Episode 039 - STRR – Different Types of Short Term Rentals: What Are They?

 

There are about as many ways to run your Short-Term Rental Business as there are types of houses.  Today, we explain the most common types of Short-Term Rentals and quite a few different styles of hosting your STR Property. What type of host are you?

Plus, contest details are inside this episode!  Enter to win BIG!!  Go and Grow!

 

 

Transcript of this Episode:

Hi, it's Michelle, the master of money mindset.

And you are listening to BNB dash boss podcast in today's podcast. We are doing the rerun because it's Friday. Uh, we got some crazy stuff going on because we're recording for you. And the website is being attacked. As we speak our website, BNB dash boss is being cyber attacked and little. Do they know there are no stored credit cards on there.

So they're going on there because when you have a membership site, they figure that people store their credit cards. Their credit cards are actually stored in a safe, secure spot with PayPal or Stripe or whatever company you're using. And we just have an agreement with them. So your cards aren't. Aren't on there, but oh, of course the cyber people are going in trying to get the information and they can not get it.

So I'm sticking my tongue out at them because we just shut down the whole site and we are fixing it up. So if this goes out on Friday and you just know that we're going to be busting our butt all day, all night, how long it takes us. I think Maria's got attacked, Maria. Giordano's got attacked not too long ago.

And it took her a couple of days to get it up and running. However Lee, they have to stay up tonight and tomorrow and the next day, I mean, however long it takes, we're going to get this backup and running for you guys, but just know we're on it. It's just one of those things, right. It's just one of those things where people attack you, but Hey, it's all right.

We're going to give you an episode today. And I also wanted to let you know, before I let you go right into this. Obviously, our episode is brought to you by audible. You can get your first audiobook for free by going to audible trial.com forward slash SCR revenue. That's our audible trial promo, but I also wanted to tell you about this great product.

And somebody asked me because I have rugs and all my BNB is practically all of them. And they were like, yeah, does doesn't that get like expensive to wash your rugs? And I'm like, dude, you just, you just use Ruggles. And they're like, what? And I said, you've never heard of Ruggles. So I thought, gosh, I don't know if I've told you guys about Ruggles, but I love this store.

Ruggles are where we get our rugs and what's super cool about Ruggles. Is, they are two pieces. There's like a plastic EPS. It's got like a, I want to say like a Velcro on it. And then there's the rug part of it. And you lay these down and you can literally peel them off and wash them in a washer machine.

And I'm not joking. The rugs we wash our rugs, just like we wash sheets or just like we wash. Comforters, we let them stay down. And we also have like one in the wings in case somebody comes. If we come in and somebody has spilled something and it looks all a mess, we just zip it up. It makes the Velcro east down when you peel it up and then you just lay down the new one.

They're really awesome. I think the most expensive ones are five or $600 for the really large ones, but they have them in runners. They have them. In round shapes, they have them in square shapes. I mean, they have them in all different sizes and shapes and every kind of, I mean, they, they, they get stuff all the time and what's really cool is some of our properties in Florida have themes in them.

And they even have Mickey mouse, theme, drugs, and star wars, theme rugs. And I'm not kidding you. And you can hide them there. Like there's one rug, that's like a hidden Mickey one. Like you can barely see that there's a Mickey mouse in there. And another one is like the same thing. I mean, there's, there's star wars ones, and all kinds of like you, if you have a nautical theme going on or something, but if you've never, ever heard of rubble, I don't have an account with them where I make any money off of them.

I just absolutely love them. Hang on. And so I was going to give you a code for 15% off. This is just a site-wide code for the weekend for Memorial day. But honestly, if you want to try one in your house, I definitely recommend it. I love my Ruggles. And especially because I have a brand new three and a half month old adorable puppy, and he just thinks that he can just potty any old place he wants to.

