Tag: property investment

Toilet Troubles

March 30, 2022 / efdawson

Have you ever had big problems with a toilet? Neither had I…until I did. The primary bathroom toilet began to smell foul even after it was cleaned AND NOT USED!

The toilet was clean, trust me. I replaced the seat. Still an odor. I suspected a dirty toilet tank. It can happen. I dropped in cleaner circles in the reserve tank…still the whiff of urine. So, I stepped up the cleaning…liberal amounts of white vinegar inside the tank and a brush scrub of the tank walls with the vinegar. Eventually, after the vinegar smell dissipated, the unwanted scent came creeping back.
Urine is notorious for getting other places and of course causing stains that won’t go away. I imagined the source was somewhere other than the toilet. Maybe in the grout, or on the wall or adjacent vanity? I scrubbed the grout ferociously. I sealed and repainted the wall and the vanity. Sure, all I could smell were chemicals and paint, but eventually the smell, reminiscent of a bus stop bathroom, returned.
I called a plumber and told him my woes. $350 later I have a new toilet and no smell.

The lifespan on a toilet is anywhere from 15-50 years. My toilet was about 14 years old. But it all it takes is a crack, a broken flange, corrosion of the wax seal, etc. and you could face this frustrating problem or worse…at any point in the lifecycle.

Painting the walls and the vanity was a lot of work. More than $350 of my time. So, consider this a public service. If you have had more than a flapper to replace or start having odor issues that cleaning alone does not resolve, then consider a new toilet.

Also, during my research I discovered that the round bowl was not ideal either. Besides being more comfortable, Consumer Reports suggests that elongated bowls stay cleaner and allows fewer odors to escape. The deeper and wider the water, the better solid waste odors will be trapped by the water. Round bowls do have a slightly smaller footprint, but if you have the room, consider making the switch to an elongated toilet.

Frequent Service Call Alert: Garbage Disposals!

April 30, 2018 / efdawson

A good, general rule for a vacation rental property is to remove unnecessary items that may fail and cause you a repair bill. I would include things like complicated small appliances, ice makers and trash compactors in this category. Because I market my property as a high-end home, I do offer a few items that some might include in this “unnecessary and likely to break” category: a dishwasher and a garbage disposal.

It is my opinion that both are actually necessary items. A beach house without a garbage disposal and dishwasher would be more akin to a camping trip. Are guests going to feel like they are staying in a high-end rental if they are cleaning a sink trap after every meal? Clogged drains are even more likely to occur than a jammed disposal. So I consider a garbage disposal a benefit to the vacation rental owner as it prevents plumbing backups…and those are actual emergencies! Disposals are a must too if you have a dishwasher. Therefore it is my recommendation you provide both.

While I have never personally had trouble with the Insinkerator Badger 1 disposal at our unit, without question the number one reason I have been contacted is for trouble with it. Maybe some of these folks have never used one before or maybe they have more industrial versions at home. Either way, it has been a bit perplexing as to why all the trouble. It has been described as “jammed”, “stuck”, and just “not working.”

In most cases, any disposal that is jammed can be reset by inserting an Allen wrench underneath or pushing the reset button. I understand guests do not want to spend their precious vacation hours even doing that. One thing I do NOT understand is how people can lack common sense with the items they put in the disposal!

I debated installing a special strainer like this here. However, people would probably just pull it out.

Since I am tired of the calls, I decided to upgrade. My goals were to find a disposal that would grind virtually anything and one that had a decent warranty. I found and purchased a Waste King 9980 1 HP disposal. A triple grind, continuous feed system will grind almost anything and the warranty seems unbeatable…full lifetime warranty with free in-home repairs!

I believe Waste King can only be found online. I purchased it on Amazon…you can find it here. At that time, I purchased it for $168 and the good folks at Lenegan Plumbing performed the install for $110. So $278 all in. About the same amount I spent last year for two service calls. My thought is that if anything goes in the disposal, crazy or not, it will be obliterated.

