Management firms change Tahoe rental market
By Kathryn Reed
Owning a vacation rental may be a luxury, but it is also a business.
And for most people, they would prefer a middleman handle the business end. That’s why property management firms became so popular. The industry for a time had become static, but now it is growing and changing.
With about 75 percent of the residences on the South Shore being owned by second homeowners, there is a definite market for people to handle renting them. While not all of those people put their property on the rental market, a large percentage do.
The going rate is 30 to 50 percent of a night’s fee to handle renting the property. The firms deal with noise complaints, cleaning services, and checking people in and out.
TurnKey is a firm out of Austin that this fall opened an office in South Lake Tahoe. It’s biggest selling point is that for the first year it takes a 14 percent cut, with that figure going to 18 percent in subsequent years.
It is handling properties from Glenbrook to Christmas Valley and out to Camp Richardson. Expanding to the North Shore and Truckee are goals.
“We had been with the other company a long time. We were dissatisfied,” John Puccinelli of Cupertino told Lake Tahoe News. “It was brick and mortar. This is Internet. I thought that’s where the future is.”
He has owned a vacation rental in the Tahoe Keys for 20 years and was with the same company that whole time. Puccinelli said it was time for a change and opted for TurnKey.
One thing that TurnKey does that most other agencies don’t do is treat vacation rentals more like hotels. While hotels and airlines traditionally raise and lower rates based on peak times, vacation rental rates are often stagnant – except perhaps for Christmas, New Year’s and Fourth of July – the three busiest weeks of the year in Lake Tahoe.
Jon Sween, general manager of the South Lake Tahoe office, said being able to tweak prices for clients allows for annual revenues to be greater and less emphasis on actual nights rented.
Using algorithms for people inquiring about a rental helps operators in Texas to determine if queries were sent out to multiple agencies or just TurnKey. This then allows them to direct their resources to whom they deem to be the most serious potential renters.
Technology is something that separates TurnKey from other rental agencies.
“I like the ability for them to change door locks remotely and track people when they come in and out of the house so they can provide security for the house as well and not just for vacation rental,” Roger Isaac told Lake Tahoe News. He has had a vacation rental off North Upper Truckee for a couple years and is now using TurnKey. “When a vacation renter comes up they change the lock remotely so each person has a personalized entry key to come in the house.”
TurnKey also uses an Android tablet to communicate with renters. This includes eliminating the traditional binder full of info in the rental; it’s on the tablet. The tablet is also available for guests to use while in Tahoe to research places to go.
Housekeepers must take 25 photos with it when they are done. Guests are asked to rate the cleanliness when they check in.
“If they check five, the housekeeper receives a bonus. If it’s a one, we call the client about it right away,” Sween told Lake Tahoe News.
Renters also receive a welcome call when they arrive; which in part is to check on any issues at the get-go.
The tablet also has a built in decibel meter. This has to do with noise being the biggest complaint about vacation rentals. If it gets too loud, the renters are sent a message to keep it down. They don’t know (until now) that their noise level is being monitored.
TurnKey isn’t the only newcomer to the market. Denver-based Evolve mailed info to owners last month offering 10 percent fees. Evolve and Red Awning offer marketing and reservation services only. TurnKey will do the same. It just means no active management, just bookings.
“…one thing that turnkey does…is treat vacation rentals ‘more like hotels’…”
yup, we got hotels in our hoods
they can’t do any worse than the property managers we already have in this town
When our new supervisor says that the most important thing that needs to happen in the county is growing the tax base, are we surprized about the hotels in our neighborhoods? Anything to keep $’s flowing into the county coffers. It’s a “hell with the residents” situation.
Out of Austin. Contractors hired out of town. The majority of homeowners don’t live here. Good we get business, but how do we bring back the locals??
In a perfect world, these companies would be as kind to the neighbors as they are to their guests. We’re not the folks making them money so I doubt that will unfold.
Vacation rentals come with the zip code. Hopefully, the house near you is managed by a quality company that will respond to neighbors if/when needed. If not, thankfully, there is recourse.
If you have a Vacasa managed house near you, the local contact number is 530-579-0704.
The only number I need is to EDSO.
I may know of “Roger’s” hotel. It is run down looking, the yard full of weeds and branches he places all over….dead branches. If it’s the correct one, it is a huge fire danger to the rest of us who actually live here and care. It’s the worst looking rental in the neighborhood.
The vacation HOMES on my street are all good. Usually the same folks who come here when they can get to their “Tahoe House”. Good folks and we all have each others phone numbers and know each other on a first name basis. I keep an eye on their house and maybe do a little raking for them..for FREE!!! Always glad to see those folks!!!
