Vacation Rental owners - COVID impact

[Bigbore500r]

Who here owns a vacation rental, and how hard have you been hit by Covid to date?
I've lost 6 weeks worth of rentals, all of April and 1/2 of May as of now.
San Bernandino county has banned short term rentals "for the forseeable future" and both Airbnb / VRBO has relaxed cancellation policies to allow guests to cancel penalty free. I would have refunded the guests anyways, it's the right thing to do.

As long as the ramps stay open, you can find me at the river till COVID is over.....i'll be quarantined in the gorge by the palm tree

 

[Meaney77]

Thats a tough deal with vacation rentals and has to be tough managing 2 mortgages...

We just received our renters check for our rental here at home, I sure hope our renters can continue to make their monthly rent as this continues.

 

[gqchris]

This is part of the game, sir. All these things are great and peachy when the economy is firing on all cylinders. But, any burp in the matrix, and we have a shit show.

I would love to own a vacation rental, but was always too scared with situations like this. My buddies all went in on one last year, and they are freaked out right now. I almost joined them.

 

[CJ_Donahue]

I'm looking to rent every other Sunday-Wednesday in Havasu or water front Parker (Actually posted Want to Rent in River Pads section). Just had a friend back out on a 50-50 summer rental.

 

[LargeOrangeFont]

Not a vacation rental but I have one tenant that lost her job, could not pay this months rent, and is looking for another job.

 

[gqchris]

Not a vacation rental but I have one tenant that lost her job, could not pay this months rent, and is looking for another job.

Man that sucks bro. I can understand people missing Mays rent, but Aprils? But then I remember back to a time where I was one paycheck away from the whole stack of cards collapsing also and it was not that long ago.

Being a renter also, I make sure my landlord gets paid first these days. Like usually on the 10th of the previous month.
I am looking forward to making the transition to owner again soon with the adjustments coming. And now that I have 3 years of W2's I can purchase like a normal human being. LOL

 

[LargeOrangeFont]

Man that sucks bro. I can understand people missing Mays rent, but Aprils? But then I remember back to a time where I was one paycheck away from the whole stack of cards collapsing also and it was not that long ago.

Being a renter also, I make sure my landlord gets paid first these days. Like usually on the 10th of the previous month.
I am looking forward to making the transition to owner soon with the adjustments coming. And now that I have 3 years of W2's I can purchase like a normal human being. LOL

People are way worse off than me so I'm not sweating it yet. I keep some cash allocated for this eventuality anyway.

This one is in Havasu. Single mom, 2 kids, she just started a new job a month ago and was let go right when this started going downhill 2 weeks ago. Shes looking for a new job.

This is why I like duplexes. My renter in the other unit still has a job and paid her rent for April. I believe she is in the medical field. Most of the costs are covered as long as SOMEONE pays rent

 

[Boat 405]

And this is one way to watch the housing crisis begin. Many folks in this exact scenario.

 

[Bigbore500r]

This is part of the game, sir. All these things are great and peachy when the economy is firing on all cylinders. But, any burp in the matrix, and we have a shit show.

I would love to own a vacation rental, but was always too scared with situations like this. My buddies all went in on one last year, and they are freaked out right now. I almost joined them.

We went into it figuring we'd have to pay every month, and we have partners so the split isn't bad
Having a big $$$ setup without a partner or a contingency plan would be a bad deal for sure.

 

[Bigbore500r]

And this is one way to watch the housing crisis begin. Many folks in this exact scenario.

I think the crisis will start with long-term tenants squatting in properties for 12 months rent free, with the laws LA County just passed regarding COVID impacts. That puts it all back on the property owners, who will then look to the mortgage companies for a plan. Hopefully the mortgage companies play ball......

 

[just_floatin]

I think the crisis will start with long-term tenants squatting in properties for 12 months rent free, with the laws LA County just passed regarding COVID impacts. That puts it all back on the property owners, who will then look to the mortgage companies for a plan. Hopefully the mortgage companies play ball......

What a deal! Righhhhht

 

[sintax]

we only do the snowbird deal, had someone in there from Nov-March this year, and they just gave us the deposit on Nov-March for next year.

 

[DWC]

Sorry to hear Jerry. Hang in there for a couple months and we’ll be right back on track. With your location you’ll be sold out again as soon as this shit is over

 

[Waterjunky]

This is why I like duplexes. My renter in the other unit still has a job and paid her rent for April. I believe she is in the medical field. Most of the costs are covered as long as SOMEONE pays rent

Same here, duplexes are the ticket.
I will be looking for at least one more locally if the housing market tanks.

