Blue Water Group Management,LLC Blue Water Group Management,LLC | Government Grant Application

Blue Water Group Management,LLC | Application Preview

1. PROJECT COVER INFORMATION

Project Title: COVID-19 Business Continuity and Property Preservation Project for Blue Water Group Management, LLC Short-Term Rental Portfolio

Applicant Organization: Blue Water Group Management, LLC

Project Director / PI: Company Managing Member (Property Management Lead)

Contact Information: Available upon request (email, phone, business address)

Amount Requested: Not specified in source materials

Project Period: Pandemic stabilization period through the subsequent peak season recovery window (exact dates not specified)

2. EXECUTIVE SUMMARY / ABSTRACT (1/2 to 1 page)

Problem / Need: Blue Water Group Management, LLC operates a growing short-term rental property management business that relies on consistent housekeeping and maintenance services to keep units safe, compliant, and guest-ready. During the coronavirus pandemic, travel demand dropped sharply and bookings became unpredictable. This created an immediate cash flow problem for day-to-day operations, including retaining cleaning staff and a maintenance handyman, and completing planned renovations. Without support, the business risks losing trained workers, falling behind on preventative maintenance, and entering the post-pandemic recovery period with properties in degraded condition and reduced readiness to capture returning demand.

Target Population / Sector: The project benefits the local lodging and tourism ecosystem by sustaining a small property management employer, preserving service jobs (cleaning and maintenance), and maintaining habitable, code-compliant short-term rental housing stock. Indirect beneficiaries include local vendors, tradespeople, and communities supported by tourism spending.

Proposed Solution: Provide working capital through grant funding to stabilize operations during the pandemic downturn, retain essential staff (cleaning and maintenance), keep 11 managed properties in good condition, and position the portfolio for rapid ramp-up once travel restrictions ease. The project also supports a distribution strategy to diversify booking channels beyond Airbnb by adding VRBO, Booking.com, and Expedia, reducing reliance on a single platform and improving occupancy resilience.

Key Activities: - Retain core workforce (cleaning staff and maintenance handyman) to sustain operational readiness and service continuity. - Perform preventative maintenance and unit turns, address repairs, and protect property condition across 11 active properties. - Preserve and restart renovation work on 3 additional properties when safe and feasible, enabling near-term inventory growth. - Expand channel management by listing on multiple platforms (Airbnb, VRBO, Booking.com, Expedia) to increase demand capture and reduce vacancy risk.

Expected Outcomes: - Business continuity through the pandemic period with reduced layoffs and preserved operational capacity. - Maintained property condition and faster time-to-recovery when travel demand returns, improving occupancy and revenue stability. - Increased occupancy over time through multi-channel marketing and a systematic growth plan.

Funding Request & Duration: Amount not specified; funding intended as short-term working capital bridging the pandemic disruption and leading into the subsequent busiest season.

3. STATEMENT OF NEED / PROBLEM STATEMENT

Problem Description: Short-term rental management is highly sensitive to travel disruptions. The pandemic caused sudden booking cancellations, lower occupancy, and uncertainty about future demand. Yet operating requirements did not disappear: properties still require cleaning, routine upkeep, safety checks, and timely repairs to prevent accelerated wear, pest issues, moisture damage, or code and insurance problems. For a small operator, the loss of revenue quickly threatens the ability to retain skilled cleaners and maintenance support, which are essential to meeting guest expectations, maintaining ratings, and preventing costly deferred maintenance.

Who Is Affected: Blue Water Group Management, LLC and its workforce are directly affected, as are the owners of the managed properties who depend on the company to preserve asset value and generate rental income. The local hospitality supply chain is also affected, including cleaning suppliers, repair vendors, and trades, as well as communities that benefit from visitor spending.

Current Gaps: The central gap is the mismatch between reduced short-term rental revenue during the pandemic and the ongoing fixed and semi-fixed costs required to maintain a guest-ready portfolio. Renovations on 3 properties were paused due to the pandemic, delaying planned growth and reducing the ability to scale revenue at the planned pace. In addition, reliance primarily on Airbnb limits demand sources, making cash flow more vulnerable during market shocks.

