise. Your local property manager should be providing reports as well. Christies for example offers clients a “client portal” where they can see everything going on with their properties. Records of maintenance, photos, and much more. 24/7 real-time financial details are in the portal showing property owners how much they have earned this month plus every previous month. 

Private client portal 9 reasons why local vacation rental property managers are better
ChristiesGulfBeachRentals.Com Private Client Portal to manage your vacation rental property. This is your access to data 24/7

I was surprised to learn that one of the big internet property managers could not provide an owner a report listing income by platform e.g. VRBO, Airbnb, their site, etc. Christies provides details on every booking including its sources. Christies also pays local taxes for all bookings on the Christies site. This is just an example of what a local property manager should be able to provide any owner.

Mississippi and some other states require property managers to work under a real estate broker license. These regulations permit oversight by state regulators and help to prevent consumer fraud. Christies for example is associated with Logan-Anderson Gulf Coastal Realtors. Adding one more reason for working with a local property management company tied to a licensed entity, regulated by the state.

William Anderson 1 Comment on 9 reasons why local vacation rental property managers are better Property management, Vacation Rentals

Snowbirds: escape to the Mississippi Gulf Coast now

Why wait, winter is here and you are cold. Our 55+ degree days with clear skies are far better than hunkering down in front of the fireplace in Minnesota. Sorry, no snow here. Leave those heavy clothes behind. Shorts are mandatory. Snowbirds need to escape the cold winters and defrost on the beach. Yes, you can drink frozen daiquiris in January.

All snowbirds are welcome here. We love people who travel from Washington, North and South Dakota, Minnesota, Wisconsin, Illinois, Michigan, New York, and even New Englanders. If you live between these states and the Mississippi Gulf Coast, it’s still warmer here than where you are now.

21 Reasons to Stay on the Mississippi Gulf Coast in Winter

  • Warm weather: The average winter temperature in the Mississippi Gulf Coast is 65 degrees Fahrenheit, with highs in the 70s and lows in the 50s. This is a great escape from the cold weather up north.
  • Beautiful beaches: The Mississippi Gulf Coast has some of the most beautiful beaches in the world. Miles of white sand and clear blue water make for a perfect place to relax and soak up the sun.
  • Great food: The Mississippi Gulf Coast is home to some of the best seafood in the country. You can find everything from fresh shrimp and oysters to catfish and crab.
  • Lots of activities: There are plenty of activities to keep you busy on the Mississippi Gulf Coast. You can go swimming, fishing, boating, golfing, shopping, and more.
  • Friendly people: The people on the Mississippi Gulf Coast are known for being friendly and welcoming. You’re sure to feel right at home here.
  • Affordable prices: The Mississippi Gulf Coast is a great value for your money. You can find affordable accommodations, food, and activities.
  • Short travel time: The Mississippi Gulf Coast is only a short flight or drive from many major cities in the United States.
  • Variety of destinations: There are many different destinations to choose from on the Mississippi Gulf Coast. You can find big cities, small towns, and everything in between.
  • Something for everyone: The Mississippi Gulf Coast has something for everyone. Whether you’re looking for a relaxing vacation or an action-packed adventure, you’ll find it here.
  • History and culture: The Mississippi Gulf Coast has a rich history and culture. You can visit historical sites, museums, and art galleries.
  • Outdoor recreation: The Mississippi Gulf Coast is a great place to enjoy the outdoors. You can go hiking, biking, camping, and more.
  • Wildlife: The Mississippi Gulf Coast is home to a variety of wildlife, including dolphins, sea turtles, and alligators.
  • Festivals and events: The Mississippi Gulf Coast hosts a variety of festivals and events throughout the year.
  • Shopping: The Mississippi Gulf Coast has great shopping. You can find everything from souvenirs to high-end boutiques.
  • Dining: The Mississippi Gulf Coast has a wide variety of dining options. You can find everything from casual restaurants to fine dining establishments.
  • Nightlife: The Mississippi Gulf Coast has a vibrant nightlife. You can find bars, clubs, and casinos.
  • Transportation: The Mississippi Gulf Coast is easy to get around. You can fly, drive, or take the train.
  • Accommodations: There are a variety of accommodations to choose from on the Mississippi Gulf Coast. You can find hotels, condos, and vacation rentals.
  • Safety: The Mississippi Gulf Coast is a safe place to visit. The crime rate is low and the people are friendly.
  • Relaxation: The Mississippi Gulf Coast is a great place to relax and rejuvenate. You can spend your days swimming, sunbathing, and exploring.
cold winter
Really? How about a beach?