 

[D19]

Mortgage defaults are about to rise. I am starting a new company that will help a lot of people going through this. I'll post info in the next few weeks once I have things up and running...

 

[Boat 405]

I think the crisis will start with long-term tenants squatting in properties for 12 months rent free, with the laws LA County just passed regarding COVID impacts. That puts it all back on the property owners, who will then look to the mortgage companies for a plan. Hopefully the mortgage companies play ball......

I agree, I think the squatters rights moving forward will be such a hurdle that makes the property owners screwed. As it sits it can take about a year to get one out before this shit hit the fan. It has to be lobbied from Fannie mae or Freddie mac to take action against something like this. But in CA... good luck. I sold my house in CA before Thanksgiving (THANK GOD). It will be the last one I'll ever plan to own in CA.

 

[Bigbore500r]

Sorry to hear Jerry. Hang in there for a couple months and we’ll be right back on track. With your location you’ll be sold out again as soon as this shit is over

We're good, just more of an excuse to use it! I buy my underwear at costco and drive a 2004 truck, just for circumstances like this

 

[Bigbore500r]

we only do the snowbird deal, had someone in there from Nov-March this year, and they just gave us the deposit on Nov-March for next year.

I did the snowbird thing last year. Made more money doing short terms during those months in the winter, and the power / water bills were way lower!

 

[Bigbore500r]

What a deal! Righhhhht View attachment 862173 View attachment 862173

yea that is a shit offer of help - "Just watch the mortgage stack up for 3 months, then pay one easy lump sum" Lol

 

[PlanB]

We went into it figuring we'd have to pay every month, and we have partners so the split isn't bad
Having a big $$$ setup without a partner or a contingency plan would be a bad deal for sure.

When we bought our Havasu house we had the same strategy. That's why we did not buy a baller pad out there. We don't rent at all anymore, but when we did, we did not need the income to survive.

 

[95Enforcer]

My snowbirds left 25 days early(supposed to check out on 4-15). Lost my weekend rentals at the end of the month all the way to Memorial Day weekend. Hopefully my Memorial Day tenants don't cancel but I'm expecting it. Can afford both houses and still working just sucks starting out the season this way with my wife expecting in June. Just adds a lot of unneeded stress with the covid-19.

 

[78Southwind]

I usually only rent on a monthly basis (snowbirds and traveling nurses). However, this year I decided to rent on a shorter term basis. I only had one scheduled for Arpil and gave him his money back due to Covid 19. He was real appreciative and said as soon as this mess is over he wants to rent from me.

 

[sintax]

I did the snowbird thing last year. Made more money doing short terms during those months in the winter, and the power / water bills were way lower!

totally understandable. the daily rates are much better with your normal vacation 3-7day rental. My biggest concern was the wear and tear on the house, not the money (paid off) though, and our neighbors. We have 4 full time residents in our cul-de-sac and I dont want to put them through the crazy.

 

[OldSchoolBoats]

If you established an LLC for your rental, then you can get $10k from SBA.

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[78Southwind]

If you established an LLC for your rental, then you can get $10k from SBA.

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I would think the property wouldn't even need to be in an LLC. I would think it would matter depending on if the income was business income Schedule C compared to passive income Schedule E. Just a guess though...

 

[DC-88]

Good buddy of mine who owns his parents former house, now a VRBO/ licensed rental ( in our town they are 300' minimum apart) told me about this a few weeks back when most of his cancelled with the new refunds. Sucks, but at least you can use yours and the water has been up finally. I saw your boat Monday night with the hatch up at your place..... almost stopped by to meet you when I took the old lady from my place on a hot lap loop up to AVI and down past Needles bridge in my gn in the evening but it was getting late and she was getting cold so thought better of it. Wednesday was awesome up there for most of the day.

 

[OldSchoolBoats]

I would think the property wouldn't even need to be in an LLC. I would think it would matter depending on if the income was business income Schedule C compared to passive income Schedule E. Just a guess though...

You could be right. The application asks for either an SSN or EIN #.

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[CLdrinker]

I have a unique way of evicting renters.

Pay them to move out!

Offer your tenant cash for keys. I did this in December 2012. Tenant hadn’t paid 2 months IN a row and was not paying again. So I offered $2,000 for her to remove all belongings and at the end of the walk through I would hand her a check for $2,000.

