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Interview with the Co-Founder of Manage My STR – S2 EP49

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

Our guest for today is Matthew Metros, Co-founder of Manage My STR, a nationwide Short Term Rental Management & Services company. Join us in this interview to hear more about the services they offer, how can we help you grow your Airbnb business, how much on average you can expect to make with their help and how to join their portfolio.

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 49: From $1k/month to grossing $3-4,5K/month on Airbnb thanks to Manage My STR
airbnb property management company

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

Delia:

So can you tell me a little bit about how did you get started with Airbnb? And also how did you started this whole Manage My STR company?

Matthew Metros:

Yeah, when COVID happened, I actually got an opportunity to work fully remote. Then I went down to San Antonio to purchase my first duplex and that’s where I ended up meeting my business partner, David, who had been doing this for a couple of years now, he owns and operates a cleaning company down in San Antonio and I was going down the wormhole of Airbnb real estate in general. And I knew a guy like this, he had a tremendous amount of knowledge that I was interested in learning about. So, you know, I brought up the idea of rental arbitrage to him and he mentioned that he was doing this already in some capacity and I said, “Hey, you know, why don’t you and I team up and go in on a couple of units together” and that’s exactly what we ended up doing. So we together got, it was five units, that was our initial seed together and from there, other, you know, people in San Antonio started reaching out to us about, “Hey, I know you’re in this Airbnb thing. Could you give me some tips on how to get my property up and running there.?” and then next thing, you know, our portfolio grew to managing 17 properties and, you know, now we have a team across the country that helps support these properties. And, you know, after conversations with Dave, we both said, hey, you know, this is the direction we want to go, managing short-term rentals across the country for people.

Delia:

And what was the initial direction of the company? Were you just helping people manage their short-term rentals doing co hosting the rental average?

Matthew Metros:

Yeah, well, I guess more than Co-hosting, so we do the maintenance and repairs. We handle the cleaning, as I said before, Dave owns and operates a cleaning company. So the vision was, initially, I guess, to take a step back, initially, we’re just giving advice, but then people said, “Hey, can you just manage this? I don’t want to have to think about this. I know that the revenue streams are stronger in the short-term rental space than they are long-term. So let’s figure out a cut between us that works”. So yes, from the onset, it was short-term rental property management, full service not co-hosting.

Delia:

Oh, so you started right away like that way, full service?

Matthew Metros:

Yeah, exactly right away because we were doing that for our property. So we extended that to others as well.

Delia:

And when did you start this? What year, what time of the year?

Matthew Metros:

  1.  

Delia:

2020 like, still on the whole COVID thing or when things were a little bit cool off?

Matthew Metros:

No, this is like in the heat of COVID, is when we had started.

Delia:

How was your experience starting? You know, a business like this in the middle of COVID?

Matthew Metros:

Yes. So I would say, it’s an interesting question. I know right when COVID happened, Airbnb took a hit, hosts took a hit. But when I was launching, I did not experience that, Airbnb was actually booming because people like myself, were going remote and they needed places to stay and it just wasn’t, you know, you wouldn’t want get locked into a 12 month contract and Airbnb was just an option to do, you know, weekly or monthly stays. So it was actually a really good time for me to get started.

Delia:

I couldn’t have imagined that, that’s really great. Did you start it like there in your area in San Antonio, that’s where the people were, you know, going remote and Airbnb was going strong at that time?

Matthew Metros:

Yeah, that’s where we began and like I said, you know, people started reaching out to us, “Hey, can you manage this? Can you manage that?” and since David’s local San Antonio has a pretty large network because he’s cleaning a lot of Airbnbs already, it was an easy way for us to connect with people that were doing this and bringing them on board so that we can manage their properties.

Delia:

Okay, so that was amazing. Your business basically started by going, you know, mouth to mouth, people knew what you’re doing and like you to do it for them. That’s how it got spread basically.

Matthew Metros:

And it’s still, it’s still really grows that way. I would say 85% of our business is all referral based. We were looking into marketing. But I mean, right now, I think the best way to grow in general is referral base and if we can keep this consistent growth, I don’t see us having to go down some sort of paid advertising route anytime soon.

Delia:

Great, that’s actually really good. That’s how most of this business work, but your work like that, since the very beginning, so that’s amazing. Can you tell me a little bit how did you decide to grow this business nationwide?

Matthew Metros:

Yeah, well, so I’m from New York City and my background is in software engineering. I also had the luck of being very involved in helping companies outsource operations outside of, you know, having internal employees. So my background is just always being fully remote, how can you get people to, you know, support your operations, without actually having to own the units of production. And Dave is very good at the physical world, you know, tracking, managing cleaners, tracking managing contractors, electricians, plumbers, he’s very good at that, combine us together, it’s very powerful force for just remotely operating a physical assets real estate. So I’m able to, with our team, build software that helps us do this at a very cost efficient way and also, while maintaining superior quality. So, you know, knowing that we both said, “Okay, you know, we can do this around the country”, I have a unique skill set, and he has a very unique skill set. So that’s how we decided to go remote and what powers us a little mix of the software that I built for the team. So, you know, for example, and there’s probably not many people that can do this, but an email comes in from booking.com, let’s say, I’m able to parse that email and I can send that data into our CRM and then I can have our team, you know, start organizing all the details around that, getting the pre-handling, all the pre-checking stuff and all the other parts of the business that needs to go smoothly for that booking.

Delia:

That’s actually amazing and super, super interesting. So another thing that I like to ask you about is your clients, they usually come with their Airbnb, like, ready, they already started, and they just want you to manage it because they found out it’s use too much work for them? Or do they don’t want this property they bought and they want to do short-term rentals in them and they just give it all to you for you to do everything since the very beginning of it?

Matthew Metros:

I would say most of them just come with absolutely nothing and then they say “hey, what do I need to get this property up and running?” So you know, how do I furnish it? How do I track this time? What’s the best smart lock? How should I secure my property? Do I need to get something like simply safe? Or you know, can I just use a ring doorbell camera and some floodlights in the backyard.?So we’re giving them strategic advice on how to set up their property and then from there, you know, we start free in and we handle all the marketing from that point on.

Delia:

Oh so you don’t help them for example, like buying the property and setting up everything? You just advise them and then when it’s ready you start working on it? Like with marketing, finance, whatever, right?

Matthew Metros:

Yeah, yeah. And we also, David’s real estate agent, so I know that he’s helped people purchase and then we take over and manage.

Delia:

Oh, that’s amazing! So you are really full full service, then?

Matthew Metros:

Yes.

Delia:

Okay, that’s amazing. Can you tell me if some of your clients, they ever come with their Airbnb ready and they say, “Hey, this is, you know, my numbers, my revenue, my average daily rate” and they are not satisfied with it, with your management, is it possible for it to increase honest, you know, significant number?

Matthew Metros:

Absolutely. We have a couple of tools that we use, right? Like, it’s no secret, you have PriceLabs, you have AirDNA and you can really gauge like, “Hey, this person really making as much as they can? What are the, you know, the highest grossing Airbnb that are comparable to this person’s unit? What are they making on average?”. And, you know, we look at your Airbnb profile, for example, right? Like, what are the titles and descriptions? Are these things, you know, assisting you in your search engine optimization on these platforms? Are they really detracting from your ability to get eyes on the property and ultimately conversions? So it’s a mix.

Delia:

And is there any number you can give me for that? How much is the usual increase? For example, I don’t know, in a percentage or in a big number, can you tell me?

Matthew Metros:

This truly depends on the location. But you know, for places like Charlotte, we just had an amazing story and we helped increase revenue by 43% this past month, so we do have good stories like that. But for on average on the portfolio, I just don’t have an actual number for you. I definitely don’t want to be disingenuous.

how much can you make on airbnb

Delia:

Yeah, that’s fine. So 43% in just one month, did you manage to get that increase for one property? Oh, that’s actually really amazing! And what about properties that you manage from the start, from scratch? Do the clients are usually are satisfied with the revenue they’re getting with your management?

Matthew Metros:

Yeah, absolutely. On average, they gross in, their grossing, I would say, 3,000-4,500 on average. And a lot of our clients, you know, they come from the long-term rental world and, you know, where they were renting out their units for, you know, 1,100 and then when they’re bringing in on a month, 4K their mind blown, this is a totally new reality for them. I would say they’re definitely grateful that we’re there and we’re guiding them through this new landscape.

Delia:

Yeah, that’s actually amazing, that’s a really big number. I can imagine how surprised they must be when they, you know, see the change and how grateful they are for your service, right.

Matthew Metros:

Yeah absolutely. And we’re also, you know, we’re boutique, we’re small, we’re casual, we’re trying to keep the portfolio, we don’t want to grow it too large where Matt can’t jump on a call or Dave can’t jump on a call. So I think the big thing that kind of separates us, you know, outside of, you know, Matt is a software engineering, Dave is really good with the physical operations. It really comes down to, I can get on the phone with anybody, if you have a problem, you can always contact me and because we keep the portfolio very tight and we’re very selective with who we work with and the customer service is that that I actually think is what separates us from others.

Delia:

Now that you told me a little bit about that, can you tell me about selection process you do for the people you’re going to manage for? If you can disclose that, of course, like just something general? That’d be great to hear.

Matthew Metros:

Yeah, just very high level. I have a background in consulting and, you know, when I first had started doing that, I would have some clients that just weren’t great to work with and I always said, like, going forward, I never realized how important it is on the emotional side to really connect with your client and I would say that’s the number one thing that I’m looking for. You know, issues arise, how are you going to handle it? Are you going to be, you know, texting me frantically, sending me emails that are all over the place and hard to read? That’s someone I want to avoid at all costs. I want to work with someone that’s “Hey, I want to scale, I want to grow, I have three units”. This is my vivid vision, you’re very clear, you’re very transparent, you’re nice, you’re respectful of my time, you understand the value of time, you’re not tripping over, you know, pennies. That’s somebody that I’m trying to work with.

Delia:

Yeah, sounds about right! And do you both punch to you keep this going, like for the long-term? Always keeping the portfolio really tight, according to just people you know you’re going to be working with?

Matthew Metros:

Yeah, I will always, that’s something I want to keep, you know, because that impacts the culture of the company as well.

Delia:

That’s right.

Matthew Metros:

It’s not just me. You bring someone in and they start interacting with our team that affects their day to day. And honestly, what I’ve learned is that your team is everything. If I can vet out somebody and know that they’re not gonna be a good fit for our culture because they’re gonna be abusing our team’s time and I’m gonna protect my team so that they don’t have to experience. Those are the people that make or break the business. They’re on the front lines, they deserve every ounce of me being able to protect them. I’m not just in it for the money. There’s other parts of this that are far more important.

