Nathan Twining introduced our Program, which was a discussion by Shauna Naf of “Short Term Rentals,” a subject sparked by the Nafs’ 2021 purchase of a two-bedroom house in Mazama, on Hwy. 20 just east of North Cascades National Park. Shauna and Ward turned it into a vacation rental. Shauna wanted to provide information she learned in the process.
Shauna said the things to consider when deciding whether to get into such an endeavor are (1) what your investment goals are, and (2) whether the property you are looking at in that area and under those conditions will support your goals.
The Naf’s Goals:
Getaway for themselves
Property that will pay for itself or generate positive cash flow
Good long-term investment that will grow equity
-not a lot of headaches
-in an area they like (Mazama qualified)
Benefits:
-near North Cascades National Park
-near the Methow River (good fishing)
-near Winthrop
-the Mazama Store was a fun place
-trails everywhere for hiking, mountain biking, skiing and snow shoeing
-fun things to do nearby (rodeos, music festivals)
Possible Negative Things to Consider:
-Were there enough reasons for multiple guests to visit? (more people means more $)
-Would there be too much traffic?
-Can people get there year-round?
-Is there much competition from other providers of places to stay overnight?
-How do local rules and regulations affect your business? (a local regulation precluded stays of over 180 days a year without sprinklers in the room)
-What are local attitudes towards vacation rentals?
-What management options are there?
-What is the labor market availability for things like room cleaners?
-What is the ease of fixing something that goes wrong?
Threats that you can’t control – Climate Change:
-smoke from fires
-snow
Next Step – Evaluating Options:
-Proximity to attractions
-zoning considerations
-quality of roads in bad weather
-# of bedrooms
-whether to allow dogs?
Next Step – Evaluating Properties:
-occupancy rates
-monthly gross income
-property management expenses
-marketing expenses
-utilities
How could they improve what currently existed for their selected property?
-get a new property management model
-have a new theme
-take new photos
-strive for 5-star reviews in surveys by customers
-make additional improvements (like adding air conditioning)
Shauna showed “before” and “after” photos of the property. She and Ward really spruced the place up! Their work was rewarded by an increased profit of 97.9%, decreased management fees, and decreased vacancies. Great job, Shauna and Ward!
Steve thanked everyone who contributed to the meeting and rang the bell adjourning the meeting at 1:30.
