[00:00:00] Speaker A: Hey y'. All, welcome back to another episode of the short term show special episode series on our markets. We are working on the southern Utah market today. We have our agent, Cody Roberts here and we're going to talk about how to manage a short term rental in the southern Utah market. So the things that you're going to run into when you're managing a short term rental that are specific to this market.
And we've got a really cool show for you today. Cody, how's it going?
[00:00:27] Speaker B: Fantastic. Excited to be here as always and love talking about the southern Utah market.
[00:00:33] Speaker A: Awesome. Awesome. Well, I'm going to apologize in advance. I'm having some allergies, so I sound a little nasally and I'm sorry because that sounds really annoying. It annoys me to death when people have a nasally like when they're on a podcast and they're, they probably should have canceled because they sound weird. So anyway, now I've called way more attention to it than is necessary and, and let's get started. So Cody, what are some things that are, that you're going to run into when you're managing a short term rental in this market that you may not run into in other markets?
[00:01:04] Speaker B: Well, the exciting and the positive side is that you're going to run and not run into compared to other markets is typically, again we've mentioned it before, we have 300 plus days of sun. So you always have good weather.
At least most of the time. You don't have to worry about snow or access or snow removal. You don't have to typically worry about hurricanes or just just bad weather in general. And so I think that's always a positive thing that generally your guests will have a good experience down here.
[00:01:40] Speaker A: Gotcha. So no hurricanes. That's, that's a good one. Do you have snow?
[00:01:45] Speaker B: No snow.
Typically in southern Utah you might get a little bit of snow every three years, but it's melted by noon.
So generally speaking, no snow.
[00:01:56] Speaker A: Okay. Tornadoes.
[00:01:58] Speaker B: No tornadoes.
Nothing to worry about there. So again, the wind can pick up and it can get quite windy, but it never gets to the tornado stage.
[00:02:10] Speaker A: Okay, what about wildfires?
[00:02:12] Speaker B: The wildfires is something to keep an eye on.
But down here in where the city is and where most of the rentals are, and even up in the park, you're not going to see very much of the wildfires. If we do get some, they're going to be in the mountains a little bit further away. Now some people might have rentals up in, in the mountains and so then they would have to keep their eye on that.
But the fires that you'll hear a lot of times in, in Montana, California and those type of things that really affect things, you don't see that much here, huh?
[00:02:47] Speaker A: So if you're an investor who is averse to natural disasters, this might be a good spot for you.
[00:02:53] Speaker B: Very good spot.
We're fairly shielded here. A lot of the red rocks and the way that the weather is, generally speaking, a bad weather day would be again I say 300 days of sun. So maybe you come and it happens to be the three days of rain and you just have to deal with the rain.
[00:03:14] Speaker A: Well, I think we're used to that everywhere else in the country, so no big deal.
[00:03:18] Speaker B: And you don't really know what umbrellas are here.
[00:03:22] Speaker A: So you mentioned 300 days of sun. Is there anything that you have to do management wise about the sun? Is it harder on your wood surfaces of your house, your roofs, things like that?
[00:03:35] Speaker B: Sure, sure. Your outdoor furniture, your outdoor kitchen set or barbecue set is going to be beaten by the sun.
So some of that will start to wear out sooner than others.
Again, you're not worried about humidity and you don't have to worry about mold and that type of thing. But the UV rays can be down on your, your pool covers and your barbecue covers. And so they will tend to wear out a little bit sooner than other places. But nothing to worry about too much. And then the roof structures here usually are meant to design it. So they've got the tile roofs on most of the roofs out here. So they're used to getting the heat and are good for that type of environment.
[00:04:20] Speaker A: Okay, cool. And so your seasonality, when is your high season and your low season in this market?
[00:04:27] Speaker B: Yeah. So generally speaking, because again, during the summertime we can get up to 115, 120 degrees. So it could get pretty hot.
We still get a lot of bookings during the summer, but generally speaking, people like to come in the spring and the fall.
That way they don't come when it's too hot and too cold in the winter times. Now for us, cold in the winter times is still 40, 50 degrees.
So it's not like freezing cold as you'll get in some of the winter ski climates.
But yeah, so the three months in the spring and the three months in the fall would be your, your busy seasons around here.