Delia:

I fully understand and that’s actually really great that, you know, you do that, you take care of your team, as you said, they’re very crucial for everything, right? So can you tell me about what services can a client expect from you? Like, everything you can list down, everything you can, you know, explain. So you can maybe catch someone here?

Matthew Metros:

Yeah. So we do 24/7 guest communications. We’re going to do all the marketing of your property. Understand what kind of tenants are you looking to attract, you know, short-term, are you looking for mid-term? Are you looking for traveling nurses and business professionals? Is your goal just to break over your mortgage and make sure that you’re probably? Able to keep expanding your portfolio? There’s so many factors, we want to get to know you and your goals and we’ll set up your property for success in that way. Then when it comes to maintenance and repairs, we have a team, we’re going to be able to have eyes on the property, have inspections done and if you have unique attributes to your property, just let us know, we can figure out how to, you know, service your property in that way. And then, you know, obviously, the turnovers, after every turnover our team goes in, you know, takes photos, submits a checklist and that’s another way that we get eyes on your property. Then also recently, what I’ve been noticing is, a lot of our clients are very interested in setting up direct booking websites and I’m a software engineer, so I’ve been able to set up some websites for clients to get them off the OTAs like Airbnb and VRBO and allow them to grow their brands. You know, we’ll leverage their accounts and allow them to almost like white label us behind the scenes.

Delia:

That’s amazing. Can your clients expect to be involved in some of these processes you do?

Matthew Metros:

Yeah, absolutely, absolutely. Some people are more hands on their checking, the pricing. They’re saying, “Hey, you know, we want you to use our accounts and build our brand”. So we have some clients that are like, “Hey, I don’t want to hear anything, just send me an invoice. Here’s the way that, you know, my accountant wants to see the data. Just send me an invoice at the end of the month and let’s call it”. I mean, it really depends on your level of involvement. At the end of the day, you get to speak to me and during those intro calls and I can tell you the product to what you want to see.

Delia:

That’s amazing. Can you tell me a little bit of some of the challenges that you have encounter as a property management service and also as an Airbnb host, if there’s any?

Matthew Metros:

I would say some of the challenges are just keeping track of the constant algorithm changes on these platforms. Airbnb has a huge part of the market share of short-term rentals in general and when they’re updating their algorithms, you really need to know what they’re optimizing for. So I would say, what I call it a challenge that, like, I can’t overcome? Of course not. Like, that’s why you hire me, like, so that I do the research and I figured out all right, you know, going forward, you know, of the month of June 2022, there was a recent algorithm change. Here are the things that we need to optimize for and our properties going forward, here are the new attributes that we need to add, here the new keywords we need to be talking about. So you know, but that’s truly the one part that can cause a high grossing property to the next month receive no bookings if you’re not, you know, constantly up to date with that information.

Delia:

Yeah, I completely understand and I agree with that, I’ve seen it and I know that it’s like one of the most important things when it comes to listing in Airbnb. So lastly, if you want to advertise about your company, you can do it now you have like, free time for that.

Matthew Metros:

What I would say to the community is, you can find a short-term rental property management company that does all the things that I mentioned, right? Like, there’s not that many other things that you can offer and, you know, there’s so many companies that do this. The one thing that you can’t actually get or that differentiates these companies is good customer service and finding someone that’s like very genuinely interested in making sure that their clients are receiving 110%. That’s what I would say, is going to be the biggest difference that Manage My STR is going to provide. I will literally be getting on the phone with you, Dave will literally get on the phone with you, our team is 24/7. I know that we have had people switch from Bay Casa and evolve. And when they come work with us, they’re just like, I reached out to Bay Casa and it took them five days to get back to me and numerous follows, whereas working with you guys, I hear back from you the next hour. And I know even for myself, when I’m using a service and somebody just gets back to me, just lets me know that I was hurt. I mean, that changes the relationship, that changes the outcomes of my goals because I was hurt and you know, that problem, that thing got taken care of immediately and I can promise you that over anything, that’s what you’re gonna get from Manage My STR.

Delia:

Can you leave us any contact info, so any listener can contact you if they want to?

Matthew Metros:

Yes. So, you know, you can reach out to me at Matthew.metros at managemystr.com, M-A-T-T-H-E-W dot M-E-T-R-O-S, at managemystr.com You can also go to our website, managemystr.com and then our other email would be operations at manage my str.com. You know, you reach out to us on any of those platforms, you know, we’ll get in touch with you literally within, you know, the same hour in most cases.

Delia:

Great! So I also put them on the description so people can reach out to you like easily. And yeah, that’d be it for today. Thank you a lot for your time and for being my guest today!

Matthew Metros:

Absolutely.

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Interview with an Airbnb Host from Lake Martin, AL – S2 EP48

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

Our guest for today is Jim Weldon, an Airbnb host who owns and manages a beautiful Lakefront condo unit in Lake Martin, Alabama. Jim from his wife purchased this unit as their retirement home, and while they’re not ready to retire yet, they chose to rent it out on Airbnb and make some extra income. They are projecting a total of $25K in revenue by September this year, and $60K in revenue by the end of this year. Join us to hear more about Jim’s fresh and recent experience as an Airbnb host and get some useful insights of the area.

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 48: Lakefront Condo Unit in Lake Martin, AL doing $12K in their first three months with Airbnb
airbnb hosting tips lake martin

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

Delia:

So can you please let me know how did you get started on Airbnb or short-term rentals?

Jim Weldon:

My wife Tracy and I were kind of looking at a retirement home on a lake. So I looked at a couple of lakes in the United States and found Lake Martin and fell in love with it. Then we started looking at a couple of houses there and then we found a condo that was for sale that we made an offer on without stepping foot in it and we bought it and then we started renting it out soon as we got it live on the Airbnb site.

Delia:

So you told me you bought the property early March this year? I’m alright.

Jim Weldon:

Yes, correct.

Delia:

Okay, do you tell me a little bit of how do you finance the property?

Jim Weldon:

We financing it with 20% down and then we found, obviously one of the challenges in rental properties is finding a loan company that will take, our condo complex is more than 51% rentals, so it’s challenging then to find a loan company that will provide a loan for it. We found one in North Point and financed through North Point and then on March 5 we closed.

Delia:

And can you tell me how much was the property price?

Jim Weldon:

Yeah, it was $490K.

Delia:

Okay, so it’s just one piece of the condo?

Jim Weldon:

It’s one unit. It’s a pretty big condo complex and we just have one unit and it’s a three-bedroom, two-bath condo.

Delia:

When you bought the property, were you already thinking of doing Airbnb on it?

Jim Weldon:

Yeah, so we’re not ready to retire yet. This is kind of our retirement home. So I turned 59 and a half, so I can take money from my 401k with no penalty for the down payment. So I used my 401K money and use that toward the downpayment. And obviously, we’re not ready to retire yet. We live in Illinois, so we decided to rent it to, you know, cover the cost of the mortgage payment between now and when we’re ready to retire.

Delia:

That’s great. And have you made like your projections? Do you know how many years are you going to spend on paying your mortgage with Airbnb?

Jim Weldon:

Yeah. So we hope to retire, if all goes well, in about five years. Well we have options, if in five years rolls around and this unit is doing really well with rental, we can buy a different property on Lake Martin or we can choose to stop renting it and just move into our condo. So we have plenty of options in five years, whether to use the money from the sale of our house in Illinois to get a different place or use that to pay off what’s remaining on the mortgage.

Delia:

And are you planning to completely pay the mortgage on those five years or will take more?

Jim Weldon:

Yeah, we’re not gonna be able to pay it off in five years so. I wish we could, but no, we can’t.

Delia:

So how many years do you think you’re going to spend on paying the mortgage and how much of it is going to pay the Airbnb?

Jim Weldon:

So let me see, it’s a 30 year loan, our goal is to pay it off sooner than that depending on how we’re doing. We’re off to a pretty good start right now. With our rentals we’ve had 23 stays, people have already stayed, we have 23 bookings, all the way through July 31st. We have two in September and one in May of next year. Lake Martin is a beautiful lake in southern Alabama, but it’s not really a winter destination. So we don’t know what the winter is gonna be like, we don’t know how many rentals we’re going to have in the winter. So without knowing that it’s really hard to project, how we’ll do over the full year because summer we knew was going to be great and we think fall be great because of football. But in winter, we’re not sure about yet.

Delia:

And how about the market research? Did you do some of that before purchasing, you know, to know if that property was going to work good on Airbnb all year long? Or how was the winter going to be?

Jim Weldon:

Yeah, we tapped into it, we looked into AirDNA and kind of looked at what to expect, they can’t tell you what you should project out to. So they were projecting that, you know, we could do, I think it was, I want to say $60K a year in rentals. Then you factor in your, you know, they attach all your expenses on that. So we’re hoping if we can get, you know, $70K, that’d be awesome. But again, that’s just a projection by AirDNA and we do use it and so far, it’s been pretty accurate. So we’ll see if it continues. But if, you know, if we can do 60K a year, that’d be phenomenal, you know, we would love that. We would take close to that even.

Delia:

And so far how’s been like going? How much did you make for April, which was the month you went live and for May?

Jim Weldon:

Yeah. So in April, we know obviously, the nice thing is we went live about April 10 and we had three rentals on here. In April, we had no mortgage in April, so that was kind of nice. So the gross number there was 1690. In May, we had five bookings and we grossed $5K. On June, we currently have six bookings and we’re gonna gross about 60 to 40. And in July, we have six bookings and we’re gonna gross about $8,700 We have nothing so far in August. We have two in September right now that are gonna gross about 3500. So, so far every month has been profitable which is nice. Whether that continues or not, we’ll see what happens. I think for the September, we’re a half hour away from Auburn University and Auburn has four home games in September. They have two home games in October. They have two home games November, so we anticipate filling up all eight of those weekends, which would really help us to the winter.

Delia:

Do you only rent during the weekends?

Jim Weldon:

No, no, we have a two night minimum. But people, you know, we know that Auburn has eight home football games, which is being so close to the football scene. There’s so few hotels. We anticipate filling up all eight of those weekends. Two more we can afford, so we have six more to go.

Delia:

Okay, that’s the great then! So regarding your area, the area you’re hosting in Lake Martin, have you taken a look at the Airbnb market? Is it competitive? Are there many Airbnb rentals or VRBO even?

