FAQ for New Homeowners
We get a lot of frequently asked questions for new homeowners about adding their homes to our program, we wanted to make it a little easier for you to find the answers to your questions. Here is a list of the most asked and the answers…
Question: What is your management fee? I’m sure it varies, but can you provide some sort of range?
Answer: 27%
Question: What is your typical occupancy rate? I’m sure that varies by month but, again, any info would help.
- A) I can rent a home out and gross $100,000 and we make $27,000 with 250 days a year
Or
- B) I can rent a home out and gross $60,000 and we make $15,000 with 120 days a year…
In each case, you might net $30,000 depending on utilities and wear and tear…. proposition A is better for me, proposition B is better for you and a better long term solution for both of us.
The process of putting down 20% and trying to cash flow, for the most part, is over in Big Bear, prices have gone up too much. There are many buyers that have bought homes for $500,000 in the past two years with cash, and the homes gross $60,000 and they net $30,000 after commissions, utilities, wear and tear and before property taxes (offset with depreciation). Homeowners then are very happy with $30,000 on $500,000.
75% of your revenue can be generated during the busy season from 11/15/ to 3/15…and if you plan on using it during those times…it will be tough to generate high revenue.