[00:05:06] Speaker A: Okay, good to know. So I like that because a lot of short term rental markets, the busy seasons are either the summer like beach markets, or the winter like true ski Market. So this is a bit of a unique market in terms of having a spring and a fall high season.
[00:05:23] Speaker B: Now what's cool too is you're still going to get a fairly consistent booking year round. So that's the cool part. I mean, you still get a good amount of bookings in the summer and in the winter.
But if you were to look at your history, the spring and fall are the peak seasons, but it's still a consistent booking year round. And if you, like you just said, if you had a property in a ski resort area or a beach resort area, this could be a good offset to that.
[00:05:51] Speaker A: Okay, great. And is there anything about the type of guests that's coming in, so the type of vacation or the things that they're coming to do that you need to be aware of? Maybe if you own short term rentals elsewhere and you're getting into this market that you may need to equip your property for. So for example, here at the beach we provide beach wagons and ice chests and things like that because we know they're going to have to drag a bunch of stuff to the beach. So is there anything like that with guests in this market that you have to kind of prepare for?
[00:06:24] Speaker B: Sure, yeah. So again, access to water is, is big as it does get really hot. So pool towels is, is really important.
And we don't really, not really beach towels, but I guess they're the same thing.
But that way they, they have the extra towels they need if they have access to a pool or if they have a private pool, or even if they want to go to what we call is splash pads, we'll have those throughout the city that they can visit to. And so that's really an important thing.
I've seen a lot of people offer bikes, mountain bikes, cruiser bikes. Bikes is a big thing, outdoor activities. So when people come, they want to spend time outdoors. That's their, their main intent when they come down here and they'll go hiking, they'll go biking, they'll go do water activities. So having those type of things can be fun.
Paddle boards, any, any type of water, water activity would be, would be good to stock in the unit.
All right.
[00:07:29] Speaker A: Is there anything related to maintenance that might be different here than in other markets?
[00:07:36] Speaker B: Yeah. So if again, if you do have a private pool, then you want to make sure that you're maintaining that pool accordingly.
So usually you'll get a local pool company that'll come out and just do the weekly visits and keep that pool maintained properly.
The last thing you want is to have a guest come in and either the pool's not working or it's dirty, or if they decide to book in the wintertime and they want the pool to be heated and your heater doesn't work. So it's really good to make sure that you're on top of the pool maintenance and, and a lot of clients, investors will actually prefer the community pools that are part of the HOA because then it's already maintained by the hoa. So that's always a thing to think about is private pool versus a community pool.
[00:08:25] Speaker A: Okay, awesome. And so let's talk about some of the expenses of running these. Are there any, you mentioned earlier offline that the heat is different in the, in the wintertime than other places? So I want to hear about maybe some expenses that you may have and whether it's maintenance or just general utilities that might be different here than other markets.
[00:08:48] Speaker B: Yeah, definitely. So again, it gets really hot in the summertime. So something to expect is that AC is going to be running quite a bit. So your air conditioner is just as critical or more critical than a heater in some of these other climates.
And a lot of the power companies around here will flatline your utilities. Some investors like that. So they pay the same amount year round. If you don't do that, your summertime power bills are going to be really high versus your wintertime.
Now, the other thing to think about too is most of these are what's called a heat pump, where your air conditioner just works in the reverse for the wintertime in heating your home, and they're quite efficient. But if it gets, for some reason, just extra cold in the wintertime, then your clients might go, hey, the heater's not working because the air that comes out of a heat pump is maybe 50 degrees, which might feel cold, but it's still enough to heat your home. So it sounds counterintuitive, but it does work. And so if you're not used to the way heat pump works, some of your guests might go, wait a second, this isn't working, when in reality it's still working.
And then if you decide to turn your heat off when it's not booked and then you try to turn it on quickly before a booking.
Heat pumps can take a little bit longer to heat up a home, so you have to think about that in advance. Go, oh, I have a booking on Friday. I might want to turn the heat back on today just to make sure and get it to the, to the right temperature that the guests might like,
[00:10:20] Speaker A: okay, good to know. Yeah, that's something a little bit different.
Anything else related to maintenance? The utilities expenses?
[00:10:29] Speaker B: Yeah, so just make sure that you're preparing again for the pool expenses.
