Determine how much an STR will make using the ENEMY method

[Luke Carl]

YOUR ENEMY: To be found on AirBnB with the following qualifications... 

1. MUST be Stelf-Managed. If they're using a PM they are NOT competition. In order to make sure.... click on their picture and open up their profile. If they're managing 47 properties... They are not self managing and they do not qualify as an Enemy. NOTE! Many PMs will use a profile picture from a happy couple to make it look like the property is self managed. 

2. Must be close to your property.
Will depend on the market. Could be anything from one block to 100 miles. 

3. Must have a LOT of reviews. 
100+ reviews is ideal. Thats how you know they're good at their job and they've been around for a while. 

4. Must have same square feet and sleeping capacity. 
Number of bedrooms is not as important as sleeping capacity 

There is no exception to Rule #1
If necessary, you can make exceptions to rules 2 through 4. 

Find your Enemy, (2 Enemies would be ideal but not necessary).... go to their listing as if you are a guest... Click around and find out what they're charging. Spend some time obsessing and you can pretty quickly estimate how much money you can make if you manage the property properly. 

Your Enemy can also be used for: 
Price Per Night
Housekeeping Fee 
Minimum night stay
Extra fee per guest over X number of guests 
Pet friendly?
House Rules 
Etc.

The moral of the story is... Find someone who is very good at what you want to be doing, and learn from them. 

This is the STR version of seeing what similar properties rent for on ZIllow.

[John Underwood]

Originally posted by @Joseph Cacciapaglia:

@Luke Carl I'm curious why you exclude professional managers from your competition. Are you assuming that you can't compete with them, or that they'll be doing a poor job? If it's the latter, I think this is a poor assumption. Our STR team outperforms most self managers in the area by a wide margin. I think it's best to compare yourself to the best competition in your market, regardless of how they are managed.

 I know the answer.

Because I , Lucas and many other individuals can out perform any PM.

No one has a bigger incentive than to do the best that can be done than a motivated owner.

Does you PM answer inquiries at 10PM? We do. Does your PM answer inquiries in minutes ahead of all the other properties they manage? We do as we only manage our own properties.

Does your PM answer inquiries on Sunday? We do.

Does your PM constantly monitor competition to be better than everyone else and represent only your best interest? We do

I could go on, but I think your get the idea.