Jim Weldon:

Yeah, no, there’s quite a few. You know, it’s a big lake. The lake is about 3000 square, 40,000 acres. So it’s a pretty big lake and there’s a lot of houses on there that are rented out quite a bit. There’s a few, like I said, a lot of the building, a lot of the condos in our building are also rented out. But, you know, we feel like our unit really shows well, we bought a furnish and we decorated it and it looks great. The one that stayed there has raved about it and we’ve had all five stars and they’ve raved about how clean it is and how nice it is and it’s in a great location. So we’re pretty confident that this, we can’t keep looking at competition because everyone’s different, you know, if someone wants a house that sleeps 10 people, we’re not for them. We can sleep six, so are you to sleep six, it’s in a gated community. It has a lake you know, it’s has a boat slip, it has a beautiful view off the balcony. So everyone’s different and everyone’s needs are different. So indeed, all my opinion competition is, just means there’s more people that want to stay there and then more houses that pop up for rentals, this means more people going there. That’s good.

how much can you make on airbnb

Delia:

Yeah, I agree. That’s pretty good! And how much is your current average daily rate?

Jim Weldon:

Yes, and we signed up with Priceline, which for any new member, I really recommend that because if you’re not familiar with Priceline, it basically takes your unit and tells you what you should be charging on a nightly basis, on a monthly basis, on a weekly basis and it looks at the area averages. So we’ve kind of trusted that and we’ve had you know, when Penn State plays Auburn in September, we’re gonna get about $900 a night, but typically, it’s mostly in the $300 range is what our typical weekend is, you know, Auburn graduations that increases, you know, weekend’s like July 4 and Labor Day, Memorial Day it goes up. So the price signs have been really good for us. So our our stays are on average about three nights on average and our monthly, our nightly is about 325 on average. And Priceline does a really nice job of, you know, as you get closer and closer to the date, it lowers the price for you. So it makes it kind of like what a hotel does, you know, if there’s openings, it lowers the price automatically. So we really happy with what we’re, you know, what we’re getting from Priceline.

Delia:

Okay, that’s great! And at some point, do you plan on pricing it yourself? Or do you think you’re going to be good with Priceline?

Jim Weldon:

So far, Priceline has done is fantastic and I don’t see, you know, we’re not smart enough to go through everyone’s pricing and then compare it to our condo and what we should be charging versus them. And, you know, there’s computer programs that can do that far better than my wife and I could, so we trust the computer program.

Delia:

Make sense. And what about your market? Do you know if there’s any, like, big season there?

Jim Weldon:

Yeah. So what’s kind of nice about our market is it’s located between two metropolitan areas. It’s about located between Atlanta, it’s two hours southeast of Atlanta and two hours southwest of Birmingham. So most of our people that are staying there are coming for the weekend or long weekends to take advantage of the lake. It’s a beautiful lake and people bring their own boats, we have a boat slip where they can rent a boat there. Our busy time is really, you know, going to be Memorial Day to Labor Day. And that’s we’ve been pretty much booked every night from May, June and July. And then it’ll be the other busy times like I said, during home football games for Auburn, during, you know, graduation, weekends for Auburn, parents weekends for Auburn, you know. We’re hoping to have anywhere from, you know, 40 weekends of the year rented out. So it’d be kind of, you know, that’d be ideal.

Delia:

Yeah, that’d be great! So the seasonality in your area depends more on the events?

Jim Weldon:

Yeah, no, it really is summer. It’s a summer destination and then it extends on beyond like I said, from Memorial Day to Labor Day is when the season is. But it extends beyond that, because we’re so close to university, that we’ll get football games, you know, people say that for football games or graduations or Parents weekend. So that extends our, primetime is summer, but we feel like because of our proximity to the university, we’ll get a lot more than just summer.

Delia:

And so far, like what have been your niche? The kind of demographic that come to your rental?

Jim Weldon:

Yeah, so pretty much it’s been really, the primary people that rent it out are young families with kids that want to, you know, use their boat, rent a boat and take advantage of the lake. So it’s pretty much been, what we anticipated being was families and that’s what it is. And it only sleeps six, so you’re not going to get two families, you might get a couple couples in there, but it’s really designed for one family that wants to cook their meals, be on a lake and take advantage of all that lake has to offer.

Delia:

And when it comes to Lake access, do they have like full access to the lake? They have just to rent the boats? And all the other stuff they can do it?

Jim Weldon:

Yeah, they have full access. We have a boast slip right outside our front door and we have a pool right outside our front door, a community pool with a golf course right there. There’s a clubhouse for the restaurant. So they have access to all of that. There’s a marina they can walk to, so it’s in a great location and it’s close to, you know, restaurants and tours as well.

Delia:

Do you include all of those like amenities in your nightly rate?

Jim Weldon:

Yeah, that’s, Priceline knows what we have to offer I guess. We plug it into the system and that helps us charge what we should charge. We don’t charge extra for anything.

Delia:

Okay, that’s great. And what about the cleaning fee for example? Do you do the cleaning? Do you hire someone for the cleaning?

Jim Weldon:

We were so fortunate to find someone that cleans the house for us and she does a great job. We just let her know our schedule and she comes in and gets it ready. Every review we’ve had so far has commented on how clean our place is and how beautiful it is and how they love it so, you know, my recommendation to anybody that’s going to do this is, if you don’t have a good cleaning person, then you’re in trouble and if you have a good cleaning person, take care of her or him.

Delia:

Yeah, that’s right. That’s like the main tips out there and like the most important thing for all short-term rentals is a clean staff.

Jim Weldon:

And a good maintenance guy because things are going to happen and you need a good maintenance guy that can get in there and fix it and then move on. So we found both, those two people were down there after we closed and we were very fortunate for that.

Delia:

And one thing I wanted to ask you about is if there has been any particular challenges that you found with Airbnb? Either can be like with the Airbnb platform, being a host, with the people you rent with.

Jim Weldon:

We’ve been really fortunate so far, knock on wood. I mean, we’ve had no issues whatsoever. Our guests we’ve had, you know, we had one group of guests that were bunch of young guys who are in their early 20s I believe, were there for a rodeo and they had a great time apparently, so we got some complaints about noise. They left a little bit of evidence of how much fun they had, but it wasn’t a big deal, you know, we cleaned it up, we apologize to neighbors and if that’s the worst thing that happens, then well, that’s awesome. But we’ve been so fortunate with everything. We’ve had no issues with Airbnb, we’ve had no issues with our guests or our neighbors. So it’s really, again, we’re new to this. We’re only had about 10 listings so far that people will stay there. So, so far, so good. No problems yet.

Delia:

Oh, that’s great then! And in how did you prepare to be an Airbnb host? Because you bought the house like on early March and then on early April, like 10 of April you were already live. So how was like your preparation? How did you educate yourself for Airbnb?

Jim Weldon:

Sure. Great, great question. We’ve read a couple books on how to host art, how to be a manager ourselves. We weren’t going to give away the profit to a property manager. To learn how to do that, we went down there after we closed. We brought the maintenance guy into to fix the things that we need to fix before you have it rented out, which wasn’t much. We did some decorating. So you know, that was furnished and they kept some things behind, we wanted to add some things like we put a TV outside in the balcony and put some different outdoor furniture out there. We kind of set up what we wanted to set it up. We went out and got all the supplies you need, like your coffee makers, your plates, your pots, your pans. So we had to go out and do all that. Once we did that, we hired a professional photographer to come in and take pictures. And then we, you know, went live on platform and we got a booking almost within four or five days. So you know, it was fantastic. So I will tell you, it’s kind of like, you know, my wife and I say it’s kind of like a rush when someone gets a booking, it’s an adrenaline rush. It’s like, “Hey, that’s pretty cool. We got a booking!”.

Delia:

And how did you prepare like yourself? How do you educate yourself like for Airbnb?

Jim Weldon:

So we did a lot of reading. My wife was the one that navigated the platform to host, to put up our site, you know, she’s the one that did all that. I reached out to people in the area that I’ve met over time, my realtor and I network through my realtor and other people that I met while I was down there to find the people that we need to be successful, you know, to find a photographer, to find a maintenance guy, to find a cleaning person. So you have to do a little networking, you have to, you know, get lucky and find the right people. So it kind of worked out well because my wife took care of the behind the scenes stuff in terms of getting us set in the platform and I took care of all the stuff that required, you know, being down there and getting everything set up.

Delia:

How long did you take with it? It was like the time when you like bought the house and we’re ready to go live with it? Or did you started to get prepared before that?

Jim Weldon:

No, we started getting prepared when we bought it. We did a crash course, but we got set up. Once we bought it, we had to come down there and get the furniture and you know, do things like that. It took us about a month to get everything set up and to get a photographer in there to take pictures. Then to get on the platform lives, it takes, you know, several days from the time you go in there, to get approved. So the whole process took us about 30 days from closing to getting going live on Airbnb.

Delia:

Wow, that’s amazing! That’s really quick.

Jim Weldon:

I guess. The condo was in great shape, so we didn’t have a whole lot to do. We were very fortunate.

Delia:

Great. One thing that I’d like to ask you about currently, you’re just renting on Airbnb, right? You don’t do VRBO, booking, any other site?

Jim Weldon:

We do VRBO as well.

Delia:

How is it doing there?

Jim Weldon:

We’ve had great luck on both of them. It’s pretty much been equal. Our guests on both have been fantastic and both platforms have been great. We’ve had no issues with anything yet. So I guess a knock on wood, you know, we’ve had all 5-star reviews, we’ve got all 5-star guests and we’ve had zero problems with either platform. So we’re very fortunate. I’m sure things will happen and if they do, you just deal with it. But right now we’ve been very fortunate.

Delia:

That’s really great for you. And do you see any particular difference between Airbnb and VRBO service? Which one would you like rather?

Jim Weldon:

I don’t really have a preference. They both, we haven’t noticed any difference in terms of the type of clientele. We haven’t notice any difference in how we get treated. So you know, we don’t have a preference. They both been great. We’ve had no issue with any of them, so let’s hope that continues!

Delia:

Yeah, let’s hope that! So that’s amazing. And the last thing that I would like to ask you about is if there are any tips that you’d like to give out for other Airbnb hosts.

Jim Weldon:

Well, that’s a great question, like I said, the tips I would give like, we’re new, so we’re still learning but I would say: get a good cleaner, get a good maintenance guy. Some of the advice that we got from people that we reached out to, you know, encase your mattresses and your pillowcases with a bedbug encasement because that’s important. We stayed there too, for, you know, we went down there after we bought it to stay there, to see what we needed as guests, you know, be your own guest, you know, find out what you need, what would make it better experience for your guests. And I would just say the thing that we’ve done is we’ve treated our guests like they were our friends, you know, we don’t spy on them, we don’t charge extra for little amenities, you know, if they reach out to us, we reach back and as a result, you know, we don’t have any issues with them. Again, I’m sure there’ll be issues down the road. But, you know, some of these sites, I just see everyone, you know, ripping on their guests, and nickel and diming them and we treat our guests at our house, like we want to be treated if we were, you know, if it was us. That’s kind of our mentality is to treat them like their friends of ours, not as if their customers and that’s kind of been successful for us. So those are the you know, again, be your own guest, find out what you need in your own house. And like we have, we bought, one of the other suggestions was we got three sets of towels for every, so if we have six peoples, we have 18 sets of towels. So  we leave six out of the time. We have three sets of bed sheets, everything is stored away in our owner’s closet, but things are going to happen, things are gonna get ruined and you wanna make sure you have surplus for the next guest.

