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Podcast - Into the Airbnb

Interview with an Airbnb Host from Atlanta, Georgia – S2 EP32

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

Our incredible guest for today is Robert Watts from Atlanta, Georgia, who manages five listings in Atlanta and Stone Mountain. Today, Robert will share with us about his story, experiences and provide us some amazing tips to achieve high income with Airbnb.

This episode is sponsored by Airbtics, the only one analytics dashboard for short-term rental investors and managers, where you can 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 32:
$35k yearly revenue with a 1be/1ba unit – Smart investments and Viewpoints of the Atlanta market from a professional Airbnb host
airbnb hosting tips atlanta

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

elia:

So how did you get started in Airbnb and with short-term rental investing?

Robert Watts:

Airbnb was something that I stumbled upon. When I bought my first property here in Atlanta in 2013, I had no idea about Airbnb, I bought it as a an investment property and mine in the future. But that was more so maybe just having a long-term tenant as opposed to short-term rentals. So when I found out about Airbnb when I started standing in Airbnbs as a guest when I travel, I love this so much, I love the idea, I did more research about it. So after visiting so many different Airbnbs in different cities and countries and things of that nature, I decided to try it out during the week. So what I would do was use my personal condo unit, I will go stay with one of my fraternity brothers and see how it will work out. So I did it a few times on the weekend and it booked religiously every weekend, anytime that I open the calendar. So I said well, this is interesting, I’m gonna step out on faith and have this unit vacant 30 days out of the month, so full time vacancy and just go rent another place where hopes this profit from this unit paying for my rent and another location, another apartment. So long story short, I did that and started that in 2015 and never looked back and it’s been paying for itself and paying for other multiple locations and other things and other entrepreneur endeavours that I want to indulgent. So like I say and tell people about Airbnb, it’s funny because most people still are not fully aware of what Airbnb could do and the profit that it could provide and a different method of passive income. So I tell people all the time, if you want to, you know, understand Airbnb in this holistic perspective, I suggest that you stay as a guest first, before you host an Airbnb unit. So that’s, in a nutshell how I got into Airbnb.

Delia:

That’s great! And did you have no problems at first with hosting in your condo?

Robert Watts:

So initially, not at first, I would run into a few struggles, dealing with maybe elderly neighbours that didn’t understand what was quite what’s going on. But that took communication and speaking with the board because again, I own my condo, so I would just really speak to the HOA and speak to other entrepreneurs that were finding out about Airbnb around the same time, I did and we just got together and formed, you know, a coalition of entrepreneurs and using our rental property as we are entitled to. So they’re years ago back in, like I said, 2015-2016 there was not as much height as it is now with the restrictions in the legality features that, you know, the city is trying to promote at this moment because it’s been a big, big, big thing now and a big, I wouldn’t say issue, but a big obstacle that may arise. But just having your ducks in a row and doing what you’re supposed to do and communicating with people about what you’re doing with your property. It resolves a lot of issues but more so now I just feel like Airbnb became so big that the city wants a piece of the pie as well. So that’s another story that we could definitely speak about, but it’s not as bad as people think and they doing this in every big city where tourist attraction is in demand. But that was the only obstacle that I had initially starting out. Now I notice one of your questions I didn’t want to jump ahead but I know one of your questions was about the challenges of Airbnb and I can go into that if you want. I can tell you the biggest challenge dealing with Airbnb in the beginning and anytime, if you would like.

Delia:

Yes, please go ahead! No problem.

Robert Watts:

Okay, okay. The biggest, biggest, biggest challenge for me and I know other hosts, if they’re doing it the way I do it, the biggest challenge is having and keeping a reliable cleaner, I’m gonna say that one more time, the biggest challenge is keeping a reliable cleaner because that is there’s high turnover rate. So if you don’t have a good cleaner, then you don’t have a good business period because your reviews are going to show for you’re going to consistently get bad reviews regarding cleaning and that’s something that you don’t want because they are hard to come back from especially starting out your first 10 reviews, when you start should always be five stars, if you get anything less than that, then it’s going to be a struggle because when you had over 100 reviews, one bad review won’t hurt, but when you have that first bad review out of your first 10, the system is this, the algorithm, the metrics, it just throws everything off. So you’ll be playing catch up for the rest of your journey, you know, if you continue with Airbnb in that particular listing. Now you can go and possibly start your new listing and start fresh, but with that listing and with that cleaning reputation, it kills you before you get started. I can’t harp enough on having a reliable cleaning.

