AirBnB vs Corporate Rental

[Rob Denn]

I'm currently remodeling an upstairs 2B/1Bath flat in Oakland CA. It's in a very desirable area: 1 block from "restaurant row", 1.5 blocks from train stop (BART), 2 blocks from freeway entrance, and 3 miles (15min car ride) from UC Berkeley. And because it's near a BART stop, San Francisco is only a few stops a way by train. The unit will be fully furnished and have all amenities in addition to an in unit washer/dryer. The unit is large and sunny with a dining room and deck and is about 1,100sf. It could easily sleep 6-8 people with air mattresses. My question is about STR vs Corporate. My flat would be the perfect corporate site. Even with the single bathroom, I'm confident I could get corporate & business clients because of the location. However, would it be much more lucrative to do STR with dynamic pricing based on Bay Area events and UC Berkeley activities? I tried to scan other AirBnB listings but they're all over the map. I'm pretty sure I can get $100-150 per/night just starting out. Also, I have employees in the bottom flat 24/7 that can keep an eye on things and help with cleaning. Any opinions?

[Channon Dade]

While reading your post I kept saying exactly what @Janina S. said because you want to use this first year to "stabilize" the property -which in corp/vaca rentals this means figuring out it's flow. More specifically, where are you getting the renters from (craigslist, airbnb, vrbo, etc...) and what type of renter are you getting from these marketing sources (corporate, professors/students, traveling nurses etc...). I am learning it is all about marketing for your specific area. The cool thing is you can sync the calendars of all these site like AirBnB, VRBO (free), CHBO (fee with a guarantee) so they don't over lap.

 I have a corporate rental in Houston Texas near downtown and medical facilities but it is a 3 bedroom 2.5 bath so traveling nurses (who are great renters but typically travel solo) don't really appeal to my property but it might with yours. I do stay away from airbnb because I have found I get a better quality of a renter from sites like VRBO.com and CHBO....but again AirBnB might be just perfect for you in addition to other sites.  I have had great success with VRBO and CHBO.  CHBO also will list with other partner sites like sublet.com that is included in your membership. 

So use this year to figure out your systems (for cleaning, collecting rent, giving renters keys/ door codes etc...) and especially who your place appeals to and gives you the biggest bang for your buck.  These sites will tell exactly who your market is and use the metrics that come with sites like VRBO and AirBnB and CHBO.... they really help you look at your market and competition as well. 

I hope this helps and I always tell people please keep sharing questions and solutions because the more we know about our special niche in corporate housing and vacation rentals the more we can crush it!