Delia:

Yeah, that’s right. That’s amazing that you do that. So that would be it for today. Thank you a lot for your time for telling, you know, about your experience and for telling us the tips you have for us! That’s been amazing.

Jim Weldon:

Well, thank you so much for having me, I really appreciate it. It was fun.

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Interview with an Airbnb Host from Bowling Green, Ohio

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

Today’s guest is Michelle Roehl, an Airbnb host who owns and manages a listing in Bowling Green, Ohio. She bought a house next to hers and launched her Airbnb on April 2021. In this episode, she’ll share with us about her journey and experience so far, how she decided to start on Airbnb and also some key insights of her listing and market.

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 47: $26k just renting 6 months on 2021 – Cozy Airbnb listing w/ hot tub in Bowling Green, Ohio
airbnb revenue bowling green ohio

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

Delia:

So can you tell me how did you get started with Airbnb and short-term rentals?

Michelle Roehl:

Yeah, so we had the opportunity come up that our neighbor decided that she wanted to move out after recently getting married and wanted to sell the house and we had been wanting to get into having real estate for quite a few years, my husband and I both, it just wasn’t the right time and then all of a sudden, this opportunity came up. We had been through something ourself where our particular town doesn’t offer a lot of short-term rentals because it’s a college town. So it’s really interesting that this all came up, it was just the right time and we really fell in love with the idea of being able to host people and bring people in and even though COVID, we were kind of coming out of COVID, but we had that opportunity to meet a lot of new people and host them and really provide a safe and clean environment for them and their families.

Delia:

That’s amazing! And did it cost a lot to acquire that property right next door? Did you have to do a lot of financing and stuff?

Michelle Roehl:

Yeah, we did finance it. We did a traditional conventional loan and we did get a fixed rate and we got a pretty good rate last year right before the race started going up a little bit, so it was quite a blessing and the way that it came about, we really are just so fortunate to have the opportunity.

Delia:

Did you get a low interest rate for that one?

Michelle Roehl:

Yeah, yes. Yeah, we were able to secure under 3%, which is, yeah, pretty good. Yeah.

Delia:

Wow, that’s amazing! Do you take a long time to be approved, you know, the loan? Or it was done immediately?

Michelle Roehl:

Yeah, we actually work with a small town loan or excuse me, a bank and the loan company on this part of that is amazing. We have a relationship with them. We’ve done business with them between myself and my husband, even before we got married for probably over 30 years. So when we walked in and presented the opportunity, they were very excited for us and the approval process actually was pretty quick and easy and we were a little bit shocked to be honest, just because of everything and with COVID. We just weren’t sure you know how economics and how it was going to work out, but it all worked out absolutely wonderful. I can’t highly, I can’t stress enough working with a small Hometown Bank and having that type of relationship. It just really made the process really easy.

Delia:

That’s amazing. And can I ask you if you want to share with us how much was the property price?

Michelle Roehl:

It was right around 200K. But the best part is, you know, with the rates right now, we really see this as a long term investment. So our goal is to keep the house and maybe one day retire it, we’re not really sure. But we truly love the house, it’s right next door to our own and the property is really beautiful. So it’s kind of exciting to be able to offer all of this and it’s a really great home. It’s a typical home value for our area, so it’s not on the low end, it’s not on the high end and it’s been a well maintained and we know the builder because it’s the same builder that built our own home, so we’re really familiar with it.

Delia:

And from the very beginning, were you thinking about doing Airbnb on that property?

Michelle Roehl:

So initially, we thought if we purchased the home that it might be a place for my mom or my husband’s parents of one day, they wanted to move in if they needed a little extra care for us, you know, to be closer to them and when that kind of didn’t happen and my mom in particular didn’t have that interest, she likes where she’s living. We immediately, I don’t know how but my husband, I were on that same track and we looked at each other and said, “Yeah, this would be a perfect opportunity for an Airbnb or short-term rental”. There’s so many neat qualities about the house and the property that just make it perfect for that type of rental and it’s been, I would say that based on our success in just such a short period of time that we were right about that piece of it, so.

Delia:

What are the special things that the house has that makes it, you know, special for short-term rentals?

Michelle Roehl:

So for us, what we found with most of the competitors in the area, lots of places in Northwest Ohio, you know, we’re not really a traditional vacation rental spot, you know, we’re not on the beach, we’re not in a big tourist trap area. So for us, we really thought that this is going to attract families, it’s going to be bringing people in for the small university that’s here, maybe some events in a larger town close to us or larger city, but we really weren’t 100% Sure. So the best parts of the house is we have recreation area in the basement. A lot of our competitors don’t have that I know these are things that maybe some other larger cities might have available in their area as far as amenities, but in our area we don’t. So the backyard is fully fenced in and we have gardens and flowers that we maintain. I know last year in particular, I planted at least 60 varieties of different plants and things to really make it beautiful, you know, a nice serene setting, we offer a fire pit, we provide all the firewood, we offer a couple of hammocks, there’s a deck in the back on the ground with seating outside and a table to eat. We also decided that between the house and the garage, there’s a breezeway, it’s kind of an interesting space and we were trying to decide what we wanted to do with that and very quickly, we came up with the idea of putting a hot tub in there, so that’s kind of become our hot tub room. We designed and installed a custom garage door, so that garage door can open up into the backyard and not only provided a really nice way for ventilation, for it to be able to see into the backyard, but it also allowed us to get that hot tub into that space. It keeps it cleaner than if it were in the backyard itself and it also allowed us to add a heater in the wintertime so that we can keep our hot tub running year round even with our cold weather here in Northwest Ohio.

Delia:

Wow, it has a lot of cool amenities! What’s the recreation area you said that was in the basement?

Michelle Roehl:

So we have currently, so the theme of our house is mid-century modern. So I’ve tried to incorporate a lot of unique and fun games and things like that, that would have been a little closer to the turn of century or at least available on the turn of century along with some new items and games. We have a board game table that is originally from, I think we dated it to the 70s, early 70s. There’s a foosball table that’s older and we have a lot of families that really like that, kids that walk in are surprised how much they really enjoy that. Then there’s a little area in the basement, right off of the rec room, that actually was set up as a little exercise room for the previous owner, so we decided to put in a mat that could be your yoga mat, we have a yoga ball, some other amenities and it has a balance bar on the wall as well as full length mirrors in the entire space. So it’s a little space that you could do yoga, meditation, do a little bit of exercise, etc.

Delia:

You really have everything, right?

Michelle Roehl:

We’re trying, we’re really trying. We add games and we’re trying to upgrade the space every moment that we get. It’s not something that we feel that, you know, we can just start it up and say “Here you go, this is what we have” and that’s it. We really try to listen to our guests and try to offer things that will really attract the type of guests that we want and we’ve been very blessed with getting some amazing people to come and stay and just being able to meet those people.

Delia:

Yeah and with all those, you know, incredible and fun amenities, you must be the busiest Airbnb your town, right?

Michelle Roehl:

Well, you know, we would like to think so but I, you know, I hope so. We definitely offer more amenities in that way than some of the other local competitors. There are only a few really in Northwest Ohio in general that offer a hot tub and I don’t know of any that are in an indoor type space, so.

Delia:

Now that you talked about the competitors, how’s the market like right now, in your area?

Michelle Roehl:

So the market in the last year since we’ve been in business has actually been pretty good. We typically are booked almost every single weekend even in what some people might consider the off-season. I don’t really know that I would call or say that we have a traditional off-season or on-season in this area. It could very well be the fact that we have a hot tub inside, we seem to during what I would consider the winter months or what I would have assumed would be the off months and the off-season, we had a lot of people come from all over the state of Ohio, even as far as 6-7 hours away from West Virginia because they wanted to spend some time in a hot tub, they love the idea of it being inside and having a little bit of heat in a nice clean area. So we’ve actually attracted people from quite a distance just because of the hot tub during those winter months, which typically, I would think would not be, you know, more of a traveling type of month. We also have a number of families that come in for the university, so we’re able to kind of accommodate a lot of those families that would normally have to get two or three hotel rooms, they can stay in our one house, a full house with three bedrooms and be able to enjoy those amenities on top of it.

Delia:

So it’s not very busy, basically?

Michelle Roehl:

Well, we didn’t figure that our particular area again, because we’re not in a traditional tourist area, we really planned on weekends and occupancy partially during weekdays. So what some people might see say, if I were in, you know, Myrtle Beach or in a beach town, I would think that our occupancy levels are low. But considering the fact that you know, we’re price right, you know, we figured all of those kinds of things out number wise and we base our pricing on occupancy of about 40%. So we know what we need to cover cost wise and anything above and beyond that goes back into maintenance, etc. So we’re not doing this as our salary, we’re not trying to replace our salary at this time with this particular rental. So it’s giving us a really great opportunity to keep, you know, we’ve still only had this property for about a year. So we’re trying to make sure that we’re continually doing maintenance and making it better and one of the really important things too is because we’re in a family neighborhood, we’re not on the commercial side of town or even on the side of town with all the college rentals, we really want to maintain the house and have it be, you know, as high quality as it can be both visually and you know, as far as value for the neighbors as well.

Delia:

Yeah, I completely understand. Now that you told me about the type of guests you usually get, what’s the demographic that you have seen more getting into your rental?

Michelle Roehl:

So there’s really kind of two that I would say are pretty even. So broad majority of our winter guests are those traveling in the wintertime, which again, is usually you know, this area of Ohio can be really icy, really cold, really windy, etc. or it could be 60, this is Northwest Ohio. Typically, you know, what I would say is that during those winter months, we have mostly couples that come to spend time, we’ve had a number of anniversaries, couples just getting together getting away from the kids for a weekend, etc. During the rest of the year, I would say that there’s kind of a balance between some families wanting a getaway, just want to go somewhere new and different and again, even though this isn’t a traditional vacation spot, we do have some really great things to see, the Toledo zoo is amazing, it’s only about a 25 minute drive from here. There’s some really great venues that have artists, music artists, etc. We’ve already had in the last six weeks, I would say we’ve had two guests that came during the middle of the week to stay because they were going to go see either a country artist or a Christian artist up in Toledo, which is again, it’s only about a 30-35 minute drive to that venue. We’ve even had people come for Cedar Point, that’s about an hour drive, but it was still, they found that our amenities were worth a little bit of a drive.

Delia:

Okay, I see! And you talked before about the occupancy rate, you said you keep it out 40 and 50?

