Succeed in the Short-Term Rental Market – Krista Eash
On this episode of The Closing Table, we sat down with Krista Eash!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Krista Eash…
The conversation began with a word association icebreaker on closing disclosure, depreciation, and more. Krista shares a glimpse of her life outside of real estate, emphasizing the roles that mean the most to her – being a wife, a mom, and a grandmother. These cherished roles guide everything she does. When she’s not spending time with family and friends, Krista finds joy in gardening, particularly with flowers. She also has a passion for traveling and takes pleasure in cleaning and organizing things at home.
Krista specializes in a specific market niche: the short-term property rental market. She holds licenses in both Michigan and Florida, enabling her to assist clients with property transactions in these two states. Although her real estate expertise is limited to Michigan and Florida, her work requires extensive research to understand the dynamics of the short-term rental market nationwide. The economic profile of the short-term rental market is relatively high, which means that the opportunities for short-term rental properties are limited to individuals who either already possess suitable properties or have the financial capacity to invest in such properties. The price point for short-term rental properties is on the upper end of the spectrum, making it challenging for many potential buyers to enter the market. Navigating the short-term rental market is complex due to varying legalities across states, cities, and counties. Thorough research is essential to ensure compliance with the different regulations.
Krista’s specific location is Frankenmuth, a tight real estate market where demand often outpaces supply. Houses often have waiting buyers before they even hit the market, making it highly competitive for buyers but highly beneficial for sellers. Frankenmuth is characterized by long-standing families and serves as a tourist destination with a unique appeal. Many homeowners in the area operate their residences as bed and breakfasts, capitalizing on its beauty and popularity.
When it comes to management services for rental properties, Krista offers a comprehensive range of options tailored to her clients’ needs. Starting from the early stages of considering entering the short-term rental market, they assist with in-depth research and identify areas with strong market potential. For clients looking to acquire properties, Krista can help with the purchasing process or refer them to knowledgeable agents in the relevant state. Once a property is acquired or if the client already owns a property, Krista’s team takes charge of furnishing the home, making necessary repairs and improvements, and ensuring it is suitable for short-term rentals. They handle various aspects of property management, from creating and managing platform listings to hiring cleaning services and utility management. Additionally, ongoing management services, such as handling taxes and payment disbursement, are also provided.
Next, Krista recognizes the importance of appraisal knowledge for both buyers and sellers. By understanding appraisal practices, she ensures that sellers do not list their houses outside of the market value range and that buyers do not make purchases beyond fair value. She shares a recent example from Florida, where a client wanted to purchase a property and provided their budget and cash flow requirements. In the area, it was common practice to overprice properties by about 10%, which Krista wasn’t particularly fond of. Nevertheless, she performed a thorough evaluation using data on list-to-sale ratios and comparable properties. She estimated the house to appraise for around 775k, even though it was listed at 850k. Armed with this knowledge, she advised her client to make an offer at a reasonable amount, but the initial offer was rejected. However, Krista persisted and was eventually able to negotiate a contract at the appraised value of 775k. The property is now successfully managed, with an 80% rental occupancy and generating good income, making the client very satisfied.
Frankenmuth’s popularity as a tourist destination makes it an attractive location for investment properties. However, Krista reveals that purchasing vacation rental properties within the city limits is exceptionally rare due to strict ordinances and restrictions. There’s a cap on the number of properties allowed to operate as short-term rentals in Frankenmuth. If clients express interest in such properties, Krista informs them that they must look outside the city limits, as their request wouldn’t be approved otherwise. She was fortunate to secure her own short-term rental property when a spot opened up, highlighting the challenges of navigating the market in Frankenmuth.
As a bed-and-breakfast owner, Krista has had many heartwarming experiences with guests. One memorable interaction involved guests from the UK who were on a bucket list trip, aiming to visit all 50 states in the USA, with only Hawaii left unexplored. This encounter served as a reminder for Krista that her world is not limited to her immediate surroundings; there is a vast world out there, and people can make their dreams and goals a reality anywhere. This experience influenced her approach as a real estate agent, prompting her to foster relationships with agents from different regions and even countries, such as Canada, where the short-term rental market is strong.
The conversation wraps up with Krista sharing her personal philosophy that centers around living life to the fullest and achieving her dreams without trampling on others. She believes in the power of kindness and generosity, rejecting the notion that knowledge and assistance should be withheld from others for fear of competition. Having encountered both stingy and generous individuals in her own journey, she remains committed to helping and educating those seeking guidance. For her, practicing kindness and generosity is a lifelong endeavor that brings fulfillment and purpose to her personal and professional life.
Check out Krista Eash:
Facebook: https://www.facebook.com/krista.m.eash
Facebook Business Page: https://www.facebook.com/ERESDIRECT
Instagram: https://www.instagram.com/eashrealtor/
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