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Interview with an Airbnb Host from Saint Margaret’s Bay, UK – S2 EP40

Welcome back to another episode of Into The Airbnb, where we talk with Airbnb hosts about their short-term rental experience.

Today’s guest is Emily Groves, based in Saint Margaret’s Bay, United Kingdom, who owns and manages two beautiful caravans located in a resort park, where guests can enjoy amenities like pool, sauna and gym. In today’s episode, she’ll share with us about her experience with these listings, the number she’s been making with them, how it is like renting owner resort RV park and the importance of bringing awareness to guests by having a plant-base kitchen.

This episode is sponsored by Airbtics, short-term rental analytics for high return investments, comprehensive data for insights, ideas and inspiration. Go to app.airbtics.com to find precise Airbnb data such as occupancy rate, revenue, average daily rate and so on. So, without further ado, let’s get into it!

Into The Airbnb Podcast S2 EP 40: Making £3,000 on two months with Modern Caravans in a Resort Park – Saint Margaret’s At Cliffe, UK
becoming an airbnb host uk

You can also listen to this Into The Airbnb Podcast Episode on Otter.

Delia:

So can you please tell us how did you get started with Airbnb or short-term rentals in general?

Emily Groove:

Last year, I was moving house and I was thinking about how it might be easier to do that. So I bought a caravan by the sea near to where I was moving to. So that if I needed to I could sell the house, move into the caravan and then move into the new house and there would be some room to do that with the view that once that was all over I could rent out the caravan and make some money. So I did that. So in March, we put it on Airbnb and then since then I’ve recently bought another caravan. So now I’ve got two caravans on that site.

Delia:

I see I was taking a look at your listing and you have two listing, right? So those are the two caravans, right? And can you please tell us where are they located? Because they saw that you have like a community pool or something. I think is also a resort.

Emily Groove:

Yeah, it’s a holiday park and the park themselves rent out caravans, but most of the caravans on that park are owned by private owners. And so the company that owned the park also rent out, I don’t really know the number but they rent out a number of vans as well. And other people in the park use Airbnb as well. I think there are also kind of chalet bungalows on that park too, not just caravans.

Delia:

So you bought those caravans and put them there? Or do you rent it out from the place like the resort?

Emily Groove:

So I bought them from the resort. And they weren’t on site when I bought them, but the park, put them in there, you know, in the places that I chose. So, you know, they said to me, these are the available spots that you can have and so I chose two spots very close to each other for my caravans.

Delia:

And is that place very popular with Airbnb and short-term rentals in general?

Emily Groove:

I think there’s probably, I’m trying to think, there’s probably 300 or so caravans on that site. But maybe only that I know of maybe about, I don’t know, 7 to 10 of them are on Airbnb, if that. I’m not sure the number exactly, but the ones that I’ve noticed that are on Airbnb, not very many.

Delia:

Okay, but most of them are also short-term rentals, right?

Emily Groove:

No, I think people buy them because they want to use them as a holiday home themselves. So they live far away and they use it to go on holiday with their family. It’s like a, you know, like a home from home.

Delia:

I see,that’s interesting. Is it easier the process to buy those caravans than to buy like, for example, a holiday house?

Emily Groove:

Yeah, definitely. Definitely. So you don’t have to pay any of the tax. So when you buy a house in the UK, you have to pay, you know, you have to pay stamp duty it’s called. So you don’t have to pay stamp duty when you buy a caravan. You do have to rent the spot at the park. So you have to pay an annual fee to the park for your spot, but you own the caravan. So, you know, if you want to move it somewhere else, you can move it to another park if you want to because it’s your caravan, but you just have to pay a kind of rental for the space on the park and at this particular park the rental space includes free entry to the pool for you and 10 of your friends or family and you get a discount in the bar and the restaurant and you get free access to the gym and you get various, I think, maybe six or eight times a year, they put on a breakfast for the owners, they have lots of kind of evening entertainment as well that they put on for the owners, which is all free of charge. So you get quite a lot for your, you know, if you want to do all of that you can make the most of your site fees.

Delia:

And are these benefits also available for your guests from Airbnb?

Emily Groove:

They can be yes. So what I do for my guests is I can buy a pass for them. So while they’re staying in my caravan, they’ve got access to the swimming pool and the restaurant and the bar and the gym and there’s evening entertainment as well for them. So I genuinely buy them a pass, but on occasion, if I’m feeling generous, I might give them one of my passes because I’ve got lots of passes because I’ve got two caravans, I’ve got 20 passes free. So I, you know, as a special deal, I can give one of those to a holiday maker or guest.

Delia:

And does those passes that you have to join, any passes you have, can be used like one time by one person or you can give it to this guest and then this guest leave the pass and you can give it to another guest? How does it work?

Emily Groove:

And so the pass, the 20 passes, they’re supposed to be you give them to a named person and that named person can use them for the whole year. With passes that you buy, you know, the one off passes that you buy, like a good deal because you pay one price and it’s not very expensive. And then it doesn’t matter how long that person stays in the caravan. If they stay for two days or if they stay for three weeks is still one price. So they gives them access to the swimming pool and the entertainment and the gym. So it’s good if they’re staying a long time.

Delia:

Yeah, that’s okay. And can be only used for one person, right?

Emily Groove:

Yeah. Yes. You know, yeah, if you’ve got four people staying and they will want to use the facilities, then you buy four passes.

Delia:

Okay, I see how it works. And can you told me a little bit about how did you, what’s the process like to buy the caravan and how much is the annual fee you’re paying for the space in the park?

Emily Groove:

So I saw the caravan advertised online and I went down to the park and they showed me around. And then they take a deposit from you, which is normally like 500 pounds. And then you can go back another day and actually pay the full amount and take ownership of the caravan. And the park then give you like a welcome pack to go with your caravan which includes everything that you need to get set up in your caravan. So they give you all of the cups and plates and cutlery, ironing boards, irons, microwaves, kettles, pots and pans, oven, trays, you know, everything that you could possibly need. So it’s good for Airbnb owners because they don’t need to go out and buy all that stuff. It comes kind of free with the caravan. Obviously, you’re paying for it, but they go out and buy it all and it’s all there when you go and get your caravan. So that it takes maybe two weeks for them to get the caravan sorted, they have to put it on the site, they have to connect up the water and the electric and the gas. And they clean the caravan inside and out and they give you all of these welcome pack that they give you. And then the site fees are quite expensive at this site. It depends on the site. So there’s another site that’s near to my house, but there’s no facilities there. The site fees are like 2,000 pounds a year. The site fees at this one where there’s lots of facilities are more like 6,500 pounds a year. So I obviously have to make more than that and more than my electric and gas fee and everything in order to make a profit from Airbnb.

Delia:

Oh, I see and I have many questions from this one. So the electrical and water connection come with deposit or the annual fee? Or do you have to pay separate for that?

Emily Groove:

You have to pay separately for that. So you pay for what you use, well, you pay for what your guests use, obviously.