Delia:

And how did you manage to get the one reliable cleaner?

Robert Watts:

It’s the story of, you know, the princess in the frog, you have to kiss a lot of frogs before you find your prince, so you go through a lot of different cleaners. You want to have the best of the best, the ones that understand the system that you’re trying to do that have the same professionalism that you portray efficient and responsive like you are. Just the way you want to run your business, you have to have almost a partner but know that their role is to keep the cleaning this at tip top shape because when you’re making money and booking, the cleaners making money and booking, but if you’re not booking, the cleaner is not making any money, so it’s a win win situation. And people don’t understand that as a partnership when you’re dealing with a cleaner and they have to know that you are just as good as the business because if I’m not booking, then there’s no work for you to clean, so it’s a two way street. So you can’t do one without the other, you can’t run a successful Airbnb location without a cleaner and a cleaner can’t find work if you’re not booking anything.

Delia:

Right, I understand, that’s right. And is there any particular method you recommend to look for cleaners? For example, looking on a specific online page?

Robert Watts:

Yes. So I will say the biggest, the most reputable asset is using the Facebook group, which I’m a part of, I’m a part of the superhosts Group for Atlanta and I’m are part of just the Airbnb host community on Facebook. Those groups seem to be pretty attentive and they are reputable because they send you good people when you ask, well, “hey, I’m in a Decatur area” or, “hey, I’m in the Stone Mountain area. Do you guys recommend good cleaners?” and 9 times out of 10, there are so many different hosts in the area, that they are going to have one or one to maybe five different good cleaners that you can pick from because these hosts have experienced with these cleaners and have used them. So it’s better to go to a community where the cleaners and the host, you know, are utilised 100% as opposed to reaching out with more so like a cold call as opposed to a warm call because this is a warm transfer when you speak directly with other hosts because they know exactly the type of environment that you’re in and knowing that you got, if you’re in a good location, you have about eight to 10 bookings a month and that’s on average. So they will know that you need a good cleaner that, like I said is attentive and can respond and know that they may be cleaning one night and be back tomorrow the next day. So you can have, you know, one minimum night bookings. Some people use that some people do two or three night minimum booking with me and in my experience, I would rather not leave any money on the table because you have to understand that a one night booking can easily yield you 200 bucks after you include your cleaning fee. So it’s about perspective and how you’re running your business.

Delia:

Oh, so you will recommend to do one night minimums?

Robert Watts:

That’s my personal stance. I know if you have a bigger location maybe like four to five bedroom house then that may be different and more strainless for the cleaner and the host to get that place clean for the next day. So most of the time when you see people that have three night minimum is because their location is much bigger, what I’m speaking about is one night minimum on a one to two bedroom condo unit.

Delia:

I understand completely! And now I’d like to talk about your area, I understand that Atlanta is a very big and competitive market.

Robert Watts:

Yes.

Delia:

How do you see it now? Is it more easier or harder to run Airbnb there?

Robert Watts:

So let me give you two scenarios: pre COVID, no. Pre COVID, it was not difficult at all because none of these things and dynamics existed, you know, travelling was the highest demand, Atlanta itself is a high tourist attraction destination city, we have one of the biggest and busiest airports in the world. So things like that play a pivotal role in having a successful Airbnb business because you constantly have that foot traffic, not only from your locals that come from the outskirts, that travelled from the outskirts to hang out in the city for the weekend, but you have that tourist attraction from international travellers that were coming in and they had never heard about Atlanta at all, but they know that the mountains are nearby or they know that }recreational parks are nearby or, for instance, the Georgia Aquarium where you have the specific dolphin show that can’t be seen everywhere. So it’s just different dynamics that we’re playing to our advantage as hosts in the area, but that’s pre COVID. So now, post COVID. Afterwards, I will say that it has slowed down a little bit and we are more at a steady average as opposed to a high peak and I think it’s a little bit more difficult now because so many dynamics have changed and the world has changed. So travelling has changed and you have to adapt and pay attention to things of that nature and not be so rigid with how you used to run your Airbnb business, know that you have to change to be more suitable for this type of guests or you may have guests that now, don’t book so much during the week as they did before and mostly now is the weekends or start from Thursday to Monday or Thursday to Sunday. Then your down days, you may have to adjust your price debating on how you want to run your business for essential workers or locals. So there’s so many different dynamics that play into the Airbnb business for pre COVID and post COVI, so I always give two different scenarios anytime that I speak with anybody about the business or just consultation because you got to know these things before you get into this type of business and put money into the property or buy investment property if that’s what you decide to do. So I hope that helps, I just wanted to give you two different scenarios of what it was and how it is and what is going to be. I don’t think we’re going to stay here, I think we’re going to increase. I think travel is going to be one of the most demanding extracurricular activity type deals sometime soon. I’m thinking about this summer, a lot of things are going to continue to increase. So I would tell people and other hosts to get ready and enjoy the ride.

Delia:

Yeah, I understand. And are there any more regulations right now that were before when you started?

Robert Watts:

Yes. Like that current regulation that I was speaking to when I was answering your other question. I’m telling you that, you know, Atlanta just submitted a leasing permit that you have to have, but we right now are still fighting it. The hosts, the super hosts, we’re putting up a good fight and you know, we have organisation like I said is on Facebook, that it’s free to join and they have hired a lawyer. We have a lawyer in place and we are fighting it because they’re making so so many different specific aspects, trying to push and weed out a lot of different hosts to where they are not allowed to host. They’re making different requirements like not being your primary residence and you know, that for ones is, could be damaging to a lot of hosts because you got to understand most of these hosts and they have Atlanta properties, they don’t live here, you know, they’re in West Coast, in New York, they’re out of the country, this is not their, you know, primary residence. So when you make that a requirement that we’ve got a lot of different posts and you mess up, you know, people’s Airbnb business that may have 10 locations or more. So it’s just different dynamics that they’re trying to propose, but in my honest opinion, I just think that we’re stronger. We’re much stronger as a team as a collective unit and I think we’re going to get past that and adjust the requirements, you know, and it is not a big deal, it’s $150 permit that you have to buy every year. But when you think about this was an expense that you have to worry about in the past that wasn’t even thought of, then it makes a difference, you understand? Sometimes it’s just, you know, they make things as unfair that is not in the best interest of the host, is in their best interest add more city or state tax dollars in my opinion and it’s just not right.

Delia:

Yeah, I understand and I completely agree with that. What about these specific areas you’re hosting in? What is the seasonality like in there?

Robert Watts:

Okay, so I host a few locations here in Atlanta, in the city of Atlanta and then I have hosting, co-hosting a property in Stone Mountain. Before COVID, pre COVID, I hosted 10 locations and majority was in Atlanta, Stone Mountain and then one property that was in Myrtle Beach, South Carolina, which was great because it was nearby the beach and like I said, location is everything and your spacing is everything. Most people don’t know, but more people you can sleep, the more money that you can make.

Delia:

And in the current lessons you’re hosting, what is our average occupancy rate like?

Robert Watts:

So high season occupancy rate between 80% and 90% a month. On a low season, I would say 70% to 80% out of the month and maybe my weekday or range anywhere between $75 and $85 a night and that’s just the rate not including any other fees and the weekend will range of about 100 bucks to 150 and that could fluctuate depending on, if there’s a concert, a art festival, if there’s Dragon Con or if there’s AmericasMart, just anything like that, that could change the dynamics of the pricing. I adjust my own price and that’s what I suggest to any hosts, I don’t use the price tip because they have a price tip that’s embedded in the Airbnb site and this is for smart pricing for, you know, inexperienced hosts or beginner hosts, they’re starting out and don’t know how to price their location. But for me with the experience and knowing the things that I know, I just know how to price, any type of location, I just need the comparables, I just look at comps based in the area of where are you located and I can have a better idea of what the market demand is. But it changes every week, it changes because there’s different events every week, so you can’t project your price every week being the same because you’d miss out on a lot of money depending on what’s going on in the city or wherever location out of your country, wherever you’re at. You need to know about the events.

how much can you make on airbnb

Delia:

That’s right. And you mentioned one of your units is near to an stadium, right?