I mean, it can be 2, $300 a month to hire a pool company to maintain your pool. Keep that in mind. If you, if a guest wants the pool to be heated, that's also something that you've got to think about in advance.
So let's say you have a booking in the wintertime, and the temperatures are going to be 60 degrees outside, but the guests want to make sure the pool is at 75, 80 degrees. It can take two to three days to keep that pool up to that temperature.
So just make sure you're thinking of that in advance.
And if the guests want that, they can do that now. You can. Also, a lot of property managers around here will charge a fee to heat the pool. So if you put that in your guest experience and expectations that way, if the, if the guests want that pool to be heated and you charge them an extra 50 bucks for that, for example.
So those are things that you can add to your, your, your guest expenses.
[00:11:37] Speaker A: Awesome. Awesome.
Let's see.
You mentioned there's a specific type of roof that properties usually have here because of how hot it is. Are all of them going to have that? Do we need to be looking for when we're buying properties that have tile roofs? You're good.
[00:11:52] Speaker B: Pretty much all of them are going to have that around here. Okay. Yeah. But it is something that we can always take a look at if, if, if we're maybe looking for the outskirts or an older home that, that maybe doesn't have that, that's something that we can take a look at.
But there's still shingles that do really well in this market. So that's something that we can easily take a look at in inspection stage when we're, when we're looking at purchasing a property.
[00:12:17] Speaker A: Okay. So when I think about the desert, I think about dust and like loose sand. Is there any thing that buyers need to be aware of when it comes to either A, erosion when they're buying properties, or B, just dust maintenance. Do you have to, like, is it your, your pool chairs and stuff? They're going to get super dusty. You have to have those clean in between every guest or how does that work?
[00:12:43] Speaker B: Yeah, definitely. You definitely. There's a lot of dust. And again, it can get very windy. And so, like, for example, pool covers will always seem to have a little bit of dust on them. And what A lot of times is if you get the right cleaners and have the right SOP in place, they'll clean that pool cover off before the guests arrive. So it doesn't. Doesn't appear that it's. That it's dirty. And it's the same thing. Like we said with outdoor furniture. Outdoor.
Any. Any appliances you have outdoor, it's gonna. It's gonna take a little. A little bit more to keep it clean because of that. And it also depends on the exact areas that you're in that you'll get a little bit more dust than not. And it's that red. That red soil, that red rock that's. That's famous for southern Utah. And that can even affect the sides of your house, the front of your house. Right. It can. It can start to look a little bit red. So you got to keep. Keep on top of that and just keep that clean. But. Yeah, but extra maintenance involved.
[00:13:45] Speaker A: Got it. So you got to keep it power washed. And you mentioned a pool cover. So in a lot of markets like here in Florida, we don't have to have a pool cover. Is that because of the dust that you have to have a pool cover?
[00:13:55] Speaker B: Exactly, exactly. So I'm glad you circled back to that. Yeah. Every pool out here is going to have a pool cover. If not, your pool is going to fill up with basically dust, slash dirt.
And then it just keeps it cleaner, it keeps it nice. And you just open the pool cover when you want to go get in the pool and then close it. Typically, they're just right out side by the pool somewhere, and you push a button, it opens it, and then when you're done, you close it.
Pretty. Pretty simple for the guest to operate. And it just. It's. It's. Is critical to have open cover.
[00:14:32] Speaker A: Good to know. Y' all take note of that.
All right. So would you say your target guest, is it going to be families? Is it going to be adult hikers, Large groups, smaller groups? What is our target guest here?
[00:14:47] Speaker B: Yeah, so the tourism industry has determined that our average guest here is. Is about 3.6 people.
So typically it's a family, and you'll get a, you know, a mom and dad with. With a few kids, and they'll come down and they just want to spend. They just want to get away and relax, and the. The kids have a great time just playing outside with the water, and then they'll go and maybe do a few hikes here and there. But typically it's. It's families is. Is the typical guest here.
[00:15:22] Speaker A: Families. Good to know.
All right, so what else have I not asked in relation to how to manage a property here that might be different from managing in other markets?
[00:15:33] Speaker B: Yeah, I think, I don't know if this is specific to this market, but typically what we like, what we see is there's an electronic keypad for entrance into, into the home.