Delia:

Okay, I see. What about the caravan, when you buy it already all furnish or do you have to renovate it, furnish it, how does it work?

Emily Groove:

It’s furnished because with caravans everything’s built in everything from, you know, the sofas and everything are all kind of like part of the caravan. And then you know, yeah, so it comes with everything. With beds, tables and chairs and yeah.

Delia:

Okay, that’s great. So you don’t have to spend too much on furnishing. And I’ve seen your started on March this year, right?

Emily Groove:

Yes.

Delia:

So far, how has been going?

Emily Groove:

I’ve pretty much been fully booked in that caravan until the end of August.

Delia:

Wow, that’s great. And can you tell us a little bit about how has been your revenue in this past two months?

Emily Groove:

The past couple of months have actually been my best two months. Actually, I brought that up just now. So I’ve probably made about 3,000 pounds. It’s not very, I don’t rent it for very much, but in April and May, it’s about 3,000 pounds. I’ve made, well, I’ve got from Airbnb.

Delia:

Oh 3,000 pounds all together? Or every month?

Emily Groove:

No, it’s 3,000 pounds in total for April and May. So 1,500 pounds for April. Well, it was 1,200 pounds for April and 1,800 for May.

Delia:

Okay, those are really great numbers! And how much is your daily rate for those spaces?

Emily Groove:

It’s somewhere between 40 and 60, just depending on what I feel like. I started off 40 because I wanted to rent it and it was very cheap and it worked well because a lot of people booked. And because it’s the summer now I put the write up because I know lots of people want to go on their summer holidays. So it’s more like 55-60 at the moment for July and August.

Delia:

And I know there is no much competition around your area, but what did you base on to put the price?

Emily Groove:

I did look at what other people were renting out their caravans at and that particular caravan, the first one, you know, it’s quite an old caravan. It’s very spacious, you know, for that sort of caravan, it’s actually quite roomy and spacious. But it is old, it doesn’t have central heating, it doesn’t have double glazing. So, at the time, I just thought “well, it’d be really good if I made back my site fees” that’s all I was really planning to do. So that’s how I kind of based my daily rate.

Delia:

Okay, makes a lot of sense. So I was about to ask you about… Do you charge extra if your guests want to use these passes you told me about?

Emily Groove:

Yeah, I charged them what I pay. So I do get a discount on the policies, but it’s only 10%. The passes are roughly 10 pounds per adult and 8 pounds per child, which is what I charged them. But when I buy them myself, I get a 10% discount. But they have the option I say when people book, they can go and buy the parties themselves at reception or they can have the passes waiting for them in the caravan when they arrive.

Delia:

Okay, makes a lot of sense. And have you done short-term rentals before like in a house or something? Or this is your first time?

Emily Groove:

This is the first one.

Delia:

Okay. And what do you think are the benefits of doing rentals in this caravan instead of, you know, a house we own or maybe a subleased place?

Emily Groove:

It’s separate from you, I suppose, you know that you don’t have to worry about having strangers in your house. The good thing about it being on holiday park is that the holiday park have security and they have staff there. So I’ve never had to call on them, but if I wanted to, they have a key and they, you know and the security are there and I can call them anytime I want to if I’m worried and they will go and check things out for me. But yeah, I’ve never had to do that so far. So yeah, it’s not really something I need to worry about. But it’s a very friendly Park and the staff are very friendly and helpful. And so it’s nice to have that separation from you and your guests. But also know that the people on the park are helpful and they will help you if you’re not able to get to the caravan if you need to, that somebody would help you and they would go there for you.

Delia:

I see it brings many benefits! And do the park charges you a little bit more if they have to help your guests in case there is any inconvenience?

Emily Groove:

They don’t. The park will charge, so say it depends what it was if there was a leak or something was broken, the park would go in and fix it and then they would charge me a fee for that. But if it was just that, you know, somebody needed some help, you know, maybe they were struggling to open the door or something then they wouldn’t charge me for that.

how much can you make on airbnb

Delia:

I see, it makes a lot of sense. And I’ll like to ask you about how much did it cost you to buy the caravans?

Emily Groove:

That first caravan I bought because it was old, it cost me 25,000 pounds, which is probably more expensive than you would buy if you bought it privately because I bought it from the park, it’s like the difference between buying a car from a, you know, from a showroom or buying it from somebody privately. And the second one cost 35,000. And the second caravan is newer and it has got double glazing and it’s got central heating, gas central heating, you know, so it’s a lot cozier and warmer in the cooler months.

Delia:

I see and you didn’t have to do any kind of renovations in that, aside from what you told me about electricity and water connections from the park?

Emily Groove:

Yeah, they do all of that for you.

Delia:

Okay, that’s great! So you didn’t spend that much, I guess. Do you think you’re going to be able to get a good return on investment with your rentals?

Emily Groove:

Yeah, I guess eventually, if I take into account the purchase price, the plan is to get a return on investment, is probably not the best return on investment, but what you do get is a solid kind of cash flow income, you know, we’ll see, we’ll see what happens.

Delia:

Okay, hope it goes great though! How much do you say is your cash flow going against your expenses? Do you have many expenses there?

Emily Groove:

So initially, I bought not so, so they give you do vase. But I’ve bought new vase because I want a bigger like king size duvet, I bought lots of bedding and towels. And, you know, other soft furnishings to make it cozy, like cushions and I buy tea and coffee and biscuits for my guests. And you know, cooking oil and salt and pepper and things like that. So I’ve spent lots of money initially on that sort of thing probably or when we installed WiFi as well, so there was that cost to this WiFi in both the caravans. We had to buy the key safe for each of them as well. So yeah, there was quite a lot of what felt like a lot of initial outlay, maybe something like 1,000 pounds or something per caravan maybe a bit more. Let me see if I’ve have got a list of it all somewhere, but I haven’t really added it up yet because there’s lots of it. At some point, I’ll have a look and see, you know, whether I’m when it is there’ll be a time when I feel like I’m going to break even I’m sure that’s going to be some years now.

Delia:

Okay, I see. What do you think are going to be your higher months like your most PC months?

Emily Groove:

Well, May was very busy. The problem I have is that I’ve been taking holiday myself this month and in August. So I don’t have anybody staying in the caravans when I’m not here because I want to be the one to go in and make sure everything’s okay when they’re gone. So ordinarily, I would say June, July, August would be the busiest months. It’s the school holidays here in July and August. You know, because it’s a good price, we get lots of families come, you know, because there’s this swimming pool and there’s children’s play parks and things like that on the site, you know, it’s good for families because it’s a reasonable price as well.

Delia:

And how much do you plan to raise your price during that season? Or do you plan to stay at your rate?

Emily Groove:

Now, that’s when I put it up a little bit. So on the first caravan, it’s, I’m trying to think I might have put it up to 70 pounds. And in the real peak season on the second caravan because it’s a nicer caravan, the rate starts at 55 and it goes up to 100 pounds a night in the peak season.