Right now, I'll tell you having washable rugs is a really good thing. When it comes to puppies, there are two different backings you can get, let me just give you a little advice. When you are putting the rugs in front of someplace where people are gonna stand like a sink or something, you might want to get the cushy or rackable.

But if it's vacation rental, we've been just getting the regular backings because there's a cushy one for like when you're home and doing dishes. And then there's like a regular one. People are on vacation. It's not like they're living there. So we just get the regular back gains the backing. You only have to get one of.

If you want to have one waiting in the wings, it's not necessary because it's just as washable as a comforter. Okay. So you just need something that you can have a large size something go in. Right? My regular washer works, but the little tiny washers that are in some of our units, like the upper and lower ones, they're not big enough for it.

But they're very easy to wash it. Literally just throw them in the washing machine. We wash them and we let them air dry, but you can actually put them in the dryer too. If you want to get them started. They're amazing. Ruggles are amazing. So go to rubble. It is R U G G a B L e.com. And the 15% of coupon this weekend is stars 15 S T a R S.

And the number one N five 15, and you get 15% off selected washable rugs. Honestly, you will love me for this because. I can't believe that more people don't know about them. I love them. They even have outdoor ones, so many great designs and everything get on their mailing list too, because they have sales quite often.

The majority of their sales are 10% of. So when you can grab 15 or 20 around Christmas time, they don't have very many sales throughout the year. They're amazing. They really, really are. I love their rugs because they've got all different kinds of designs. A great, great idea. When you have something like a BNB, right?

Just amazing. So here's this week's replay of the short-term rental revenue podcast. I hope you enjoy it. And we'll talk to you at the end of it. Enjoy today. We're going to talk about the types of short-term rentals that you can have. Most people when I'm talking, I'm thinking of one type of rental, and then somebody said something in a comment.

And I was like, oh my goodness, I have not touched on this very well have I. So today I wanted to make sure I clarified. There are so many types of short-term rentals. Now, when I'm talking about short-term rentals, I'm usually talking about an entire property. Every single one of my short-term rentals are a separate piece of real estate that somebody can rent the entire place.

Okay. But that's not necessarily the only type of short-term rental that is out there. I wrote down all of the different types. And I spoke to a bunch of my friends because my friends have either had those types of short term rentals or they've actually even rented some of those types of short-term rentals.

So I'm going to give you just a little touched version ID on them. And then I decided to do an episode on each and every one and the benefits and the drawbacks from each and every one. And I'm, like I said, I'll just probably highlight both of those, the benefits and the drawbacks of each and every one.

So here they are, the types of short-term rentals that you can own or manage. Okay. First of all, Like I said, the ones that I have are an entire house, an entire property, and that could be sometimes inside of a condominium or an apartment or a free standing home. So it can be either, but it's, or maybe even a guest house.

Right. But it's the entire property within that. All right. So let's start with. What you might want to start with, let's start with a room that you could rent out of your home. So let's say your kids have left the nest, and now you, you know, you have a three or four bedroom house and you're not using one of those bedrooms.

If that bedroom has its own bathroom, I would definitely think about renting that room out. It would be an amazing source of income for you as long as your HOA allows it. Right. You want to make sure that you're not going against any CCNRs, um, from the place that you live, but check your city and county ordinances and your state.

And your hos that's a great place to start out. So you take this bedroom. One of the first things that you would have to do is get a cover for the mattress. You're protecting it against bed bugs, and you're protecting the new guests that are going to be staying there. You clean out all the stuffs of that.

There's no, um, personal stuff in there, but you can leave all the knickknacks. You make sure the bathroom has, you know, the, the regular stocked items that you have. So you have toilet paper and towels and. Everything, all the clean linens and everything, soaps and shampoos, but it's, it's actually a really easy place to start.

You'll clean it out and you might want to put, I'm like one of those electronic luck freaks. I love having electronic locks because that way people can get in and out of a property, but I am not one for letting people stay in my home and having access to my home. I would only do it if there was an outside entrance and it was like a Caseta that had its own private entryway, regardless of whether it was attached to my home or detached, I would want it where people weren't inside.