Miles and miles of beaches await Snowbirds who escape the winter. Talk about a long walk on the Biloxi boardwalk or the beach sidewalk. Go fishing, no need for a hole in the ice since we have none. Winter is great for fishing along the Gulf and in the Bayous. No need to cut a hole in the ice, just throw you line in the water. While it’s true that alligators are hard to see during the winter, a few may be found if you know where to look.

Our seasoned food will keep you warm as you think of your family back home shoveling their driveway. Rather than operating a snowblower, you can be on a jet ski. Those 10-pound boots can stay in the mudroom, all you need here is flip-flops.

Our weather is just for Snowbirds

Why talk about the weather when you can see the NOAA weather chart for each month of the year along with some history? Our winters are very mild as you can see from the chart below:

Average temperature for Biloxi, Mississippi

Month Average High Temperature (°F) Average Low Temperature (°F)
January 59.5 42.8
February 62.1 45.2
March 67.3 49.9
April 74.1 56.5
May 82.1 64.8
June 88.8 73.8
July 91.1 77.5
August 90.9 77.3
September 84.6 70.5
October 75.2 60.8
November 65.1 50.3
December 57.4 43.2

Winter things to do

There are lots of activities on the Mississippi Gulf for Snowbirds who escape from our great weather. I mentioned fishing but you can also go out deep sea fishing or rent a boat and Cruze our bays and bayous. Visit the aquarium and some of our many museums. Walk around Ocean Springs or Bay St. Louis if you like art.

beach in winter snowbird escape
This is more like it!

Of course, there are plenty of casinos along the coast (12) to keep you busy at night. Most have live entertainment some nights of the week. Our golf courses are open. Winter is a great time to golf in this area. Take a day trip to New Orleans to visit the WWII museum or to Mobile to visit the battleship.

Don’t forget the food, some of the best in the nation. We have our own food culture here. Cajun and Southern food dominate most menus. You can even get a hamburger made from 1/2 Andouille sausage and 1/2 beef. Gulf shrimp are abundant and don’t get me started on how good they are.

It’s also crawfish season for those Snowbirds who escape just to eat these delicious items. Crawfish are available all winter even into April.

Mardi Gras

Did you know that every Mississippi Gulf Coast city celebrates Mardi Gras with parades? If you plan to be in the area during the Mardi Gras season which is typically in February, plan to attend at least one parade. Some friends of ours moved to the Gulf Coast and found the parades to be great fun. They attended most of them and carted home boxes of goodies thrown out.

There are other events scheduled during the winter as well. The word “winter” means little to residents of the Mississippi Gulf Coast. We wear shorts all year except those very few days when the temperature goes below 50. Ask someone who lives here when the temperature gets to 50, they will tell you it’s cold. Ask a snowbird wearing shorts, you know what they will say in the middle of January.

Snowbirds love the white sand beaches after their escape from the cold. Take a stroll along the Biloxi boardwalk and enjoy the long empty beaches. Or, bring some firewood and use one of the many fire pits on the beach.

Want to know much more, check out this article about Snowbirds and the Mississippi Gulf Coast. Check out our articles on this site and visit our activities page. Snowbirds who actually escape need things to do and there are many here.

Where to stay?

You should book early for the best properties. Booking during the summer and early fall will usually guarantee that you will find the property you desire. While there are various types of properties hotels, and motels for example. Many snowbirds will feel right at home renting a vacation property for a few days, weeks, or months.

Short-term rentals are very popular on the Mississippi Gulf Coast and few property management companies have the great selection that Christies Gulf Beach Rentals offers.

You found our website, Christies Gulf Beach Rentals. The best place to start. We have several properties within walking distance of the beach and a special bayou retreat as well. Go back to the home page and take a look at the variety we offer. Book right on the site and save money over using the 3rd party sites.

If you are planning to stay for more than two weeks, it’s best to contact us for a lower rate e.g. 30+ days. We will email you a coupon and then you can reserve it right on our site with your credit card.

Happy Porpoise Cottage walking distance of the beach. 3 bedrooms, 2 bathrooms, yard, fire pit, bbq, picnic table, laundry it’s all there.

From a single-family house with a fenced yard to a townhome and bed and breakfast-type accommodations inside of a historic house. Your group can be as small as one or as many as 13. We have two houses next to each other and we can sleep a total of 25 between both, great for a large family.

Many of our properties have fire pits which are terrific for winter evenings. Most of our properties have BBQs outside in the backyard. If you are traveling with a group for an event and need additional parking, some of our properties can accommodate multiple vehicles.