Delia:

And are your rates comparable to the other rentals in the camp?

Emily Groove:

Yeah, I think so. There are some other rentals, but they’re bigger than mine and more extravagant than mine and so they obviously charge more. There is somebody there has one, he has a caravan that’s similar to mine and he charges a lot less than me, I think he charges 30 pounds a night. Yeah, I think it’s kind of average.

Delia:

Yeah. I also think your price is good, right, average comparing to the other ones, giving that you also offer like a lot of good amenities, I think it’s worth it. Can you tell me a little bit about the challenges that you have so far with, you know, short-term rentals, Airbnb, whatever you think has been more challenging during this time?

Emily Groove:

So it’s not been so bad, I think isn’t challenging is that if there is a problem, I’ve messaged with Airbnb, and then they responded and they’ve been very helpful and I know that’s not everybody’s experience. But you know, I’ve not had a problem with them when I’ve needed something or when my guest has got in touch with me because they’re concerned about something before they’ve even arrived. They’ve got in touch because they’re concerned about something. It’s quite easy to go on to the Airbnb site and find the answer to help them. I suppose when it comes to people’s reviews, that’s a bit of a bone of contention, isn’t it? So my caravans interestingly, I can’t believe I haven’t mentioned this already, I they’re all plant based. So I request that my guests don’t bring meat or milk or eggs or fish into the kitchen and you know, I’m not saying they have to be vegan, but while they’re in my kitchen, they should be vegan, they can eat out, you know, and a lot of people just come and they eat out because there’s a, you know, there’s a restaurant on the park, so they don’t need to use the kitchen. And some people really like that and they really, they really appreciate it and I have like eco friendly things as well. So I have eco friendly cleaning products in the caravan and a lot of people really appreciate that. But I had one guest who, although I’d messaged him to make sure that he was aware well in advance of him arriving about the plant based kitchen situation, he ignored my message and then his review was, “oh, vegan kitchen, that’s a bit weird” and then marked me really low on everything, you know, and there’s nothing really I can do about that. So had he marked me in the same way as everyone else has marked me because I get quite high marks or high, you know, ratings from everybody apart from that one person, my current rating is only 4.7 because of that one person. So that’s a bit annoying and there’s nothing really, you know, I’m not going to be bothered to, you know, complain about that because that’s his view if he really wants to give me that rating and it’s not really affecting my bookings. So, you know, anybody with any kind of sense will look at this review and think “well, you just didn’t read the listing?”.

Delia:

I also saw the little, like, how do you say these, the little thing that indicates that your kitchen was plant-based. But I didn’t ask about it because I just forgot, I think that was like a rule. Can you explain a little bit more about it? That’s very interesting.

Emily Groove:

So because it’s my kitchen and it started because we lived in the caravan for a few months before we rented it the first caravan and because we’re vegan and I thought I don’t really want to be cleaning up, you know, that people’s meat and whatever, that they’ve cooked in the caravan. I also believe that, you know, with the world would be a lot better if people didn’t eat meat and eggs and milk in so many ways, I’m not gonna go into it because I have this conversation a lot. So I would prefer, you know, if the whole world didn’t eat meat or milk or eggs, but I have control over my caravan to a certain extent, obviously, I can’t really control what people do in there, but if I request that they, you know, eat plant based while we’re there, most people comply with that because they tend to ask me questions about it when they’re booking, it’s clear to me that some people don’t follow those rules. But I don’t, you know, I don’t mark them down particularly for that because I’m not a horrible person. Um, you know, if otherwise, they’ve kept the place clean and tidy and you know, tidied up after themselves and everything was fine, then yeah. If they don’t want to follow that rule, I can’t really stop them.

Delia:

I fully understand and I think it’s really something that for me, will be really easy to respect if you don’t want that, I don’t see why other people can’t do it. But I kind of understand that there are some people that are not going to respect it and are going to be a little bit harsh about it, right?

Emily Groove:

Some people get angry about it actually. I did when I realized that I hadn’t made it very clear, I sent messages to everybody that had booked and I said, “I’m really, really sorry, I wasn’t clear about this rule. You may have missed it, you know, I’m very happy if you want to cancel because of it, you’ll get a full refund” and probably half of my bookings cancelled because of it at the time. They all got booked up again, you know, so I didn’t actually lose anything from it. It felt bad at the time, you know, because everyone read my message and they were like, “what? I’m not allowed to bring milk?” and I’m like, “No, I’d rather you didn’t” so lots of people canceled. But then yeah, lots of people were fine with it and so it’s actually fine.

Delia:

And now you included it in your set of rules? Like the first message that you sent to that guest when their first book?

Emily Groove:

I don’t send them a message, but it’s in every paragraph in the listing pretty much and it’s in the house rules as well. So, you know, I want to make a big thing of it, but I don’t want to make a big thing of it. So that’s why I really get annoyed if people if it’s obvious that people have cooked meat in there. That’s only happened once. And you know, I’ve had like 22 bookings and any once I’ve I noticed, you know, that’s that people have put meat in there. I’m not going to, because I haven’t, you know explicitly message them and said, “By the way, don’t eat meat in my caravan”and I can’t really complain, I suppose.

Delia:

I’ve like a year ago, I saw like a post on Facebook, a person was running her own house and she was vegan and she personally requested everyone to not cook meat in her kitchen, you know, because it was the same pans and pots she used and all the comments were really harsh about it. How do you think you can with your kitchen, you know, with your plant based kitchen, bring awareness to people, right?

Emily Groove:

I think there should be a category on Airbnb, actually. So there’s another site, it’s called veggie visits and they call themselves the vegan Airbnb. But I get no bookings from them at all because it’s very, you know, it’s international and it’s very niche and nobody looking for a holiday that’s vegan is going to think, “oh, I want to spend 40 pound a night in a caravan on the king coast”, so I don’t get any bookings through there. But it would be good if there was a way to like, I don’t want to put the word vegan in the name of my holiday home because I don’t want to put people off, you know, you don’t have to be vegan stay here. I don’t want it to be like a really big thing, but it would be good to have a like a checkbox or a category or something in Airbnb, that would mean that if you were specifically looking for a vegan place, then it would come up. But it would come up anyway, if you were looking for some place, you know, on the king coast reasonably priced.

Delia:

Yeah, that makes a lot of sense. I actually agree with that. I’ve seen there’s categories for basically everything, so I don’t see why there shouldn’t be some for vegan, right? It should be. So the last thing I’d like to ask you about if there’s any tips that you would like to share for other Airbnb hosts or future Airbnb hosts?

Emily Groove:

When people review me, they say that my place is very, very clean and I give great attention to detail when I’m cleaning the place and I use a antiviral spray because of COVID afterwards, that smells amazing, it smells like cherries. And so when people open the door, they smell this amazing smell of cherries and people have actually said, you know, “I opened the door and it smelled amazing and just felt really clean”. And the other thing is that I’m very responsive on the messages. So people message me a lot before they arrive. Some people don’t talk to me at all, that’s fine. But if people message me before they arrive with any sort of questions, I go out of my way to find the answer and people really appreciate that.