But guess what a lot of people love having. A room for rent inside their home. They love having the guests. So they like do little bed and breakfast and they are like, oh, every morning we have muffins at, you know, from 7:00 AM, till 9:00 AM. And we do a little breakfast for all our guests and they have like little cocktail parties for them and they do all these things.

It really is a unique business because it's totally up to you. How you want to host. Do you want to see the people renting your room from you or do you not? I mean, you can literally make it real. You don't see anybody because with my electronic locks, I set a code from the internet, from my phone. A unique code that starts at three o'clock when they check in.

And that ends at 11:00 AM when they check out on the day that they check out. So I don't even have to see people. They don't even have to see me, you know, unless they want something and then I have to have it delivered, but I, I don't necessarily have to do it myself. I kind of leave people alone because that's the kind of person I am.

I like to be left alone. But I have friends who love entertaining. And if you love entertaining and you have a room inside your home that you want to share with other people, it's a great way to meet people from all over the world because they'll come in, they'll stay with you. So you can be that kind of host.

And there are a ton of people who love those types of hosts. They're like, oh, we got to. Learn about this and that because they'll sit and they'll chat all night long with you and, you know, share a bottle of wine or something. And everybody gets all crazy and personal people love that. I have stayed at a BMB like that when we went to the red rock in Colorado last time for a concert and we stayed at a BNB and it was a wonderful BNB in a really nice area.

And they had several rooms in their house that they rented out like that. And we got in late. So they had a code for the back door that we got in and we're able to let ourselves into our own room and get ourselves situated. And in the morning, you know, got downstairs and everybody was having breakfast, all the different guests that were there.

And it was really fun. It was a lot of fun. I, I did not mind that at all. It was something new and different for me. Most of the time though, I want to rent a place where I can be alone because I'm a writer. And when I'm alone, I'm blogging. I'm writing. I'm. Doing like right now, I'm doing my podcasts and stuff.

I just, you know, when I'm alone, I can do a lot more and get a lot more done. I'm also one of those people have to get into the mode of company accompany mode when I'm going to be with people. Because most of the time I'm used to be my, with my self. So, um, have you ever read the happiness advantage? It's a great book, but there it's, it's kind of funny because it'll talk about how this scientist.

Found that people who were lawyers were constantly thinking of their family time in terms of the 15 minute intervals that are billable so that, you know, if they spent an hour going out to dinner or two hours going out to dinner with their wives, they in their head, we're seeing those two billable hours as hundreds of dollars of wasted time, because it's hard to get our mind out of.

What we're used to, well, I have that same challenge, so I literally have to get myself out of the work mind because any time I, and it used to be really bad anytime I was doing something. That was off the course of what my next school was. I would see it as, oh, this is taking away my time. This is wasting my time.

I'm wasting valuable time right here. I should be doing this and it should be doing that. So now I allot time for different things. So I lot time for my family and my friends and, um, my colleagues and my work. Once I read that book, it really helped me see that. You know, I wasn't really taking any time away from anything, except for in my head, it was my own head that created that, that stress.

I just created that stress all myself. So when I went and did that BNB, I saw the advantage of relaxing and chatting with people that I didn't know. I mean, that's a lot of fun. And when I traveled to different countries, I think it's a little more easy for me to slide into that. Because I'm already in the travel mode and I'm already going somewhere.

So I already am in that. But when I'm at home, it's, it's a much more difficult place for me to get away from the work thing, because I'm like, ah, I've got to get this done, this done, this done. And my office is inside my home. So it's harder, but anyways, you can rent the whole room. And it's nicer with a private bath, but it doesn't have to be a private bath.