Stay with us

Contact us at Yes@christiesgulfbeachrentals.com by email or just reserve on the site. Rates are lower in winter so take advantage of them. If you are active-duty military or a veteran, contact us for our discounted rates. If you want to learn more about the area, read some of our blog articles and go to RetireCoast.com and Logan Anderson, Gulf Coastal Realtors sites that specialize in articles about the area.

PODCAST

William Anderson Food, Gulf Coast, Restaurants, Snowbirds, Vacation Rentals, Winter on the Coast Tags , , ,

Good news Cruzin the Coast zero impact from Ian

Cruzin the Coast is scheduled to kick off as planned in October 2022 as the Mississippi Gulf Coast was completely unaffected by hurricane Ian.

A few years ago, a hurricane hit the Mississippi Gulf Coast on the last day of Cruzin which was fortunate for those attending, there was plenty of time for everyone to leave the area safely. What has happened to Florida with hurricane Ian is terrible. Hurricanes have a mostly predictable weather pattern. Areas to the West of the storm usually benefit from good weather.

The weather forecast for the Mississippi Gulf Coast during the Cruzin the Coast 2022 event is for partly cloudy days without rain. The temperatures are warm with cooler nights and lower humidity—nearly perfect conditions for the event.

New venues for 2022

Rain is possible on Sunday, October 9, and Monday, October 10. It looks like great weather for this annual event that draws thousands to the Mississippi Gulf Coast.

If you came to the Coast last year when you return you will find new restaurants and improvements to the beach areas. Biloxi has extended the boardwalk and created a new sidewalk from the Hard Rock to Margaritaville. Also, Margaritaville has added a Ferris wheel.

Please come to the Mississippi Gulf Coast for your awaiting accommodations. We are ready for you and expect that you will have an enjoyable time here.

Please read our blog articles and podcasts at ChristiesGulfBeachRentals.com

William Anderson Cruzin the Coast, Vacation, Vacation Rentals

Best way to profit from renting my vacation home:2023

What is the best way to make a profit renting my vacation home? To start, you can buy a property on the basis that you will stay there periodically but it is primarily for rental. Or, you can buy a home that is truly your vacation home and you just want to earn some money when you are not in residence.

The difference here is subtle but important. Some people look for a home that suits their style and they decorate it for their purposes. These people may use the property multiple times per year and for longer stays. Others just want a place for the occasional weekend and they would like it to pay for itself and possibly make a profit.

Still, others start out looking for a property that will become a full-time vacation home, and of course, that property should be profitable the first year.

Most vacation rentals are owned by individuals who have purchased a second home for vacations and decided to earn extra income to offset costs. If you already own a second home in an area that attracts visitors and are interested in earning some offsetting income you may be in luck. Renting your vacation home is something to consider.

I will expand upon this as you read on. Before getting into the second home issue, you should understand the difference between owning a vacation home strictly for earning income as a business and your second home used for the occasional family getaway with rental income supplements.

Purchasing as a full-time rental

Purchasing a property for the exclusive purpose of renting it out as a vacation rental is a completely different proposition than buying a property to use periodically (these are called second homes). You can pay cash for your vacation rental or you can finance it. If you are buying it exclusively for business purposes, you will be required to put at least 20% down and possibly 25% depending upon the lender and the property.

One of Christie’s Gulf Beach Rentals Vacation Rental Properties

If you finance, you will have a mortgage which along with taxes, insurance, maintenance, management fees, utilities, and other costs must be offset by income. Very few properties can generate sufficient income to cover the debt and ongoing costs plus generate an adequate return on invested capital. particularly if the property is financed.

I have owned many vacation properties, some were purchased as second homes intended primarily for our enjoyment with supplemental rental income. Others were purchased exclusively as vacation rentals.

Before you attempt to buy a property exclusively to rent it, consider the costs and weigh the income/loss against the use of your money elsewhere e.g. stock market. Aside from risks, you may be better off placing your money in other investments. Run an analysis to make this determination. Our real estate broker partners can walk you through the analysis with their exclusive KEYLADDER property investment system.

Paying cash is one strategy, and OPM is another

If you pay cash for your business vacation rental, you may turn a profit. Depending upon your ongoing costs e.g. taxes, insurance, maintenance, HOA fees, property management, fees, etc. Without mortgage debt, the picture is vastly different.

On the other hand, paying cash reduces your return on investment. Leveraging is the best way to obtain investment property. Your ROI will be higher since you are using other people’s money and your guests will pay off the mortgage. Again, this may not work for most properties even in ideal settings if the cost to operate can not be overcome by higher rental income.

Back to your vacation home that is rented for part of the year to supplement your income or reduce your costs. Frankly, this is the very best way to own a vacation rental that earns income. Starting with the fact that you can buy your second/vacation home with as little as 10% down. The main assumption should be that you can afford the costs of this property without any income. Start here with your math.