Delia:

Okay, so the trickiest will be cleanliness and be responsive to your guests, right?

Emily Groove:

Yeah. Normal customer service really!

Delia:

That’s right, but I guess some hosts aren’t really aware or prepared for that, especially for the attention you have to give to your guests, right?

Emily Groove:

Yeah.

Delia:

Especially for that one. So yeah, that’ll be it for today. Thank you a lot for your time. Thank you for telling us about your story, about your journey.

Emily Groove:

It’s my pleasure!

Do you want to maximize your profit?

As a professional in the short-term rental industry, you’d definitely know that there are intense competitors who are probably obsessed with maximizing profit & exert efforts to promote Airbnb listings. What are their unique tools, you ask? We say:

A super-accurate & reliable data analytics tool.

If you prefer to have financial freedom through passive income, then maybe Airbnb rental arbitrage is right for you! Learn more about how you can make money without owning a property with this Airbnb rental arbitrage guide.

Designed to showcase accurate short-term rental analytics data, not only does our app help you optimize your listing, but it can also provide VERY useful data for simulating cash returns using the Airbnb Calculator. try looking at real-time data from Airbtics & stand out among your competitors!

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Airbnb Rental Arbitrage All About Airbnb

The Ultimate Guide: How to Find Rental Arbitrage Properties

Are you wondering how to find rental arbitrage properties? In this article, we will show you the best ways to find profitable properties!

Rental Arbitrage Properties

Are you wondering how to find rental arbitrage properties? In this article we will show you the best ways to find profitable properties!

Here is a simple concept of the Airbnb Arbitrage business: I have $10,000. What’s the fastest way to double this? I’d say rental arbitrage. In one of our interviews with an Airbnb host, we met a 21-year-old who rented three $1,000/mo condos in Miami, furnished them, and rented them out to generate $8,000 monthly revenue.

So, how can I find rental arbitrage properties? You can find them on property websites, Craiglist, realtors, social media, and so on. Then, you need to pitch to landlords to get permission to run the property as a short-term rental. In this blog, we will go in-depth to show you how you can find profitable rental properties like a pro!

Airbnb is undoubtedly an additional channel for people who are looking for extra income. However, they also have one common misinterpretation of the whole Airbnb idea:

You need to own a property in order to begin investing in Airbnb.

Quite frankly, it’s NOT necessary to own a property at all! You’d be surprised to know that there are numerous strategies that you can use to try out short-term rental investments without owning a property! In this article, you can learn how to find rental arbitrage properties and follow a step-by-step guide on how to set up and manage your Airbnb rental.

What is Airbnb rental arbitrage?

Airbnb rental arbitrage is renting one or more properties for the sole purpose of subletting them on Airbnb & other similar short-term rental platforms. In fact, this is the best way to try out the short-term rental industry without spending big bucks. Also, this will help you save up money if property ownership is one of your goals. 

This is how you do rental arbitrage in 3 simple ways:

Step 1. Find landlords who will allow you to arbitrage their property.

Step 2. Furnish it, take nice Airbnb photos, and upload them on Airbnb and similar platforms.

Step 3.  Wait for bookings!

Is Airbnb rental arbitrage legal?

It depends on the city. And in the areas where Airbnb arbitrage is legal, there are varying laws and guidelines that hosts must adhere to. In order for your business to successfully operate, make sure to check if it’s necessary to apply for a permit or license before starting to invest in Airbnb rental arbitrage.

5 Ways to Find Rental Arbitrage Properties

1. Look for properties on the best rental listing sites

Differentiate the properties in your preferred area and categorize them with ease according to the size & amenities of properties. Here are the top 3 of the most recommended listing sites:

    • Apartments.com – one of the major rental portals with simple tools designed for DIY landlords or small property management companies. 
    • Zillow
    • Zumper
2. Find an Airbnb-friendly landlord

 Some landlords may think subletting is illegal, but there are certainly numerous owners who allow subleasing. If you want to find an Airbnb-friendly landlord, cast your net wide and look them up on Google, Facebook Marketplace, and Craigslist! 

Then, send your pitch!

Be creative. Here’s my tip. This is just an example, and you can tweak this to find your own profitable property acquisition pipeline.

I noticed that many “expats” are not fond of advertising their properties to the local people. They tend to use Facebook groups for expats to look for tenants. Quite often, they are not even in the city, so they are looking for someone to take over and just maintain their property at a cheap price.. Just type “Expats in CITY_NAME (E.g. Lisbon)” on Facebook.

3. Join local real estate investor meetings & spark relationships

Through networking, you can easily meet people and get leads from them for your preferred property. You can also visit meetup.com and type in your target city. You now have access to real estate-related meetings & events!

4. Speak to your local real estate agents about finding the best rental arbitrage property

You can easily find local real estate agents online. Be honest with them that you want to start a rental arbitrage business. Tell them you are aiming to manage 20+ properties within the next 6 months if that’s your plan. This kind of pitching works well with realtors as you can potentially become their significant source of income. Here are some of the most recommended websites:

    • Realtor.com – the most extensive real estate website which is affiliated with the National Association of Realtors. 
Rental Arbitrage Properties
    • Trulia branded as the best mobile app, you can easily look for real estate properties.
Rental Arbitrage Properties
5. Speak to Airbnb hosts 

You might not have expected this! Try reaching out to Airbnb hosts with listings that have 0 reviews, bad photos, and bad descriptions. Even better if they have a lower than 50% host response rate. Most likely, they are the homeowners who aren’t making good money but may be open to renting out their property via rental arbitrage!

You can speak with them and let them know that you can give them guaranteed income every month for the next 12-24 months. They might love the idea.

How much profit can you earn with Airbnb rental arbitrage?

Monthly profit = Revenue from Airbnb bookings – (Expenses and rent)

Starting cost = Furnishing cost + deposit + first-month rent  

Let’s conclude that you already found the perfect property that’s suitable for your budget and would like to start putting it up on Airbnb. For instance, you found a 2-bedroom apartment for rent in San Diego that costs $1,875 per month. Using an Airbnb calculator, you can gauge your monthly expenses & one-time costs accurately.

Rental Arbitrage Properties

How to start rental arbitrage?

Airbtics has an extensive library of guides on rental arbtitrage. Click the link and check it out! There are some successful rental arbitragers, and do you know their secret? 

They know how to leverage tools & technologies! 

Airbtics is designed for you to find emerging and profitable areas to start your rental arbitrage business. Use our tool to figure out the following important key points:

  • Find a location that produces the highest profit & STR demand.
  • Look for a market that has at least above 50% occupancy rate annually.
  • Discover the number of Airbnb listings in your preferred market, the international traveler ratio, historical trends, and so much more!

Bonus: Check out the best places to rent Airbnb in Canada!