It can be a shared bath that they use, but imagine then the problems and the challenges of a shared bathroom. So if you have two guests in there, or if you have, let's say a teenage son, who's sharing a bathroom with somebody. What problems could arrive if you had somebody sharing a bathroom. So just kind of think things through a lot of times, it's just thinking it all the way through what could possibly go wrong here and just make the rules and regulations, your house rules and regulations to avoid those.

Possible pitfalls. Right. Just make them like that. So you can do the same with a Caseta or a guest house. A guest house can be attached to your house and have its entry from within your house. Or it can have an entry from the outside of your house and, or both. And you can shut that off, right? It could be maybe just a bedroom or a bedroom with a bathroom or a bedroom with a bathroom and a little mini kitchen.

It just depends. I mean, there's as many different houses as there are, are pretty much as many different BNB types and styles that you can have. It can also be like the Kasita we have, as our example for our business is a casita. It has its own living room, a little kitchen, its own little bedroom and a bathroom.

And so it's like a mini one bedroom apartment, the end. It's just a Caseta. Or you can have an entire house. And a lot of our places in Florida, that's what, those are three bedroom, three bath places we'd like to have in our rentals. We like to have as many bathrooms as there are bedrooms, if at all possible only because in the living room area, there's a pullout already.

Most of the, the couches have a pullout bed. So if you have a two bed, two bath, There's a pool out there that actually makes it almost like a three bedroom, two bath. Anyway. So we like to have as many bathrooms as you possibly can. Because think about this. If you went to on vacation, you went to Florida or you went to Disney or universal or something with your whole entire family, and everybody got their own bedroom.

Wouldn't you everybody want their own bathroom as well. You don't want to be sharing a bathroom with, you know, your cousin who. Had an allergic reaction to the Mexican food that they ate last night. So you want your own bathrooms. And so we'd like to have properties that have as many baths as we have bedrooms, but you don't have to do that.

I mean, you can do work with what you have, you know, just work with what you have. I just personally liked that. And so since I like it, that's what I look for. You know, since I had five kids, I know what it's like to have a lot of kids. So I know what I look for. I look for a master bedroom that is separate from the other bedrooms on the separate side of the house.

And so those are things that I like, and those are things that I look for and qualities that I admire in a home. And therefore they're just things I look for. And I think that other patrons would like to, so I look for those things. When you have an entire house, you can actually rent out rooms. Okay. So like I said, about that property that we went to in Colorado, those people had a big house.

I think they had three or four bedrooms that they rented out separately. So it was just the husband and the wife in this big house. And they put electronic door knobs on all of the other bedrooms and every guest got their own room with their own bath. So here's the deal. You get your own bedroom, your own bath, and you're inside a house and they're giving you breakfast and access to their entire home.

It depends on how you feel about that. It also. There are people who don't live in houses who do that. They rent out entire houses. And I was talking to my friend and she has stayed in those houses. She lived down in Texas and there was a flood and she had to stay at a BNB and she rented it for several months, one room.

Okay. So she had to share a bathroom with somebody else. And she was telling me about the challenges of sharing a bathroom. But no one in that house lived in that house permanently or own that house. So the challenges that come along with that are people using the kitchen, not cleaning up after themselves, you know, not doing the dishes as well as other people do the dishes.

I mean, those are challenges that come up, but people do it all the time. And there are a lot of people who make a lot of money doing that. Just renting out each individual room of a place. Now, imagine if you will, if you are in a place like Tucson or Tempe where there's a university, right? Yeah. See, because you own that house.

You can rent out each individual room. And maybe it's for college kids, which there are a lot of people who do that and they make a lot of money doing that, you know, six or $700 a month on a bedroom. But again, the more you do those things, the more rules and regulations you're going to have to put forth at the beginning so that everybody knows what if you put, got a community kitchen there.

If Joe puts his stuff there that he bought from the store, how are you going to make sure that nobody goes into, you know, makes his macaroni and cheese or whatever, right. Or Sally's not really good at doing dishes. So she does a half bud job every time she does the dishes and they are not done as well as when Jane does the dishes.