Michelle Roehl:

It’s between 50% and 60% most of the time. Almost every weekend is booked, we have a two night minimum, so it’s typically Friday, Saturday and then check out on Sunday, we have a number of people that stay longer than that, but that’s kind of the standard. We base that what we need to make and all of the finances when we did our cost of doing business, to really be a 40% occupancy, to be able to cover all of our bills to do everything that we need to do. It still seems to say it sounds like it’s low, but we actually are doing quite well for the area, looking at some of the competition, etc. Without some of the amenities, their occupancy rates are considerably lower. So we’re pretty happy with where we’re at right now and we’re constantly trying to improve and add things that will, you know, attract more people and make it even more comfortable.

Delia:

And how’s the rentals doing on weekdays?

Michelle Roehl:

So our weekdays, it really varies on the month. Last month, we had quite a few weekday rentals and this month, we don’t not quite seen a rationale, I don’t have a rationale for why, you know, I think it really just depends on events going on. It’s interesting to see, you know, with Airbnb in particular has a new search engine, you know, those kinds of things, you know, we’ll see how that goes. Right now it hasn’t been as generous to us, but I think the economy is having a lot to do with that as well. So you know, we’re quite comfortable with where we’re at and we know that we can, you know, quite easily be booked one month or excuse me, one week a month and pretty much all of our expenses are covered. So it’s a comfortable place to be.

Delia:

But about the new search engine, I’ve heard from other hosts, like from all around the country and other countries as well, that is not working for them, right?

Michelle Roehl:

Yes. So I can say confidently on our end, that we have not had a booking since they changed that. So I haven’t even had a request and inquiry. A little concerning so, you know, hopefully, Airbnb is listening to what the hosts and even some of the guests are saying about how that’s working or not working for them. You know, I can’t say for sure, if it’s that, I can’t say if it’s just the economy, I’m assuming it’s a combination of both. But really, in the grand scheme of things we took on this house and the rental and the short-term rental idea with a lot of faith and we know that, you know, we have the numbers right for what we need and we’re pretty comfortable for the next six, eight months, so we’ll see how it goes. I think things change, you know, everything’s cyclical I’ll say, the same with the economy, you know, granted, it’s we’re going into a rough time right now and I certainly hope that that transitions pretty quickly, but eventually it will. So, you know, we just have to make smart business decisions now to get us through until that time.

Delia:

Yeah and about the algorithm is like question of time, I think hosts should learn about it. The think about Airbnb is they drop like this and they don’t teach you how to use it in order to, you know, take advantage of it, so nobody really knows how to use it and everyone is kind of lost, right?

Michelle Roehl:

Yeah, I agree. There was definitely some interesting with the rollout, there was just a lack of information I think for a lot of people, even as a guest, I’ve logged in and used Airbnb, sent the rollout as a guest and as a guest, even searching for what I wanted was a little more cumbersome than what it used to be or what I remember it being. I don’t use it all the time, so what I remember, it was a bit more cumbersome and I didn’t quite find what I thought I would find. But you know, it’s again, I think that Airbnb is a smart company, I think VRBO is a smart company, I think all of these other companies out there that provide this type of service for hosts to host their homes, do short-term rentals, they’re really smart and you know, they’re gonna get it right. They just need to, you know, listen to what the feedback is right now and, you know, make those adjustments and we’ll better for it.

how much can you make on airbnb

Delia:

Yeah, that’s right. Now that you mentioned about VRBO, do you use other channels like VRBO, booking, private website?

Michelle Roehl:

Yeah, currently, I’m on both Airbnb and VRBO. I also am on Houfy. I’m looking at adding a website right now and waiting just a little bit of time to kind of see how things are gonna pan out in the next couple months, you know, with the search engines, with everything going on, I feel like I mentioned, you know, kind of making smart business decisions at the moment. This might not be the best time to put a large chunk of money into somebody building a website for us, but it’s definitely on the backburner and I’m excited to get that going once I’m a little more confident in what the economy’s gonna do.

Delia:

Yeah, that’s right! I’ve heard that most hosts are trying to open their private website, you know, for bookings because of this whole Airbnb thing and we’ll see how it goes because we don’t know if it’s going to be beneficial for the short-term rental market or not.

Michelle Roehl:

Yeah, exactly. And the biggest challenge with having your own website, I’ve had my own website for another business for a lot of years is, you know, the SEO is always difficult, especially if you have a lot of competition. So you know, there’s a lot of time and money that you can really sink into doing a website and again, I know that it’s absolutely necessary, it will be something that I do, you know, for us, Airbnb and VRBO and Houfy so far have been really great to us. But again, it’s definitely in the works and I think that as a small business owner, we’re small, we have one property right now, eventually we’d like to have more, but we really want to just get this right and make those best decisions and then decide later on and move forward. But you know, it really want to kind of build a presence and get some social media going as well. So until that time I’m then, you know, for right now, this is what works for us, so.

Delia:

Yeah, that makes a lot of sense! And how is VRBO going for you?

Michelle Roehl:

VRBO is a really good platform, it really depends on the time of year for us so far. Initially, we had a lot of bookings through Airbnb and then it kind of switched and for some reason, it was almost all VRBO. So I would say that probably about 60% booked through Airbnb and about 40% through VRBO. Houfy so far isn’t as well known, but as that gets out there, there are no hosting fees, so it’s kind of similar to having your own website without having your own website. So it’s a nice option for guests to be able to book. Right now, I don’t push anybody to go to that particular site, unless they’ve already stayed with us at least once and that way we, you know, we’ve had a good experience with them.

Delia:

Oh, that’s great! And what’s the general experience with both of them like, VRBO and Houfy? What’s the quality of the guests that you get there? The fees? How much do you change your price on those?

Michelle Roehl:

So we’ve tried to keep things simple. So I understand that there are a lot of pricing mechanisms out there, there’s a lot of different things that you can use to do that. I basically set up two seasons and I use OwnerRez to connect both or all three of those platforms and I’m integrated on all three. So I really haven’t changed the pricing on any of them, my pricing is the same flat for all three, the difference with, you know, how fees, you’re not paying those fees for the hosting site, so they’re not having to pay though. So if a guest wants to go through Houfy, they do save some money } on the tail end of that. As far as, you know, Airbnb or VRBO, I haven’t had any issues with either one of them per se. As far as guests, I think we have similar quality of guests, if I really had to kind of nitpick, I think that Airbnb, we tend to get more couples or more small groups like this last weekend, we had 5 or 6 alumni come that graduated 15 or 16 years ago from the university here in our town and they were great, they’re fantastic. They took great care of our house, they left it really clean. And I would say that on VRBO, we tend to have maybe a few more families, but not always, you know, that’s not always, it’s not really an exact science, I guess, because we kind of have a little bit of both on each platform, but I think that that’s probably a fair assessment though, as to the type of guests that we get. But I can’t think of one that we’ve had a problem with. I mean, we’ve had absolutely amazing guests.

Delia:

That’s amazing and also it’s amazing that every, you know, site works well for you because there are some hosts that don’t like VRBO because, you know, the quality of the guests and stuff like that, right?

Michelle Roehl:

I have heard that. I’ve heard that about some other platforms as well that I’ve looked into, you know, I can’t specifically and I don’t want to call anybody out or any particular site out, but, you know, I’ve heard, they’re less than quality guests on other platforms and so I proceed with caution. You know, I’ve been looking into some other platforms right now, I just haven’t seen the benefit of some of the smaller hosting sites, it’s very difficult to deny, you know, some hosts don’t like Airbnb and I get it and that’s fine. I’ve seen some some really interesting, you know, information coming from people complaints, etc. But it’s really hard to deny when most short-term rentals, it’s kind of like Kleenex, you know, when everybody talks about facial tissue, they say give me a Kleenex, it doesn’t matter if that’s the brand or not, you know, so Airbnb has kind of taken on that general short-term rental name. So it’s very difficult to deny Airbnb and VRBO in the amount of advertising that they put in for their hosts to get the sites out there. So, you know, for now, at the moment, we’re doing quite well, I think you have to be smart about anything you do, any decision you make and understand that these are just hosting sites, you know, ultimately, this is my home that we’re sharing. Ultimately, I have to, you know, set my own roles and do what I think is right for our business and not expect too much to be honest from some of the hosting sites, you know. I do have amazing insurance and if there’s something I could say to any host or anybody getting ready to host is getting good, excellent quality insurance company and make sure that you get a really good plan that covers just about anything. It’s difficult to find in some areas in particular, but we’ve been very blessed with Travelers’ insurance, they have a great short-term rental policy that we were able to purchase and put some additions on, we have an umbrella policy for liability, etc. So we make sure that we’re covered, you know, Airbnb and VRBO their reimbursement for damages etc. I mean, they’re great for small things if that’s what it comes down to, but that really shouldn’t be what we rely on as a business. I don’t think this is, that’s just my personal opinion, so.

Delia:

Yeah makes a lot of sense! You shouldn’t rely on any platform, you know, every platform can have nightmare guests, it’s not just for VRBO all this stuff. So I think is very true what you said. So one thing that I would like to ask you about is what’s your average daily rate that you have?

Michelle Roehl:

So during the on-season or the, you know, the busy season, I guess, if you want to call it that, if I really have one, we’re right around $300 a night and during the off-season, I believe I’m somewhere down around 250.

Delia:

So you don’t lower it too much? It’s just 50.

Michelle Roehl:

No, I haven’t lowered it too much. I haven’t noticed that there’s, as I mentioned before, there really isn’t a true honor off-season per se in this area because we having a university here. We do bring in people for, you know, there’s a big hockey program here, basketball, etc. So during those winter months, we still have a fair amount of families, etc, that come into town to attend events at the university. So we’ve done quite well with where we’re at and I like to keep things simple. I was a photographer for 25 years and every other photographer around me would have 15 different price lists, depending on what the customer was. I’ve always felt that that’s confusing, I don’t think that that makes a lot of sense to the customer and I’ve always tried to keep things simple for myself and for them. So I kind of take the same theory, I know that I could probably use PriceLabs or a number of any of the other things out there that go in and make sure that they, you know, update pricing almost daily, depending on what hotel rates etc. are, I don’t feel that’s necessary for us. We’re not in this just for the money, we truly, truly love hosting. I mean, I can’t tell you, the joy that we get when we meet our guests. We greet them to check-in and we just have a quick conversation, we show them around if they want to, show them where, you know, it’s important to me that they know where safety items are, fire extinguishers, first aid kits, etc. Yeah and that they know how to operate and they’re comfortable with the hot tub and even the garage door, the custom garage door, so opening it up and down. We just want to make sure people are comfortable and have the best time they can and aren’t searching around the house for something if they really need it, so.

Delia:

Yeah and you’re right next door, so that must be really helpful for them.