Example of Second Home Analysis

I was just researching to find a good example and found a newly built home one block from the beach in Gulfport, MS. The property is 1.750 sq ft with four bedrooms and two bathrooms and places to park four cars under the building. This is a single-floor building that is elevated to meet flood requirements and obtain lower insurance rates. The property is in an excellent location near restaurants and casinos.

The seller wants $319,000. I ran the data through the KEYLADDER system and found that with a 20% down payment the property would lose about $286 per month.

This means that as a second home that you can visit during the year and rent it the remainder of the year, you would be expected to pay $286 each month out of pocket after deducting the income from all expenses. Many people would look at this as a great investment. It looks better than I am explaining here when you deduct property taxes and interest payments as a qualified second home. With just 10% down the shortfall would be $443 per month.

Keep in mind that two other things are happening. The property is growing in value and the principal on the mortgage is being paid down. The estimated return on investment with 20% down is about 100% over five years. Not bad. You can see that this property is not a profitable investment on a monthly cash flow basis so I would not recommend its purchase as a straight investment if it is financed.

The hardest thing is determining the income

The hardest thing for a buyer of a second home who wants to rent it when not in residence is determining income. Two factors are the price per night and the number of nights per year. Prices will vary depending on the time of year.

You can take the time required to survey other properties in the area and determine what similar properties are receiving based on the season and other factors. You can also check their calendars to determine how often they are booked. Your research will not allow a look back as the calendars do not usually retain past data for you to see. Don’t be captivated by the high season income as the reason to buy your second/vacation home. Remember its peak income for a short period.

If you need the additional income that renting to others provides, avoid using your property during the high season or events. If you can afford the cost of the property without renting, by all means, use it when you wish. It’s hard to eliminate the emotional aspect of believing that your property is the best in the area and it should rent for more or rent more often. Your property as viewed by others is the key.

It takes time to build a reputation

It will take time on third-party sites e.g. Airbnb for your property to build a reputation. During that time, your rents will be lower than others with lots of reviews. You can help kick-start the process if you hire a property manager with a high status on third-party sites. People will look at a property and see that the managers have a high status and at least with Airbnb, they list other properties managed by the same company. People may find yours by clicking on those links.

Essentially, you ride the “coattails” of the property manager with a high degree of success. After a while when your property has earned high marks from guests, your property will rent more often and you can consider raising the rate. Guests want to stay at highly-rated properties and read what others have said.

Should you decide to use your second home as a vacation rental, be sure to lock up everything personal that may get broken or disappear. We recommend putting a lock on a closet door. This is also a place where the property manager can store linens if yours are used for guests.

The grounds should be kept in great condition. You should contract with a gardener or through the property manager to ensure that your grass is always looking good and weeds are pulled and plants are tended to. If you live in an area that requires watering, install an irrigation system.

How much of the year will my place be rented?

People ask, how much of the year should I expect my property to be rented? There is no magic formula. Every area is different. The best that can be said here is that if your property is located very close to tourist areas it has a better chance of being rented more often.

A good example is a 3 bedroom, 2 bath house that is within a block or two of the beach. This property would usually rent more often than properties a few miles from the beach or even a few blocks further away. Walking distance is important.

Swimming pools are great in areas where people expect to spend warmer days e.g. the South or West. Properties with pools offer more amenities than a condo without one for example. As mentioned above, the key season will generate the highest amount. Shoulder seasons will generate some income and low seasons will probably not generate sufficient income to cover costs.

If you are considering buying a property for a second home and renting it when you are not here or renting a property you already own on the Gulf Coast contact us. We would like to manage the property for you. Christie’s can also put you in touch with our strategic partners which include Logan & Anderson Gulf Coastal Realtors to help you find your dream second home.

We can help you create a budget and determine an approximate income for the property you desire to acquire. As mentioned above, very few properties will earn enough as a stand-alone investment to cover all costs if the property is financed. Should you desire to create a vacation rental as a stand-alone profit center, we can assist with a list of items you will need and the approximate cost to set up a property.

Second home tax deduction vs a business

A few list items. You will be able to deduct the mortgage interest and property taxes as an investment or a second home. Consult your CPA for the impact on your tax obligation. You may be able to deduct some costs associated with the property such as insurance, maintenance, and even periodic travel to the property. The benefit will depend upon your financial situation so again, seek help from your CPA.