Consequences if Unaddressed: If the business cannot retain staff and keep up with maintenance, units risk slipping below guest-ready standards, creating negative reviews, lower platform rankings, and reduced future bookings. Deferred maintenance can escalate into more expensive repairs, prolonged vacancy, and potential safety or compliance issues. Losing trained cleaners and a reliable handyman also increases restart time and costs when demand returns, reducing the ability to capitalize on the recovery season and impairing the companys planned growth trajectory.

4. PROJECT GOALS & OBJECTIVES

Overall Goal: Stabilize operations during the COVID-19 disruption while preserving staffing and property conditions so the portfolio is fully prepared to capture demand during the recovery period and to continue the companys planned growth.

Specific Objectives (SMART):

Objective 1 (Workforce retention and readiness): During the pandemic disruption and through the start of the next peak season, retain essential cleaning and maintenance capacity to keep all 11 active properties in guest-ready condition and prevent deferred maintenance.

Objective 2 (Portfolio stabilization and preservation): Maintain a consistent preventative maintenance schedule across the 11 properties to reduce emergency repairs, protect property value, and sustain platform quality scores and guest satisfaction.

Objective 3 (Growth and occupancy improvement): Increase occupancy rate by approximately 5 percentage points per year through multi-channel listing expansion (Airbnb plus VRBO, Booking.com, and Expedia) and standardized operational improvements, using 2019 performance as the baseline.

5. PROJECT DESCRIPTION / PROGRAM NARRATIVE

Project Overview: Blue Water Group Management, LLC began operations in February 2019 managing two short-term rental properties. By the end of 2019, the company expanded to nine properties, and by March 2020 it reached 11 active properties, with three additional properties under renovation that were paused due to pandemic conditions. The proposed grant-funded project is a business continuity and asset-preservation effort focused on sustaining core operations, retaining essential workers, and maintaining property standards during the revenue downturn, while implementing a channel diversification strategy to strengthen long-term occupancy and revenue.

Approach / Strategy: This approach works because short-term rentals compete heavily on cleanliness, property condition, responsiveness, and guest experience. Preserving frontline capacity (cleaning and maintenance) protects review scores and reduces the risk of costly damage from neglect. At the same time, expanding distribution to multiple booking platforms reduces dependence on a single marketplace and improves booking consistency, which supports cash flow stability. The combined strategy preserves the current portfolio and positions the business to grow efficiently when demand returns.

Key Activities: - Provide wage and scheduling stability for cleaning staff and the maintenance handyman, prioritizing readiness, rapid turnovers, and safety protocols. - Conduct routine inspections, preventative maintenance, and timely repairs across the 11 properties to ensure they remain compliant, safe, and attractive to guests. - Prepare to restart renovation work on the 3 paused properties when feasible to unlock additional rentable inventory. - Launch and optimize listings across VRBO, Booking.com, and Expedia in addition to Airbnb, including consistent photos, descriptions, pricing strategy, and calendar management.

Innovation / Best Practices Used: The project applies widely accepted hospitality best practices: preventative maintenance to reduce total cost of ownership, quality-control cleaning to protect ratings and repeat bookings, and diversified distribution to improve resilience. Multi-platform listing effectively turns major booking sites from pure competitors into demand partners, lowering vacancy risk and improving revenue predictability.

Alignment with Grant Priorities: The project aligns with common government grant priorities tied to pandemic recovery: small business continuity, job retention, stabilization of local service employment, and preparedness for economic reopening by sustaining operational capacity and restoring revenue-generating activity.

7. TARGET POPULATION / BENEFICIARIES

Who Will Be Served: Primary beneficiaries are the companys essential workers (cleaning staff and maintenance support) whose hours and income are threatened during the downturn, and the property owners who rely on professional management to preserve asset condition and revenue. Secondary beneficiaries include guests who benefit from safe, clean lodging and the local economy supported by lodging-related commerce.

Estimated Number Served: 11 short-term rental properties actively maintained; staffing consists of cleaning personnel and one maintenance handyman (exact headcount not specified).

9. ORGANIZATIONAL CAPACITY

Organization Mission: Operate and grow a professional short-term rental property management business focused on high-quality guest experiences, reliable maintenance, and consistent revenue performance for property owners.

Relevant Experience: The company demonstrated rapid and managed growth from 2 properties in February 2019 to 9 properties by the end of 2019, and 11 properties by March 2020, indicating operational capability in onboarding, maintaining, and marketing short-term rental units. The business has tracked performance, reporting a 2019 occupancy rate of 55% and setting an annual improvement target.