You'll get a code when you book it. We don't see very many keys around here, so that way you don't have to manage keys. You don't have to worry about them getting lost or getting returned.
So I think that's something to keep in mind.
We also like to see that the kitchens are well stocked.
You get families here and they tend to go out, but also do a lot of at home cooking and so make sure that the kitchen has pretty much everything that you would have at your home kitchen.
And we found a lot of success that way.
[00:16:23] Speaker A: Okay, so pretty standard. Make sure you have a well stocked kitchen. I like to have well stocked bathrooms. So, you know, the little mini shampoos, conditioners, soaps, makeup wipes, things like that. I like to use the disposable makeup wipes instead of now. We used to use the black terry cloth washcloths, but those still, you know, you have to replace those every now and then. So it's a lot easier to, to just use the single packs of makeup wipes and put three or four out for them.
What else? So we're looking at families. Is there anything?
Go ahead.
[00:16:59] Speaker B: Oh, sorry. I was just going to mention what you'll find a lot here and maybe this is becoming common elsewhere too, but put more beds in than you might think. So bedrooms that have maybe four to six bunk beds in them is very, very common. So that families that come down that have a lot of kids, or let's say a common thing that you'll see is I want to go down there with my kids, but I want my brother to come down with me with his kids and maybe my sister with her kids and. And we all go in together on a home. And now we've got eight kids. And so, you know, if there's a room with a bunch of bunks that they can all stay in the same room together. It seems to be quite popular.
[00:17:46] Speaker A: Okay. Has the hyper amenitization culture reached this market yet? Are people doing these big immersive themes and murals and pickleball courts and filling up the backyard with all kinds of amenities, soup, or do you have to do that here?
[00:18:00] Speaker B: You don't have to do that. But it is coming.
So again, I think what, what happens is, is people will look for those communities that already have it. So, so you have the community pool, you have the community pickleball. Pickleball is huge here. You've got just a lot of community activities that are successful, but you'll still see some properties that have their own, like, private pool, private hot tub, private pickleball court that is quite popular here.
So you can, you can go the private route, you can go the community route. And both are successful. So you don't have to have those extra amenities, but it will set you apart if you do.
[00:18:40] Speaker A: Gotcha. And is there anything that you find the top performers in this market are all doing?
[00:18:47] Speaker B: I think the key for top performers is, and this will apply to any market is remember that you're in the hospitality business. Yes, you're buying real estate and you're getting into the real estate market, but you're really getting into the hospitality business. And Avery, you talk about this all the time too. And just know what business you're getting into and deliver an excellent guest experience because that'll set you apart.
Down here. You'll find that you have a lot of properties that have been listed as a short term rental, but it's kind of a, it's not their primary focus. It's. It's a little bit of a side business, kind of like whatever.
And so then they're not delivering that exceptional guest experience. And so the ones that do really set themselves aside.
[00:19:34] Speaker A: Awesome.
So there was something that I was going to ask that I just lost. She's going to have to edit that out.
Okay. Yes, you are 100. You're running a hospitality business. This is not just passive real estate investing. There really is no such thing as passive real estate investing, honestly, unless you're just investing in a syndication. But even then it's still like, where's my money?
So, anything else before we sign off about managing a property here that might be different from other areas?
[00:20:06] Speaker B: Yeah, so the, the themed properties have started a little bit here and there.
There's a property that's kind of UFO themed or Area 51.
[00:20:17] Speaker A: Oh, that's cool.
[00:20:19] Speaker B: A property that's like Disney, like be our guest kind of a team. But you don't typically see that very often here. It's not necessary, it's not needed. The style out here is like a desert modern or modern desert. I might have said that backwards. But as long as you keep with that, with that theme and just have a very light open and desert and fun activity based property. You're going to be very successful.
[00:20:52] Speaker A: Okay. Love it. Well, guys, if you're interested in learning more about the southern Utah market, stay tuned. We've got a few more episodes coming up. Or if you're ready to buy, maybe have a meeting with Cody. You can reach out to
[email protected] and we'll get you connected and we will catch you on the next one. Thanks, Cody.
[00:21:10] Speaker B: Thank you. It's great being here.
