Parade Magazine - Lodging Newsletter July 31, 2022

By Wm, May
Published: 07/31/22 Topics: Lodging Newsletter Comments: 0

Parade Magazine, a newsprint tabloid, stuffed as a supplement into over 700 Sunday newspapers, has been published since 1941.

Over the years, the number of pages has continually shrunk to where it now is just 12 to 16 pages, mostly filled with ads and repetitive fluff.

Once a year, they publish a non-scientific survey of "What people earn" trending heavily toward celebrities, thinking readers want to know that Ben Affleck makes $55 million while new wife Jennifer Lopez pulls in a paltry $40 million.

Mixed into the article and photos are "Regular people", such as an "Intimacy Coordinator", "Doula and Lacation Consultant", and "Travel Nurses" - all of which serve to remind us all there is honor in all work.

Annual compensations range from $11,000 "Virtual Assistant" to $150,000 for a "TikTok Wood Chopper" (whatever that is), but the rewards are seldom commensurate to the skill, knowledge, hours or labor involved.

Without explanation, the articles never clarify if a person's income is gross for their business or net after expenses. The real question should be "What do they take home?"

Over the decades, "Get Rich Quick" schemes are innocently promoted by journalists anxious for a new "Story line" who are always "Late for a deadline."

That doesn't make their story thesis invalid, but it does mean "If it sounds too good to be true it probably is."

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This month's newsletter is about why you should buy a vacation home. And maybe why not. That decision is not based on the home, nor the vacation rental industry. It is determined by you, the buyer. Are your goals reasonable, based on reality, or just fired up by emotion?

LICK YOUR LIPS: Does the $327,297 annual income the Boise Idaho AriBnB host makes on four homes entice you? Does it sound like you can just rake in money after buying a house of your choice, with a modest down payment?

Maybe. But the article fails to disclose the unavoidable costs of ownership - mortgage payments, property insurance, utilities, housekeepers, preventative maintenance, and guest supplies. Did you know that AirBnB, VRBO and other websites will charge you a huge percentage commission?

SUCKERED: Those pesky websites have stealthily offloaded most of the rental duties to unwary hosts, requiring them to answer texts, emails and online questions every hour of the day, every day of the year, schedule cleaning, and in general give up your life to "be in business."

And for all that labor, you the owner get no salary. A VRBO survey said do-it-yourself managers spent "only" 500 hours a year. That means you work for free. While some homes produce a full cash-on-cash operating profit per year, not all do. And not after valuing your own home.

NO RISK: Smart owners hire professional managers to do those duties, because they can do the work more efficiently, operate nearby, handle the incessant guest services, reduce the risks, and will increase rental income in an amount that exceeds the fee they charge.

So, the problem isn't buying a vacation home, but it is necessary to understand exactly why you are doing so before you get started.

Although vacation rentals are a popular hot topic in consumer publications and websites, our advice to home owners has not waivered in the decades we have been managing properties.

BEST REASON: The best goal is to buy a home in the destination you love, where you want to spend vacations and holidays, where you can bring your family and friends, that you can outfit as you see fit (Think hot tub!) and get first pick of all the choice dates.

Then hire a "Full stack" vacation rental management company, to produce the highest possible net income, do all the work, and send you money every month - all without you lifting a finger.

HOBBY: This newsletter may sound self serving from we managers, but it is not. Just like our accountant and attorney, our obligation is to help every client do what is best for them.

When folks who have been self-managing walk in and demand our services, they mention many reasons, but the underlying problem is the same. They say something like, "It sounded like a hobby, but the non-stop needs of hosting is a real job."

To which we must say, yes this industry is a lot like a job - an all consuming position that will eat your time and pay you nothing in return.

There are no get rich quick schemes. But if you choose the right manager, follow their advice, and let them do all the work, you will have purchased a vacation home for all the right reasons.

Author: Wm, May, Vortex VIP
Blog #: 0913 – 07/31/22

Sponsor: Vortex VIP – – VortexVIP.com