The vacation RENTALS is another story entirely!!!
Not to generalize but many that rent for a few days or longer are noisy, disrespectful of the neighbors, cars paked all over the street and partyin’ till the cows come home, and then leaving full trash cans out so the bears make a big mess all over the street and the neighbors yards as well.
Just my observatons. OLS
The disturbance problems with VHR’s still remain and the same folks who say they want to control these problems continue to make sure the problems will stay and not go away. Nothing but lip service from Tom, Hal, and the rest of the gang at SLT.
And don’t forget EDC, they ain’t any better.
The built in decibel meter in the tablet is a beginning regarding noise and how to keep it on the property and not disturb the neighbors.
littleone: There are approx 700 tot vacation homes in district V with 96% of them located in Meyers. When someone says we need the TOT tax base they need to realize that we see close to zero tot money. The tot collected goes into the general fund and is trickled back up here. The tax collector does not know the amount we actually get. The BOS must make the ordinances stronger(like the city does) so the sheriff can enforce them. As it stands right now the sheriff cannot cite anyone or remove them as the enforcement ordinances are not strong enough. There are rules on the books now but according to the tax collector they need to be redone and enhanced by the BOS so the Sheriff can enforce them. . All of this information was obtained by asking questions and getting answers from C. L. Raffety our EDCO tax collector.
enforcement ordinances?
There is a Penal Code section called 415PC. It defines several ways (to disturb someone’s peace) that EDSO can cite, as long as the person calling is willing to sign the cite.
Excellent point, OLS. The phrase, ‘vacation HOME rental’ should be stricken from the language. It may be a house, but it ain’t no home.
While the noise from a VHR can be a nuisance what I have trouble with is the distressed crying of the poor dogs that these “people” bring with them and then lock outside in a strange yard in unfamiliar surroundings. The poor dogs are confused and scared and for someone to do this to them isn’t right, safe, nor fair to the neighbors that are subjected to hearing their continual sad cries. Neither the Sheriff nor Animal Control has the resources to make this a priority nuisance so these poor creatures are just left unattended until whoever brought them decides to care for them, or when I get to hear the coyotes take them.
Nice people.
Spouse – 4-mer-usmc
Do you people call the police? I have only had to call them one time in 6 years. They arrived in minutes and the owner contacted me a week later to apologize.
He told me he had been written up and only had two more strikes left and asked me to call him directly if a disturbance occurred.
As for the parking I love it when they park on the street. It keeps the @#%$^ locals from driving over 50 in the 25 MPH zone.
Sunriser2, I got a little chuckle out of your response to vacation rentals and the parking of their cars in the street.
Here in Sierra Tract you would think you’re were at a Nascar race!
As far as Vacation HOMES? I really like my out of town neighbors! They’re happy to be at their second home and often bring me a treat from a back yard garden,you know, from a climate where you can REALLY grow food! Sacramento, San Diego,etc.
Take care, OLS (Bob Rockwell)
I totally agree, OLS. We have a part-time neighbor across the street who uses their house as much as they possibly can, but they do also rent it out. And they are GREAT neighbors. First thing they did was put in a bear box, and though they rent it themselves, they comply with all ordinances and post the proper signage. They screen their clientele well, and we’ve had very few issues with their renters. Many of them come back year after year, and we’ve gotten to know several of them on a friendly basis also!
I wish everybody could have such a good experience.
Al Titude
I have been asked by the Sheriff several times to sign a complaint or make a citizens arrest. I have declined each time because I don’t know how they work or what the financial cost to me, might be. Any help ?
Your only financial cost I could see is if you have to go to court because the tourist is fighting the ticket. You might lose time off from work. It’s a bigger burden for the offender as they will have to come back up here from wherever they live to fight it.
From what I was told by a management company, all that’s needed to shut a problem house down is three complaints. I don’t call unless it’s really disturbing but I know the one by me has two (official) complaints so far.
I wish this vacation home was occupied by the owner like OLS has in his neighborhood. Every time we see someone there we never know if they are going to be idiots or normal. I would not have bought my home in this neighborhood had I known about the several vacation homes.
Al Titude, Nice name, I like it! What I did with the second homeowners on my street was write my name and phone, street address and e mail address on a slip of paper. Go to the visitors house and introduce yourself and give them your information and welcome them to the neighborhood. Then ask them for their names and phone number and if they need anything feel free to give me a call.
Now youv’e made a friend and a new neighbor, even if it’s only a temporary neighbor. At least you broke the ice and they feel welcome on your street.