( make sure to have all utilities in your name the day of the walk through)
At the end of our walk through I said place looks good ( it wasn’t) I said do you have the keys here is your check.
Soon as the keys were in hand I handed her a check that was already canceled.

see ya!!

 

[Bigbore500r]

If you established an LLC for your rental, then you can get $10k from SBA.

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Yep! And "forgivable" too.......

 

[Bigbore500r]

Good buddy of mine who owns his parents former house, now a VRBO/ licensed rental ( in our town they are 300' minimum apart) told me about this a few weeks back when most of his cancelled with the new refunds. Sucks, but at least you can use yours and the water has been up finally. I saw your boat Monday night with the hatch up at your place..... almost stopped by to meet you when I took the old lady from my place on a hot lap loop up to AVI and down past Needles bridge in my gn in the evening but it was getting late and she was getting cold so thought better of it. Wednesday was awesome up there for most of the day.

I saw the boat! Sounded good

 

[78Southwind]

@shintoooo are you advising your clients with Schedule E properties to apply for the Economic Injury Disaster Loan Program (EIDL)? I am seeing some online that say they are appling but it seems like a shit-show to me.

 

[HB2Havasu]

I have a unique way of evicting renters.

Pay them to move out!

Offer your tenant cash for keys. I did this in December 2012. Tenant hadn’t paid 2 months IN a row and was not paying again. So I offered $2,000 for her to remove all belongings and at the end of the walk through I would hand her a check for $2,000.

( make sure to have all utilities in your name the day of the walk through)
At the end of our walk through I said place looks good ( it wasn’t) I said do you have the keys here is your check.
Soon as the keys were in hand I handed her a check that was already canceled.

see ya!!

That is classic!!!

 

[traquer]

For the $10k , you guys talking about this? https://covid19relief.sba.gov/#/business-info

From what I understand, this is just the prequalification form for an SBA loan, which also happens to be a prerequisite for the $10k grant.

Also, you're going to have to go through a whole shit load of paperwork in order to get approved. You don't get the money from simply filling out this form lol

 

[pronstar]

For the $10k , you guys talking about this? https://covid19relief.sba.gov/#/business-info

From what I understand, this is just the prequalification form for an SBA loan, which also happens to be a prerequisite for the $10k grant.

Also, you're going to have to go through a whole shit load of paperwork in order to get approved. You don't get the money from simply filling out this form lol

Sorta...you’re supposed to go thru your local business bank.

Mine reached out to me and said they would be prepared to implement the program within 15 days, and they’ll email me.


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[CLdrinker]

That is classic!!!

Dude I was desperate. I didn’t have enough to cover both mortgages and the rental was in escrow. Either it was gonna work or it was gonna get ugly.

 

[boatpi]

I will be down at least 25K, maybe more only time will tell. This loss of income will never be recovered.

 

[Havasu blue label]

You are asking for a audit there not fun

 

[Hardly Satisfied]

I'm looking to rent every other Sunday-Wednesday in Havasu or water front Parker (Actually posted Want to Rent in River Pads section). Just had a friend back out on a 50-50 summer rental.

Text me 909-322-9529 Ed

 

[Bigbore500r]

UPDATE -

The downturn was short lived...Insane rebound in rentals!

Can’t reply fast enough, people are begging to rent mid-week just to get away from home. Whatever I lost in April came back and then some, we are booked full thru October

How’s your Havasu / River rental doing?

 

[95Enforcer]

UPDATE -

The downturn was short lived...Insane rebound in rentals!

Can’t reply fast enough, people are begging to rent mid-week just to get away from home. Whatever I lost in April came back and then some, we are booked full thru October

How’s your Havasu / River rental doing?

Same here. Booked until end of August so far. Getting good 3-5 day rentals every weekend too. Crazy how it bounced back.

 

[RCDave]

Its astonishing. I've looked for a waterfront needles place to rent. Everything is booked solid

 

[OldSchoolBoats]

I raised my prices on AirBNB because I was sick of all the requests and really don't want to rent to random people. We are booked until July, just through our sphere and have set aside time for ourselves as well. Heading out next Wednesday through Sunday. Then the middle of week before Fathers Day.

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[Ziggy]

Good to hear it rebounded so quick.
With the big crowds we've been seeing at the river it was pretty inevitable.