Seasonal rental companies: questions to ask yourself before getting started #sansfiltre – EP 2
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Hello, and welcome to the J'poster Complet channel, the channel which helps seasonal rental companies, professional sub-renters, and seasonal rental concierge services to increase their turnover. Today, we are doing a somewhat special format. I have a very special guest next to me, who will help me do an interview format, where we will have an informal exchange to ask all the questions we ask ourselves when we start vacation rentals. You will see, there is no tongue in cheek, we will really ask ourselves all the questions, even the thorniest ones. So, I'm going to introduce her: Claire, who is my sister, and who, therefore, started vacation rentals. I thought it was very interesting to be able to make this video together. I know — and I trust you on this — you can even ask the toughest questions that we don't dare ask. We will provide an answer to all of this to help you if you are in the same situation as my sister currently.
− Do you have another question? We were cut, we had a little interlude, and we had to cut. Do you have any other questions?
− Yes, I had another question. It was: how to choose your property? I'm going to explain this question anyway, because when we took the steps with the property hunter: “We would like to have a property, we would like to have a profitable project. » “Ah yes, great, we can take your request, what are you looking for? » That's another question! I was expecting you to answer this question! So what can we answer to this question?
− It's true that it's not easy, because we arrive, we want to invest, we want it to be profitable, but what are we looking for?
– There you go.
− I understand. So, to answer this question, there are several parameters. The first parameter is the budget to which we have access. Because it's true that the more you have an expandable budget, the more you can access larger goods. That's the first thing, obviously, but the second thing is also: what is the best seasonal rental strategy in the city we are choosing? And for that, also return to the sites that I mentioned earlier. Sites like AIRDNA, for example, are sites that will help you better understand how the seasonal rental market works in your city: where is the potential, is there scarcity? There is scarcity on certain types of goods, so you need to know what types of goods there are scarcity on. By doing these studies, it will help you know exactly what you are looking for. So doing this study will help you. And have professionals accompany you. It’s true that we also support people. Besides, I'll do it for you too, at double the price, obviously. No, I offer it to him. I'm clarifying, because afterwards people will say...
− “But why is she paying double, what injustice, it’s terrible!” »
− Therefore, be accompanied by experts to be supported in the choice of project. The best possible choice of seasonal rental experts, who will be able to tell you: “There, the expectations of earnings, the expectations of turnover, they can be of such order on such type of property. » So, in the different points, I said, the first is obviously on your budget, the second, according to the potential of the seasonal rental market. So either look it up yourself on AIRDNA, or get help from experts on this. The third is also, in my opinion – and I believe that this is also something we talked about at that time – it is to put in the loop the concierge service(s) that you are considering for subsequently, so as to involve from the start of the project the contact person who will subsequently be the person in charge of operating the property, because this person, if you have chosen them well, is someone who has expertise, who has experience in seasonal rental, who will also be able to share with you, about the city, what, in his opinion, would work best, and would work less well. Here are different tips on choosing the apartment, and with these three elements, you will be able to have a much more precise vision of what you are looking for, and therefore, the information and the brief, in fact, what you should do to the person who is an apartment hunter.
− Okay. Exactly what you say makes me think of something else. So there, you mentioned the concierge, an expert in choosing the property that will be profitable, we are talking about property hunters. We haven't necessarily talked about it, but sometimes we also talk about decorator, to have a stamp, so that the property is rented. We are in the process of building this project, and we say to ourselves: “Each of these interlocutors represents a cost. » It's scary, too. Is it really still interesting with all this accumulation? Isn't it also important to say to yourself: "I'm going to do everything myself, it won't cost me anything, I'll spend less, it will cost less." »
− It's true that the temptation can be great, because suddenly, we say to ourselves that each interlocutor is taking their share of the pie.
− Yes.
− The only thing is that a majority of the people I talk to, I'm leaving out the seasonal rental concierge service, but otherwise, the majority of the people I talk to will take their share of the pie at the start of the project.
− Yes.
− The apartment hunter, after that, you don't hear about him anymore. The decorator, once you've done the decoration, you don't hear about it anymore either. So, all these interlocutors are initial investments, which are, in my opinion, investments to be made in the same way as we are obliged to do work, for example, and which must be considered in the overall expenditure project. In fact, it's a bit the same thing when you're a business manager. For me, when there are expenses that arise - and I know that you have been a business manager too, so you will understand this part - it is because in fact, we always ask ourselves the question: "Is Should I spend this money? » But the question is also to say to yourself: “In fact, what will be the return on investment of this money? If the return on investment is good, that means that it is an expense that needs to be spent. So, if we take the jobs one by one, having the expertise of an apartment hunter to find gems that are profitable at more than 10%, typically, you can do it yourself... Either you know very well that you have this sleeping inside you...
− Or you know you don't have it.
- There you go, either you know that you don't have it. And in which case, either you spend money to train yourself, to know how to do it, or you spend money to have someone do it for you and go faster. Either way, it's a commitment of time or money.
− It’s true.
− You decide, in fact, according to the capital in time or money that you have available, and your desire to move quickly with the project. Same for decoration. In fact, the decoration, yes, you could say it's a waste. Actually, no, because decorating, you're going to spend money once if you hire a decorator, and I think it's honestly a good idea to really stand out from the crowd. But in fact, it will pay off so much in the years to come. Over all the years of operation of your property, it will be profitable every night. In fact, it's profitable. These investments have a return on investment that makes sense.