If they get wild and noisy, politely ,ask them to turn down the volume or to stop racing the snomobile up and down the street, (young relatives were using the cabin, this has happened on “my street”) and my request was met with good results. They parked the sled and partied inside.That was a rare instance but sometimes stuff happens.
If no luck with all that, call the SLTPD at 542-6100, for the county call 573-3000 or 573-3044.
Take care and welcome our guests to beautiful Lake Tahoe. OLS
Al Titude
If I recall, a sheriff deputy wanted me to pursue a citizens arrest because of the noise and he said that way a judge would decide and might even shut down the vacation rental, take away the permit. The deputy also suggested taking video of the incident for evidence.
I would go this route if the renters/owners/managers, couldn’t turn around and sue me.
Al titude,
I live in one of those rentals with weeds, and dead trees on the ground. It might also be the only lot on the street with complete BMPs, and zero runoff. No chemicals used on this lot flourishing with bees, birds, chipmunks, squirrels, and the occasional rabbit. I love sitting in my front yard during the summer and seeing nature in full glory.
Kenny, are you saying 96% of all vacation rentals are in Meyers and only 4% are in the city?
I’m curious Ski Bum, does that 96% stat covers Meyers proper or ALL the property’s outside the city limits that fall in county jurisdiction on the South Shore?
David, when I contacted C. L. Raffety on the number of TOT paying vacation rentals registered with the county I was told there were approx 700 in the District V section of the county with 96% of them up here in the county portion. The city is separate from the county as the city TOT stays in the city and the county TOT goes to the general fund according to C. L. Raffety. When I asked how much comes back to Tahoe she did not know, they only collect and do not disburse. I was also told that the BOS would have to beef up the ordinances. I attended the meeting with the county and the property management companies awhile back and I was the only non management person there. I can tell you the county is blind to what really goes on up here as long as they pay TOT. It was made very clear at that meeting that they only collect TOT and do not enforce what ordinances are on the books currently, that is up to the BOS to give the sheriff the authority to write citations to the renters. The sheriff has always had the authority but unlike the city, the people in charge are located in Placerville and don’t live here. They do not have to face us everyday. To the credit of the property managers, they would like to see the ordinances have some teeth and have the renters put “some skin in the game”
Here is LTN’s article from the meeting Kenny referenced where he inaccurately said he was the only non-vacation management person in attendance: https://www.laketahoenews.net/2014/10/edc-wants-vacation-rentals-to-be-good-neighbors/
To correct Kenny, this is from the article, “There are about 700 permitted vacation rentals in the unincorporated area of the Lake Tahoe Basin of El Dorado County.”
Kathryn Reed, LTN publisher
Thanks, Kenny, for clarifying. Your post seemed to imply that 96% of all the Districy V vacation rentals were in Meyers.
What exactly is the difference between approx and about? We came up with the same number of 700. I stated my name only at the meeting and was acknowledged by C. L. Raffety as a non manager and I spoke with her at great length after the meeting and I had to wait a week for her to get back to me with correct numbers as she did not them the evening of the meeting. I fail to see what I said incorrectly. I wish most of the articles here were as scrutinized as when I post lol. Thanks
I will answer that Bum. You said all of District 5 has 700 vaca rentals. LTN said the 700 are in the unincorporated area of District 5 that is in the basin. Your numbers would include the city, Pollock Pines, Tahoma, etc.
My guess is your history of inaccuracy is why your comments are scrutinized.
Thanks, Kenny. I was being facitous when I wrote that it’s all about increasing the tax base. I don’t agree there should be hotels in our neighborhoods, as the county and BOS does. I appreciate your comments and have learned a lot from you about so many issues. Keep posting.
So they publicly admit to violating wiretapping laws? Where was the reporter on catching that one?
I think that areas zoned residential should be just that, residential and not businesses. If any other type of business would try to open up in the neighborhood (like a supermarket) then it would be shot down. Maybe if a majority or 2/3 of home owners in a particular neighborhood vote to change their zoning then fine. I think the majority of folks who live here full time are not happy about rental properties in their neighborhoods. Lets do something about it.
Tahoe Local: Where do I register that vote? I’m with you.
Perry R. Obray: I’m not talking about your home. You live there full time and enjoy the shrubs and critters. THIS absentee owner I’m talking about is collecting large dead branches and lining his yard with them as if he thinks it improves the look (it really doesn’t. Ask any neighbor). He has never cleared the tall weeds and simply adds more fuel to a fire. There are PILES of pine needles on his roof and he has yet to stain his house…or do anything to make it look like he even cares he owns it. And zero BMPs. If I were a tourist paying $300.a night and pulled up to his run down looking place I would want a different one.
