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PKRM 2022 Second Quarter Newsletter

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At a Glance

The update for today is much like last week. Vacation Rentals continue to be shut down indefinitely per Governor's Executive Order 20-112.
I have written Governor Desantis, written Representative Gaetz, discussed this with our district County Commissioner, spoken with other rental managers, discussed it with destination marketing executives, and echoed the concerns shared by most rental managers to the Florida Vacation Rental Manager' Association. This past week and weekend, I also reached out to media requesting that the Governor be asked at his two pressers this question: "The whole vacation rental industry wants to hear a logical answer but no one can seem to understand why the Executive Orders 20-87, 20-103, 20-111, and 20-112 all disproportionately single out and punish one segment of the entire tourism industry. Why have vacation rentals have not been allowed but hotels, motels, resorts, Ins, and timeshares all have been allowed to continue throughout this ordeal?" Unfortunately, this question nor any like it were ever asked. I will continue to request that the media confront him with this in each destination he holds pressers.
Currently, the reopening Florida plan does not allow vacation rentals to resume until phase two BUT in phase two we would only be allowed to rent to Florida residents. With the exception of Orlando, there isn't much demand for vacation rentals amongst Florida residents. Coincidentally, in phase two theme parks, like Disney, are also allowed the discretion to reopen (even to out-of-state visitors). It is not until phase 3 that vacation rentals can resume normal operations, and normal is relative to whatever requirements may be imposed. One of the requirements being discussed is a mandatory 3-day "safe time" after all rentals. For those whose homeowners associations require 7-day rentals, this will be detrimental to your summer rentals as after every 7-day rental there would be a mandatory 3-day block after every reservation. Those without a 7-day minimum would still suffer as we would need to find ways to convince guests to arrive on atypical days in order to fill the calendar as best we are able.
Through all of this, I have continued to try and come up with a reason that our segment of the tourism industry has been disproportionately punished while hotels, motels, inns, resorts, and timeshares have had no restrictions imposed. In my talks with peers, the only logical reason we could come up with is that perhaps the Governor is concerned that "Vacation Rentals" would be portrayed in the media as houses in residential neighborhoods with elderly neighbors; this is more common in areas of Southeast Florida around Disney and Universal. While I'm having to reach to come up with that possible reason, perhaps it's is why our segment is being treated so poorly. As a result, I have recommended in my communications to our representatives that the vacation rental industry be allowed a phased reopening different than what the plan currently outlines. Northwest Florida vacation rental inventory is very different than Southeast Florida. The majority of our inventory is within 1 mile of the shoreline and not often in residential neighborhoods. My suggestion is not to have a blanket approach for the entire state and instead, with phase 1, to allow vacation rentals within 1 mile of the shorelines to resume normal operations. This would best serve Northwest Florida while curbing the concerns that residential neighborhoods could be inundated with out-of-state travelers. Phases 2 and 3 could then allow for eased restrictions eventually allowing all vacation rentals in the state to resume normal operations. Again, this is my suggestion which I have relayed to all representatives I feel could make a difference for us. Unfortunately, none of the members on the group of individuals assigned to spearhead tourism on the Governor's Reopening Florida Taskforce(see list of members here) are in the vacation rental industry.
I have attached Florida's current reopening plan to this email for your reference. The pages which address vacation rentals are; 17, 21, 25, 26, and 29.
Once I have more information, I will provide another update.
 
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May 8th

I spoke with the Escambia County Board of County Commissioners(BOCC) last night. I had asked them to draft a Resolution to the Governor to immediately end the ban on vacation rentals. The Governor is the person who shut down rentals, not our BOCC, however, I believe that hearing from local governments should help the cause to get vacation rentals reopened.

The BOCC meeting went well. I waited until nearly 1045p to speak and referenced the Majority Opinion study the county had done in 2017 around the time that I was treasurer for Visit Pensacola regarding the benefit of tourism to our county; 24k+ employed, 15% of Escambia County jobs, $427m in wages, $802m in direct visitor spending, $10.3m in L.O.S.T.(local option sales tax) tax revenue, etc. My hope was that would help drive home the next part which is that TDT(tourist development tax - the county tax vacationers pay when renting) collections for May'20 were down 50+% and YTD down 10+% NOT including April's collections. I wanted to make it clear that this will all be detrimental to our quality of life in Escambia County if tourism isn't revived.

I referenced this hard data and tried to explain that with only 7 hotels on Pensacola Beach, while on the west side (Perdido Key) we have no hotels, we must allow vacation rentals to resume immediately in order to begin rebuilding our economy. All the while, it was recognized by our commissioners that a ban solely on vacation rentals only is wrong and that vacation rentals provide a safer setting for travelers than hotel rooms.

End result; great news. They agreed to draft the Resolution. I added the word "immediately" to it in the request to reopen vacation rentals as the original draft just said to open them with no referenced timeline. 