Should you decide to purchase a second home and use it as a vacation home and also rent it with the intent of later retiring in the property, there are some great tax benefits to consider. As a full-time resident living on the property, you can receive a homestead deduction. If you are over 65 there is a larger deduction that is quite beneficial in reducing your property tax bill. Your CPA can discuss how to convert a second home to a permanent home if it was rented.

Keep in mind that non-residents must pay a tax when their vacation property is sold in Mississippi. If you decide to move here and have established residency here, you can sell your vacation house without paying that non-resident tax. Yet another reason to do some planning with your CPA.

A suggestion you may want to consider. Stay at a vacation rental or two or three in an area you like. Regardless of whether you are going to buy for your use or full-time income property, get a feel for the area and talk to professionals who manage vacation homes. Here comes our advertising.

Consider taking a course on investing in short-term rentals

If you plan to invest in short-term rental property consider taking the KEYLADDER Short-Term Rental Investment course. This course will take you through every aspect of investing in a short-term/vacation rental property. The cost of the course will be earned back many times over through the unique information provided. Click here

free Mini-course short-term rental investing

Gulf Coast Property Management can manage your vacation home and help you achieve your goals of earning income on that property. We can also fully set up a property that you have purchased from acquiring furniture to decorating. We offer turn-key solutions to people who do not reside in the area but who want to be sure that their property is well cared for.

Christies Gulf Beach Properties is the marketing arm of Gulf Coast Property Management and your property would be listed on the Christiesgulfbeachrentals.com website and VRBO and Airbnb and others as part of our program. Or if you just want someone to keep an eye on your vacation home when you are not there e.g. having the lawn cut etc., we can do that too.

Contact us through this website or call 228-215-3234 if you are interested in working with us.

One last point, if you are looking to purchase a property, please consider using our Real Estate sponsoring agency Logan-Anderson, Gulf Coast Realtors. We will work with them on a smooth transition from purchase to set up. Contact Bill Anderson at Logan-Anderson at 228-215-3234, he and Sean Logan are experts at finding vacation rental properties. Bill owns several that we manage for him.

William Anderson Income property, Property management, Real Estate, Vacation Rentals

You need to visit Beautiful Front Beach Ocean Springs Mississippi

Pack up and head to Ocean Springs, Mississippi. You really need to visit beautiful Front Beach in Ocean Springs. This beach is one of the best kept secrets along the entire Gulf of Mexico. Not one of the largest beaches along the Mississippi Gulf Coast but one of the best. The visit is entirely free. No cost to park, use restrooms, use the pier for fishing (you will need a fishing license).

My wife and I frequent the beach to eat a breakfast sandwich and drink our coffee. She drinks tea and that’s ok. Mornings bring out the joggers, walkers, dog walkers and a those individuals like us who love the peace and calm. There are so many birds around that we just sit and watch them. The pelicans are the most fun to watch as they have their own breakfast.

Fish jump out of the water on a regular basis and other birds fight for space on the few pilings left over from past hurricanes. Regardless of the time of year, there are two times of the day that we love the best at Front Beach, the morning and the evening just before dark. The sea breezes come in at both ends of the day making summers comfortable.

History on the beach

Front beach is the home of the former Ft. Maurepas established in 1699 when D’Iberville landed and claimed the land for France. Everyone knows of the Louisiana Purchase, well this was where it all started. Those ships landed in the gulf just off shore and for some time into the future France owned a large part of what is now the United States. Over the years the fort decayed and was eventually destroyed.

The City of Ocean Springs established a park on the site and placed a number of placques and statures to remind everyone who visits about the French heritage. Many places along the Mississippi Gulf have French names to this day. There is a French Club in Biloxi. The facility at the park is very nice. Modern restrooms, showers and picnic benches under cover.

Watch the video above (we borrowed it from RetireCoast.com) to see what the area looks like from the park facility. If you love fishing, this is a great place according to locals. You can even catch crabs if you have a basket. This park is a popular place for teenagers to gather. The often use the fire pits and enjoy each others company in the evening.

Take the bridge challenge

Walking at the beach is a popular past time. The sidewalk along the which sand was just repaired from a hurricane and now goes from the marina on the East to the Yacht club on the West. The path then goes to the pedestrian entrance to the bridge.

Take the bridge challenge. The walk is over two miles from Front Beach to the other side of Biloxi bay to the Golden Nugget Casino. We like the walk because of the incline of the bridge. The pedestrian walk way is safe and has seating and mileage markers along the way. What a terrific view of Biloxi Bay and the Gulf of Mexico from the peak of the bridge.

The photo above was taken during one of the Regattas held by the Yacht Club just off of Front Beach. This is just one of many events that are held along the beach. The annual Mardi Gras parade starts at Front Beach.