Michelle Roehl:

It’s going on a year and a half and I would say that I think we’ve only had maybe one person that’s even needed us to come over and it was really because, you know, there was a small storm and a limb came down in the backyard and we just went over and removed it from the backyard, so it wasn’t in their way. Otherwise, we try to make sure that we’re pretty thorough that the guests are set up and ready to go with all the extras that they need.

Delia:

Okay, that’s great. Can you tell me a little bit about your revenue, you know, during the busiest months and slower months? So it only goes down by $50, you know, your rates, but still, I’d like to know about revenue in those months.

Michelle Roehl:

Revenue, we had just about half a year last year and we brought in around $26K for just over half of the year, not knowing kind of what we were doing. The first few months, price was a little bit lower, our hot tub we had to order and it wasn’t installed until August, so I didn’t increase prices until then. So I was closer to $150 to $200 a night before we added the hot tub and just to kind of generate some business initially for that first month or two. Then we increased prices a bit to be a little bit more in line with what you’d pay for a couple of hotel rooms and to cover those costs of course. We knew where we needed to be, but we certainly needed to generate that business and get some reviews too, so we could get some people in the door. We were very blessed with being able to, you know, pretty much book almost immediately and get people in the door. You know, I’ve made some connections to networking on Facebook and some groups for parents and people that attend the university, so that really helped kind of give us a jumpstart and I definitely recommend that for anybody that’s looking to get a short-term rental going, to make sure that they get networking before they get open.

Delia:

That’s right! And do you have like an estimate numbers of how much you made the first year?

Michelle Roehl:

Yeah, it was about that 26K and then, you know, that was only for about what, seven and a half, eight months and again, that might not seem like a lot to a lot of people, but considering what we purchased the house for, what the economy is like where we’re at in our area, not being a tourist area, actually is pretty good. I was very excited about those numbers considering that most of that money is. The first few months at least was considerably lower, you know, nightly rate than where we’re at now and having the hot tub of course made a huge difference, but we’re on track. I think we’ve already made that much this year so far and it’s you know, just now the beginning of June. We’re certainly on track to do considerably more this year. We’re very happy with what we know that we have in it and our expenses etc. So we’re putting a lot back into it, we’ve done some remodeling, a minor remodeling in the basement to make a space available for guests to use the washer and dryer, we put in a brand new Electrolux washer and dryer. So there’s a quality down there both for our use and turning because I literally wash everything, every turn, every single blanket sheet, etc, gets washed between comforters, everything. So we wanted to have something that was nice and efficient, both for ourselves and for the guests.

Delia:

Oh, so it’s going really well for, you know, last year and this year, it’s going pretty well.

Michelle Roehl:

Yeah, yeah, for us and for our market absolutely. Every market is different, so, you know, there are times where I see people post on Facebook in these host groups about, you know, they made $300K last year, that’s fantastic. But then you ask them where they are, they’re in a really high, you know, economic area, the prices of everything are, you know, maybe 10 times what we have, it’s pretty amazing, you know, people are able to do that. This is an area, we never planned on that, we never figured that was going to be the case and I think that there’s probably a lot of, you know, short-term rental owners that that’s the case, they’re in places, you know, such as that small town, etc. You know, when you see those numbers, you may see other people post those numbers, you know, don’t let that intimidate you because it can be very easy to look at that and say “Wow” and then compare what you’re doing. You know, for us in our market, we’re actually kind of killing it and I’m super excited, you know about that. So we kind of lead the area with our pricing, so.

Delia:

Oh, that’s really amazing, so congratulations for that!

Michelle Roehl:

Thank you!

Delia:

And one last thing that I would like to ask you about is if there are any tips that you’d like to give out for Airbnb hosts?

Michelle Roehl:

One of the best tips that I received, you know, when before I even started is I joined a lot of these Facebook groups for hosts, some of the stuff that’s in there is really great, you kind of have to weed through it, you know, there’s some maybe not so great information. But there’s some really good information in there and I was able to hook up with a superhost for Airbnb and I think she is a premier host on VRBO as well and we were able to hook up and she was able to walk me through some of the setups, there’s some little nuances in the websites when you first set it up. She shared with me some information on how she runs it and it absolutely made sense for me. So I recommend as far as a tip, connect with someone, connect with another host, superhost that has been at it for at least a year or two, that you can really get some some good information and it is in a similar type of market, right? So I would never, it’s not going to help me to connect with somebody who has, you know, 10 huge condominiums, you know, in Myrtle Beach or Miami Beach, whatever, you know, I really want to connect with somebody who has a similar type of market and so for me, it worked out really well. We personally, I mean, there’s so many different ways you can do a short-term rental, we meet our guests, I have a conversation with them, I do not do instant book and you know, we actually meet and we have a conversation. Some people don’t like that and that’s fine, but we make it known that, you know, we have a quick conversation and then we leave them alone while they’re in the rental unless they need something. But for me that the biggest tip is really just to connect, find somebody that you can, it looks like you can respect and that they have a similar type of market and just connect with that person and let them kind of help guide you through some of those basics and you know, ask questions and bounce ideas off of.

Delia:

Yeah, that’s a great tip. Thank you a lot. So that’d be it for today. Thank you a lot for your time and thank you very much as well!

Michelle Roehl:

Thank you. I appreciate it. Thanks for having me on!

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Interview with an Airbnb Host from Terlingua, Texas – S2 EP46

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

Our guest for today is Donnie Daniels, an Airbnb super host who owns and manages four listings with his wife in Terlingua, Texas. His listings are located in highly touristic locations, near to Big Bend National Park, Terlingua Ghost Town and many other interesting locations and activities for tourists to do. Two years after buying his first investment property, he was able to purchase a second one paying 90% of the total property cost with the money he made on Airbnb. Join us today to learn more about Danny’s story and experience on Airbnb.

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 46:
Pay off your investment property with Airbnb – over $93K revenue 6 months into the year in Terlingua, Texas
airbnb revenue in terlingua

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

Donnie Daniels:

Hello, my name is Donny Daniels, myself and my wife, we own Roadhouse rentals. We have four Airbnbs, they’re studio size apartments, they can sleep anywhere from two to three people easily. The larger ones, we can provide a roll away and that will put in a fourth person in the larger ones. We’ve been doing this since 2018. We just added our second duplex in November of 2021 and since that time, our occupancy, our slow periods are between May and August and our occupancy during that time is right around 52%. So even though it’s slow and hot out here in the desert, it’s still pretty busy.

Delia:

So 52%, right?

Donnie Daniels:

Correct and then the rest of the year, the other eight months, we average anywhere from 78% to 100%.

Delia:

Wow, that’s a lot! And can you tell me a little bit of your story? How did you and your wife started on Airbnb or on short-term rentals?

Donnie Daniels:

Well, we wanted to buy some property. So we bought some property here locally in southwest Texas at the Big Bend area and I wanted to get her a souvenir shop opened up on the main road. So I wanted some property frontage on the road and we got 21 acres. So I’m looking back at the rest of the 20 acres because I’m only using one I’m like, “I need to do something with that” and we’re right near the Big Bend National Park and Big Ben Ranch State Park, two of the largest parks in the state of Texas. So I was like “People need a place to stay, so let’s do some Airbnb”. That’s what we decided and it’s been uphill ever since. I mean, it’s like a quick success.

Delia:

How did you learn from Airbnb? Like, when you were like thinking about opening Airbnb? How do you know about Airbnb back then?

Donnie Daniels:

I have used an Airbnb before I stayed in one and only been one so it wasn’t much. I researched a little bit online and when Lynda and I talked about it, we said “Let’s try it!”. We can always, one thing about here is if it didn’t work out, we could always rent it to the locals for housing. So the locals were hoping that they would be housing because it’s very far and few between out there. But the tourist out here, it’s a big tourist industry. The State Park or the National Park last year, broke its attendance record by almost 25%. These people have to stay somewhere. Our nearest town is an hour and a half away from the National Park and I am currently nine miles away from the park.

Delia:

Okay, so real close and on the very beginning your target audience was those people who were coming to see the National Park, so they could have a place to stay, right?

Donnie Daniels:

Correct. So I looked at all the activities, I currently put out four automatic messages to the guests when they book and one says “Thank you for booking with Roadhouse rentals. Don’t hesitate to ask me any questions”. The second one is a list of activities to do around the area and the outfitters that they can book event, whether it’s canoeing, UTV, hiking, there’s so much to do out here. And then the third one is the check-in- standard check-in info. And the fourth one, it’s a “Thank you”. And one question that I asked them is, “Please tell me anything that we can do better to make your experience more enjoyable”. So I’ve had 670 reservations in four years and I am almost right 525, I think it is, in reviews out of those. And most of the time, those are reviews where they tell me not to mess with anything because it’s perfect or then you got the few of one of those suggestions. Most of them are just leave it like it is.

Delia:

The fact that you’re open to guests suggestions, I think that makes you like more of a friendly host and they also can trust you a lot with that. So are you the only Airbnb rentals there? So you have like four listings, right?

Donnie Daniels:

Correct.

Delia:

Are you the only four listings around there in your town?

Donnie Daniels:

When I opened up in 2018, there was 120 and now there’s 250+.

Delia:

But those listings weren’t like targeting to the people who were visiting the National Park? Or there was like, a necessity for more short-term rentals there?

Donnie Daniels:

It’s all for the park. The park gets about 4k and 10k vehicles a year on average. There’s really no place for them to stay.

Delia:

Oh, that’s right. That’s right, I understand. So you already have those listings there like, the properties were there already?

Donnie Daniels:

Correct. We got Roadhouse Rentals One, Roadhouse Rentals Two, then we have Roadhouse Rentals XL Three and Roadhouse Rentals XL Fourth.

Delia:

So these are both duplex as you told me, right?

Donnie Daniels:

There’s two duplexes with two units in each building.

Delia:

Okay, that makes sense. And did you already have those properties before you started short-term rentals?

Donnie Daniels:

I bought the property at the same time I started all the rentals.

Delia:

Okay, so when you bought it, you were thinking about doing short-term rentals with those?

Donnie Daniels:

Probably about a month after it wasn’t long because I fell in love with the property first and then I said I need to share it.

Delia:

Yeah, that’s right. So you weren’t planning to use it that much. That’s why you decided to do the short-term rentals, right?

Donnie Daniels:

Correct.

Delia:

I see now! And can you tell me a little bit of the financing story of the properties? If that’s alright with you?

Donnie Daniels:

Yeah, I’m okay with that. Well, we jumped in, completely in. We moved here five years ago, we sold our house in the Houston area and we cashed out our 501K and we paid everything in cash. Immediately, we were covering our costs, only thing we were had to do is the utilities, insurance, stuff like that. So we were making a profit and then once the first building made enough to buy the second building, then we proceeded with the second building.

Delia:

So you paid both of your rentals basically off of doing Airbnb, right?