Steven: What are you afraid they would sue you for?
They create the problem, you capture the evidence on video or pics, and call the Sheriff. I see no issue. The more of these we can get shut down the sooner we have peace in our neighborhoods. Personally I don’t think for a second the management companies really care about the locals but what they do care about is loosing those $$$ they get from vacation rental owners. If we can shut the problem ones down and take some $$$ (not hard earned at all) from the management companies then maybe they will screen the tourists better.
Local, as the people out in Meyers are very aware, the citizens do NOT get to vote on zoning issues. Usually they aren’t even made aware of changes till after the fact.
Tahoe local, are you sure you know all of the unintended consequences of banning vacation rentals in resential areas? 1. a drop in home values that will make the great recession look like a walk in the park. 2. foreclosed neglicted abandon homes, making your area look like a slum. 3: drop in real estate taxes, which will mean drop in income for city, county and schools. 4. drop in TOT taxes, city lays off fireman, police officers as well asother employees, city drops city services. 5. Dramatic unemployment as the people that maintained the properties will no longer have jobs, as well other service type employees.
Many people will not come here as they enjoy staying in homes vs motels, instead they will go to north shore or Stateline Nevada side.
Reloman has it right. The real estate market and resulting taxes and employment would be devastated. Better to find a solution to the problems inherent in rentals.
Reloman: I’m confused. How does a vacation (hotel) rental removed from renting decrease property value of our homes? I would think the resulting peace and quiet would increase my value. I know if I were someone looking to buy I would make sure it didn’t have vacation rentals around.
Foreclosed, neglected homes? They shouldn’t have over extended themselves. They should have learned the last time around. No offense but (in reading your post) I think you need to put the domino’s away for a bit.
When people can’t get the revenue from vacation renting they will put the house up for sale that increases the supply of available housing which drives down prices and the value of our houses. It would reduce the value of the housing stock by millions which reduces property taxes which reduces general fund revenues which reduces services and employment.
It ‘s not just a simple thing to eliminate vacation rentals we would be shooting ourselves in the foot. Better to figure out a way to make it work and keep prices stable.
Al Titude, you have to remember how many vacation rentals we have in this town. Over half of our single family residential homes are vacation homes, a great majority are rented out lets put that number at say 5000. Without the income vacation renting provides most would no longer be able to afford it, they would have to sell or br forclosed on. If 3500 homes were forced to be put on the market within a year you had better believe that would depress the market so badly that you would very likely lose half of your equity for a decade, Since there would no longer be vacation home renting that would knock i would guess half of the current(at least) 2nd home buyers out of the market further enhancing the problem. The loss in equity would be hundreds of millions.
This is Tahoe and I don’t think anything could cause people NOT to buy a house here – might get a different type of buyer, like a young local family, what a concept.
It would help if we only allowed vacation rentals for 7+ days as other places do.
I’m surprised their the first management company to use technology in the way that they do. Welcome to Tahoe TurnKey!
Interesting info: “TurnKey is a firm out of Austin, Texas,” they are from out of the area.
They want to “treat vacation rentals more like hotels,” ok.
“They have” the ability for them to change door locks remotely, as will hackers?
The Android Tablet will be safe a secure along with the Decibel Meter, sure.
They get to compete with Yelp for comments.
Good luck.
What was a HOME worth before it became a hotel? If it was not a vacation rental it would be worth exactly what a home should be. As soon as you make that HOME a hotel it is worth more. If we got rid of these hotels without managers the HOMES would then be worth what they were before, In other words, they would be worth what the owner originally paid. We got rid of the parking meters by petition. It is now time to do the same with vacation rentals. The same properties seem to be the problem but no matter how many time there are complaints nothing seems to be done to stop the problem house/hotel. There are over 1500 VHRs in the City. Maybe that is to many. Locals are treated as second class citizens when it comes to these rentals. I have lived here over 50 years and the past 10 since the new ordinance was enacted have made the area I live almost unbearable. I will not move but wish the VHRs would disappear. This spring I will try to start a petition to get the ordinance off the books, May not work but it is time to try. There are many locals that will sign. Just hope there will be enough to get it on the ballot/.
Maybe there is a way for VHR’s to stay, and peacefully coexist with full-time local residents, if they would only enforce the laws on the books, and not blame the cities inability on the tax collector, if that really is the case, then change the law, so you can enforce it, instead of ignoring your citizens.
Bump: Get it out here in Meyers. I’ll gladly sign it.