Topsail Island Vacation Rental Property Management Case Study

All of our case studies are from actual homes or properties we have managed to show our track record.

Situation

Owners of a tidal creek lot on N. New River Drive in Surf City decided to build a vacation rental property.

Challenges

1. The home was located on the waterway side of N. New River Drive. This meant it was less desirable for families since they had to cross the main road and several secondary roads to get to the beach access.

2. The home was completely unfurnished since it was new construction.

3. The home had no notoriety in the vacation rental market.

4. The home must produce income for it’s expenses and turn a profit afterwards.

Solution/Results

Lewis Realty Associates, Inc. was contacted by the owners a few weeks before the home’s Certificate of Occupancy was issued to project pricing, offer furnishing recommendations and begin crafting a marketing plan.

Several months later the home was furnished. Lewis Realty Associates, Inc photographer shot the home using exposure fusion techniques, crafted a 360 x 360 degree virtual tour and produced a video of the home complete with aerial videography. Aerial shots showed home in connection with short walk to beach access as well.  Lewis Realty Associates, Inc. then added the property into it’s vacation rental marketing program which included over 16 vacation rental websites at no extra charge to the owners.

Being in the winter time or off season, Lewis Realty Associates, Inc. secured a seasonal tenant that earned extra revenue for the home instead of allowing it to sit empty during the off season.

The seasonal tenant left in the second week of June and the vacation rental bookings began two days after the latter tenant’s departure. The home was continually booked throughout the season back to back, week after week. Much of the fall season the home had tenants as well.

Techniques Used:

1. Broad Internet Advertising To Reach Potential Tenants.

2. Professional Photography To Highlight the Home.

3. Professional Videography To Provide Potential Tenants a Virtual Experience Before Booking.

4. Calculated Rates To Out Book Competition.

5. Leveraging the Established Lewis Realty Associates, Inc. Brand

6. Leveraging two different type of rental setups (vacation and seasonal rental).

The first season results were:

Nights Available To Rent: 320 Nights.

Nights Booked: 265

Occupancy Rate: 83% for the year.

Lewis Realty Associates, Inc is pleased to announce that Beth Dudley has joined the Lewis Realty Sales Team currently located at 809 Roland Avenue in Surf City, NC.

Beth Dudley has well over a decade of real estate sales experience in the Topsail Island market and has called Topsail Island her second home since birth.

Beth, a graduate of East Carolina University in Greenville, NC, began her real estate career soon after. Beth brings vast experience in the local market having served as a Broker in Charge for a franchise company formerly located in Topsail Island not to mention the multitude of buyers and sellers she has represented. 

Lewis Realty Associates, Inc. President, Chris Rackley stated, "I had always been interested in having Beth join our team. Late this fall the opportunity finally presented itself! Beth brings vast local and coastal knowledge, the drive to succeed and a loyal following of clients. Our team gladly welcomed Beth with open arms."

If you are looking for a waterfront specialist with knowledge of island real estate, Beth deserves a call from you.

Beth can be reached at 910.470.5481 . 

NC State Insurance Commission Caps Topsail Island Rates for 2015

This is not insurance advice. Lewis Realty Associates, Inc are not licensed for insurance brokerage or advice. This is only our interpretation of a press release. Contact your insurance provider for more information.

Earlier in 2014, home owner insurance companies submitted a request to raise home owner insurance in North Carolina (including Topsail Island) as much as 25.6% on average (coastal properties were as much as 35%). This would no doubt have been a determent to the real estate and rental market in all of North Carolina. In Topsail Island, it would have resulted in slower sales and higher rents; not a good thing for the state economy or the general public.

The North Carolina Department of Insurance headed by Wayne Goodwin must approve rate changes to better serve the public interest by providing a check and balance on rates.

On December 19, 2014, the commission denied the rate increase request by the insurance companies and instead mandated a 0% overall statewide rate change. This is slightly misleading because it appears to be figured on the state's average. Topsail Island would have seen as much as a 35% increase but rather will see approx 5.6% reduction. 

Topsail Island has always been one of the more affordable beaches for both sales and rentals. This change in insurance rates should help keep that trend going.