I will update this post if I should encounter any issues but I expect to no longer hear about the disposal being jammed!

Replace or Rekey a Door Lock?

April 15, 2018 / efdawson

Does your house have too many keys? If your beach condo is anything like mine, you might have a key for the common front door, a key for your own unit, and another key for an owner’s closet. That is three keys and counting. You might still have different keys for a locked shed, outdoor shower stall, garage closet…you get the picture. Did you know you can straighten the jumble of keys out to a manageable number by simply rekeying a lock?

Quick story. During the rental season last year, I received a call from my renters that the key would no longer work the front door. It seemed as if it was the wrong key entirely. Of course, I followed with, “are you sure you have the right key?” After some troubleshooting over the phone, I determined I had to locate a locksmith. I was so relieved when I finally secured someone that I did not think to insist that he replace the lock in almost any case and rekey to match my existing key. Instead, I left the locksmith to do his job. After the service call, I received a bill for repairs to a faulty latch. Faulty latch? OK, it is not clear to me then how a latch could be stuck in a manner that the key would not work the lock…but my renters could use the door so I did not think much more about it. Then, during the offseason, I ran into the same problem with the front door lock…the key would not fit in the lock at all! See video for the problem in action.

I decided to do what should have been done to begin with, replace and rekey a new lock.

Replacing a lock is somewhat self-explanatory it refers to changing the hardware out with a new knob and lock entirely. This is useful if you want a new color or style of hardware or maybe a different, more secure brand of lock. When you rekey a lock, you are adjusting the internal workings of the lock cylinder so that the lock functions with a different key. While you could do this yourself, I would not recommend it. It requires adjusting the pins and springs inside the tumbler. Most lock pin sets are a few hundred dollars and this just would not be cost-effective. If you need to rekey multiple existing locks, call a locksmith. However, if your situation is similar to mine and you need to replace a lock but do not want a new key, look to buy the same brand of lock (in most cases Schlage or Kwikset) and ask the hardware store to rekey that new lock to match your existing key. Lowes and the Home Depot will both do this, typically for another $5. Keep in mind that different brands of lock (Schlage, Kwikset, Medeco, etc.) cannot be rekeyed to work with each other. If you have different brands you will need to opt for one throughout. I highly recommend Schlage and you will have no problem locating that brand in stores. So get that mass of keys in order and rekey your locks!

How to Save Money with the Comcast Seasonal Hold!

February 20, 2018 / efdawson

Save $ with slow internet….sometimes

What is no fun is S-L-O-W internet and guests spending thousands of dollars to stay in Ocean City, NJ expect blazing internet. A good internet and TV plan are simply essential for a beach rental property. Unfortunately, there is no real competitor to Xfinity in the area, so I am at the mercy of Comcast and whatever the monopoly charges for the HD Preferred Double Play plan. Currently, $200 a month for this plan is just the cost of doing business.

What is REALLY no fun is paying this amount in the dead of winter, particularly when I have not been to the shore in months! I was aware Comcast offered a seasonal suspension option but I was under a few mistaken assumptions. One, that we might visit Ocean City anytime and with young kids who rely on their iPads and Disney Junior for entertainment, we did not want to ever be stranded without Internet and TV. Two, that taking advantage of a Comcast contract promotion with a Minimum Term Agreement (MTA) excluded me from this seasonal downgrade option. Three, that if I had a security system or smart home devices like a thermostat that required internet then I would be cut off.

I have since learned the error of my ways and share that with you.

There will very likely be 90+ days where you do not go to your seasonal vacation home.

It is cold, dark and most everything is closed in Ocean City between New Years and Easter. We just are not likely to be “down the shore” in January, February or March. Should a freakishly warm weekend occur during this period, however, I can use my phone as a decent hotspot and there are Xfinity hotspots accessible from the house (would use primary home credentials to access). In other words, there are options to get us by for a couple of days. Likely there are options for you too and if not, is it worth hundreds of dollars for the convenience? Seasonal spots are just that and if Comcast is willing to let you pay less for three months when you likely will not be there, you simply must take advantage. Remember we are trying to maximize the profits with this enterprise!

