With the incredible success I've experienced as a STR Investor here in Austin, TX, there are a lot of Tips and Suggestions I wanted to share in order to help those looking to utilize STRs as a strategy (or even for current Investors). There isn't enough space or time in the world to highlight everything, so I'll cover the most essential things that helped me bring in $20,000 in just one quarter:
Automation: There are a variety of different companies offering software that assists with Automating the business, such as:
- Wheelhouse (ie. the Dynamic Pricing Provider, which automatically fluctuates the Nightly Rate of your unit based on things like Seasonality, Demand, Competition, Etc)
Price: 1% of Monthly Revenue OR $20/Listing per Month (decreases with more units)
- Hospitable (ie. Handles Automated Client Communication, Smart Lock Integration for those who want to set up Remote Check-in, and more!)
Price: $40/Listing per Month (decreases with more units)
- YourWelcome (ie. Hospitality Tablet placed within each unit that gives the guest an opportunity to purchase Additional Services set up by the host(s), such as Late Checkout, Extra Snacks/Drinks in the house, Mid-Stay Cleaning, and more!)
- Minut (ie. Remote Device that monitors Noise Levels within the STR Unit and sends automated messages to Guests when Noise Levels exceed a certain threshold. Also monitors the number of cellular devices in the area (to detect if more guests were brought in than agreed upon and/or parties), Motion, and even acts as a Security Alarm when the unit is vacant).
Price: $10/Unit per Month (for Standard) or $15/Unit per Month (for Pro)
- Turno (ie. a Reputable Marketplace to find Cleaners within your area that can assist with the turnover of your Short Term Rental after each guest checks out).
Price: Varies (depending on who you hire)
Airbnb's Superhost Status: If there's one thing to remember, it's that STRs are a business model that focuses on HOSPITALITY. As such, Airbnb offers this status for hosts who maintain a certain level of excellence both in and out of their properties. By obtaining - and maintaining - this designation, your STR listing(s) will be amongst the first being advertised when people look up your area on Airbnb. You also get a variety of benefits from Airbnb as well (ie. Priority Customer Service, Exclusive Rewards, Superhost Badge on your profile, and more...).You can read up on their requirements here: Superhost Requirements (Airbnb)
Reviews/Networking: For those who're extroverted (and even some introverts), STRs allow you to interact with your guests and exceed their expectations. You'd be AMAZED at how many meaningful connections you will make when you go the extra mile to make the experience even better than expected for your guest(s). Even if those interactions don't result in a multimillion-dollar partnership, it will show in your reviews (and help put your listing in better standings when it comes to getting recognized by Airbnb's Algorithm).
Rules and Regulations: As with any stage of an investor's Due Diligence, you DO NOT want to forget to look into the local laws pertaining to STRs in your area! The last thing you would want to do - and trust me, I have seen it happen - is purchase a property, only to find out that your initial investment strategy is no longer possible/viable because of rules you were not aware of. With that being said, it's important to also look into Short Term Rental Permits, and factor the cost of those into your Expense Calculations (ex. For Austin, TX, hosts are required to pay a steep $733.80 Fee for a STR License, as well as a $412 Renewal Fee prior to its expiration!)
There are a ton of other tips and suggestions I - and many other experienced STR investors - can provide here on the forums, yet I hope this provides some valuable insight to many of you looking to get started (or expand) on your Short Term Rental Portfolios. If there are any questions and/or concerns, please feel free to message me directly and I'll be glad to help.