Sources - http://www.ncdoi.com/media/news2/year/2014/121914.asp

              http://luminanews.com/2014/12/commissioner-tempers-insurance-rate-increases/

Chris Rackley 910.328.5211- Lewis Realty Associates, Inc.- President/Broker in Charge

Here is a list of the remaining holiday events as of 12/18/2014 in the Topsail Island, NC area. Topsail is always a special place but especially sure during the Christmas season!

• Soundside Park - Every evening, Soundside Park in Surf City is all lite up for the season with a large 2 story Christmas Tree! Bring the kids out for a stroll down the boardwalk and look at all the pretty lights!
• Holly Ridge Children's Christmas Party - December 20th at 11am, Every child gets a gift, Santa will be there in all his holiday glamour, cupcakes and pizza served.  At Holly Ridge Park, All Completely Free!!
• Dolphin Dip - Surf City, NC - Jan 1, 2015, Charity Swim Event Fundraiser with all proceeds going to Ocean Cure. Annual Event and this year may be a record breaker nationally!

Chris Rackley 910.328.5211- Lewis Realty Associates, Inc.- President/Broker in Charge

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Lewis Realty Associates, Inc is pleased to announce that it has acquired Bryson & Associates, Inc, a local owned and very reputable real estate company.

The former Bryson and Associates, Inc was a family business started by the late Sterling Bryson over 31 years ago and soon on board was his sister, Sterleen Bryson. Bryson and Associates, Inc was and will always be known for professional service that helped the Bryson family to build a very loyal following and make many friends over the years. 

"When the opportunity to purchase Bryson & Associates, Inc was given, it excited me to combine two very similar companies into one. We believe this acquisition will allow our clients access to even more technology and exposure. Vacationers should benefit as well as we will now have one of the larger inventories in the area. " said Lewis Realty President, Chris Rackley. Rackley also further added that "The Brysons have an impeccable reputation for honesty and that has always been one of Lewis Realty Assoc. Inc's core values."

Sterleen Bryson plans to associate her real estate license with Lewis Realty Associates, Inc but plans to enjoy her new found retirement with travel and some relaxation. Please congratulate Sterleen if you bump into her on the island . . she has reached the goal of us all!

Lewis Realty will be maintaining a presence at the former Bryson location for at least the next few years. Until the fall of 2014, the former Bryson inventory of vacation rentals will be handled from the Bryson office location at 809 Roland Ave, Surf City. After the fall, Lewis Realty will open a real estate sales office at the location and handle the companies vacation rental inventory from it's main office at 320 N. New River Dr in Surf City. 

For the loyal clients of Bryson and Associates, all phone number and web addresses will remain live and in full use. Bryson's clients can also expect equal service for all their real estate needs. Rackley said, "We made an
easy decision to retain the Bryson staff as it clearly was evident they have been providing their clients great service over the years. We are excited to have them on our team!".

Lewis Realty Associates, Inc., one of the oldest real estate firms on the island, currently manages vacation and long term rentals and offers real estate sales services. 

Lewis Realty believes that our core values of Honesty, Local Knowledge with Experience and Technology will always bring great service and success to our clients.

Lewis Realty now has a combined team experience of over 300 years; more than any other real estate company in the Greater Topsail Island Market (closest competitor was 114 years).  Lewis Realty Associates, Inc also held the top spot before the acquisition with 226 years.

We Know Topsail Island . . We Have Been Here Over Fifty Years.

We just wanted to do a short update and offer some recommendations for our two Photo Contests (I <3 Topsail & the new Selfie Contest) for the summer of 2014 (both have prices of a free off season condo weekend).

The Selfie Contest is the first of this kind of photo contest that we have put on. We have noticed that some individuals may have clicked the wrong contest or did not understand the "trendy" term of a "selfie".

A "Selfie" is a photo in which the person in the photo or someone in their group that is in the photo holds the camera out and snaps a picture. It is not when someone stands away and snaps a photo unless they too are in the photo. Here are a couple famous "selfies":

Some of the photos in the selfies contest appear to not be actual selfies . . and we have had some contestants point this out to us.

In order to be fair to all, we are going to remove those photos from the selfie contest. We may or may not be able to notify everyone that they have been removed. So if you see that you photo has been removed from the contest, please add it to the 4th Annual I <3 Topsail Photo contest for the same kind of prize as it would fit better there.