Robert Watts:

Yes. Si!

Delia:

What usual kind of guests do you get there?

Robert Watts:

I get all types of different guests in this area and other units that are hosted in this area, we get locals we get essential workers that want to be nearby the local hospitals or they may have an assignment for a month or week and they need to be here. People adjust their time off your location because they want to you know see how long it takes them to get to their destination and when you have a place that’s close in the city or exit away from the Mercedes Benz stadium and I mean the balcony from the units that I host over here, the balconies view I 20. So when you can see I 20 and you can get on I 20 to go east or west or wherever you need to go, that helps with the traffic. And when you have a great location like that you’re 10-15 minutes from the airport, 10-15 minutes from the zoo, 10 minutes from downtown, 15 minutes from Buckhead and your Luxury Lifestyle, Luxury places that you want to visit, restaurants or Lounges, one of the biggest parks Piedmont Park only 10 minutes away from there, just different places that people want to tours that the guests they want to get, even to the mountains, to Stone Mountain and Kennesaw Mountain people that want to hike you still only about 30 minutes from there because you’re in the city, you’re downtown. So it’s about location and that has served us well, like I said, since I’ve been doing it since 2015 and I know location is everything. That’s one of the top reviews that I get is based on the location and the you know, professionalism, besides cleaning this as well, but your location is everything. So you always, always, always look at where are you located because it makes a big difference. I guess we’ll book another listing over years if it’s located closer to where they need to be.

Delia:

I see. So would you say one of the best locations is downtown Atlanta or are there any other particular places out there?

Robert Watts:

Yes, I would say downtown will be the best because you got to understand when you’re downtown or located nearby downtown, everywhere that you want to get, you can get there between 10 and 25 minutes, meaning your heavy transportation area like the airport because that’s where most people are coming from. Then not only that, you’re located by several different transit stations, you know, when you speak about MARTA, you’re near all of those places, so some of the guests here will speak about “hey, are you only like 5 to 10 minute walk to the MARTA or the bus station or the train station?” that’s perfect for what we’re trying to do if they don’t want to use Uber or Lyft or if they only drive their own vehicle, which another thing, you definitely need to have parking. So you pick a location which if not free parking, accessible parking, meaning that there’s just nearby, but always look for free parking, try to have a location with free parking on site that will help you make a lot more money and not miss out on money and leave anything on the table because you don’t have parking. A guest will choose another location over yours just because you don’t have free parking. I’ve seen it, I’ve heard it, I’ve experienced it. So with different locations are posted. So you know I always take the time to read my reviews and read my other location’s reviews just because I can be in tune with my past guests, so I can be more in tune with my future guests.

Delia:

I understand, that’s great advice actually! Would you still recommend for people to invest in the city of Atlanta or in the state of Georgia?

Robert Watts:

Absolutely. There’s a niche for every host, I will tell them you know, get in a good area, wherever you decide whether it’s in Atlanta, whether in Decatur, whether it’s in Stone Mountain, whether it’s in Marietta, just find your niche in that area and know the things that are located around your area and the things that are going to be attracting different guests. Just know where you are and know that, you you know, need to be in a good space, in a centre of those things that your guests could enjoy. Make sure you get in the centre of all of that, that way they can get to all those places that you can mention in your listing or your guide book that you should create. You should always create a guide book with all those things to do, all those places to eat, all those different trails and hikes to walk, all those different places to go and relax at a park or museum, all those historical sites, you should list all those things and you should try to be in the centre of all of those things. So depending on wherever you choose, just make sure that you are in the centre of all the local attractions. They don’t have to be in the city of Atlanta, you can be in the city of Decatur, maybe check out downtown Decatur and know what’s in that area for them to attend, what museums are there, you know, what restaurants that they may might like, you can suggest all those things in your guide book as well just so you can be redundant because it’s never a problem to be redundant when you’re displaying your listing because you want them to have all the guests information as possible and also put as much information as possible to be as detailed, so you won’t have, you know, a guest questioning anything or wondering “I liked it the way this unit look, but I don’t have enough information to tell me what’s around it, what’s close to it, what’s the distance, how safe is, is it a walkable?”, you know, because some things you can’t control, how the community or the neighbourhood actually looks something’s under the, you know, in your control, so control what you can control which is inside your location because, you know, back when I first started, we had to fight to get fair reviews from guests because guests used to be able to review you on everything that’s happening around you in the neighbourhood, in the community and you know as well as I know, when you go to big major cities, you’re gonna have some bad areas and some good areas. Most of the time you have your bad areas nearby the downtown area, that’s just the way it is, you can go to LA, you can go to New York, you have those, you know, homeless people that like to hang around in those areas. That doesn’t mean that you don’t have a good location to book Airbnb guest. So you shouldn’t be allowed to rate me on things that I can’t control, only rate me on things that I can’t control which is inside my unit and making sure it’s clean and making sure I provide the common amenities and have extra things for you to enjoy, you know, while you’re here on your vacation or if you’re here for work. So that was a whole another story that we finally got that pushed across. See a lot of these new hosts that are hosting now didn’t have to bear that, they don’t know anything about getting unfair reviews. We’ve been there, you know, I even had to fight so much to where I’ve had bad reviews removed because I work so hard. After you know, they look over and look at your account and show where these guests are leaving consistently good reviews and you have these one out of 10 or one out of 20 and it always has something to do with the neighbourhood or community, the things that are outside of your control. So they started realising “well, if we keep doing this we only hurting our hosts and if we’re hurting our hosts, we’re hurting that business as a collective unit as an Airbnb business because without us, Airbnb is nothing.

Delia:

I understand that. Would you mind sharing about some insights you’re particularly getting, for example, your gross rental yield? Your monthly income with Airbnb?

Robert Watts:

Yes. So monthly income, I’ll give you for my personal unit, anywhere between 2200 and 2500, I’m just being conservative, but I will say that’s most consistent, anywhere between there every month. So what’s the math on that, you do that, I will say for a year, anywhere arrangement, about 30-35 a year on a personal unit and I’m speaking about a one bedroom unit, which is so awesome. I’m not even speaking about two to three bedrooms, just one bed, one bath, you can yield that much if you’re professional, consistent, pricing your unit accordingly, based on the demand of the city, based on the events, based on your cleaning fee, you know, things of that nature. So if you’re pricing it right, and like I say and you’re getting constant bookings about 8 to 10 bookings a month, you can easily yield that much a month, anywhere between 2200 and 2500 value.

Delia:

That’s a great number for real! And would you mind sharing, like a little bit of your experience as a co-host?

Robert Watts:

Yes, yes. So as a co-host, most people didn’t know about that, as well. So I started a successful co-host business that’s embedded inside my hosting business, I’ve made about $10,000 to $15,000 a year only on co-hosts and I’m speaking about a couple of different locations. This is passive income, you know, that you paid out and the only thing you did was co-host this location, it’s not even your property and that’s amazing to me, you know, because that’s untapped money, you know, people still have not like delved into and really took the time to understand that you should always work smarter, not harder. So if I know how to utilise my professionalism and my skills and show that I’m running my successful unit at tip top shape, what makes you think another host that don’t have time that has a demanding job or may still have a corporate job, wouldn’t trust me to hosts their locations just as good as mine, that’s the only thing. You got tonnes of different hosts and tonnes of different personalities and backgrounds. Every host is not an entrepreneur, most hosts have a corporate job, so they don’t have the time to run their locations. So they may have the capital to fund more than one property, but they don’t have the time to actually communicate and run the day to day operations with the cleaner and maintenance and things of that such to organise and run that effectively. So they will pass off to a co-host that will have the time to make sure that that location is ran properly and has you know, 5-star reviews because it’s all about the reviews. I always suggest to hosts to wait, to protect your property because we have a, you know, a million dollar post guarantee insurance that’s covered, that’s always been covered since I started, so I’ve always felt good about that, anything that has been broken, stolen, anything like that, I’ve always been, you know, reimbursed and taken care of and you know, submit the claim to Airbnb and they research it and they investigate and make sure that you’re under the host guarantee insurance policy, that you’re reimburse for things that, you know, unfortunate circumstances. So that’s definitely true and I’m very grateful for that because they understand like I said, this is a partnership. This is no one working for anybody, you know, we’re hosts and you are the Airbnb, a company or organisation, so this is a partnership you know that you’re no better without us and you know, we have to utilise that mentality more so and leverage to know that you matter as a host and you matter as a guest. That’s the reason that a guest is able to leave a host a review and a host is able to leave the guest a review. It works both ways. So I always implore a host make sure that they read the guests reviews, the past guest reviews and its entirety to make sure that you protect your unit and know that you’re hosting a good guest because that’s the last thing that you want to do is host a bad guess and they tear up your property because that causes you delay, that causes you to have to close your calendar because you have to fix and renovate and adjust the issue before you allow another guest. It’s a number of things that a bad guest can cause you and money and time is two of the things that you don’t want to lose. You definitely want to own your time and you definitely want to control how your money is spend and the money flow as far as your passive income. So there are little nuances that you should always pay attention to and those are the details that you should pay attention to for sure, to keep your money flow consistently and keep your listing at tip top shape.