Jane does them really well. Cause she's super clean. And every time she pulls out a, a bowl she's mad because there's cereal stuck on the bowl, even though it was put in with the clean dishes. So you have to just be really clear about the challenges that could come up with whatever type of property you decide to.

Let's say a five bedroom house where you're pulling in $700 per room. That's $3,500 a month on a property with a five bedroom house that you might be paying only 2000 a month on. In a mortgage payment with all the utilities and everything. So you could be cash flowing a lot of money on that property.

But like I said, make the rules, just think things through what would happen if, and try to make the house rules like that. Or maybe you have somebody who you put in there and they stay in one room. They get a little bit of a discount because they're going to be. Like a house mother or a house manager, they're going to be the one who enforces the rules and that would work out really well.

Anytime you come up with something, you can come up with an idea that's going to fix or amend whatever kind of challenged that you have. So you've got an entire houses and the guest houses attached or detached, right? All the different types, a room in your house with its own bathroom or with a shared bathroom.

And guest house with those same things. Right? So an entire house, those are the ones that we do because I just choose to do an entire house. I like renting out. I don't, I don't want to share rooms with anybody. And even when I know my kids aren't coming for another couple of weeks, like when I came here this month on my son came for two weeks.

And on another daughter and her boyfriend, they came for one week, but they weren't all on top of each other. The first week we were here, we had an extra bedroom and I would just rather keep the whole three bedroom property for the whole time I was here. So I just rented one of my three bedrooms and just, you know, had the extra bedroom.

You can choose the size according to how many guests are coming and for how long those guests are staying. And that's kind of nice. I like that too. But I just like having the entire property to myself. So I, you know, it's just mine. It's just, I don't have to worry about anybody coming in or going out or having, you know, my stuff laying out or my son's, you know, cause he's got his PlayStation laying out and you know, this literally becomes our home again, every time we come.

Oh, and that's another thing that we touched on in a previous episode, most of your properties have a maid's closet, but out here in Florida, we have something called an owner's closet. And I don't I've touched on it, but I haven't really gone into it. And somebody asked a question about it. An owner's closet is a closet that locks that only you have access to as the owner.

So ours is in the master bedroom and it's a big closet. The master bedroom has two closets, a his and hers. And so one closet, we leave open for our guests and the other closet is our owner's closet. And in that closet, we keep all of our personal things that we use every time we come to Florida, because we come so often.

It is just our things. So it's not the same as a maid's closet. It's not the cleaning supplies and the maids don't have access to it. Only we have access to it. So most of the time there's like some clothes that we keep in there, you know, universal shirts, Harry Potter shirts, or whatever Disney shirts.

Things like that. We also keep movies, just they, things that are our personal items. I have a computer that is in there, but I also bring another computer with me, things that I don't want to take back and forth to Arizona because I do drive to Arizona. But. I don't like to take everything with me every time.

So it's just going to be your personal items that you don't want to move and that you only need when you're here. Owner's closets are a lot of fun. You can also put high chairs and things like that in there. If you have like a grandchild who comes with you sometimes, but here's the deal. If you've got a high chair or a foldaway crib, I would put those in the regular closet and let the guests have access to those kinds of items.

The items that are in my owner's closets are items that I don't want anybody to touch, but myself or my family. So those are the things that go in there. That's what an owner's closet is. Sometimes some people have a lot of food. So my favorite coffee, so things that only you are going to use, that's what goes in an owner's closet.

The maid's closet is something completely different. Your maid's closet. Is going to be full of supplies, cleaning supplies, and consumable supplies that are going to be used every time they come in and clean your property. My maid's closet has a broom and a vacuum. I also leave a Burman, a vacuum out in the regular closet for the guests to use two of them, because most of my properties I rent for a week at a time and they're not allowed to rent it for only a few days.

