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-   -   Vacation rentals and COVID 19 (https://www.thehulltruth.com/dockside-chat/1074562-vacation-rentals-covid-19-a.html)

tprice 04-08-2020 07:23 PM

Vacation rentals and COVID 19
 
I have read some of the regs on SBA but honestly have not had time to really read them all

Curious if anyone with vacation rentals has applied for the EIDL from SBA, right now our vacation home only has 1 week rented However we have been lucky, had LT renters in there since Oct and looks like they are staying through May

Our vacation rental is a 1065 partnership (my Sister and I ) and I am guessing summer rentals will be slim if any at all at this point

I do not want not want to apply right now in case this stuff gets out of here by end of May but do not want to miss out on this if we can do it

MikeMadBch 04-08-2020 07:39 PM

We own 3 vacation rental units and have lost over $30k in rentals due to cancellations so far. We have even had people want to cancel for July and one even wants to cancel for next year already. We applied this week. From what I understand, the funds may be limited and if you don't get an application before it's too late, it will be too late. I'm certainly no expert on this, but the answer to your question is "yes" we've applied.

tprice 04-09-2020 05:26 AM


Originally Posted by MikeMadBch (Post 13527452)
We own 3 vacation rental units and have lost over $30k in rentals due to cancellations so far. We have even had people want to cancel for July and one even wants to cancel for next year already. We applied this week. From what I understand, the funds may be limited and if you don't get an application before it's too late, it will be too late. I'm certainly no expert on this, but the answer to your question is "yes" we've applied.


Thanks


Will fill out app today, been doing these for clients since last Friday or getting their information for PPP programs

By way there is more money coming it appears

mikeloew 04-09-2020 07:04 AM


Originally Posted by MikeMadBch (Post 13527452)
We own 3 vacation rental units and have lost over $30k in rentals due to cancellations so far. We have even had people want to cancel for July and one even wants to cancel for next year already. We applied this week. From what I understand, the funds may be limited and if you don't get an application before it's too late, it will be too late. I'm certainly no expert on this, but the answer to your question is "yes" we've applied.

Mike can you tell us in a little more detail where you have applied? I was under the impression you had to have employees on the payroll to be eligible. For many here the management company we hired does all the day to day stuff, so really I have no employees.

tprice 04-09-2020 10:51 AM


Originally Posted by mikeloew (Post 13528432)
Mike can you tell us in a little more detail where you have applied? I was under the impression you had to have employees on the payroll to be eligible. For many here the management company we hired does all the day to day stuff, so really I have no employees.


You are talking at about the PPP

The other one is the EIDL which is a “non repayable loan” (grant ) that you can apply for. That one is VERY simple and takes about 5 minutes on the SBA website

mikeloew 04-10-2020 11:33 AM


Originally Posted by tprice (Post 13529373)
You are talking at about the PPP

The other one is the EIDL which is a “non repayable loan” (grant ) that you can apply for. That one is VERY simple and takes about 5 minutes on the SBA website

Thank you, I filled it out, I see one of the questions asked is, how much have you lost? How in the world can you answer that, as we won't know for a while.

MikeMadBch 04-10-2020 09:06 PM


Originally Posted by mikeloew (Post 13533181)
Thank you, I filled it out, I see one of the questions asked is, how much have you lost? How in the world can you answer that, as we won't know for a while.

Sorry I didn't get to answer you sooner, but I see that someone else did. And, they gave you the answer I would have. It's not PPP, it's the quick-hit $10,000 "emergency" loan/grant that we applied for. I believe there are others that are/will be available. So far, we've just sent the application for the $10k. We have figured that we have lost very close to $20,000 so far, with a few more people calling/emailing in the last few days asking about cancellation policy or "what do you think about my arrival in June...?" type of questions. We had one try to cancel for July 4th week as well. By the time this ends we could lose $30,000-$40,000.

My wife does all of the accounting, so, she's been handling the application and is currently working on the next one (but I'm not sure which program she's looking into). I'll ask which direction she is headed for the amount over $10k and will update it if I don't drink to much bourbon again tomorrow night.

dannyroche 04-10-2020 09:27 PM

Feel for you. Think about it.
Who is buying appliances or having work done at their homes?
Who is buying cars. boats or other big ticket items?
Who is going to sell a house and have who knows who with who knows what that sticks around for days in and who is going to go in to a house to look around?
Who is going to rent a place that rents by the week?

This environment is more than toxic to some folks.

