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What worries me a bit about this arrangement is what happened many years ago at "guerneys inn" out at Montauk Point on on Long Island.
They were fully furnished units oceanfront in a Timeshare type luxury hotel where management company would rent out unit for you when you were not there. Well it turns out occupency was a lot lower than expected and folks had units sitting empty while paying maint.
Well after several years owners figured out the units were rented and management company was pocketing the rent and charging maint. We are talking millions. Owners sued they declared bankruptcy and in bankruptcy court one their relatives bought it and put back in place same management company.
I am always curious what prevents the management company from pocketing extra fees and keepting rent on these arrangements.
That's a good point, and with absentee owners, it is much easier than if the owner lived nearby and could check it out on a regular basis.
I guess what helps me to trust our management company is the fact that our unit is rented out pretty much every day of the year except for a couple of weeks in late October/November, and I would expect those weeks to be slow because the weather is getting cooler, kids are back in school, and Thanksgiving keeps people at home. Plus, since there are so many, many, condo management companies in MB, I think it would be financial suicide for a management company to do this on a continuous basis, because they would eventually get caught and then they would lose all of their customers and go belly up.
We get post cards on an almost weekly basis from various rental companies wanting us to switch to them from our current company, so the competition is keen. Better to be honest and make a good profit than attempt to get rich and lose it all.
But in the end, you're right, there's really nothing to keep a management company from shaving off a day here, a day there...and how would you ever know from 800 miles away? Just the chance we have to take, I guess.
That's a good point, and with absentee owners, it is much easier than if the owner lived nearby and could check it out on a regular basis.
I guess what helps me to trust our management company is the fact that our unit is rented out pretty much every day of the year except for a couple of weeks in late October/November, and I would expect those weeks to be slow because the weather is getting cooler, kids are back in school, and Thanksgiving keeps people at home. Plus, since there are so many, many, condo management companies in MB, I think it would be financial suicide for a management company to do this on a continuous basis, because they would eventually get caught and then they would lose all of their customers and go belly up.
We get post cards on an almost weekly basis from various rental companies wanting us to switch to them from our current company, so the competition is keen. Better to be honest and make a good profit than attempt to get rich and lose it all.
But in the end, you're right, there's really nothing to keep a management company from shaving off a day here, a day there...and how would you ever know from 800 miles away? Just the chance we have to take, I guess.
The Guerneys story is amazing. They only sold half the units in the hotel so they would put hotel guest in empty timeshare units and out of town owners were none the wiser. After they declared BK and took it back over they did same stunt ten years later, by then folks started walking away one by one and Guerneys got units for free for back maint or at a fire sale. Once they owned the majority of the units they took over board and jack maint through roof and if you did not pay they foreclosed.
Long story short after many years of fighting Guerneys agreed to the remaining owners they could have 3-4 years of zero maint if they sign over deed to unit and all agreed. In the end Gurneys kept the profit on all the sales, pocketed million of dollars in fees, took millions in rent that owners were entitled to and got back all the units they sold for basically free.
This is an extreme one in a million example. But Guerneys being on the very tip of LI isolated had a lot of buyers who lived far away and never checked up and things went crazy.
I think 99% are honest and sounds like your unit is great.
Not enough to make money. If you will be using your condo, and enjoy that...go for it. The rentals will help, but they will NOT pay for it! There is so much "wear and tear" with a rental...your profits are eaten up keeping things nice. Renters are pigs, for the most part. Spills? So what...it's not THEIR carpet! Knock a picture off the wall...oh well...run into the corner and bend the corner bead....not my problem....the list goes on.
We've lost 3 remote controls, have had to do touch up paint constantly, and our carpet looks awful....will be replacing in 2 months....
During the summer, when rentals are more active and make better money, we are limited as to how much time WE can spend there....
Renters, especially short-terms/vacations, simply don't give a rat's ass about your property.
Agree with this. a few family members of mine own condos in a development in MB... with the amount of damage that is done to these units it ends up costing more in the end. My aunt and uncle stopped renting to vacationers and now rent to people who live there year round... so they can't enjoy the condo but they were tired of the damages and losing money by renting to the vacationers.
Agree with this. a few family members of mine own condos in a development in MB... with the amount of damage that is done to these units it ends up costing more in the end. My aunt and uncle stopped renting to vacationers and now rent to people who live there year round... so they can't enjoy the condo but they were tired of the damages and losing money by renting to the vacationers.
I have a long term off season tenant nine months a year who are great. The other three months more and more I use it or leave it empty unless it is a slam dunk tenant I have great references for and know.
AiR BNB and VRBo and Craigslist like people have the kookiest people.
