All Forum Posts by: Matt Ayoub

I am 3 years into my STR single family vacation home experiment in los Cabos and it is working out really well. I paid cash for an existing home so didn't have to deal with the issues above. Great traction on Airbnb and VRBO. I do think it is very possible to achieve a good return with common sense and the right partners in the ground. I am thinking to add to the portfolio.

This is something I struggle with. What is the right financial metric to optimize for? Ideally a high rate of occupancy at a high rate but we all know that is hard to achieve. Seasonality is key - cabo prime time is November to April but I got 3-4 good bookings in September (hurricane season) at decent rates this year. I also play with weekend rates and minimum stays. Given wear and tear, utilities (pool), and cost of turning the property, I try not to accept any bookings below $1500-$2000 for a minimum 3 night stay. I also increase my rates on the weekend as there is a pattern of 3 night party crew bookings from Airbnb and I want to ensure they don’t get too good a deal.

I have a successful SFH STR in San Jose del Cabo Mexico. Large international airport 2 hours from many south-western cities.
Financing is hard to get so cash buyers can find some very good deals. Similar home would be 10x+ in San Diego and the ocean is freezing. I give my PM 12 percent of revenue to manage everything except the Airbnb / VRBO listings and pre-arrival guest communication. Model is working well and with a growing number of positive reviews have been able to tweak pricing up which is having a great impact on financials. Happy to share additional learnings if helpful.

Bummer @Reagen Natho... sorry to hear that... My only 4 star review was glowing. Best review ever. But they gave me 4 stars. Go figure.

We always offer it. Usually guest are arriving in los Cabos late morning so if we can accomodate its a nice gesture and helps with the 5 star review. Worst case they can hang in the pool and gardens while we get everything ready (same at checkout.

HA/VRBO is losing the plot. Nickel and diming hosts while offering a clunky non-user friendly platform is not a recipe for success. They clearly have an internal talent issue, major ongoing platform integration issues, failed partnerships (Yapstone), and probably a bunch of MBA pricing consultants pitching hair brained ideas to “optimize” fees. Yes they will see a short term lift from pulling these levers but if they look closely at volume and mix I have no doubt they will lose share and host loyalty in the long term.

I use both apps regularly. Airbnb technology and user experience is a completely different level. They have far superior tech talent, they manage comms and change extremely well, and at least pre-IPO still seem to be looking for the win win with hosts. 

What’s sad is that guest quality is so much better on VRBO / HA. This, however, will change as Airbnb moves up the value chain and boomers (VRBO stronghold) age and die. I would guess Airbnb share of boomers is 20 percent and of millennials is at least 80 percent. HA/ VRBOs only chance  at this stage is Expedia.. but when I look at my listing on Expedia (which they didn’t even tell me was posted there) the quality of photos is an absolute disaster. They need a new CIO and some serious marketing and technology talent if they are going to turn their business around.

My STR is in Los Cabos Mexico and currently about 60/40 Airbnb vs VRBO. I have seen this fluctuate wildly over time and agree with the observations on length of stay and guest age and quality.

TripAdvisor / Flipkey clearly have massive technical / system integration issues - couple of initial bookings but now nothing. And I’ve tried multiple times to go live on booking.com but the activation process freezes and I can’t get through to customer service to help resolve. Long term I think being on this channel is strategically important so plan to keep trying.

I am not convinced by @Kevin Lefeuvre statement that a synched calendar indicating multiple channels would cause you to drop in Airbnb search placement. 
My hypothesis is that these sites, particularly Airbnb (which clearly has slicker technology / algorithms) are competing for market share of your listing.

We don’t know how the industry will evolve  so definitely do not have all your bags in one basket. And I think we want competition to keep each vendor honest as a dominant player will take a greater cut of revenue over time.
Also, in the @Jerry W. duplex example, the differential performance is likely linked to search placement which is driven by listing performance, response rate, and many other variables. So they have just evolved differently over time.

If you are handling less than 5 properties or so, handling the front end (guest communication, marketing) on slick airbnb or clunky VRBO is easy. Yes there are strategies, yes you have to decide what metric you are optimizing for, but it’s not rocket science. Put your bills on autopay and handle your own taxes. Get an electronic lock. Find what I call a cleaner++, someone responsible who lives close by and whose primary job is to turn the unit, handle emergencies, and contact the trusted handyman if anything goes wrong. I would give ten percent of revenue for such an arrangement. Or a fixed fee per turn. Although I prefer to align incentives in a percentage model and provide bonuses for 5 star ratings. A PM at 30 percent plus who nickels and dimes on top of that makes zero sense if financial performance matters. Yes - I can see how they could out perform someone asleep at the wheel... but I’m not that person.

@Michael Baum amazing input thank you. That was exactly what I was looking for. I am a big believer in white bedding and towels. In my opinion it just does not look clean otherwise.

Any recommendations on the best website or supplier for good quality lower cost cotton sheets and towels? I am not a major bulk buyer but have to believe that there is a more economic approach than Amazon. Thanks!