Past Performance Results: - Portfolio growth: 2 properties (02/2019) to 9 properties (12/2019) to 11 properties (03/2020). - Occupancy: 55% average occupancy in 2019. - Growth plan: add at least 4 properties per year and improve occupancy by 5% annually.

Systems & Infrastructure: The business operates through established short-term rental platforms (currently Airbnb) and plans to broaden distribution to VRBO, Booking.com, and Expedia. Operations depend on reliable housekeeping and maintenance workflows to meet turnover schedules, guest expectations, and property standards.

12. BUDGET SUMMARY

Funding Use Summary: Grant funds will be used as working capital during the pandemic period to retain cleaning staff and a maintenance handyman and to keep all 11 properties in good condition. This includes routine upkeep, supplies necessary to maintain units, and readiness activities to ensure the portfolio can immediately serve guests when demand returns. Renovation work on 3 properties has been paused; funding supports preservation and the ability to restart when conditions allow.

13. BUDGET JUSTIFICATION (NARRATIVE)

Personnel: Housekeeping and maintenance are the core operational functions of short-term rental management. Retaining cleaning staff and the maintenance handyman prevents service disruption, reduces the risk of property deterioration, and protects future revenue by maintaining guest satisfaction and platform ratings.

Supplies: Ongoing property care requires cleaning and maintenance supplies necessary to keep units sanitary, safe, and presentable. These inputs directly support the deliverable of keeping 11 properties guest-ready during the downturn.

Contracted Services: Where specialized repairs or deferred renovation tasks are required, limited contractor support may be necessary to prevent small issues from becoming major repairs and to position paused renovation properties for reactivation when feasible.

14. SUSTAINABILITY PLAN

Post-Grant Funding Strategy: The companys sustainability plan is driven by revenue recovery through improved occupancy and portfolio growth. The business projects that adding at least 4 properties per year will increase income by approximately $30,000 annually under its five-year plan. Separately, increasing occupancy by about 5% each year is projected to add an average of $15,000 annually. Diversifying booking channels beyond Airbnb to VRBO, Booking.com, and Expedia supports more stable lead generation and reduces platform concentration risk, helping maintain cash flow through market fluctuations.

Revenue or Cost Recovery: As travel demand normalizes, increased bookings across multiple platforms and improved occupancy rates are expected to restore and expand operating revenue. Maintaining property condition during the downturn also avoids larger future repair costs, improving net operating performance over time.

15. RISK MANAGEMENT

Key Risks: The primary risks include prolonged travel demand suppression, ongoing booking volatility, staffing shortages if workers leave the sector, and continued renovation delays. Platform concentration risk is also present when relying on a single marketplace for bookings.

Mitigation Strategies: The project mitigates these risks by using grant funds to retain essential workers and maintain readiness, preventing operational collapse during low-demand months. Preventative maintenance reduces expensive deferred repairs and shortens ramp-up time. The multi-platform listing strategy reduces dependence on a single channel and improves the probability of steady bookings across changing consumer preferences and travel patterns. The phased restart of renovations, when safe and feasible, supports inventory growth without overextending during uncertain conditions.

• General Information

  Business Registration Number: Blue Water Group Management,LLC

  Location: Brooklyn, NY, United States

  Length of Operation: 1

  Number of Employees:

  Annual Gross Income:

  Annual Gross Expense:

  Open to Loans: YES

• Funding Usage

  During the coronavirus pandemic period, to keep the cleaning ladies and maintenance handyman around, keep all 11 properties maintenance under good conditions to prepare the busiest season comes when the virus been controlled.

• Business Plan

  We started the management business 2/2019 with 2 short term rental properties, at the end of year 2019, we had 9 short term rental properties; We have 11 up to 3/2020 and 3 under renovation(It is stop now of cause because the virus). We plan add 4 properties at least every year. For 2019,, our occupancy rate was 55%. our goal is increase the occupancy rate by 5% every year. By our 5 years plan, get 4 more properties a year will bring us $30,000 more income; by increase 5% of the occupancy rate every year, will bring us average $15,000 a year.

• Self Identified Competition

  We are now listing our properties on airbnb. The VRBO, Booking.com and Expedit are other three big site for short term rental. We plan to list our property on all three other sites. It will turn the competitors to our partners.

• Contact Applicant

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