The only Comcast imposed restriction is WHERE.

I have also learned that while Comcast is somewhat stingy on choosing what LOCATIONS can opt for a seasonal downgrade (related news article here), a contract promotion is no such constraint. So it does not matter if you just joined.

Comcast offers a plan with a trickle of internet.

It probably helps that Comcast is in the home security/automation business now. It had been a complaint of the seasonal suspension in the past that there was absolutely zero internet. A lot of owners have smart thermostats, security cameras, and even smart refrigerators which are rendered “dumb” without internet. Comcast has accommodated the need to maintain a “lifeline” to these with a seasonal suspension option that includes a minimal amount of internet. 10mbps is frustrating slow for general web surfing and forget about Netflix, but it will be OK for your Nest!

BOTTOMLINE: I COULD HAVE SAVED OVER $500 AND LIKELY SO COULD YOU!

You will need to call Comcast and verify eligibility in your area (again Seasonal Suspension is only permitted in predetermined “vacation” areas) but below is the skinny:

As of 2018, Comcast offers a once a calendar year downgrade for a minimum of 90 days and maximum of 270 days to one of two options:

$8 for limited cable channels + $8 for no internet access
OR
$8 for limited cable channels + $29.99 for 10mbps internet

Benefits:

Obvious savings each month off the cost of your ordinary plan while you are not using the service anyway.

Avoid installation charges involved with the alternative of physically disconnecting/returning equipment and restoring service and picking up new equipment again.

Hassle-free suspension and restoration. It can all be done on the phone without the need for a technician to visit or the time involved with the “self-installs.” Customers in certain locations can even change their seasonal suspend end date online at https://xfinity.com/seasonal.

Negatives:

Below is a chart from Comcast that details what is and is not included during the suspension. Obviously the negative is that it is a pretty limited service.

If you are spending more than a few days at the house you should probably consider lifting the seasonal suspension. However, if Comcast offers this option in your area AND you spend months at a time not there to use Xfinity then this is an option you just need to take advantage of. Comcast does not promote or advertise the details of this much but I guess they are not looking to make it easy for you. Hopefully, this information compiled here helps you.

How to Furnish Your Beach House

February 11, 2018 / efdawson

Keep It Simple…But Nice!

Keep It Simple…But Nice should be your mantra when outfitting your beach rental. No doubt you have heard the axiom “Keep It Simple” before. However, you could take that to mean that buying all your furniture from a thrift store and featuring household appliances from the Dynex brand was OK. Sorry, Dynex!

SIMPLE

Simple does not need too much explanation. Everything should be functional and intuitive to your guests. Household appliances should be both easy to use and clean. Furniture should be low maintenance, not prone to smudges or stains, no deep crevices, power features, etc. If consulting a manual is necessary for use, then it is not simple! Keep it simple.

NICE

But Nice! You should furnish similarly to how you would furnish your own house. If the place screams “RENTAL!” at every turn then people will treat it like one. Consider your own experience, even when your vacation budget is tight, you are still looking for the best when you spend your hard earned vacation dollars. Your renters are no different. They are not going to appreciate damaged or mismatched furniture.

HOW TO BE “NICE”

That leads to another important point. It is best to start with a theme and furnish consistent to that theme. The uniformity will convey quality in your profile pictures and net you bookings. For example, we chose a nautical theme for our beach property as that reflects our location. Just do not get too kitschy. In any case, your place should have neutral colors and crowd-pleasing decorations for widespread appeal. If you decorate with a Victorian theme then you are probably going to turn off most renters under sixty years of age.

Be mindful that while renters will generally be respectful, accidents do happen. Your vacation home furniture will pick up a few scratches. Therefore it is best to invest in quality furniture and small appliances which will prove durable. You make money not having to buy a new blender or sofa every other year. We chose to spend extra for Sunbrella upholstery. Nothing is worse than soiled furniture. (More about Sunbrella to come.) That extra expense up front is worth it if my sofa satisfies guests for additional years before replacement.