Donnie Daniels:

Correct.

Delia:

Wow, that’s really amazing!

Donnie Daniels:

Well, the first one was with the one and when we sold our house, the second one was through Airbnb.

Delia:

So can you tell me what was the price of the second property you bought for Airbnb? Like with the Airbnb money? Sorry.

Donnie Daniels:

It was probably with everything included, probably about 150.

Delia:

And you managed to cover absolutely everything with your short-term rental money, right?

Donnie Daniels:

Let’s say 90% of it. We had to throw in some of our own money to put up with it. Yeah, we had to throw in some of ours to help cover the interior decorating and furnishing.

Delia:

A 90% is a really impressive number. So you were doing short-term rentals for two years when you bought the second listing, right? The second property.

Donnie Daniels:

Correct.

Delia:

And in those two years, how much was your revenue per year?

Donnie Daniels:

The first year, I want to say. Well, the first year was only two months, so that is really not even worth talking about. I think it ended up being close to 6K-7K. The second year was in the 60s and the third year was in the 90s and then this year, we’re already sitting above 93 right now.

Delia:

Wow, 93! That’s a really good number. Do you think the other rentals out there do the same amount as you? Or is just your listing has perceiving this amount?

Donnie Daniels:

I think it’s pretty well even around the board, there’s some that probably do better, they charge more. And then there’s some that do better, they probably charge less, so they get more active. But all of us,  out here is like a family, so we all know each other, we all take care of each other. If someone has an emergency at one of their Airbnbs, they’ll reach out to me and say, “Donnie, you got vacancy? Can I send them your way? I need to let them come over there”, so we relocate between each other.

Delia:

Oh, that’s really nice. So you’re pretty close community there, right?

Donnie Daniels:

Yes.

Delia:

That’s really nice! And can you tell me a little bit of how much is your average daily rate and how do you like plan the pricing for your listings?

Donnie Daniels:

Of course, it’s the weekends and holidays and stuff like that are more expensive, or the prime time of the year. I will run anywhere from $99 a night in the regular Roadhouse Rentals, up to $179 a night in Roadhouse Rentals and then the XLs will be anywhere from 139 to 79.

Delia:

So the difference between these listings is that some of them are bigger than the other ones, right? That’s why they excel.

Donnie Daniels:

Correct.

how much can you make on airbnb

Delia:

Okay! And what kind of amenities do you offer in your listing that probably like attracts the guests? Or are really comfortable for the guests you have?

Donnie Daniels:

We’ve got a queen size bed. It’s basically it’s like a tiny home. It’s got a queen size bed with dresser underneath it. We’ve got a full size bathroom, the shower. We’ve got a two burner stovetop, in the kitchenette with a microwave. I know as funny as it sounds, we have running water, electricity. We are on a septic system. Out here you’ll get a lot of people who prefer off grid, which means they’ve got compost toilet, Solar System, catchment water. So I almost have like the hometown fill out in the middle of nowhere, so I’ve got a sitting area outside with a fire pit and there’s a charcoal grill outside, there’s a cabana to sit in to get some shade. I’ve made a half a mile long walking trail that goes around the property that people can go hunting for rocks and fossils and stuff like that and that’s about it.

Delia:

So the guests you usually have, you told me they come because of the National Park. Do they usually spend more time going around the National Park? Or do they stay more at your listing?

Donnie Daniels:

They definitely go out during the day. We do get night sky because we’re the darkest sky in Texas or darkest sky in the United States. So you can see the Milky Way with your naked eye, so we get a lot of nighttime photographers. The National Park has 450 bird species that migrate through the National Park, so we get a lot of bird watchers that come in and see what birds they can see and do a lot of photography. Then we also have Terlingua, which is a mining ghost town from back in the 20s to 40s, that’s a big tourist site. They’ll come to starlight and stuff like that, there is somehting like a theater so they can participate in the mining company. There’s a lot of different drawers out here.

Delia:

Yes! So about the ghost town, I googled it a little bit because some of your listings’ location drop down there, so is that attraction really near your place?

Donnie Daniels:

It’s 17 miles away.

Delia:

And people usually go visit that town as well, right?

Donnie Daniels:

Yes and then they’ll go over to Lajitas, we’ve got Lajitas Golf Resort which is probably 25 miles away. They have zip lining and they have golfing and horseback riding. There’s other horseback riding in Terlingua, in Study Butte, which is a smaller town. There’s many outfitters around to do whatever you could think you want to do there.

Delia:

Oh, so it’s a very like touristic area, right?

Donnie Daniels:

Yeah, the population is just over 1K locals and like I said the National Park maybe had, last year they set the record at 578K came in.

Delia:

578,000 visitors for the National Park?

Donnie Daniels:

Yes.

Delia:

That’s really nice! So you have, most of your bookings are just for the guests who come to the National Park, right? That’s your biggest demographic?

Donnie Daniels:

That’s the biggest draw.

Delia:

Do you get another demographic of people who come for like, for different activities?

Donnie Daniels:

We have a lot of different festivals in this area. Number one is and you know what chili is, right?

Delia:

Yes, that’s right.

Donnie Daniels:

Well, chili was created here. They have the International Chili Cook-offs every November, so for a week or two weeks, a week they come in prep for the setup and then the week of the tournament, so the cook-off. That’s one of the things and then there’s a bunk, you get a lot of car shows, you get a lot of motorcycle groups. It’s a big draw. Highway 170 is the number one scenic drive in Texas. It starts 25 miles away from me and you can take it about another 30 miles and then turn around and come back. There’s been many movies filmed out there. Probably before your time, the movie Fandango back in the 80s, it was filmed out there. Lots of music videos have been done out here. They got, a movie they just did was Deep in the Heart of Texas. It’s got some areas from here on it and then there’s another one, Frank and Penelope that just hit the films in the last month, so they’re in the theater.

Delia:

I see! So it’s a very known area then. Can I ask you for your pricing what like, method do you use? Do you do market research? Do you keep a standard pricing?

Donnie Daniels:

I try and keep it standard, then like you always got to try and stay competitive. So you can get some bookings.

Delia:

That’s right. When you are planning on your pricing, do you do market research? Or what strategy or method do you use?

Donnie Daniels:

I researched other Airbnb sites that were similar to mine and basically went up and stay right around them.

Delia:

Okay, that makes a lot of sense. And can you tell me what is it the most that you like about hosting?

Donnie Daniels:

One good thing about out here is they are tourists, so they’re on vacation. They want to get away from the big cities. So they’re out here to have a good time and they’re very polite. I rarely have I ran into any rude visitors that were guests with me.

Delia:

Oh, so you have really good guests then, you haven’t encountered any bad guest yet?

Donnie Daniels:

Well, maybe two or three if that and they were usually out here just to do work. As long as they’re out here on vacation, they usually get along pretty good.

Delia:

I see now! And are you barely like close to your listings all the time? Do you live close to your listings?

Donnie Daniels:

I’m setting up a house right now at the very back of the property, so I’m 40 acres behind everybody. So I do greet them when I can, I always talk to them a little bit somehow whether it’s text messaging or through Airbnb messaging. Out here you can have a hard time finding Wi-Fi. My Wi-Fi in my Airbnb is a fiber Wi-Fi, so it’s super fast. So that’s not an issue, but until they get logged into it, you have to depend on those service. and it’s hard to make a phone call it sometimes, but texting works great and messaging works great.

Delia:

And now that we’re talking about communication with the guests, can you tell me if there was any particular big challenges that you have encountered as an Airbnb host? It can be with the Airbnb platform, with your guests, with pricing, whatever you find the most challenging.

Donnie Daniels:

What do I find challenging with my guests? I can honestly say I’ve probably had maybe 5 to 10 asked me for a discount, but other than that, they book it as is. They don’t try and negotiate, so I can’t use that as a problem. I think my hardest part would be reviews because I mean, I’m at 95% 5-star reviews, right? But then you’ve got those few reviews, like in the last year, I think I’m sitting at 11 reviews below 5 stars and like I said, I know you can’t please everybody, that’s my favorite line. But I mean, if everybody else will look at the other 250 for the last year that are above or at 5 stars. People would look at the whole thing, when 90% of them say that you’re in a great location and then all of a sudden, two of them say that you’re in a bad location. Now like, why is that? I wish I could reach out to him and say “Explain to me more” and then we can continue the conversation, but I don’t want to be like argumentative, so.

Delia:

So how do you deal with those bad reviews? You have very few of them, obviously. It can affect you, right? Your superhost status?

Donnie Daniels:

Exactly.

Delia:

Yeah, that’s right. And can you tell me how do you deal with that?

Donnie Daniels:

I strive harder to get more 5 stars and I communicate, I make sure they understand where I’m at and where I’m located. So hopefully, they’re not surprised when they get here and say, I mean, I realized that most people in big cities probably only drive 5 or 6 miles to get where they gotta go. So when you get out here and you realize you got to go 10 miles or 9 miles to get to the park and then that’s another 30 miles inside the park just because it’s the largest National Park in Texas. So it can take you an hour to drive across and then that’s, they think that you’re too far away. So now I get you to the park.

Delia:

And most of your bad reviews are about that, like the location, they think is like too far?

Donnie Daniels:

Yeah, location and then of course price because we are, everything out here is expensive. Expensive to get everything here, we are three hours from the nearest Walmart, that’s how far we are and that’s three hours to the nearest stoplight. That’s how remote we are. So it is costly to get things here. So we got to get it back in our costs.

Delia:

So that would be like one of the main challenges of having like a really remote location listing, right? That everything is really hard to get to. I see now. Lastly, I would like you to tell me if there’s any tips that you’d like to share for other Airbnb hosts?

Donnie Daniels:

My biggest thing is when I set this is, I set it up exactly the way I would want if I stayed there, okay? So I did that and then I did suggestions. I asked for suggestions and if they were good suggestions, I implemented them and when we built our own extra large unit, we implemented quite a few of the suggestions into it like more cabinet space, more counters space stuff like that. Listen to your guests and improve what you’re gonna do.

Delia:

Yeah, that’s right. That’s a very like accurate and onpoint tip. Thank you for that. So that would be it for today. Thank you a lot for your time, for sharing us your story and also the tips. It’s been really amazing to hear about your story as an Airbnb host!

Donnie Daniels:

Alright!

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Interview with a member of the Minoan Experience Company – S2 EP45

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 Sage Nathan, part of the Minoan Experience. Minoan Experience is a company founded under the new/old concept of Native Retail and it’s on its way to encourage hosts to embrace it by helping them create and capitalise on these magic moments guests experience in their rentals. But not only that though, Minoan helps hosts to save a ton of money and time on furnishing, it turns the property into lovely and naturally created shoppable experience for the guests, allowing you, the host, to make some income out of it.