My favorite A couple wanted to rent it with their young daughter. So I always talk to them directly before I accept payment. I mention it is single family occupancy only and unit only has four beds.
Well then she goes I am looking forward to it, maybe a night or two I will have my daughter in law and son and their two kids stay over, my Mother might visit and maybe we can throw a BBQ.
Whooo I am like I told you it is single family occupency, well my son, my daughter in law, my grandkids, my Mom they are all my family and I can have air matresses.
I told them no. Thank God. I had folks who want to bring dogs as their dog is special and should be allowed even though I said no dogs.
And my all time favorite a psychologist who wanted it for three weeks and mention she might work from home and stay at beach whole time. She only lived like ten miles away but she does not live on beach. So I am curious what type of work would she do at home. She counsels pedophiles as part of their probation and she was planning on having the pedophiles come to my condo for their sessions. Meanwhile it it a beach area with young kids on way to beach walking by in bathing suits. OMG I canceled that deal.
I have a long term off season tenant nine months a year who are great. The other three months more and more I use it or leave it empty unless it is a slam dunk tenant I have great references for and know.
AiR BNB and VRBo and Craigslist like people have the kookiest people.
My favorite A couple wanted to rent it with their young daughter. So I always talk to them directly before I accept payment. I mention it is single family occupancy only and unit only has four beds.
Well then she goes I am looking forward to it, maybe a night or two I will have my daughter in law and son and their two kids stay over, my Mother might visit and maybe we can throw a BBQ.
Whooo I am like I told you it is single family occupency, well my son, my daughter in law, my grandkids, my Mom they are all my family and I can have air matresses.
I told them no. Thank God. I had folks who want to bring dogs as their dog is special and should be allowed even though I said no dogs.
And my all time favorite a psychologist who wanted it for three weeks and mention she might work from home and stay at beach whole time. She only lived like ten miles away but she does not live on beach. So I am curious what type of work would she do at home. She counsels pedophiles as part of their probation and she was planning on having the pedophiles come to my condo for their sessions. Meanwhile it it a beach area with young kids on way to beach walking by in bathing suits. OMG I canceled that deal.
That's great that you were able to rent it out for off-season, while still getting to enjoy it yourself if you wanted to go down during the summer. That sounds like a crazy tenant (the psychologist), glad you were able to get out of that deal! My aunt and uncle actually tried finding someone who wanted to rent during off season, like yours is but were unsuccessful and really hurting for money so they just decided to rent out to a full time tenant.
That's great that you were able to rent it out for off-season, while still getting to enjoy it yourself if you wanted to go down during the summer. That sounds like a crazy tenant (the psychologist), glad you were able to get out of that deal! My aunt and uncle actually tried finding someone who wanted to rent during off season, like yours is but were unsuccessful and really hurting for money so they just decided to rent out to a full time tenant.
You get a lot less on a seasonal tenant. But it frees it up for summer and I dont have to check up on it on the off season.
Some folks in my building have gotten lucky with college professors who want it only during school year and if near an airport the airline workers or near a hosptial doctors who want a place 3-9 months while they look for a permant place. Divorcee are always popular.
I even had the folks making a movie nearby want it one year. I always get someone but you be amazed. Folks need places fully furnished for 6-9 months and there are very few options
The Guerneys story is amazing. They only sold half the units in the hotel so they would put hotel guest in empty timeshare units and out of town owners were none the wiser. After they declared BK and took it back over they did same stunt ten years later, by then folks started walking away one by one and Guerneys got units for free for back maint or at a fire sale. Once they owned the majority of the units they took over board and jack maint through roof and if you did not pay they foreclosed.
Long story short after many years of fighting Guerneys agreed to the remaining owners they could have 3-4 years of zero maint if they sign over deed to unit and all agreed. In the end Gurneys kept the profit on all the sales, pocketed million of dollars in fees, took millions in rent that owners were entitled to and got back all the units they sold for basically free.
This is an extreme one in a million example. But Guerneys being on the very tip of LI isolated had a lot of buyers who lived far away and never checked up and things went crazy.
I think 99% are honest and sounds like your unit is great.
You get a lot less on a seasonal tenant. But it frees it up for summer and I dont have to check up on it on the off season.
Some folks in my building have gotten lucky with college professors who want it only during school year and if near an airport the airline workers or near a hosptial doctors who want a place 3-9 months while they look for a permant place. Divorcee are always popular.
I even had the folks making a movie nearby want it one year. I always get someone but you be amazed. Folks need places fully furnished for 6-9 months and there are very few options
How do you find these seasonal tenants? Does a realtor help you with this? My aunt/uncle hired a realtor but he basically told them finding an off-season tenant was going to be very tough so that is why they just rented it out year round.
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