We were one of the pioneers of owning and renting a multiple grouping of private homes for vacation stays and temporary corporate short term furnished homes as a legitimate full time business.
Like others, it took us only a short time to become aware that with several vacation rental homes, it, becomes a serious time and management
operation. This could be compared to running a motel with 12 rooms. We decided that a vacation home is like a 3 room motel for each home, so if you had 3 rental homes was like owning a 9 motel rooms business.
If we have 12 homes we would be manageable and a feasible business with full time people operating the equivalent of a 36 motel rooms.One home we borrowed sub renting from a friends home and bought 11 total homes, to make renting vacation homes work. With 12 it made it economically feasible and together that worked out, with plans to add later out as we developed regular renters over the years.
The problem is with the recession, that renter tourists, etc., cut visiting Arizona and rentals 30% due to the economy.Biggest disaster, those behind on payment home owners, decided to catch up income by renting high rental income furnished to short time tourists.
Often for weeks at much lower then our rates.
They just went and moved temporarily to live with mom. Thereby making a few weeks for rental home furnished homes to tourists. Thereby picking up enough income to pay part of rental delinquency payment shortages.
They do not pay the 4.8% sales tax we pay, they get away with it, not paying it.We have to pay all of our mortgage vacation home rental income.
If a new investor buying a "short sale" usually half the amount of principal mortgage due. This small principal with these investors paying 5% interest instead of our 7% typical, resulting in making them make it in half the payment rental rate.
We can not compete and renting it with them renting with low rate, we are unable to compete without some adjustment.We have continued and used this normal system of rental homes, over a negative year and lost over $100,000 in the last 18 months trying to keep our home rental business in Arizona and several homes and apartments in SD, and other publishing business.
Sold an 8 Apt. home nearly paid for, and sale used all recipients to make up deficits, in addition to going in rental debt.Tried to keep our business going to keep employees to keep working our long term payroll to continue operations. Have decided it only gets worse and asked loan mediation or volunteering on deficit home foreclosure.
Mortgage holders were all informed December 1 and payments stopped awaiting adjustments from when payments stopped January 1. Since nearly all had failed to respond to anything at all from first December notice, We stopped making payments January 1, exactly as preannounced.