We are also going to set up the Selfie Contest to allow us to approve all entries before they are officially submitted so we can ensure that we keep this contest fair as possible.

A helpful pointer for either contest, be sure to share your entry among friends so they vote for it. We don't judge the photo, it is whoever has the highest number of votes at the end of the contest.

Here is a helpful little screen shot showing which tab you should click to access the two different contests we are running right now.

Thanks to all that are playing in the contest past and present.

As an update to our original blog post concerning the flood insurance changes due to the Biggert-Waters Act, we are happy to report that the Senate has passed the house bill 3370 which amends the latter act. This not only affected Topsail Island but affected the nation, even inland areas!

The senate choose to accept the house bill with a 72 to 22 vote on Thursday March 13, 2014. President Obama is expected to sign the bill into law soon.

So what does this mean for the law of the land when it comes to Flood Insurance and the NFIP?

1. The original law had a premium increase trigger on the sale of the property. The new bill repeals this trigger on primary homes, second homes and businesses by allowing the new owner to assume the policy at the old rate (policy follows property not owner). It also allows for refunds to those who paid the increased premiums after the original law was passed.

2. It also repeals Sec 207 by restoring grandfathering of properties in flood zones and restores a rate phase on new flood maps.

3. The bill does have some rate increases to help the NFIP become sustainable though.  For homes built before 1975 (generally Pre-Firm)there will not be a 5% floor and 18% ceiling on increases (reduced from 25%). If built after 1975 (generally Post-Firm), an 18% ceiling will be in effect reduced from a 20% average.

4. A $25 offset will be charged on all NFIP primary homes and $250 on businesses and second homes. 

Although rates will not be as they were before the summer of 2012 this a welcomed changed backed by the National Association of Realtors.

As we are not insurance agents, please speak with your insurance agent, we are only passing along what we understand.

Source -> http://www.realtor.org/articles/senate-passes-flood-insurance-with-house-amendments

Chris Rackley 910.328.5211- Lewis Realty Associates, Inc.- President/Broker in Charge

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If you have not heard of the Biggert-Waters Act of 2012, you can get up to speed here. This law has changed how business is done with flood insurance here on Topsail Island. However, there are more changes coming, most of them better news!

We are not insurance agents and do not mean for this post to give actual insurance advice but only pass along what information we have read and our opinions of such.

The Biggert-Waters Act of 2012 was meant to bring the NFIP (National Flood Insurance Program) back to sustainability.  That is not a bad idea, we really don't want to bankrupt the government with flood insurance claims. However, the changes to the NFIP in the act has caused huge increases on some properties flood insurance rates. Many homeowner's just simply could not afford the drastic changes.

Per Biggert-Waters Act of 2012, it changed:

->Buyers and some owners of Pre-Firm Properties (properties built before a certain date and varies from town to town) would immediately go to full risk rates.

-> Pre-Firm buildings already rated with elevation data are not subsidized.

-> Some Pre-Firm property owners will move directly to full risk rates at policy purchase/renewal on or after October 1, 2013. 

(source - Real Estate and Changing Flood Insurance Rates Provided By FEMA)

Without going into legal jargon and confusing all of us, the end result is simple most owners will see an increase in flood insurance from one year to the next and some will see rates double, triple or even worse from one year to the next. 

The United States Senate (Senate Bill 1926) took up a bill that would basically alter the current Biggert-Waters Act as follows:

-> Primary Residences Will Remain Unaffected

-> Purchasers Will Continue Subsidized Rates

-> 25% Annual Increase Still in Place.

-> Grandfathering Elimination Suspended

->Up to A Four Year Delay

-> Primary, Secondary and Business Eligible

Sometime during the week of February 24, 2014, the House is expected to vote on a similar bill. If it passes a committee will be formed to combine the bills and send to the President for his signature.

The Senate and possibly House Bills do lessen the blow to flood insurance and the CBO reports that the new bills will not add to the deficits. To us this looks to be a better solution.

Many people have identified this as just a "Coastal Issue". This is entirely incorrect, there are many places inland from the coast that are in a flood zone. This is a "National Issue".

Here in Surf City, we have a great source of information. SFI Insurance is staying up to speed on the bills and changes. They can be reached at 910.329.4443.

Chris Rackley 910.328.5211- Lewis Realty Associates, Inc.- President/Broker in Charge

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