They will also send a subsequent letter asking that restaurants, bars, and personal service businesses be allowed to reopen to some greater capacity than the Reopen FL Plan outlines.

Here's the link: https://media.swagit.com/podcasts/2020/05/08/05082020-535.360.mp4

It's the last part of the video.

ALSO, this morning I learn that our neighbors to our east in Santa Rosa County are sending a similar letter to the Governor.

I sent this info to the president of the Florida Vacation Rental Managers Association and our industry publication as well to help get the word out. Let me know if you would like a copy of the draft Resolution my BOCC is sending.

Hopefully we see some results soon.

 

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May 29th

Thankfully, we've been able to work hard and generate many reservations in the short amount of time that rentals have been reopened. As we progress through the summer months we'll be striving for occupancy to ensure everyone is generating revenue. The reopening of vacation rentals in our area came with a few strings attached, but we're equipped to handle these requirements.

I explained previously how we have stepped up the sanitizing in our housekeeping efforts. This was something required in our county's reopening of vacation rentals and luckily it posed no real strain on our operations as our team of housekeepers had already been cleaning at the level required in these new requirements. While in the past the housekeepers often used cleaners bought off the shelf, which they still carry in their cleaning supplies, we have ensured that the entire team is also supplied with hospital-grade disinfectant as well as the necessary PPE(gloves and masks). 

A more impactful change to our operations includes the use of disinfectant foggers which we will be using in the properties after housekeeping. These are portable machines that disinfect the surfaces throughout the entire property. These do not negate the need for housekeepers to wipe down all of the surfaces, but it further ensures that all surfaces have been sanitized. When a turnover is not a back-to-back(same day 10am departure and 4pm arrival) for the time being this will be part of our normal routine. In cases where the turnover is a back-to-back, we will get to all properties as time allows knowing that the housekeepers are sanitizing surfaces as well in their normal cleaning duties. This process is above and beyond what hotels or many other property managers are doing, but I believe it will help us reassure concerned vacationers that our housekeeping efforts are superior to others. In my conversations with renters currently staying and those booking for future stays, this has been very well received. 

Another even more impactful change is with regard to bedding. The guidelines for processing linens essentially make a linen program compulsatory moving forward. As a result, I'm going to focus much of my effort into helping any remaining property owners not on the linen program get their home onboard. The linen program currently includes sheets, pillowcases, bath towels, hand towels, bathmats, washcloths, and kitchen linens all at a cost less than buying this new.

Another bedding concern is the items (comforters, shams, decorative pillows, etc) which have never been laundered as part of the regular departure cleaning; it's simply not possible in the time allotted between rentals and previously was not of any concern. Currently, at least for the time being, the requirements pertaining to the processing of bedding necessitate a change, so until further notice we are going to fold all decorative bedding and tuck it away in the bedroom closets. All of the beds will be made nicely with white sheets with our standard presentation of having three bath towels rolled and stacked on the corner of the bed along with startup supplies left for the guests' stay (I have personally checked behind the housekeepers, this looks very clean and crisp). We are providing all guests with information about the cleaning process which informs them that, while the decorative bedding in the closets in not laundered with every departure, they are welcome to use it; alternatively, they would have brought their own blankets to use for the duration of their stay. 

I've looked into several long-term solutions for this which include incorporating the use of coverlets or duvet covers into our linen program which would be processed along with the sheets and towels, but rather than make a rash decision on this now we will instead go through the summer and then reassess once we know better if these changes will be permanent. 

The plan is to:

  • maximize revenue for the summer
  • minimize costs for everyone 
  • reassure the guests that the properties are safe
  • reevaluate these operational restrictions/guidelines being imposed after the summer

When there is more to report, I'll send out another update. For now, I'm just happy to be back to work! 

I hope to see you in Perdido Key soon!

 

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June 5th

More good news. I believe we are nearing the end of the CV19 impact on rentals.

Escambia County updated its short-term vacation rental plan effective Friday, June 5, at 12:01 a.m. This plan was adjusted to name the states that are currently still excluded from travel to Florida based on Executive Orders 20-80 and 20-82. Reservations are not allowed from New York, New Jersey, or Connecticut with exceptions for persons involved in commercial activity and students traveling for the purpose of academic work, internships, sports training and any other activity or program approved by the educational institution. Previously, visitors from New York, New Jersey, Massachusetts, Rhode Island, Connecticut, Delaware, Louisiana and Michigan, as well as Washington D.C. were not allowed to rent short-term vacation rentals in Escambia County.  

At this point we are about as close to “normal” as we will get sans the new housekeeping and check-in procedures.

We’re working hard to get as many rentals on the calendars as possible!

JD Hallam
GM - Perdido Key Resort Management
Broker/Owner - Perdido Key Resort Realty

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