All Forum Posts by: Benjamin Canyon

Quote from @Daniel Murphy:

Does anyone  have any experience with Staymo or with having influencers stay at their place in exchange for exposure? 

Looking for feedback, experiences or tips.  Thanks in advance!

I've done this a few times, mostly to get content, photos, reels, etc. we can use in our own marketing. I'd say for most people it's only worth doing if you're having a hard time with occupancy. In our case, we do it to draw attention to our overall portfolio and gain followers on our social media. We're about to have a large group of big-time influencers stay and this is the first time we'll be using a contract. In addition to due diligence on the front end to make sure the influencer is actually an influencer, it's important to map out expectations in terms of number of posts they'll create per day, timeline, etc. We're also collecting a deposit to ensure they fulfill their end of the bargain, and the contract also enshrines our usage rights for the content they create.

Quote from @Daniel Murphy:

My Jan 1 - now metrics are:

0.89%Average overall conversion rate

46.1%First-page search impression rate

8.76%Average search-to-listing conversion

10.19%Average listing-to-booking conversion

844Average page views

9638 Average first-page search impressions

Everything will be relative to your market and compared to other listings around you. But from my perspective and compared to my listings in Tulum, MX, your listing-to-booking conversation is very impressive! Mine is around 1%. On the other hand, my search-to-listing conversation is double yours. That's going to have to do with listing appeal, namely lead photo(s) and listing title.

Quote from @Daniel Murphy:

 Thank you, I do download my monthly performance summary so I can track details. But I don't fully understand how to interpret the data. What numbers are good/bad/okay. How I compare to my peers etc.  

First thing to look is your overall rental yield, which you can see in the insights page or in your transaction history. Depending on whether or not your market has seasonality, you could look at a specific month or the whole year. Then look at your occupancy rates. I aim to have 80%+ occupancy for my rentals. If your occupancy in the coming 3 months is very high, it might indicate you should increase the price. Certain tools like Pricelabs or BeyondPricing can help you determine the ideal average daily rate for your listing looking at these occupancy factors.

This is the page I most look at on Airbnb--my conversations. Followed by this page about views. How many views and first page search impressions is my listing getting compared to others in my market? Then of people looking at my listing, how many of them actually book? These metrics help me determine how competitive my listing is. Then you can start to play around with the variables to see what increases your views and or conversation rate. Biggest variables you have control over in my experience are price, photos, and listing title.

Quote from @Edgar DeLeon:

Yes I'm very happy with my returns in Tulum, but I haven't invested in 1-bedrooms specifically. I do have a sublisting of a larger property that's a rooftop studio with separate entrance and private pool. That unit grossed around $40k last year between Airbnb and VRBO, but keep in mind it wasn't available much of the time as it was rented as part of the larger unit, so theoretically if the calendar was open all year you could generate more than that. If I have the price for that studio set at $99/night, I can almost always keep it 99% occupied. But it can rent as high as $300/night depending on the season.

If you can find a one-bedroom with private plunge pool at a good price, that makes a big difference I think. Then make sure to budget for your interior design. That's essential to stand out in the Tulum market.

@Daniel Murphy I find Airbnb's own insight/analytics tools to be very useful! If you're looking for broader STR insights into a specific market to see what might be possible in terms of revenue, occupancy, etc, Airdna is really solid. You can just pay for a 1-month subscription for your market to get a sense of things.

Hey @Denise Ausderau - I have a property management company in Tulum. We only manage 3+ bedrooms but I'd be happy to advise on anything. If it's just one property, I recommend a trust/fideicomiso rather than a Mexican corporation. It's more straightforward and requires less maintenance. I've furnished all my units using Amazon and MercadoLibre. Hope that helps!

Hola @Javier Sequeros - Did you end up buying something in Tulum? I own a few properties there and a property management company. Happy to answer any questions you have or share my experience. Regarding taxes, my approach has been to use trustworthy accountants to manage taxes on my behalf. Personally, I hold my properties in fideicomisos/trusts.This is the approach that makes sense for most foreigners, depending on how many properties you hold and if you live and have deductible expenses in Mexico.

@Mike Lambert Yes, the growth is currently outpacing demand, at least temporarily, as evidenced by the decline in occupancy in Tulum in 2022. But visitors to Tulum continue to increase, and the new airport, when finished, will likely increase overall visitors to Tulum as well.

Quote from @Dakin Cranwell:

Quote from @Christian Cantarell:

Hey Christian, would you be willing chat with Mr about buying in Mexico. That is, if you have some knowledge or expertise.. let me know! 

 @Dakin Cranwell Would be happy to help! Send me a PM

Investment Info:

Buy & hold investment | Vacation Rental

In Tulum Mexico, Nocturna is a custom-designed 3bed/3bath, 2-story penthouse with stunning views of the Mayan Ruins & Tulum National Park. I designed and oversaw the interior architecture, floor plan, and all finishes and interior design.

What made you interested in investing in this type of deal?

After living for several years in the Riviera Maya, I saw the crazy real estate boom happening in Tulum and decided I wanted a piece of the action. Property prices were really attractive! Tulum also has a really unique vibe and some stunning design and architectural innovation. It attracts a lot of celebrities and influencers, having joined the circuit of jet-setter-destinations including Ibiza, Mykonos, and Bali.

How did you find this deal and how did you negotiate it?

I worked with a realtor to find some preconstruction condos in my price range. The one I bought had the best $/sqft, but for some reason only a few units had sold after 6 months on market. My estimates were projecting really solid returns; I just didn't understand why no one was buying up these units! My realtor suggested it might be because of the low-quality renders. So I looked at my spreadsheet one last time and made an offer. 2 weeks later, new renders were released & the project sold out.

How did you finance this deal?

Mexico is a cash market as interest rates there are so high (+12%). So I got a private money loan for the initial 80% down payment to the developer, which got me an 8% discount off the purchase price. Then during construction, I worked on getting a HELOC on my primary residence. When that closed, I used the HELOC to pay off the private money lender.

How did you add value to the deal?

I negotiated a complete redesign of the unit. This was 1 of 4 penthouses in the building, so I wanted mine to stand out. First, I wanted to add a 3rd bathroom. The developer said they had already tried a variety of floor plans but couldn't figure out how to do it. So I got w/ my architect friend and he found a solution, which I presented to the builder. They were impressed and said they'd make it happen. Then they sold our design to half the other units :) I also added a 3rd bdrm on the roof.

What was the outcome?

As a vacation rental, we have succeeded in bringing in an average 28%/year rental yield, with incredibly high occupancy rates. I attribute this largely to our interior design, which we spent a lot of time and money on. When Airbnb Plus launched in Tulum, our listing was invited to join the program. Today, 4.5 years later, the property has gained $150k in equity, which represents a 60% return from value-add and market appreciation, not including the rental yields.

Lessons learned? Challenges?

Creating the 3rd bedroom on the roof as a "lock off" with a separate entrance & kitchen was a saving grace because of the flexibility it gave us. We created 3 separate listings on Airbnb--one for the full penthouse, one for just the downstairs, and one for the rooftop suite. When COVID hit, there was zero demand for the 3 bedroom, but lots of individuals and couples were still traveling. By renting the upstairs and downstairs separately, we were able to maintain over 90% occupancy.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Would definitely recommend working with Sebastian Papworth at Jungle Realtor.