Here are some more “nice” items to remember when outfitting your beach house rental:

Opt for firm mattresses and purchase waterproof mattress pads.
Remember to be kid-friendly, no sharp corners etc. and consider supplying some children’s cups, pack and plays or baby gates.
Do not leave personal effects around for your guests. Photos of your family are going make them feel like intruders, put these types of items away in a locked, owner’s closet.
Consider area rugs in rooms with hardwood floors.
There should be art on the walls in every room, again just keep it simple (and preferably on theme).
All windows should have curtains or some type of window treatments.
And of course, there should be some beach chairs, sand toys, beach umbrellas for your guests to use.

If you keep these things in my mind when outfitting your beach house rental you will be on your way to accomplishing the primary mission of the beach rental owner…attracting quality guests willing to pay top rates for your property!

Why You Should Use Airbnb to Find Renters

January 26, 2018 / efdawson

I have snagged many vacation rentals for amazing prices in Hawaii, Florida, the Poconos, and even Turks and Caicos using sites like Airbnb or (in the past) VRBO. I have long seen the value in renting privately and in the process saving substantial, hard-earned vacation dollars. So naturally, when we bought our own beach house in Ocean City, New Jersey I fully intended to rent my place online and in the process lower the rental agency bite (commission) of our income. The following are some of the reasons why I think it is the best avenue for obtaining bookings for your beach rental.

Fees

In Ocean City, New Jersey there are many brick and mortar rental agencies. They are respectable outfits and provide the service of exchanging keys with renters, damage insurance, marketing, and securing payment. However the services offered by these outfits just do not come close to meriting the typical 14% commission. Even for that hefty fee they do not alleviate most grief or further cost, as I will share at another time! What I need from a rental agency or website is to facilitate bookings, secure payment and insure me against the worst. Airbnb does that while only charging me a 3% commission.

Mind you, 3% is not the only money Airbnb is making on each booking. Guests pay a service fee that ranges from between 6-12% (generally the more expensive the subtotal, the lower the percentage fee). Also, Airbnb allows for a cleaning fee (if you choose) after this subtotal. I like this pricing arrangement for a few reasons. Reason one, it is more straightforward to potential guests as they can see what they are paying and to whom. Like any capitalistic venture, increased costs are passed on to the consumer. When I have a rental agency booking, I need to account for their commission and the cleaning fees in my rate upfront. Therefore, my upfront rate appears much higher to these guests. By comparison, the Airbnb guest will see a lower rate with the cleaning fee separate and apart from the rate and I can charge 11% less (the difference in commission, 14%-3%) and still net the same amount. Reason two, all of this is negotiable. Since the guest can see a clear breakdown of the cost, they are free to negotiate and often do. Airbnb allows me to offer them special pricing too. When you receive a special price you tend to close the deal. None of this flexibility is possible through an agency and this helps me secure my bookings much earlier in the year than with an agency.

An additional bonus with Airbnb is that it is entirely free to list as a host and free to search as a guest. Some other sites like FlipKey, VRBO and Homeaway charge an annual fee in order to list. Quite simply Airbnb is the outlet that costs me the least amount of money.

Control

With a local agency like the kind that exists in Ocean City, NJ all the rentals are by the week or longer. I can offer monthly or seasonal discounts but that is about it. Airbnb allows me to offer my choice of term discounts, check in/out times, minimum and maximum stays, and much more. I can rent for one day in December if I choose. The local agency has little reason to accommodate those kind of bookings. If I receive a booking inquiry, but want to charge a different price, I can send the guest a Special Offer. This is a great way to hook someone who might be on the fence. The more control I have over my bookings the better and Airbnb gives me the most total control.

Vetting /Communication

This is big. When I receive a booking through the local agency, I know almost nothing about the guest I will be hosting. Typically, I receive a contract that has the guest name and the number of people in the party but little else. Airbnb provides a variety of tools to help me screen potential guests. Basic contact information such as phone number and email address are verified of each guest during the Airbnb account set-up. I can see how many points of verification and what type of information has been verified for each user too – the more you see the better.