They have to rent it week to week. So I leave them access to the, the broom and the. Vacuum cleaner, but it'll have, you know, the soaps, the shampoos and conditioners, the body washes the toilet paper, the paper towels, the garbage bags. I've got a whole entire list. So I'll put that list on a PDF underneath this episode.

So you can see what goes inside our maid's closet. Now, obviously I'm not going to put what goes in the owner's closet because that's my stuff. And you're going to put your stuff in there. So it's just stuff you don't want to take. Every time you go from state to state, that's all that goes in an owner's closet.

So that question. I forgot who asked that? I did write the question down, but I forgot to write the names. So I'm sorry. I forgot to write your name. I'll I'll try to find it and then put you on another episode because I love to do shout outs for the people who write questions, because I think it's a brave thing always to write, you know, to write in a question because you always feel silly.

Like, ah, this is probably a really silly question. They probably don't even want to answer it, but honestly, it's never a silly question because I never touched on it heavy enough that you didn't know what it was. And so now you do. So don't ever think that those questions are silly. Again, we've got all the different types of BnBs, and this is much shorter episode because there aren't a whole lot, but they can be anywhere to your BNB could be.

You know, a destination in itself, it can be out in the mountains, you know, up, up in the mountain somewhere, or it could be out by a lake or it could be out in the country because people want to stay in a variety of places. Not everybody wants to stay in a place like Orlando. You know, there's a lot of people who come out here and they want to go to the beach or they want to go down to the keys or they want to go.

Just a way, right? So sometimes just being away in a new place is great enough. I mean, it doesn't always have to be in a place where there's a lot of things going on. It can sometimes be some other place and we see more and more BnBs in the weirdest, strangest locations that are really pretty cool. So make your place a destination of its own, you know, just make yours unique enough.

And make it the way you like it. You know, if you want to be there and you want to chat with people at night, that's a lot of fun. If you love to cook and bake, then by all means like every morning, get up and bake your little heart out and make the best everybody's gonna, you know, just some picture in your mind, all the great reviews going, oh my gosh.

Betty's biscuits were amazing. And she made this biscuits and gravy every single morning. And. Blueberry muffins and blah, blah, blah. I mean, yeah. Do it, do it. You love, you know, do it is floats your boat and what's makes you happy and be that kind of host because you are unique, your property is unique and you want it to be unique.

You want to serve people in your way and believe me, people will love you and they'll come back for you and for your property just to be near you and your property. So that's all I have to say about all the different types of BNB is there's a, I mean, honestly, there could be more, I mean, people have BnBs inside yurts and we do yurts in Hawaii.

So you can do little tiny houses. I know people do those chill. I mean, there's people who like tiny places. I like big places. So. Whatever floats your boat. If you want to do it in a tent and you want to have that glamping thing going on, go for it, whatever really makes you happy. You can't do something strange enough because I bet you it's.

I can pretty much guarantee it's already been done. Somebody's already done it. You know, I've seen BnBs down in. Those missile shafts and stuff. So, I mean, there's some really strange locations. So what you've done, somebody who's probably already done it, but go ahead. Treehouses do it, whatever. Okay. So that's our episode for today and please subscribe like us.

Share us. Leave comments. We've loved them and we are so grateful for you. Awesome. Well, thanks for listening. Remember on Monday we have a brand new, fresh episode for you, and I'm going to be talking about Steve Larson's presentation that he gave about having too much education. This is a guy who is in the two comma club.

For ClickFunnels two comma means you're making over a million a year. Two comma club is a club with ClickFunnels and Steve Larson is one of the guys. I mean, you just, I love Steve Larson. He's got amazing energy, but he's also a great coach, great teacher. And what he said about this. Just it didn't just click and resonate with me.

It was like, everybody needs to know this, but a lot of people let the education stop them. So Monday's is going to be really, really important for you to listen to. So tune in then have a great weekend. Enjoy your Memorial Day. God bless you. Have a great day. Go and grow.