Data Analytics For Finding Airbnb Arbitrage Properties

In this article, we have learned various ways to find rental arbitrage properties. And if you don’t do your research carefully, it may take some time to find the best one for you. Or worse, you may end up with a really bad property.

However, if you are interested in investing and learning more through market research, then use only the precise STR analytics tool to gain accurate insights into your target Airbnb market.

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Podcast

Interview with an ex Airbnb Host and owner of Trashmitter – S2 EP39

Welcome back to another episode of Into The Airbnb, where we talk with Airbnb hosts about their short-term rental experience.

Our guest for today is Jason Centeno, an ex Airbnb host from the Philadelphia area, who recently decided to quit Airbnb with his over 20 listings, move to Tampa and take a break from the short-term rental world. Come to hear about his years of experience with Airbnb, what made him quit the platform and also about his current startup project: Trashmitter, an on demand waste disposal service.

This episode is sponsored by Airbtics, short-term rental analytics for high return investment, comprehensive data for insights, ideas and inspiration. Go to app.airbtics.com to find precise Airbnb data such as occupancy rate, revenue, average daily rate and so on. So, without further ado, let’s get into it!

Into The Airbnb Podcast S2 EP 39: Ex-Airbnb host tells us about why he decided to leave and his takes on the business – Featuring Jason Centeno from Trashmitter
airbnb challenges in philadelphia

You can also listen to this Into The Airbnb Podcast Episode on Otter.

Delia:

So can you tell me how did you get started on Airbnb back then when you were working on that?

Jason Centeno:

So let me see in 2017, probably, so I, you know, I was a short-term rental host in the city of Philadelphia, I found out about it from, you know, various sources and I was, you know, to be honest with you, I was having some trouble in a specific building that I had and I was either going to sell it or try this, right? So I took a chance and I put, it was a five unit building or two buildings with five units between them. So I took a chance on one unit. As you know, with Airbnb, your first one’s always going to cost the most because you got to kind of get used to what things cost to do. But you know, as soon as I did it, it started to produce right and this was, you know, back before everybody and their grandma was doing Airbnb, that started to produce results and so I decided to go all in and convert the two unit and a three unit to five units for Airbnb, that’s kind of got how I got started. And over time I expanded to about, might have been 28 at the highest point, it’s hard to say because one of them was kind of like a shared space, so it’s kind of like, do you count each room? Or do you count the whole building? So the numbers kind of throw me off there and how somebody would count that, but each, we had one building that had six individual units, as rooms a shared space, so you know, that would have been six, but it was an all in one building. So you know, between 25 to 28, I was managing an operating and all of those, so you know, the three flavors of hosting is usually you own and operate, you know, you don’t have arbitrage you’re just doing, you just take your own property, so that’s the one. The second would be on rental arbitrage, you’d go out there and you would lease an apartment, go sheet that and you know, make the spread in between. So I had a good amount of those two, after I took over all the properties that I could. And the third is co-hosting, which each one of those has pros and cons to it. To be honest with you, co-hosting is almost as being an employee and you have cost to that. So it’s imagine you being an employee with like a lot of, you know, overhead, especially if you have a built, you know, if you’re using stuff like PriceLabs, or post flyer or, you know, just integrations that you have to pay for, each post that you take on, each co-hosting UT has a set of expenses that go with it, you might have a virtual assistant that’s helping operate part time even and so the costs associated with that, you know, I want to say that for me, as I recall, as a co-host, I’d have, you know, between services and an employee, I’d have $180 or so per unit that I would co-host that had to be covered. So the trick with that is, you don’t want to be co-hosting a property that’s not making that much money because you won’t even cover your nut with their, if it’s like I said, if it’s like a $2,000 small apartment, it’s kind of not worth it. So that’s something I learned, you know, just by doing it. But yeah, I mean, you know, I got all sorts of flavors of Airbnb, you know, operations I guess you could say.

Delia:

And out of those three operations, you said, own and manage rental arbitrage and CO-hosting, which one is your favorite and why? Which one brings like less expenses to you and more revenue?

Jason Centeno:

Ideally and this gotta keep in mind that it’s because of taxes that own and operate is going to be your best bet, you know, obviously, you spend the most money there because you have to buy a property, then you have to furnish it. So it’s not just buying a property and then putting it and turning into a rental, you also got to do the setup costs and then utilities and everything are on top are on you as well, maintenance, everything. So everything is on you, so you have complete and total control. Having said that complete and total responsibility. So the benefits being like, hey, you know, if you bought the property right and you didn’t try to buy it based off of like, I see a lot of people trying to sell it off the potential for short term rental and they’ll call that the cash flow, like that’s going to be actual cash flow. Terrible idea would never buy a property based off of that because as we’ve been seeing, you know, whatever location you’re at, the local legislators could change their mind in a heartbeat about is it going to be legal, what’s going to be the new standards and unless you have something in place where like, you know, in Florida, where they can never really shut down vacation rentals, totally, you know, you might buy something way overpriced just because you think you’re gonna get Airbnb type money and find out that, you know, four months after you bought it, something changed and now you’re screwed. So the benefits of ownership is like, if that happens, you can kind of just switch back to long-term or medium-term is ideal because if you already started as a short-term rental company, you’d want to go after the maybe you know, short-term rentals, obviously, the highest prices you’re gonna get. But the medium-term rentals, the corporate renters, the you know, traveling nurses, the workforce people, the corporate renters, everybody’s going after them. But you know, you could probably get a piece of that too, depending on your location or how good your marketing and branding is. Having said that, that would be my favorite, but it’s also the most expensive, but you get to control everything. The reason why arbitrage is so high is because people think you can get in for like less money, but it’s also way riskier, if you think about it because you’re not going to get your money back from a lease, you might get some of your money back from furniture, but probably not because you’re buying it at you know, buying expensive furniture generally or just brand new and all you got to do is go on Facebook marketplace to see, you know, people selling brand new furniture for cheap. So it’s kind of like and there’s a lot more work involved trying to put together something cheaply. So sometimes it’s better to just, you know, go to one place and get everything nice and coordinated. But with arbitrage too like, if you’ve haven’t negotiated a great lease or something past a year, you’re probably not going to make your money back. For me, my calculation was, I would not be make my money back normally until 18 months, after 18 months and spot where I’d get all my money back, right? Because yes, you’re making money on that time period, but you’re also spending it. So realistically, you might be making three times the amount of a normal rental. Keep in mind, this is for like a smaller one, maybe two bedroom. Three and four or five bedroom houses have different numbers. So yes, you can make more money, but there’s still more maintenance, more cleaning, more everything, right? So it’s kind of relative. But with arbitrage, you got to be in a place like a year and a half, just to break even after everything that you’re spending there, so people don’t really kind of see that. They see the money coming in, but they’re forgetting how much they’re spending to keep it up. So it’s kind of like three times the income, but two times the amount of work and expense. You have to kind of decide like, “is it really worth it for me to do this to be constantly landing planes, as I like to call it on the weekends, on Fridays when everybody’s coming in and making sure everything’s clean on Sundays when everybody’s going out?” And that’s the kind of norm. How much of that is it really worth to me? And you’ll never know until you hit a market and kind of get a taste of one to see, but as a market might get oversaturated or you might just have a unique property, the more unique property obviously you cannot say like across the board, everybody’s going to make this kind of money because it’s a unique property. It makes money because it’s a unique property sometimes because of the location, but sometimes it’s just because it’s so unique that it’s just going to always be in demand. So what kind of product you’re putting out it’s really not about it’s the prettiest or the most well designed, it’s like how unique is it really because at the end of the day, not too many people want to pay $300 a night for a one bedroom unless that one bedroom happens to be, I don’t know, on the top of a mountain hanging over a cliff or something, I don’t know. Or you’re in the middle of the woods or a tree house or something like that because they can go get a hotel for a lot cheaper and not have to pay a cleaning fee and you know not have to worry about parking, neighbors or trash or doing chores as they like to say now like, people were complaining that Airbnb is like a hotel except with chores. I thought that was kind of funny, but kind of true, too. So I hope that explains kind of what you were asking me.