SmokyMtnGrady 04-10-2020 10:42 PM

We have 3 vacation rentals as well and went for the FEMA Covid money. Our counties shut down lodging on March 15. Everybody out. The time is indefinite. We are in Western North Carolina. My retail stores also closed. Tourism here is non-existent. We have lost about $20,000 for March and April now.

crazybeard 04-11-2020 02:46 AM


Originally Posted by tprice (Post 13529373)
You are talking at about the PPP

The other one is the EIDL which is a “non repayable loan” (grant ) that you can apply for. That one is VERY simple and takes about 5 minutes on the SBA website

let's clarify this some.

it is an advance for the EIDL loan of "up to" 10k which whatever amount they advance you won't have to repay, even if you don't qualify for the loan.

so what we don't yet know is:
- when the hell anyone will get it because it was supposed to be in 3 days but hasn't been
- how much you will get
- this is per taxable entity aka EIN/ TIN so some people may qualify multiple times
- what requirements need to be met later on to qualify for non repayment/grant status, if any. Some possible Ex: you actually have to apply with an SBA lender and accept a loan if offered, or complete an application which is SBA reviewed by a certain date.

I admit I don't know many details, but it seems nobody does yet. So just be aware it may not be be $10k and who knows what devils are in the details.

tprice 04-11-2020 07:51 AM


Originally Posted by crazybeard (Post 13535075)
let's clarify this some.

it is an advance for the EIDL loan of "up to" 10k which whatever amount they advance you won't have to repay, even if you don't qualify for the loan.

so what we don't yet know is:
- when the hell anyone will get it because it was supposed to be in 3 days but hasn't been
- how much you will get
- this is per taxable entity aka EIN/ TIN so some people may qualify multiple times
- what requirements need to be met later on to qualify for non repayment/grant status, if any. Some possible Ex: you actually have to apply with an SBA lender and accept a loan if offered, or complete an application which is SBA reviewed by a certain date.

I admit I don't know many details, but it seems nobody does yet. So just be aware it may not be be $10k and who knows what devils are in the details.


Agreed

Not a lot of detailed information

My issues with applying for EIDL right now is we technically have not lost any revenue to this point Long term renters been in since Oct and leaving end of April, possibly could stay through May (told agent whatever they would pay to take it basically )


With that said I see only 1 week booked in summer and quite honestly that is when we normally collect 90% of rents (this winter has been a lifesaver so far).

So I can not in good faith say we have lost any revenue as of today but I am sure by summers end that will be much different Not sure if I have to wait until later on to complete the app and submitted it and do not want to collect something we are not entitled to

crazybeard 04-11-2020 08:00 AM


Originally Posted by tprice (Post 13535656)
Agreed

Not a lot of detailed information

My issues with applying for EIDL right now is we technically have not lost any revenue to this point Long term renters been in since Oct and leaving end of April, possibly could stay through May (told agent whatever they would pay to take it basically )


With that said I see only 1 week booked in summer and quite honestly that is when we normally collect 90% of rents (this winter has been a lifesaver so far).

So I can not in good faith say we have lost any revenue as of today but I am sure by summers end that will be much different Not sure if I have to wait until later on to complete the app and submitted it and do not want to collect something we are not entitled to

The eligibility on SBA page says "has been adversely affected" not "already lost revenue"

so if you believe you have, by way of cancellations or not receiving bookings like you have in years past, that may qualify.

Hey, it may even be summer by the time this thing rolls out anyway! I doubt SBA would be on your case if you sent them the "up to 10k" back if it turns out you aren't impacted.

autobaun70 04-11-2020 08:12 AM


Originally Posted by tprice (Post 13535656)
Agreed

Not a lot of detailed information

My issues with applying for EIDL right now is we technically have not lost any revenue to this point Long term renters been in since Oct and leaving end of April, possibly could stay through May (told agent whatever they would pay to take it basically )


With that said I see only 1 week booked in summer and quite honestly that is when we normally collect 90% of rents (this winter has been a lifesaver so far).

So I can not in good faith say we have lost any revenue as of today but I am sure by summers end that will be much different Not sure if I have to wait until later on to complete the app and submitted it and do not want to collect something we are not entitled to

Worst case just sit on the cash and pay it back if deemed ineligible later down the road? Based on what I've read, the non-PPP things are a much smaller bucket of $, and when it's gone its gone.

mikeloew 04-11-2020 08:48 AM


Originally Posted by autobaun70 (Post 13535736)
Worst case just sit on the cash and pay it back if deemed ineligible later down the road? Based on what I've read, the non-PPP things are a much smaller bucket of $, and when it's gone its gone.

This is also my plan if I really see .1 cent. But I know in my case, I have an 11 year history of what I have reported on my taxes as income from my rental to make a case of lost income.


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