Delia:

Yeah, I agree with that! And lastly, are there any tips that you’d like to share for other Airbnb hosts?

Robert Watts:

These are things that I suggest, I would always suggest to own versus rent on the property because there are a lot of hosts that are subleasing, which is okay, if you want to begin and learn that you only be making a little amount of property profit, if any because you got to understand when you are subleasing, you have to cover the rent each month. So you have to take care of that first before you start making profits, that’s why I propose owning your location versus rent. Secondly, I will always tell you to get a location and the most bedrooms that you can get or that you can afford because I told you earlier, I mentioned that the more people that you can sleep, the more money you can make. Another tip is to which, you know you have a profile photo on your hosting link, I will always say not to use your personal photo, you should always use a picture of the city or the skyline or anything that is attractive in your area just because you won’t be pre judged by any guests. I know that may be kind of harsh, but it is honest and transparent qnd you have to know that you will be judged qnd it’s unfortunate that guests do that, but that’s just the nature of the business. So another tip will be to start with either a townhome, or a condo versus a house unless you have that type of capital ready and time to look after that house. Another tip was to be professional all the time and readily available when you speaking with guests. You don’t ever want a guest waiting 30 minutes to an hour to hear a response from you. In my opinion, that’s that’s a no go, you shouldn’t be in the business at all if you can’t respond in a timely fashion because that’s not attractive. It lets me know that either you don’t have the time or you’re not personable enough to connect with the guests because it gets the next immediately which you after they send you that first message, there’s an instant connection and you got to understand that that’s your first impression. Just because you’re not personally able to meet them don’t mean that this is not the first impression, so you have to understand that that rule still applies, this is your first impression. So you have to be attentive and respond in a timely fashion.

Delia:

Yes, that’s right.

Robert Watts:

Alright. Another tip would be to have at least 25 to 30 photos of your listing and make sure that they’re well lit, good lighting area, not only that, but make sure that you take nighttime photos as well. Also, I spoke about make sure that you read the guest reviews in its entirety before accepting a guest booking. Also, I would suggest doing 3pm check ins and 11am checkouts, I always suggest those times because those are are closely in standard time with the hotels and most people are already used to it, so why not keep that same flow as far as timing and professionalism as far as your structure? Not only that is gives your cleaner enough time to turn over your unit or your location from 11 to 3. That’s enough time to make sure that everything is washed and dried and all of those things. Another tip would be to create a guide book and I mentioned that earlier, a guide book will show photos of the tours attractions, it shows photos of your recommended restaurants or places that are nearby in a walking distance. You can list the different mountains and hiking trails, you list all the specifics about your unit and what your location and your area provides in your guidebook.

Delia:

That’s right, those were really great tips, thank you for that, they’re really useful. This is all the time we have today. Thank you for your time and thank you for tips!

Robert Watts:

No worries. Thank you for having me!

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