STR Co-listing - Tips

[Yehuda Spiewac]

Hi all, I’ve seen some talk lately about co-listing on Airbnb as a good market to enter without requiring a lot of capital and being able to manage on a more flexible schedule. I was wondering if anyone has experience with this and can offer some tips/insight? I also have a couple specific questions:

1. I came across an online course professing that you don't need to visit or live near the properties you manage. I find this hard to believe having been an STR guest myself and understanding some of the urgent matters that can arise. If it means hiring local people, (I.e. cleaning, handyman, someone to act on your behalf in an emergency,) then where does that leave you if you're only in it for a co-lister's cut?

2. Is the standard cut for the co-lister really 25-30%? Is it a scalable business?

3. Any recommendations for a good area to consider in the Tri-State or eastern PA region?

Any and all responses appreciated!! Thanks!

[Braedon Page]

Quote from @Yehuda Spiewac:

Thank you for the replies and advice! @Garrett Brown happy to have heard from someone that does this! I guess the question I’m left with is, what have you found the profit margins to look like on co-hosted (not owned,) properties? [I’m assuming I would be dealing with basics (communication, marketing etc.) as well as maintenance and cleaning.]

Thanks again!

 Aloha from Hawaii Yehuda,

I am a licensed property manager here in Hawaii, but co-hosting (the way that you're talking about it) and short term rental property management are essentially the same. (as long as you're in a market that doesn't require you to be licensed to act in that capacity).

When it comes to profit margins, they can vary widely - which is why it's important to run your numbers before you take on a property. It's relatively easy to look at comparable properties on airbnb with the same bed/bath, general condition, and location and click around their calendar to get a sense of what they're making in bookings each month. Subtract any expenses (for example, we provide welcome baskets for our guests and we pay for them rather than charging our owners). Other things to consider include software and accounting costs. Cleaning fees should essentially be a pass through expense as they are paid by the guest and neither you or the owner really ever see that money. The monthly profit can be anywhere from a few hundred dollars to a few thousand dollars depending on the size, condition, and rental rate of the property. 

All that being said, beggars can't be choosers, and when you're going after your first property it's more important to get your foot in the door and learn the business than it is to make a killing on your first unit - i.e. if you have to make a slim margin to get a great case study, that's better than trying to charge 30% for something you've never done before and spending a year trying to convince someone to roll the dice on you. Another option, to echo what @Andrew Steffens said, would be if you're serious about this business it might be worth your time to work with a licensed property manager to learn the ropes, gain some credibility, and figure out if this is something that's a good fit for you long term.