All Forum Posts by: Ryan Riches

 Hey Kristofer,

I believe once you have 10 reviews, then new guests are able to see your previous reviews as well as your average rating. This would be the first point that I would raise rates. The second threshold is reaching superhost status. They review profiles quarterly and if you meet their criteria (mostly based on reviews and response rate). Once you are a superhost then your listing shows up higher on peoples search criteria, and people are more likely to book you. Once you are a superhost I would raise your rates again. 

As far as amenities, having coffee and a coffee maker, and spices go a long way. I have also seen some hosts stock their fridge with drinks for the guests. 

I will echo what has already been said here. You want to make sure that you are in a healthy personal finance position before venturing into REI. If that is the case already, then I would recommend finding a primary residence (single family or multi) and house hacking. As mentioned before, you can rent out each room individually to help cover expenses. The route I took when getting started was to Airbnb my spare bedroom. This covered about 80% of my living expenses and propelled me into the next step, which was purchasing a multi-unit to house hack.

Hey Kristofer! 

I operate 4 Airbnb units here in Colorado Springs. I have rented out just a single room in the past and here was my experience: 

In the summer months we were consistently above 80% occupancy. 

You will want to be sure that the room you are renting out has all the ammeneties you would expect in a hotel (linens, towels, toiletries, etc).

The rate you can expect varies greatly depending on your location. I would reccomend looking on Airbnb to see what properties like yours are listed for. You will want to start out slightly below market rate to build up your reviews. 

The guests that we got when renting out a single bedroom were generally tourists passing through. Most of our guests stayed for 1-3 nights, and we hardly saw them as they were out and about signtseeing and exploring the city. 

I hope this helps and good luck!

Hey Nicholas! Welcome to the Airbnb club. On our first listing we also generated more cashflow that I was expecting. Here are some things I would reccomend you to be aware of:

1. Many cities have regulations on Short Term Rentals. Make sure that you are operating in compliance with your city. In Denver, a couple was just charged with felonies for not being in compliance: https://www.biggerpockets.com/forums/628/topics/717624-denver-couple-face-felony-charge-over-airbnb (not trying to scare you, just make sure you know the laws in your area)

2. Make sure that you are consistent with guest experience. Clean rooms, quick responses to guests, etc. If you get enough good reviews you can become a "Superhost". If you get enough bad reviews, and people may stop booking your property all-together. 

Good luck out there!

Hey David! This is a common strategy investors use known as Arbitrage. I have not personally let a third party run an Airbnb in my properties. But I do have two properties that I operate as Airbnbs. Here's my take on what you're sorting through. On your end, I think it is a great opportunity. As you said, it gives you the ability to see how it will work on your property without taking any of the risk, especially if they are signing a year-long lease. 

We generally clean our units between 2 and 3 times a week. In my experience, our properties stay cleaner and better maintained than they do with an LTR tenant. It is important for STR operators to make sure that the property is in prime shape - landscaping, dust, dirt, lightbulbs, etc. If something breaks or is not up to snuff, it hurts their reviews, and in turn, can hurt their revenue.

If you were operating it yourself, I would recommend making sure you are up to date on any of the regulations in STR in your city. Since you are leasing to the operator, you would want to make sure that they are liable for damages and/or injuries on your property. I would make sure that you would be covered under your insurance as well just to be safe.

Hey Paul! Sounds like you are on the right track. My wife and I "bit the bullet" earlier this year, and we now own 2 STRs in the city and operate 2 others. I would be happy to meet up sometime to talk through our experience so far. 

@Brian Porter I Used AirBnb to rent out a spare bedroom last summer. I’m not sure what your living situation is, for me it was just my wife and I, so we put a lock on our bedroom and we were off to the races. We both worked full time and rented out the room about 19 nights a month in the summer. This nearly covered our mortgage!

Now we own 2 STR units here in Colorado Springs and have two others under management. AirBnb gets a bad rap among investors for the level of work it takes and the restrictions that cities are starting to enforce. In my opinion, if you can make it work it is one of the best ways to make some extra income and really get the ball rolling with REI.

@George W. We have several AirBnb units here in Colorado Springs! We have had great cashflow so far, but our market is seasonal, so I am expecting things to slow down come winter. I am not sure what the STR market is like in your area, but typically you can get higher cashflow than on an LTR but it's also a bit more risk, and more work to be sure.

AirBnb only takes 2%, and in some areas they withhold state occupancy taxes. If you are thinking about doing AirBnb, think about your latest hotel experience, and then getting your property as close to that as possible. You will want the property to be not only furnished, but for it to be clean and stylish - to stand out from the other listings. Once you get it staged, photographed and listed, you will handling guest interaction and cleanings, unless these are things you contact out.

In our market and with our goals, we have loved AirBnb for our properties and have even started managing for other people. Shoot me a message, I would be happy to analyze your market and share more of our experience.

Looking for a 3br 2ba home with a value of $270k is simply not going to happen in Denver. The median sale price for a 3 bed house in Denver is $465k. However, you could find a 1br house in your budget. Your best bet for what you are looking for would be to look in Colorado Springs, or Pueblo.

@John Hunter I have a STR Management company based in Colorado Springs, CO. It doesn't sound like you are looking for a property out this way but if that changes I would love to connect!