Delia:

Yes, it explains completely! And about rental arbitrage, there are also some, you know, challenges when it comes to get to convince, for example, the landlord and stuff like that, did you get to experience that?

Jason Centeno:

Yeah, so one of the things about rental arbitrage is, you kind of halfway got to be a Property Inspector, like people getting into rental arbitrage that have no real estate experience at all are going to be hurt because I don’t know if you’ve ever just moved into an apartment, but you know, the first day you go through, they make you sign off on like, do the lights work, how’s the water pressure and sometimes you just run through it, right? But unless you stay in a place for a while, you’re not going to know that now you have a slow clog. Now you have a toilet that runs a lot. Now you have a leak that just started to show up because you know when you moved in the landlord painted over, but now it’s a chronic situation, but now you’re embedded with this person. So it’s these chronic problems that pop up that sort of affect your guests experience and then how fast the landlord has to respond to these problems. Because if it’s me and I know it’s messing with my money and I own the place, I’m going to make it happen like that, somebody’s going to come fix that like right away because obviously it affects your reviews, right? versus a regular tenant is not going to be meeting some, they’ll complain, but it’s not like they can leave a review on Airbnb about you or Google or whatever. Landlords speed to handle you is their attitude is the same as if you were a regular tenant because you are renting monthly from them. So you got to be prepared to come out of your pocket and have like something in place that like pre negotiate and say, “Look, if I have to fix this problem, I’m taking it out of your rent” and that causes issues sometimes because if you have an automatic rent payment and you got to go in and mess with it. So there’s all these kinds of wrinkles to arbitrage that people don’t really get. They only see like, “Oh, I can get all in for $5,000 to start making Airbnb money”, great until you have a crappy landlord that just took you because he was looking for a consistent tenant, but wasn’t really that, you know, diligent about keeping his tenants happy, you know what I mean? So, I experience a little bit of that. And then COVID definitely showed how some landlords were going to be because they got desperate and they start putting, for example, we had a building that we have five units in, like an apartment building, it was like 40 apartments and they had just bought it and they were starting to do renovations and then COVID hit so then, because of COVID, they started accepting any old person to hold rent, including, like, hate to say about six or eight tenants. And the last thing you want to see when you’re going to stay somewhere like a kind of place where you know, the pictures do great and things are great is looking and watching people walking around, you know, half undressed in hallways, smoking weed and you know, cooking and talking loud on phones, like really obnoxious because they don’t care. They don’t care, they don’t have pride of ownership, I guess you can say. Most people that are renters in a nicer building well, but if you start putting in renters that you just putting into stabilize the building, you end up with this mess. So I literally had to like abandon five units because that’s what happened in the middle COVID and I was like, “Look, I can’t keep having this experience”, people worrying about, you know, people knocking at their door in the middle of the night, you know, thinking is somebody else’s apartment because somebody else used to live there banging on the door crazy, like just nonsense like that. They weren’t keeping up their end of like, the property management. So I was just like, look, I gotta break these leases because you guys are killing me, like we can’t keep people in here. We keep having to give people money back. So some things that look great in the beginning, don’t turn out so after you know, you can’t blame the pandemic, you know, hit everybody, so that’s not the biggest issue. The biggest issue is how you handle it moving forward and detach without being unethical or just doing bad business. I mean, you can’t drown with people but you can’t like also just trash a lease or something like that because that also affects people. So that’s the part of rental arbitrage that I think a lot of people would not be able to handle, you know, come another pandemic or just any kind of challenges like that. How do they handle it? I don’t know. So.

Delia:

Yeah, what you just heard is very important. It is actually my first time listening about these because usually when people tend to talk about rental arbitrage they use talk about the good side of it. These challenges are what is really important to know about to be transparent about your experience, so other people know what they might get into if they try arbitrage, right? So thank you for telling us about this. And one thing I’d like to know is how much you were making back then with Airbnb and why did you decide to quit?

Jason Centeno:

That’s hard to say because, you know, they frown on it, but I have multiple accounts, three accounts. So one, you should always have more than one because they are just algorithms been canceling people left and right for a lot of different reasons I’m hearing because of background checks or people that are even associated with them. Somebody with a jail record logs into their WiFi somehow and next thing, you know, your account cash, is so many dumb things going on. But back before that was the craziness, I would say, one point, I think we’re getting close to like 90 across all of them, but they didn’t stay that good. It’s just because for all the reasons I said, you know, apartments started getting like leaks and then we were getting bad reviews and it really I had to have one account that was kind of like I call it the quarantine account, where it would just be you’d put a property on there and give it like you know two or three stays, just make sure that it was okay. And then I would move it from that one to a better like more reviewed account and just take all the information and just shut the one down and put it on the other one. So I actually had like one account, like I said, it was like a quarantine account in case anything goes wrong, you know, that count means nothing to me. And, you know, having said that, you know, we never got shut down and if we ever had like two or three bad ones in a row, we would just get rid of that one account and start another one just to keep it so that when you’re doing arbitrage especially or even co-hosting, whenever these problems sneak up on you, it’s not killing you from, you know, as you’re getting going. Like when you first get started, they gave you a lot of extra SEO and put you higher into placings to get you rolling. So you take advantage of that, but then when it goes away, you’re gonna be screwed if you have like three and four stars, right? So that was something I sort of developed over time, I will say like I said the top we might have been doing like 90 and I say “we” because at that point I had like two people helping me, so not all mine, but you know.

Delia:

That quarantine account you told me about it’s also good to saving yourself, like from the bad reviews that you might get at the start because that one listing it’s best condition yet when it’s starting, right? So it’s a really good strategy. I’ve never heard about that, so thank you for sharing that.