My wife and I were recently driving down the street at Front Beach and we witnessed a ceremony celebrating the oldest WWII veteran from Ocean Springs. Lots of people joined in the event. We had no idea of the event but that’s basically the point, Front Beach is a focal point for events in the area.

Ocean Springs Marina

Ocean Springs Marina

The photo above was taken from the back of the marina which is accessed off of Front Beach. We like to walk around the boats and talk with the owners. The shrimp and fishing fleet are tied up there also. You can buy fresh caught shrimp, crab and other fish if you catch the boats at the right time. Actually you can arrange to meet them when they arrive.

The back marina is at the end of this photo. Another beautiful park was build along the same inlet that goes from Front Beach to the back marina. This long walkway is pleasant and we often walk along to see our favorite alligator. My wife says it’s a she, I am not sure. Sometimes it’s there and rarely ever moves from the mud shore on the other side.

The pelicans love to swoop down in this small bayou to have a meal. In addition we often see the other large birds that are part of the landscape here and many are endangered. We see turtles and fish jumping up.

Pelicans boating

The photo above was taken in the Ocean Springs marina near Front Beach. Pelicans were taking a trip with the fisherman on his boat. Not sure if they paid for the trip but it was funny. Notice the one next to the fisherman at the wheel. If you love pelicans, come to Front Beach and watch them.

My wife likes these birds (Great Blue Heron). They are protected and fly around our house near the bayou. We see them at the beach such as this one at the Front Beach pier. It allowed me to get pretty close, actually I walked around it without flying away. Notice it is standing on one leg, this what they do when they rest.

You are officially invited to visit Ocean Springs and Front Beach. Since you are officially invited to come, there is no reason to delay. Start making plans now, any time of the year is good, we can arrange for the fish and birds to meet you (well not actually). The high season for visiting is June and July. You can save money by visiting in the Fall and Winter.

Snowbirds are welcome in the Winter with lower rates

Professional Snowbirds know when to come and visit. It’s during the late fall and winter months. Rates for vacation rentals at Christies are the lowest of the entire year. Longer stays earn discounts. Booking directly on ChristiesGulfBeachRentals.com will not only earn you lower rates but you will receive at no additional cost, vacation travel insurance. This is a great benefit.

We even have a page on our site for professional Snowbirds. If you go to that site you can see what we offer you for staying during the winter.

No need to wait for the winter, even if you are only spending a weekend, the Mississippi Gulf Coast is a great place to come and visit. This article about Front Beach is only one of many we will be doing on various areas along the Mississippi Gulf Coast. We recommend that you visit RetireCoast.com to learn more about the area. Also check out our news selection on the menu at this site.

Retire on the Mississippi Gulf Coast

Why not stay at one of our great vacation rentals and check out the area for possible retirement. Read this article “Why I decided to retire in Ocean Springs” a good place to start. Check out this article as well:

Best places now to live on the Gulf Coast

Podcast

Try our podcasts where we describe various areas along the Mississippi Gulf Coast. Click here to visit our podcast page, from there you can use your own podcast service.

Please leave comments and visit our great properties.

William Anderson Beaches, Gulf Coast, Snowbirds, Vacation, Vacation Rentals

Is the Mississippi Gulf Coast a fun place?

It is a fun place to visit. There are so many things to do it will be hard to know where to start. How about that beach? The casinos? Do you like to fish or boat? Where to begin, that’s the question.

You will need to eat so one of the first places you start is at one of our excellent restaurants. Try one that offers Gulf Coast cooking including shrimp, crab, and oysters. Gumbo and anything with crawfish is staples on the food front. After you have eaten your fill, why not take a walk on the beach. Try the Biloxi Boardwalk.

Have you ever been down a bayou? Go out on a boat and see live alligators in the swamp. This is a fun adventure and the operators guarantee that you will return safely. If taking a boat to see alligators is too much, visit the Gulf Islands National Seashore in Ocean Springs. You can walk around and see alligators in one or more locations.

Try fishing

Want to try your hand at fishing. Stop by a store and pick up some fishing gear. Try one of the public piers or just fish from the beach. There are about 200 species of fish in waters around the Mississippi Gulf Coast. You can also go out on a charter boat to catch some bigger fish. Leave from one of the marinas along the coast.

Fishing is Mississippi Gulf Coast a fun place
Catch a fish

Have you ever caught blue crabs? Buy a basket, drop in a chicken leg and lower it into the water. While you are taking pictures of the water and texting friends, our crabs will accommodate you by jumping in the basket. Take them to your vacation rental, boil them, and enjoy.

