We caught up with the brilliant and insightful Gretchen Kornutik a few weeks ago and have shared our conversation below.

Gretchen, appreciate you joining us today. What do you think Corporate America gets wrong in your industry? Any stories or anecdotes that illustrate why this matters?

As soon as I say, ” I am all things short term rental”, I immediately hear- “Oh… you have an AirBnb” While AirBnb is the leader (today- not when I started) in the industry- It is not that simple. Covid took a vacation industry and put the nomadic lifestyle in hyperdrive across the planet. Investors immediately dove into “high level” areas and purchased properties assuming they could drop a couple thousand dollars of used furniture in a unit, take some high level photos and then forget about it by letting it run. Simultaneously Arbitrage and PadSplit models have popped up. Both of these models, while highly profitable, are irresponsible and in many case simply NOT safe for the public. To be a good steward to the neighborhoods and municipalities as well as provide solid short term housing solutions- you can forget NOTHING! This is an ever changing and hands on industry.

Regulation post Covid is being moved NOT by neighbors but rather the hotel industry. They realize that the responsible model is here to stay.

Gretchen, love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?

I got into this industry by accident in 2014. I purchased a Fix and Flip oceanfront home. I completed and one week from closing- Hurricane Mathew hit the Florida coastline. A long story short- this home became my first short term vacation rental (pre AirBnb what it is today) As a real estate professional with 20+ years in sales, investment, property management, land sales, development and renovation/construction experience- I very quickly realized that I had no idea the correct way to run a scalable short term property management model. I went looking for a “cheat sheet” or a true mentor who could guide me step by step. I learned and understood quickly that the STR model is simply NOT real estate but rather hospitality. What I found was a major disconnect. Vacation rental managers (many not all) who didn’t care. Didn’t care about neighbors, taxes, buildings or owners. I knew that I could find a better way and offer a solution. I started Salt Air Stays and sistering companies to offer both high level education (for both real estate professionals and owners/investors) as well as design and management and a dialed in version of mentorship. I focus on Northeast Florida and Georgia primarily for management and mentorship in the Southeast. I am a certified CE teacher through the state for Short term rentals and hold class room settings to allow for ease in ask and answer settings.

For the long term, I am a FIRM believer in Collaboration over Competition! I love networking and connecting with real estate agents, other property managers and vendors. I only take on a few properties under my umbrella and refer remaining to other appropriately licensed professionals when the fit is better for the client. Because of my referral network my previous experience, I am a terrific option when faced with questions including… Should this be a short term rental? Who are my ideal guests? Should this be something else? What lending or insurance options should I consider? Who can I refer my clients to with STR questions….

Can you tell us about a time you’ve had to pivot?

Pivoting is simply part of being a small business owner. Real estate will forever be in a shift. Have a Plan B or exit strategy is something that must always be evaluated and examined and reviewed.

A perfect example of this was the Covid- 19 Pandemic. When the State of Florida announced it was closing its borders and it was shutting down STR but not hotels, I watched panic and really unresponsible owners and managers just sit back and complain. We opened the legislation and actually read the whole document. It was obvious that the Hotel industry and said lobbyists had a front seat and were able keep their hotels open. As you and I both know in hindsight, it simply didn’t make sense as people where in elevators and public spaces together.

We gave 100% of existing reservations , 100% of their funds back, creating a database of people who would immediately reach back out to us directly to rebook (and did they ever) But more importantly, we were able to target first responders and house their families for the months it took to get their loved ones back with them (Example: a Doctor sleeping in their car-exposed to Covid- could move back into their own home and get rest while their families were in separate homes safely) We filled all of our homes the entirety of the experience. We didn’t have let a single person go, Owners earned enough to cover debts -in most cases not profit but full debt) vendors were still employed and guests were happy.

Pivot and Solutions- A simple part of the everyday equation to success.

We’d love to hear about how you met your business partner.

I met the founder of my previous company through a series of introductions in the same circles. He had the drive and experience that I lacked. He also had the forecasting skills that I also simply didn’t understand. Partnerships whether legal or ostensible are funny things. In hindsight and with mentorship from many- Partnerships rarely are healthy after 7 years and need to be re-evaluated for alignment of goals. I stayed in a situation where I was still learning (as I always am) but knew that ethically our goals were misaligned and the gap became vast at the end. I knew I had to make a change and do it with careful consideration that toes were not being stepped on and clear boundaries were not being crossed.

I did leave that situation and my solution was to create a model with no confusion that my goals and models were not the same as my previous partner. While my vision is and has always been transparency and collaboration, it is difficult to tackle a new venture with a selfish and toxic personality in the rear view mirror. I have now started Salt Air and the sister companies with Joint Ventures in place rather than partnerships. The JV’s have clear guidelines and expiration dates to give non judgmental dates for all parties to reevaluate and continue or end the relationship.

My change with experience:
1. Knowing all things with change or end and setting up hard expirations for renewal or end.
2. Setting up clear “How do we break up” when we start to avoid messy ends. Business doesn’t account for emotion/ego and emotion/ego will get you ever time.

Contact Info:

• Website: https://www.stephentoni.com
• Instagram: https://www.instagram.com/saltairstays/
• Facebook: https://www.facebook.com/SaltAirstaysconsulting/
• Linkedin: https://www.linkedin.com/in/gretchen-k-686765112/