Jason Centeno:

And that’s like I say there’s things with those, you’ll never know until somebody stayed there. I’ll tell you one in particular, like if you can ever avoid being on the top, if it’s a high value blankie place, like a new construction, I would never on an older building like anything like just not brand new, take a top floor because all the heat rises, no matter how much air conditioning you put into a place, all the heat from the whole building goes up there and God forbid, that’s where your bedroom, I had like a unique property like that. But I had to get an extra air conditioner just to put in there and buy one of those portable ones because the heat was just so bad that it would overwhelm what was already there and like cook people and I was like, that was one of them that thank God I had that quarantine account. But when I first got the property, it was like, in nicer weather, but once summer hit it was like ungodly and I found out in the hard way out of put in my own external on portable air conditioner in that place just to make it bearable for people, which was, you know, you’re in there in the summer and got, you know, maybe you got your arbitrage property in the winter or the spring or the fall, you will know that so.

how much can you make on airbnb

Delia:

And how did you come with the idea of that one quarantine account you have?

Jason Centeno:

So I’m a retired firefighter and we always have like multiple plans. So I just take and think like “okay, everything’s great, but what happens if something goes wrong?”. So I just started to put up these measures in case and test them out and, you know, it was necessary. So I like at least a Plan B and Plan C with everything I do.

Delia:

That’s good to know. And one thing I’ll like to know about is why did you decided to quit on Airbnb, even after all of these buildings you already owned and all this profit you were making, why did you decided to just quit that?

Jason Centeno:

A few things. COVID was the big reason for a lot of it because I just had to get out of most of the arbitrage units. It was taking more than it was giving because of what I mentioned moving in bad elements into one apartment building affecting one account. Travel was just shut down completely in Philadelphia for like, longer than most places actually, so it was more like to stop the bleeding. The ones I own, were the last to go. I actually, I moved through Philadelphia, so I was like I mentioned, I was a firefighter, I retired and when COVID hit, I decided that I just want didn’t want to live in Philadelphia anymore because I didn’t like what was going on. I thought it was ridiculous. I saw what the administration was doing. We’re not going to get into all the specifics just because people feel the way they feel. I just felt for me and my family, I needed to us to be out of there. So I decided to leave, I said, I can go and start to somewhere else. So we ended up moving in Tampa, just in time. When I got here, you know, my management that was still in place for the ones that I still had, wasn’t really doing a great job, I thought I had a pretty good handle on it, but come to find out when you’re, when they say the cat’s away, the mice will play, it wasn’t so much that, but everything that used to cost me let’s say $10, when I was there would cost me six and seven times that. So every little thing just got way more expensive for me to do and it got to the point where I was like, you know, this long distance handling of it, it’s not worth it to me. It bugs me, right? So that I started seeing some things about Airbnb I didn’t like specifically and it was accumulation of things. And then some of it was instinct that was just like it’s getting oversaturated, I would rather pull back and do something in the industry, but not that because I personally like to operate in places where there’s like, I have a little niche. I had one there that I really liked, but again, being far away, it wasn’t really working anymore and the travel industry across the board was kind of knocked sideways. So I was just like, “well, you know what I think I’m just going to pull out and then start over when things get better or when I like the environment again”. To that end, I sort of just did nothing for a year, I kind of unattached myself from everything so that I could kind of look at it from like 1000 foot view instead of being too close to it and that’s kind of where my tech company kind of came from, which was one of the things that bugged me the most was trash became such a problem, something so small, but it affected everything. You know, if you ever go on the boards, people are like, “Oh, this area is sketchy”. In urban areas, there’s not a lot of room for things, right? Like there’s just, we don’t have a lot of garages, we have some alleyways, we don’t have big yards or anything, so storing trash, you know, if you’re in the hospitality business, trash is important because if you don’t get rid of it quickly, you don’t get the bedbugs of people bring the bedbugs, but you’ll get the, you know, the roaches, the fleas, the flies, the rats, you’ll get everything, as clean as you keep your building, they’re going to find it, right? So if you can’t store it outside because the neighbors or because you get fined or whatever and you can’t store it inside because you’re attracting these pests and affecting reviews and getting, you know, you’re like damned if you do and damned if you don’t. So it became such a big problem and I had some people working on it, but it was always agony, like to find the right person to make sure they got it out on time, that I didn’t catch a fine, that I didn’t piss off neighbors and it was just kind of like this complicated problem from something that we all kind of disregard. And it affected the, you know, affected the surroundings too because, you know, I don’t know if people have been to New York lately, but just seeing trash on the sidewalk, that kind of stuff just puts you in a bad mood. So if you want to go on vacation and you want to see maybe not the beach, but like you want to be somewhere you want to feel like you’re like relaxed and enjoying yourself, the last thing you want to see is piles of trash smelling like dead fish and dead bodies. Wherever you’re walking, it doesn’t matter if the place is gorgeous, if you smell that or see that it throws you off, it messes up your attitude. So I look at that and I was like, “You know what, this is a problem that I want to sink my teeth into” and never thought I would be the person to do this, but apparently, God saw a different and put a bunch of things in my lap and said, “You’re the guy” and you know, here I am. But I created this app called Trash matter because, you know, short-term rental hosts, small businesses, cleaning companies, you know, restaurants even or just people that have a party in their home, like we just had Memorial Day weekend and people are like, “who’s gonna pick up my trash” and it’s like, we don’t know right now because, you know, the city might take off. And you know, if you live in a place that gets hot or just you don’t have a lot of room and you just did a big cookout and you got all this food in the trash, you’re going to attract the rats, the fleas, the dogs, the cats, the raccoons, the bears, wherever you’re at or if you got to put it in a hot garage, it’s gonna stink up your garage. So there’s just people out there to just like, “I don’t want that I don’t want to be waiting for five days for this” and that’s what we’re there for. And it became the beginning of something, but right now that’s what it is. We’re like Uber for trash, we get rid of 2 to 10 bags quickly or under the amount that a normal junk person would pay attention to like, when you call those guys out, it’s usually over 100 bucks to just show up and it’s two guys in a truck and you don’t need all that. You got to three bags, you’re like, “Well, I just don’t have time to take it to the dump myself”, well, that’s what we’re for. We were there for that in between kind of a little bit too much for you, but not enough for the other guys and you don’t want to spend, you know, $100, you want to spend 50 or whatever. So like that, that’s where we live.

Delia:

Can you tell us a little bit more about how does the app works? How does the person who wants the trash taken out contact this person who is going to come and take trash out? How much are the prices for it? And stuff like that.