Rent a boat and navigate our bayous. These beautiful waterways are a unique experience you only see in the South. If you want, pull a blow-up toy around behind for the kids. The water is warm in the summer. Take your boat out to one of our islands for the day.

Is the Mississippi Gulf Coast a fun place

Yes, it is. If the above is not enough, keep reading. How about this for a day. Get up in the morning, and have your coffee or tea at a local restaurant. Eat a benet (a Southern delight) and stroll to the beach. Swim and layout on the sand. Get up, walk to a restaurant, and have a great meal of gulf shrimp overlooking the water.

Take a drive in the afternoon along U.S. 90 in either direction and look at the beautiful homes that face the water. Stop at one of the marina restaurants for a refreshing drink and a snack of fried pickles. Return home and get ready for the evening.

Drive over to one of the casinos that are offering free entertainment, have dinner and cocktails then try your luck or watch the entertainment. After, it’s off to bed to start a new day.

Boating fun on the Mississippi Gulf Coast
Boating on the Bayou

Take a boat to Ship Island

Want to spend a great day on the water. Take the boat to ship island from one of the marinas. Pack your lunch and beverages in an ice chest. Bring your 10×10 awning and towels. Take the ship to the island. Walk to the Southside of the island where waves and crystal clear water await.

You can take a walk around the island and return a few hours later. Perhaps it’s time to rent a jet ski on the beach. Drive around on your jet ski and enjoy our warm water. Jump off and do some swimming in shallow water just offshore. Then ride back and head out for dinner.

This evening, light a fire at your vacation rental fire pit or the beach. Hang around and enjoy the company of your companions. Buy some cooked crawfish, corn, and potatoes at Rouses and have your Boil.

Mississippi Gulf Coast fun food, crawfish
Crawfish boil

Where to go from here

A great article about 22 things to do on the Mississippi Gulf Coast may help, click here to read it. You will need a place to stay and we recommend one of the properties on ChristiesGulfBeachRentals.com. Several of our properties are located on or near the beach.

if you are interested in property on the Mississippi Gulf Coast, visit Logan&Anderson, Gulf Coastal Realtors. You may find that buying a vacation home of your own is affordable on the Mississippi Gulf Coast.

To read more about the Mississippi Gulf Coast, please click here it will take you to RetireCoast.com where you can dive into articles about the Coast, finance, and lifestyle subjects.

Are you still asking yourself Is the Mississippi Gulf Coast a fun place?

William Anderson Beaches, Festival, Food, Gulf Coast, Museum, Restaurants, Vacation, Vacation Rentals Tags , , , , , , ,

Time to light a fire, enjoy our fire pits- podcast

When I arrived on the Mississippi Gulf Coast, I was surprised to find that during the hottest summer nights, marshmallows were roasting. People just love sitting around our firepits, drinking beer, and roasting food. It’s a favorite pastime for most of our guests.

Several of our properties have large fire pits with chairs so guests can converse. You can talk about the big fish that got away or that sunburn from the beach. The point is that people like sitting around the fire. They use the fire pits year around.

When you are looking for a property on the ChristiesGulfBeachRentals.com website, you should look for a property with a fire pit if you have a large group. We welcome you to our properties and wish you the best.

William Anderson Having Fun, Podcast, Vacation, Vacation Rentals

Guest Comments Help

Speaking for our properties, comments made by guests have helped continuously improve experiences for the next guests. We really want your feedback. Our properties have a book which we encourage you to write in. This book is available for all guests to read. At the end of your stay, we want you to reward us with a five-star rating.

The rating has to be earned. You as a guest can help us not only earn a five-star rating but keep it. Sometimes we experience the “can’t see the forest for the trees” syndrome. You may notice something that we have overlooked. Everyone who stays at one of our properties or any property has a different experience depending upon how they utilized all of the features of the property.

For example, some use the washer and dryer to launder their clothing so they will be in a position to tell us how that experience was. Others do not use the laundry and are unable to contribute to our continuous effort to improve. While I am speaking about our properties here, the same holds for any vacation rental that you visit.

Most owners strive to keep their properties in great condition. A few and they are the exceptions, can create a bad impression for all of us. This is why you should take the idea of leaving comments seriously. If you stay at a vacation rental and it is dirty, not well organized, fails to deliver on multiple promises, reflect your experience in their book and online.

This burgeoning democracy of the internet is at least for this industry helping to make us all better at being good hosts. The bad ones will simply go away. Many of our guests are not first-time vacation renters. On occasion, we do have a guest who is new to this type of accommodation. Recently one such guest stayed at our newest property and had wonderful things to say about it. “Extremely clean” was one statement that felt good to hear.

