Big White Real Estate - Big White Real Estate Tips from Its Largest Independent Homeowner Community
Are you secretly fantasizing about Big White real estate after an amazing ski holiday?
It's a realistic dream. You CAN afford more Big White real estate than you think.
These Big White real estate and rental tips will help you avoid costly mistakes and boost your return on happiness and investment!
Tip #1: Make Your Big White Ownership Dream Affordable - Double your Net Annual Rental Income by Avoiding Traditional Rental Managers & Middle Agents
Most homeowners finance their Big White real estate investment by renting their properties to visitors when it's not being used personally.
That's no secret, however, the WAY in which they do it, is a huge secret!
There are 3 ways to manage your vacation rentals:
Traditional Rental Management-You have No Control & Pay 40-60% of Rental Income:
- You pass control over to a manager and pay them 40%-60% + a bag of nickels and dimes of gross annual rental income.
- You have no access to your Guest Lists (your manager owns, them, not you), no say in how your property is managed, and no business attached to your real estate asset, because when you quit your manager, you give up your Guests too.
- This option is suitable for people who like to burn their money instead of candles.
Direct Management-You have Total Control & Keep all the Rental Revenue:
- You take control and manage the reservations yourself (0-10 minutes per day) from anywhere in the world-thus paying yourself instead of a rental manager. That means that you can afford to use it more yourself, or buy a bigger property! You own your Guest list and control the rules and rates.
- For a flat annual subscription fee ($600 per year), our service helps you do it in minutes per day, from anywhere in the world, from all of your marketing channels. We teach you how to do it, share our research and tested strategies, coach you on how to market, and bring bookings directly to you via AlluraDirect.com. We'll also hook you up with in-resort suppliers like cleaners, maintenance and hot tub businesses. Over 90+ properties on this web site are managed entirely by their owners, who live all over the world!
- Once you factor in cleaning, hot tub, marketing, guest supplies and credit card expenses, it costs 17-20% of gross rental income.
- This method is suitable for people who can read and type, can spare 0-10 minutes per day and who visit their properties 1-2 x per year (2x is preferable), and who want to make as much capital gains as possible. Contact Us for more details.
What is Rental Equity
Rental Equity is the established rental business value, customer database and goodwill that is attached to the property AND that can be transferred to new property owners.
It increases your property's value and competitive positioning in the Big White real estate market.
A property has Rental Equityif a) you get the names and contact information of previous guests who stayed in the property & b) you have the right to contact them and rent to them directly.
Rental Equityvalue or potential is dependent on 4 distinguishing characteristics:
1) The Property's Customer Database Size. The more established the business, the larger the customer database and the bigger the Rental Equity. If you use Traditional Rental Management, your property has zero Rental Equity.
2) The Existing Infrastructure & Marketing Associated with the Rental Business. The better the infrastructure, the higher the Rental Equity. If you use Traditional Rental Management, your property has zero Rental Equity.
3) Ease of Taking over the Rental Business. The easier it is for a new Owner to take over the rental business, the higher then Rental Equity. Rental properties on AlluraDirect.com can be taken over by new Owners within 15 minutes! If you use Traditional Rental Management, your property has zero Rental Equity.
4) The Owner's Rental Rights. Do the Owners have unfettered rights about their rental method, personal use, services, terms and conditions? The more Owner rights, the higher the Rental Equity potential. Conversely, buildings with limited Owner rental rights, have little or no Rental Equity or Rental Equity potential.
Rental Equity makes a property more valuable in a sellers market, while making it easier to sell and more competitively positioned in a buyers market.
Why is Rental Equity Good for You?
Rental Equity lowers your financial risk of poor annual rentals by giving you established customers who are likely to re-book your home. In contrast, a property with no Rental Equity or pre-existing customers is a higher risk investment, because you have to find brand new customers.
Tip #3: Protect your Big White Property & Rental Revenue Rights - Avoid Developments Where You Buy the Property, Maintenance Costs & Risk without Benefiting from Annual Rental Revenue & Long Term Rental Equity
Properties with unrestricted Owner rental rights have:
1) The best annual net profit/least annual Owner losses and
2) The best long term return on investment, since they have broader investor appeal.
3) High Rental Equity or Rental Equity potential.
Avoid Big White real estate properties where you're stripped of your rental management method choices and are forced to use a specific manager.
If you don't have your property's customer database and the right to contact and do with with them directly, your property will never have Rental Equity. In fact, your property's Rental Equity is being used to build the business of your rental manager.
You'll end up buying a pricey piece of real estate where you pay all the bills and assume the risks, while the developer or rental manager gets rich by skimming the creamy annual rental revenues... even while you're losing money hand over fist.
Worse, you have no control over your own Big White real estate investment.
In the long run, it will be cheaper and less hassle for you to just rent, instead of owning.
Why do people buy this stuff?
In our experience, they just don't know what they're getting in to.
Read the fine print. Even if you want to use a rental manager, you should at least be able to pick the one you want, rather than have one shoved down your throat.
Tip #4: Increase your Property Value by Building Rental Equity on Top of your Big White Real Estate Value
Thinking about selling your newly purchased Big White home while your still basking in the glow of a buying it seems counter intuitive. Nevertheless, it's still an investment that you need to nurture and grow.
Start immediately boosting your Big White vacation home's long term capital gains value by building it's Rental Equity. The sooner you do it, the faster you'll be able to improve it, upgrade to a better property, or rent it less to use it more.
The benefits of building your Rental Equity are as follows:
- You can upgrade to a bigger or better home in a superior location in less time.
- If you need to sell it in a hurry, it will be more competitively positioned in buyers market.
- You'll make more money than your lower Rental Equity competition in a sellers market.
- You'll be able to use it more and rent it less, sooner because your occupancy and revenues will grow annually
There are many annual property maintenance costs that Owners usually aren't aware of before they Big White real estate.
These are the "surprise" numbers you need to know while budgeting:
- Snow Removal - Big White gets a lot of snow. Your roof, driveway and road snow removal expenses will be big. Find out who pays, what gets cleared and what the annual costs will be. You also need to budget in for snow removal on your private property, like decks, hot tub area, etc.
- Hot Tub Maintenance, Repairs, Start-Up & Shut Down - When you own a hot tub, it's not just about routine maintenance. There are extra expenses involved in starting it up, shutting it down, as well as mid season water changes. You should also budget for up to $1000 CAD in repairs and new parts. Know ALL the costs up front and budget accordingly.
- Strata Fees - Are there any upcoming special assessments or building improvements not listed on the spec sheet? You need to know them up front, so do your research.
- Gas & Heating - Big White gets cold! Does the strata pay for the gas in the fireplaces, or do you pay? It varies from building to building.
If you're ready to start managing your rentals directly, contact us to join Big White's largest owner community. Start controlling your real estate today and never looking back!