All Forum Posts by: Account Closed

For long term renters on Airbnb I think it comes down to 2 models that make the most sense. 1. A percentage discount off of what it would cost for daily stays on the booking platform. I offer a 20-30% discount depending on the property, time of year (sometimes a long term guest just isn’t worth the amount of money you can lose), and length of stay. 2. If this is a property you are renting add up all of your expenses and figure out what will the margin need to be worth the booking. For example, if you are doing a rental arbitrage model and paying 1000 in rent 300 in utilities I would at least double this to make a profit cover depreciation of the furnishings and leave some extra breathing room just in case. Also, you can work in weekly or bi-weekly cleanings at an additional cost to ensure your property isn’t a disaster when you get it back. Side note. Keep in mind long term stays will significantly reduce your page ranking on Airbnb unless you are actively updating the listing to keep it fresh as it won’t come up in search results since it’s booked. Hope this helps! Happy Hosting

Jim Ostler We are currently developing our portfolio in the Chicagoland area, as previous responses have said finding owners isn’t the easiest task but most owners who are up for this allow you to do this with multiple properties. I disagree with the suggestion that the owner will just do it on their own because this isn’t as easy as most think it is. Feel free to send me a message and we can discuss some options for you. Happy Hosting

Kim Becker I’ve seen models doing rental arbitrage where each individual room was rented. Maybe my original statement wasn’t clear, I was not suggesting a room in a private house but a full apartment renting each room out is doable. I personally feel that full units are more profitable, but to each their own.

Michael Davis Seems to be quite the hostile group! Rental arbitrage is a widely accepted practice done by landlords, property owners, and investors all over the country. This practice is not for all property owners, but when done correctly can net both owner and operator a healthy return. A quick rule of thumb to figure out if the rent to earnings ratio is 1/3. Keep in mind that along with rent you also need to cover furnishings, utilities, cleaning staff, maintenance and supplies. We all have our own threshold on what’s “worth it” but I hope this puts things in perspective. If you are looking for owners and investors let me know and I can point you in the right direction.

David Hilleke I think you should have a property manager who doesn’t live on site and rent out all 4 units. Would rent be a replacement for payment? After setup cleaning turnover and maintenance is the bulk of the work. Finding one person to do both can be a challenge. Maybe look at local companies or go to Airbnb and look for a co-host. I think you are looking to go in the right direction but don’t leave money on the table but losing one unit out of the gate. Happy Hosting

John Underwood The current fee structure for ABB is 3% from hosts and 6-12% from guests. They’re currently doing market tests to eliminate guests fees and just charge them from the host. HA/VRBO charges hosts a higher fee but on average bookings are at a higher price point and depending on the market and the user results can vary. Guesty grew too fast for their own good and currently markets towards larger clients 25+ listings at a commission % which is a bit too high for me. There are tons of pms out there for STR that offer the same product for way cheaper and way more user friendly. Hope this helps. Happy Hosting

Curtis Jackson How are you? I’m not sure if you are looking for guidance in registering your property or for management services but I can assist you with both. Happy Hosting

Mayer M. I don’t think it’s unrealistic at all, what it comes down to is knowing your break even number, and managing towards that goal. I have properties all over the country that owners utilize as private vacation spots and whenever not there it’s not only paying for itself but is also an additional revenue stream. Yes, the market you are looking at is seasonal but that’s where knowing your expenses comes into play, budgeting accordingly, and being realistic. If you have any more questions feel free to message me. Happy Hosting

Ryan Cheung I think this is more a question about safety instead of regulation, correct? You can find several products that can be attached to a window which creates a second egress (think emergency rope ladder) these are cost effective and can be stored in a case as to not be messed with. Worst case scenario if a building inspector shows up or if something happens you have something in place. Better safe than sorry. Happy Hosting

Wes Short Scaling a STR is about research. Most major players pull reports from AirDNA, EverBooked, and similar sites. These are paid services based on zip codes, cities, states, the more dialed down you get the better your results. Do you have an idea of what areas you are looking to add a property in? As far as budgeting, it depends on the size of the property, how you want to decorate it, where it’s located. For example you can do a low budget unit with Craigslist furnishings and second hand items (this takes time to track down) for a reasonable cost but you are left up to what you find. You can also just roll the cost of furnishings into the full amount you want to pay for the property. On average just for a middle of the road number 3 bedroom units cost us about 6-8k for all new everything including linen, terry, dishes, tv’s, etc. I hope this helps, if you have any other questions I’m happy to help. Happy Hosting