− Exactly, you are talking about decoration, and it is a subject where we are right in the middle, that is to say it is a subject on which we have not yet made a decision. I have a little reluctance to say to myself: “It still costs quite a lot. » And for once, unlike real estate investment, the walls will be damaged, what's more, we are in a rental where, I'm not saying that we are less careful, but there are a lot of passage. There is necessarily more wear and tear than someone who lives every day, who is not there during the day with work and other things. I have a little reluctance to say to myself: 'At worst, we buy completely standard, inexpensive furniture, and we don't put a big investment into it.'
− There are several schools on this. I want to share my conviction, which is worth what it is worth. I think you have to find the right balance. It's like many things: you have to find the balance. That is to say, it seems to me to be a bad choice to really put luxury, very high-end in a seasonal rental apartment, exactly for the reason you mentioned. Because there are also risks of breakage, falling on people who are not careful, etc. Now, it also seems to me to be a bad decision to take everything on the cheap, that is to say, we must, in my opinion, find furniture that is good value for money, but in the sense of 'quality ' strength of the term. You still need things that will withstand the shock, and that will remain beautiful. The quality remains beautiful over time. Even if it is well used. So, finding the right quality-price ratio, and then, this is what people who are experts in decoration say, is finding a few key decorative elements which will immediately give a touch, a style, something different and atypical, without needing to spend completely phenomenal amounts of money on decoration, and without needing it to be super luxury stuff worth 1,000 euros per light.
− Okay.
− So, inject style, with quality that will hold up, but above all inject touches of style, more than injecting touches of luxury and high-end.
− Yes, okay.
− And that it is, therefore, in the end, very qualitative.
− Yes.
− In fact, you have to be smart.
− What a conclusion!
− You have to be smart. For example, I am really…
− Smart!
− No! [laughs]
− 'I am a particularly good example. I'm pretty smart. I would like to share this point with you, it seems relevant to me.'
− That's not at all what I meant. Actually, I was going to be vulgar so I was trying to find the word elegant. I wanted to say: 'Me, typically, I'm a decorator.'
− But that's not at all what you were going to say! [laughs]
− Not at all! Okay, that's it, I said it.
− So you would get help, for example.
− Yes, that’s what I meant. You have to inject some style.
− If we have any.
– What did you say?
− If we have any.
− That’s it! So in fact, there is still expertise to be had. So I recognize being smart. Be smart. It’s still a job, you see. Really know what little things will help you. I'm thinking in particular of a person who I'm going to interview soon, so stay tuned. His interview is going to be super interesting. It's Violaine, from the site Rénoveuse Astucieuse. I know that she works like that, that is to say that she is smart. And as a result, she has taste and she will really know how to do what is necessary, without spending astronomical sums of money. She's an expert in real estate investing, so she really knows a lot about it. − Okay, that’s interesting. I have one last question. It is not at all in the common thread of what we said. Maybe I should have asked you this before, but whatever. I think it's important. We are facing a problem at the moment, and we are right in the middle of it. It's about making this decision: do we buy in our own name or under a company? And then, when you open Google, all the reviews are there. It's really a drowning of information. What do you recommend?
− For now, like decoration, I don't have this expertise. It's interesting that you ask the question, since it allows us to talk about it again, to say it again to people who would be in the same situation today. It's a bit like when you have a headache, or your feet hurt and you look at the forums like doctissimo, that is to say that each time, you will hear everything and its opposite. On the one hand, we have cancer, on the other, our hand will have to be cut off. It's really a disaster, and I find that in taxation, the legal and fiscal part, it's a bit the same. That is to say, if you start to trust what you have seen on the forums of Mr. Dupont, Mrs. Something, who recommend doing this, doing that, you will go to destinations that are far too risky. You really need to be accompanied by experts. Speaking of interviews, I interviewed on this channel Dimitri Bougeard who is a tax lawyer and real estate investor. Get support from quality people like Dimitri, who will allow you to have a precise vision. Because taxation with a capital 'F', each person and each atypical situation has its own taxation and therefore its need and necessity to carry out this or that scenario.
− That’s it.
− So, you see, it comes back to: 'Is it worth putting money into this?' Taxation is one of the subjects on which, frankly, no euros are wasted at all. You can save so much. Conversely, by not getting help, you could lose so much. In addition, it's a meandering scenario. It's absolutely phenomenal. What are the people who make the laws called?
− The people who make the laws.
− Exactly! No, the legislator! The legislator is bored, it's not possible, it's a twist in the scenario. So you need an expert who studies your situation precisely, and who gives you the best recommendation for you. So.
− Thank you for answering my questions.
− Please.
If you have any other questions that you ask yourself like my sister, don't hesitate to ask them in the comments. I would be happy to answer them as well. If you liked this format, don't hesitate to say so too. We could see if we could do it in other ways, do two episodes. It's true that my sister's project will evolve over time.
− Probably. You will be faced with other questions.
− Yes.
− Because this is only the beginning.
− Yes, indeed.
So, maybe it will be interesting to do the next versions on this. So, give us your feedback, ask us your questions if you have any. If you haven't yet subscribed to the J'poster Complet YouTube channel, don't hesitate to do so. Click “subscribe”, and click the bell to be alerted when I go live. And then, if you are not yet participating in the private group seasonal rental prices and maximization of turnover, now is really the time to do so. You will see, we share all these topics of increasing turnover. This will really help you, so click on the link that's just below or just above, the Facebook link. I'll see you tomorrow for the next video. Take care of yourself.