Jason Centeno:

So right now, we’re still on the app store now. But trashmitter.com, you could go and download in your Google or iPhone. We’re only available right now in Philadelphia, but people can start to sign up and when they do, we’ll start to make a list of where we’re being asked for. So ideally, we’re going to, you know, spread out, you know, Tampa, Miami and Dallas, like there’s places we already kind of know we’re going to be headed. But right now we’re just in Philadelphia vicinity, trying to work out the kinks. So we’re still kind of fundraising and still fixing it, but it works like Uber like you would go on, you put in your address, you know, your credit card, everything that, you know, to set up your account, put in your address and you’ll be basically, you can say “I got three bags, I need to get rid of”, you put in three, like you just pick three and then you take a picture of it so that we know like where it is. So ideally, we tell people, “hey, just put it wherever your address is to make it easy, right in front” and then when we’re up and running, ideally, we want to be kind of like dominos half an hour or less, but we don’t have enough people yet, so it’s more like a couple hours. But you know, you will press the button and then the sign goes out, the trip goes out to potential drivers and as we fill that up with you know, like Lyft and Uber drivers, anybody that just wants to do this as a side gig because the cool thing about Airbnb type trash really is like most of it is not nasty trash. It’s kind of like junk food wrappers and pizza boxes and stuff like that. So people are like, “Oh, my car’s gonna get nasty”, it’s like, nah you can put something in the trunk or a tarp even and this does really not that bad, but of course, that’s right now, so who knows what they’re going to do in the future. So you know, basically, you call it and then we send somebody they come, they pick it up, they take a picture to verify that they took it and then it’s gone. Like we take it to a local dump, a passing by truck, eventually, we want to be tied into all the other Junkers and even the city systems, where our people could kind of just see one close by and throw it off there and then they would share the cost. So you know, you don’t have to drive far, you could literally just be in a one or two square mile radius and never have to leave that because there’s always some place to put it. That’s kind of where we’re going with it. And eventually, it’ll just be waste management across the world is just crowdsource that way. And then we can start working on litter. I mean, the future of this thing is we’re trying to make an app or a game where like Pokemon, kids pick up litter and pick it up and they would get cryptocurrency for it or rewards for every piece of trash or glass or mask or whatever they pick up, they will get reward points that we would eventually turn into crypto, you can go on a store and put you know, buy stuff with it. That’s where we’re going with this because I didn’t want to look at this as a simple solution just for Airbnb hosts. When I think of things I want to be bigger than that. I want it to be useful for everybody. So I went in with the thought of like “How can I make Airbnb hosts life better?” I went into thinking, “how can I make the whole world a better place?” And then that’s kind of where this all came from. So this is just the beginning of it though.

Delia:

That’s a great idea! And are you going to continue like in the future working with Airbnb hosts and these type of people you’re covering on now?

Jason Centeno:

I mean, yeah, they’re always going to be my people. In fact, I run multiple Airbnb host groups because I can advise, it’s not like, you know, I don’t want to be the guru cake person that’s out there selling education because to me, it’s kind of a zero sum game, you know, for me to keep up on that stuff and be day to day activities. There’s people better at it than I am, right? But I still want to give value. So what I do is I just create really welcoming places where people get actual information, you know, we try to give them all sorts of like, right now, I’m creating a resource manual for Airbnb hosts, like, what are all the things you can do? Well, you know, there’s property management systems, there’s cleaning apps, there’s all these things and it’s like, well, I can just put them all in one little place and download it and now you’re in my ecosystem and then all I care about is this. Whenever you have a trash disposal, you call me first, I’ll give you everything else for free. And that’s kind of like my MO and it’s been working. I mean, that’s how I’m growing. So.

Delia:

Yes, that’s great! I mean, it’s also good that people can get access to the groups, but education when it comes to this, I think it’s more valuable when it comes from people who wants to give it for free, who wants to teach you like from their heart for you to grow, right?

Jason Centeno:

Yeah, I mean and again, also because if you pay thousands of dollars for something, but you feel like there’s a missing link because everybody’s different, like, you cannot give everybody 100% of the information because each market is different. Everybody’s situation is different. I mean, just in our group alone, it’s like, “are you a co-host? Are you arbitraging? Are you an owner? What’s the zoning? You know, what’s this? What’s that? It’s like, there’s so many variables that are, I got six kids, I don’t have time to be kids’ father to a million more people. It’s just like, I’ll do the best I can and I hope you got to be able to fill in the blanks on your own. But the problem is that the Guru’s to me, so in one package, and that’s what you buy. But there’s no such thing, you know, you just have to keep educating yourself, educating yourself. So why pretend that I’m the expert or the full answer to everything, I’ll give you as much as I can give you and that’s it and that’s all I promise and I feel like, for me, that works. Other people, I’m not gonna knock anybody else, there’s some guys out there that I learned from that were great, you know, I can start rattling off names, but I know they’re about their business. I just could not do what they do as consistently as they do it. So I choose to do it this other way because that’s what suits me better.

Delia:

Yes, fully understand and appreciate what you do. So you told me previously that you are currently investing in an Airbnb competitor called Workbnb, right? Can you tell us a little bit more about this and why did you decide to invest in them?

Jason Centeno:

So Workbnb, I love the model because it’s basically a b2b business instead of a b2c business, meaning all the scammers, all the people that are coming on Airbnb now that are learning how to play the system will be avoided because you’re simply dealing with an employer and their employees are being placed in these places, that person has a lot of incentive to be well behaved because I don’t know about you, but if my employee goes and has a party at a place that I put him in and wreck something and cost me thousand of dollars, that boy is getting fired, right? So like, it just keeps people more honest, you know, people get paid, hosts get paid up front, you can’t just like Airbnb be started in 10 minutes, there’s a barrier of entry, there’s some training you got to take, which I also love. So it keeps out the casual hosts, right? And it deals only with professional, it’s a professional platform and it caters, like I said, to a niche and the niche is infrastructure workers, as specifically with me and Yeves, the founder, we’re like really trying to be the housing sort of plug for tech companies because we both have tech companies, he has that tech company, I have my tech company and we’re trying to like create a little infrastructure of tech companies where we become the people that they go to when they want to place their people in different cities, while they’re trying to expand their operations, since we understand both sides of that, that’s kind of who we want to appeal to. So I invested in them simply because I was like, it answers the problem, I’m sick of the way Airbnb has been treating hosts and making things worse instead of better and the culture that they’ve created around, you know, around guests, now it’s just bottom of the barrel and they don’t seem to care about it or do too much about it. So this is why I back the competitor because I was like, I would just rather deal with that type of customer on a smaller scale and know that I’m not going to have the rug pulled out of me if something pops up, you know, businesses work together better, like if you’re not a tenant, but like if you’re a business and your landlord is a business, you’re gonna have a different conversation on negotiations and what will be a tenant versus a landlord because that’s not business to business that’s, you know, lease or lease, I like that because if there is a problem like another COVID, you can work that out with the business a lot better than you could work it out with an individual because all they want to be like, “Ah, I’m hurt, everything’s bad”, like they forget that the rest of the world is also hurt. So they don’t try to get a mutual sort of mutual solution together. I also like that about Workbnb, so I back them.

Delia:

Yes, that’s great. Thank you for telling us about it, it’s going to be great value for the hosts that my are looking to, you know, invest or work in same kind of platform you’re currently investing in. So thank you so much for that. Yeah, that’d be it for today. Thanks a lot for your time and for all the knowledge you shared with us today!

Jason Centeno:

My pleasure. Thank you for having me.

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