Some of our properties are historic homes and they do require more maintenance effort than newer homes. We are constantly adjusting the doors and other things that wear as the property gets older. That said, there is no reason for the property not to be clean and presentable inside and out. If there is an issue the hosts should communicate the to you.

This past year one of our primary properties suffered some damage due to a hurricane. The damage was strictly outside and did not affect the interior. The porch piers are damaged and we had them repaired soon after the hurricane but not before guests arrived who had already reserved. They could continue to use the porch but the repaired columns needed more cosmetic work. We explained this to our guests and they understood.

This is different from a property that is deteriorating and the owners have failed to keep it property maintained.

A comment one of our guests made was well taken. The property needed mirrors in bedrooms because with a large number of guests (up to 8), people were trying to get ready to leave at the same time and not everyone could use the bathroom mirror. Mirrors were installed within days of the guest’s comments.

At another property, a guest called the host and explained that one of the beds was hard to sleep in. Our host went to the property when the guest was out (with their permission) and found that the bed was indeed worn out. Before the guest returned the host replaced the mattress with a new one. The guest was very pleased and rewarded us with a five-star rating.

Obviously, I can not speak for every host or property owner however, it stands to reason that comments from guests will only help improve future experiences not just for the guest who is commenting but for others as well. Not all guests will be satisfied with our properties. It’s a fact. One guest left a lower rating on one of the third-party websites for a property. As it happens the guest just did not like the area, not just where the property was located but the Gulf Coast. This leads me to a few comments of my own.

Guests should be thoughtful about their comments. Do not blame the host for things beyond their control e.g. a neighboring property where there was a fire or other incident which kept them up all night. The area because the waves were not high enough. Local restaurants because they did not serve a specific food.

Some guests give hosts low ratings because they are upset about issues that have nothing to do with the property itself. On one occasion a guest left a low rating because guests at a neighboring property were loud. We had no control over that property. Had we known that the guest was offended by that noise, we would have attempted to contact the hosts for that property.

Remember that vacation rentals are a business and that the suggestion or failure of their business will depend in part on comments from guests. If the property can not achieve at least four stars on average they will have a hard time staying open. It’s fairly simple If you enjoyed yourself at the property, it was as advertised, give the host a five-star rating. If the property had minor issues and they were addressed consider a five-star or four-star. Any rating lower than four stars will hurt their business.

If you believe that there were issues that could have been corrected and were not but they were minor in nature, give no rating at all. Leave comments in their book or communicate directly to the hosts. If however, the property was a “dump”, leave a rating commensurate with your experience there.

William Anderson Guest Comments, Vacation Rentals

Compare Vacation Rental to Hotel Room

There are some significant differences between renting a hotel room for your vacation or renting a house or townhome. The obvious thing is that there is no check-in desk although some vacation rentals are located in high-rise condo buildings that have a check-in desk. Parking can be as close as just outside of the door for most vacation rentals while hotels require you to park in a separate lot or parking structure.

These items are the least of the differences. The most important reason for renting a house or townhome rather than a hotel room is the feeling of being at home. Our properties for example are set up so that our guests feel at home. They can cook, have a barbecue outside and entertain a group.

The cost of renting a vacation property is generally lower on a per person basis than a hotel room. Some hotel rooms have two queen beds which can accommodate four adults. Some even have portable beds for a child or two. Our properties for example can sleep 12 or more people. As an example, assume that your vacation rental is $300 per day. Your hotel is $125 per day. If you have 10 people staying at a hotel, you will need three rooms at a minimum. That’s $375 per day and you will all have to eat at restaurants. At the vacation rental, your cost per person is $30 per day and you never need to use a restaurant.

Our properties have more than one bathroom as well which helps everyone take showers and baths getting ready for the day or evening. This is a key reason why many like to stay at vacation rentals.

Hotels can have access to restaurants for their guests, this can be convenient for a late-night snack. You can have your snack at your vacation rental because they have kitchens. One way to bring a large family to a vacation destination on a modest budget is to stay at a vacation rental. You can buy food at the grocery store and cook at your temporary home for a cost that can be significantly lower than eating at restaurants.

Vacation rentals are great for socializing. They have space to spread out and an outside area for parties. If you are traveling for a special event such as the Cruzin the Coast event on the Mississippi Gulf Coast, you will need space to park your tow vehicle, train,ler, and special car/truck. Most hotels do not have sufficient spaces or clearance for trailers.

At this point, you should get the idea that there are many more benefits of staying at a vacation home than the typical hotel. Without a doubt, there are many more reasons why should stay at a vacation rental, let us know after staying at one of our properties or others by leaving comments about this article.

William Anderson Vacation Rentals