Also, I am able to review users “about me” section. Here members write a little blurb about themselves, upload a photo and answer credit report type questions to verify their identity through the site. You can glean information about interests, age, vocation, and most importantly, level of maturity. Often there are links to a user’s social media. You certainly should not use this information to discriminate, that is un-American, but this is your investment and this information can give you a general feeling for the type of guest you may be hosting and some assurance that they are not going to throw a huge party if you do not want to allow that!

Reviews/Feedback

In the 21^st century online commerce works by giving and receiving feedback. Airbnb works in a manner similar to sites like Amazon or eBay in that hosts and guests both have the ability to review each other. This is great because guests in your place are much more likely to take care when they know your review afterwards can impact their ability to rent nice places in the future. In fact, it has been my experience that the people who break things or are generally problem guests have been the people who rent through the local agency. Those guests just are not accountable to me. I have lodged complaints with the agency about particular guests and it goes in one ear and out the other. I can refuse that guest in the future, but the agency will take their money and pass them on to some other unsuspecting host. Mutual accountability leads to good outcomes.

Quite simply, Airbnb is a great site for procuring reliable, accountable guests without the pain of double digit commissions.

4 Questions that Answer Are You Ready to Invest in a Beach House

January 4, 2018 / efdawson

If you are reading this, you likely do not need a lot of persuasion about the benefits of real estate investment (build equity, control a tangible asset, tax benefits, etc.). However there are four key factors that indicate if you are ready to consider the investment of a vacation rental.

YOU CAN USE IT.

Finding a good deal is not so great if you cannot make use of the property. My wife and I traveled frequently and always researched the real estate market wherever we vacationed. So in 2011, just a couple of years after the housing meltdown, we went to Clearwater, Florida. There were numerous beachfront, short sales we could afford that only a few years previous had sold for four times their current list price. While intrigued, we knew we had children in our future and our primary residence was over 1000 miles away. The likelihood was that we would not be able to get down very much.

You simply have to be able to get to your property often, particularly upon initial startup. There will be repairs that you need to do…or at least verify are done or are necessary. Furniture to purchase and receive, and of course you want to be able to enjoy the place yourself from time to time. It just is not realistic to expect to be able to do manage EVERYTHING from afar.

YOU CAN AFFORD IT.

Real estate costs money. There is the down payment, whether it is 5, 10, 20 or 30%, I have yet to verify an individual who was able to purchase a second, investment property with zero money down. Then there is the cash on hand necessary to make initial repairs, purchase décor, list and market your rental, pay utilities and initial deposits, etc. Believe me these costs really add up as I will outline in detail elsewhere. You need to be in a strong financial position.

YOU HAVE DONE YOUR HOMEWORK.

Mine is a beach rental, maybe your preferred locale is a ski chalet, but either way you need to know the ins and outs of your location. Is the area you are considering in demand with renters? Does the investment property have the necessary amenities? Do you thoroughly understand the market, and is the current price justifiable? Have you run all the numbers for your situation? Do you understand local laws, property association rules, etc.? For example, in my analysis of Clearwater, Florida I discovered that most of the condo associations we looked at would not permit rentals of less than a month! That pretty much put a damper on my plans of running a weekly rental.

YOU ARE READY TO WORK.

Your guests expect near perfection for paying top rental rates. Garbage disposals must work, doors cannot stick, and the internet and cable cannot go out. When these things go wrong you will hear about it or plan to pay someone else (a management company) to…which of course will eat into your returns.

Getting the property initially furnished, managing inquiries and fielding calls when things break certainly requires effort and energy. A beach house is not a truly passive investment. However, unlike a 401K you can enjoy this investment and vacation there! Just expect to end your vacation storing personal effects, emptying drawers, locking up items you do not want renters to use, like bikes, sheets, etc.