All Forum Posts by: Jason Reece

Thanks for reaching out, Dan. Replied to your DM! 

Benchmarks likely existed before covid (would love to know them), but the game has clearly changed. Many of us are likely wondering if we're doing ok relative to our peers... what can we REALLY expect during a pandemic?? I thought it would be helpful to share some metrics straight from Airbnb. 

If you share, please use the format below in your post:

Date Range = late Nov 2019 to late Nov 2020

Bed/Bath = 3/2

Market = Nashville 37203

Just starting out, I have no idea if we are lagging, leading, or on par with these metrics. 

Thanks everyone for your replies. I got this back from my property manager when I told him I wanted to lower the charge to $175. I appreciate that he's structuring the costs in a way that avoid inflating his commissions. However, I'm not sure if this $175 is expensive considering the inclusions mentioned at the of his reply. I welcome any comments:

"The cleaning fee is $175. That includes towel & linen rental, off site laundry and basic consumables.
AirBnB also lumps in the Limited Damage Waiver ($59) and Hotel Occupancy Tax (5%) and AirBnB listing fee (3%) to the total "cleaning" cost paid by guests.

175 + 59 = 234 x .05 = 245.70 x .03 = 253.07 (Rounded to $255)

The good news for you - These are all expenses that must be paid. We just charge them to the guest, rather than deduct from the owner's take. Plus, if we raised daily rental rates by that amount to offset - You would lose another 20%, because we base our commission on daily rental rate (which doesn't include cleaning). This is why we pull as much expense out as possible before the daily rate is calculated. This allows you to pay commission on the lowest amount.
I understand that $255 can look off-putting. Ideally, AirBnB would be more transparent on what all that covers. But - At the end of the day - We want the guests to pay those costs, not you."

Hi, all. I have a nice 3br/2ba condo in Nashville, TN. The unit is 1130sf. Our cleaners charge $175 per cleaning - this includes linen service so they can flip the place pretty quickly without needing to do much laundry. My property manager has our cleaning fee set to $260 per stay. 

This appears to be high in my local research of comparable properties, so I'm considering addressing the need to reduce this price to guests, and cost to us. I'm ok not making a profit on the cleaning fee, which would put us charging $175 to the guests. Rates are currently $200-500/night with a 2 night minimum. 

Thoughts on these costs from anyone with experience comparable market? 

Thanks @Randall Barrett and @Bryan Noth. 

@Andrew Dorazio Always happy to connect. I'll send you a message. 

@Luka Milicevic I'm in Nashville 50% of the time now, but moving here in a couple weeks. It's hard to know if my unit is performing well or poorly in this environment. I don't have any adequate comps so I was planning to post on this very topic to get some input from others. I'll make a different post in the appropriate channel, but my unit is a 3br 2ba loft in a unique building in the downtown area. For November, it was 47% occupied until a Thanksgiving stay was canceled. I currently have 6 nights booked in the first half of December. 

Currently I am focused on STR's, but am constantly re-evaluating the best use of capital with any new opportunities.

@Steve Frye thanks and yes I’d love to get together. The pent up travel demand seems that it will foreshadow an explosive recovery later next year.

@Andrew Jacoby You’re a busy man. I’d absolutely love to connect. I’ll send you a message. Thank you for commenting and offering your insight. It is sincerely appreciated.

Hello, all! Long time listener (ish), first time caller... after tons of research I finally took the plunge and bought an Airbnb in Nashville, TN! I've learned a lot from the community here so I wanted to a) thank you, and b) introduce myself. As with all forums, there are experts, tweeners, and surely a silent majority... I'm sure it's the same here. I want to thank all of you that share so many lessons from your own experience to help others like me. Its so valuable to others to share what you know to help others like me, and I hope it is reciprocated for you either on or off BP. 

Working for JNJ for the last 10 years, I have a clinical, sales, and marketing background, and I primarily invest in the equities markets. I have long been a fan of real estate and, for several reasons, have decided to finally jump in to the STR market. My goal is to own acquire several more properties here in Nashville by the end of 2021. I would absolutely welcome any networking opportunities for anyone interested.

I have been researching for some time, but I probably have more questions than answers still, so I wanted to make the introduction before I start spamming questions all over this site. Thanks again everyone :)