Join us in this interview to get more info about Minoan and how to take part of this new and exciting opportunity for Airbnb hosts.

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 45: Save on furnishing & offer a unique Native Retail experience with Minoan

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

Delia:

So can you do a little bit of introduction about yourself? And also tell us what is Minoan?

Sage Nathan:

Yeah, of course. So my name is Sage, I lead partnerships at Minoa and I’ve been here for about a year and a half. We’ve been around for just about two years, so a relatively young company. But Minoan is a platform to help hosts simplify the ordering process and help them save money when they’re furnishing their rentals. So we believe that hosts should never be paying for retail for anything that they bring into their space. And so we’ve negotiated, you know, discounts on 200 different brand partners and built in all in one ordering platform where hosts can manage everything end to end, related to ordering in one place and it’s completely free to use.

Delia:

This is not only beneficial for hosts, right? It’s also for the guests they have in their short-term rental Airbnb.

Sage Nathan:

Yeah, exactly. So there are two components of our business. The first that I mentioned is more upstream when a host, let’s say they just close on a property or maybe they need to refresh, they want a new sofa, they want some new amenities, they can use our purchasing platform to get all of these great discounts on all of these orders. And then the second component of our business is we then can create what we call a shoppable experience for the guest, which basically takes all of the items that the host bought for their property through Minoan, whether it’s an article sofa, public goods amenities, a sasper mattress and we pipe those into a custom retail experience, basically a custom website that we build for the property. So anytime a guest comes to stay in a property and let’s say they love the mattress, they love the soap and shampoo, so much so that they want to buy it, we create a really easy well merchandise website where the guests can come in, learn more about the brands in the space and about the products, easily add the items to their cart and check out with the items they love most. And of course, the host earns a commission on anything that sells. So what we do is we serve the host and we also serve the guests.

Delia:

That is amazing! And can you tell us a little bit of how does the retail experience works for the guests?

Sage Nathan:

Yeah, of course. So there are a couple of ways in which we show the guest and prime them of the experience. Our mantra at Minoan is to be present, but not overwhelming. So we definitely don’t want to sacrifice the sanctity of the guests day. If guests are paying, you know, $500 or $1,000 a night, whatever they are to stay at your property, we want to make sure that they’re not being bombarded with “shop this by now” and so we’re really careful in the way that we merchandise the experience. So there are a few ways guests can, you know, be made aware of the experience. There’s something like this, I don’t know if video is included in this, so apologies if it’s not.

Delia:

Yes, it is.

Sage Nathan:

Okay, awesome, we can create a co-branded touchpoint like this. So you know the property’s logo, the property’s name could go here, it’s super soft messaging, found something you like, again, there’s not price tags hanging from everything. And that QR code would take the guests to this fully immersive retail experience where they can see every product. So the QR code will take them to, you know, so they have 50 shoppable products in the property, a website with all of those products in one place so that they could buy them all, check them out without having to go to different tabs on their browser, that’s one way. We also work with the host to connect with them digitally. So if the host has an Instagram page or direct booking site, they can add the shoppable link into their linktree on their Instagram or perhaps on their direct booking site, there can be an exploring shop button. And also a combination of that with pre and post emails that, you know, the host is already communicating to their guests, again, we don’t want it to be overly commercializing in their face, but something simple like can’t wait to get here, click here and check out what’s waiting for you at, you know, the name of the property.

Delia:

Right. In this website, you’re telling me that you set up for the hosts, is not only for the products, but it also will be like custom to the hosts’ rentals, right?

Sage Nathan:

Yep. So we take the images that they already have, you know, likely something that they’ve used on their listing page and we create a wireframe, so guests can shop by space. So we can have an image of the kitchen, they will click into the kitchen space and see the coffeemaker and see the, you know, the salt, pepper, everything that they have in the kitchen. And then if they hop over to the living room, there’ll be a picture of the living room, actually the living room that they’re staying in, then they can see the sofa, they can see the TV, they can see everything that’s available in the living room. So we use images of the host property to create this custom experience. So it’s different per property, you’re not going to see the same experience if you go to property A vs property B, it’s a combination of the unique items that they have curated for the space in addition to their images.

Delia:

That’s right. And there are obviously some, like very obvious benefits of using Minoan, but can you tell us a little bit more about the really deep benefits you have with using Minoan?

Sage Nathan:

Yeah, of course, I’d say the first thing is it’s completely free. So it doesn’t matter if you’re a host who’s just getting started and you just closed on your first property. If you have 15-100 properties that you own and manage, it’s completely free doesn’t matter, you know, where you are along the journey of being a host. We have discounts on as I mentioned, at this point, over 200 different brands. Brands that these hosts are probably already buying from, brands like article, brands like West Elm, Casper, Parachute Wayfair, I mean, the list goes on, I won’t bore you or anyone who’s listening with that long list, you should definitely come and check it out. But there’s no risk and so if you come in, if you check it out, if you just need a sofa or if you need a full house, you can find everything you need in Minoan, from furniture to snacks to soaps and shampoos, just about every category you need. One of the biggest benefits that I’ve seen and heard from hosts firsthand is that we take care of all of the messy admin work related to customer service, related to tracking. Host don’t have to check their email inbox for “where’s the tracking link for the article sofa? Is it even coming on time? Did I order it?” and they don’t have to manage this in a Google spreadsheet. Everything that is related to their order, our team managers, our team has extensive background in retail and E-commerce. So we are very familiar with routing orders, customer service, all of the messy and candidly unsexy things that come along with ordering online. And it’s just giving hosts a one-stop shop, basically, one source of truth where they can come in and manage their order across all of these brands in one place. So it’s really about giving them visibility into empowering them to make the decisions that are right for their business, showing them you know, information on lead times, pricing after discounts to make sure that they’re trying to go live, you know, by the end of June and the product isn’t going to ship until August, they have that information upfront. So they don’t end up purchasing something that ultimately wouldn’t work for their property. So a lot of benefits, quick summary, free to use discounts on 200+ different brands and we manage all of the customer service routing and admin sides of retail post purchase in the platform.

Delia:

That is so great and also it sounds so relaxing that you don’t have to be checking all those websites, you know, tracking the order, so it’s really great! And can you tell me what is the purchasing process like, please?

Sage Nathan:

Yeah, sure. So after the host has been approved, they will get email access to get their account set up and logged in. And they would see, you know, all of the different brand partners that we work with. We’ve built a Google Chrome extension, which is really exciting and basically what that does is once you have that installed, it will follow the host across any Minoan brand that we work with. So if you go to articles website, if you go to Westown, Crate and Barrel, so on and so forth, they will see a little green “M”, a Minoan “M” will pop up in the right hand corner and basically the extension allows hosts to pull in items from all of the different brands that we work with into one cart so that they don’t have to check out with Crate and Barrel and then checkout with article and then checkout with Casper. They pay us once for, you know, items from 4/5/10/15 different brands, so that eliminates a lot of time on their end. So the way that It would work as they would browse the brand’s website. Let’s say they go to article.com and they’re looking for, you know, a dining table, they would find the table that they like, pop open the Minoan extension and then there are a few pieces of information that we asked for, just to make sure we ship out and quote out the right product. So product name, any options that the product has, if it’s a table, do you want one that seats four, that seats six? If it’s a mattress, do you want a king or queen? and then how many do they want, so if they want two, they would click that, add it to their Minoan cart, it’s definitely important that the host never checks out on the brand’s website directly, otherwise, they would pay for retail. So to get the discounts, everything comes back into Minoan. Once the host has added all of those items from the different brands that they like into their Minoan cart, there’s an option to request a quote. We go through a quoting process just to make sure that we can consolidate all of the information across these different brands for the host in one place before they pay. So they would request a quote and within 4-6 hours, our operations team would turn back a quote to them, they will get an email update and it would take them to a page with all of the item details, pictures of all of the products, estimated delivery dates, definitely the most important column that I like to call out, especially when hosts are working against a tight timeline. We show them savings, we show them shipping costs, broken out by brands, so they understand you know, who is charging what, what is Casper shipping? What does it cost to ship my article sofa? All in one place. If all looks good, the host can approve and pay for the quote right there either via credit card or an ACH payment and then from there, it’s really hands off, that’s when we come in and we do all of the work, we send the order to the brands, the host just gets to sit back and as we start to get tracking information from these brands, as items have shipped, we populate it back into their order. So again, it’s one source of truth, they don’t have to check a spreadsheet, they don’t have to check their inbox, they could just check in with Minoan. And we’re at one point of contact, so if they order from five different brands, instead of them having to contact Crate and Barrel, then contact Article and then contact Casper, if something’s wrong or they just have a question with their order, they can contact Minoan. We’re at one point of contact and then we handle all the conversations with the brands. Hosts are busy, so it’s really important for us to help them save time and so that’s what, you know, we’re building and doing at Minoan. That’s kind of how the end to end process on the purchasing for the property works.

Delia:

That is amazing, actually! And I would like to make you some, like a question that is not really regular, but what happens if, for example, the host reaches the quoting process, right? But they see articles they really don’t like to purchase, they can delete it there? How does it work like?

Sage Nathan:

Good question. There’s a garbage can button in the quoting process. So once the quote is returned to them, if the discount, you know, if you’re like, “Actually, I could find something elsewhere, I don’t want that style anymore or this delivery time isn’t going to work for me”, there’s a garbage can next to every single item and they can just remove it then in there. Additionally, on the flip side, if there’s an item that they forgot to add, they’re like, “Sure, I wanted to add this article”, they can also add new products to an existing quote. So there are a lot of ways in which we allow modifications because things change and we need to be flexible to allow them to make whatever changes and modifications as long as it’s before they pay for the order. So that’s not a problem, if something’s wrong or if they don’t want an item any longer, they can remove it from the quote, good question.

Delia:

And what about canceling some orders, maybe a single item or the whole order?

Sage Nathan:

Yep. Once the order has been placed there, we just need to send a message to our orders team. So there are two ways to get in touch with us, they can either respond back to the email that they’ve received about their quote and order or we have a really nice that we just launched probably, you know, two months ago, at this point, I’m a chatbot in the platform to where they can come in, type a message and it goes to our entire team. So whoever you know, is online at the time can respond and help them address that issue or concern. So if they need to cancel an item, if they need to cancel an order, as long as, you know, typically it hasn’t shipped yet or we can get in touch with the brand before it’s shipped, we can handle all of that for them. So again, it’s just saving them time, if there’s a problem, they want to cancel something life happens and so we’re flexible, as long as we can figure it out with a brand which most often than not, we’re able to, you know, take care of that for them. And it just again, they don’t have to mess with that. They just let us know and then we take care of that with the respective brand.

Delia:

Oh, that’s amazing really! And what about the purchasing process for the guest?

Sage Nathan:

Yeah. It’s pretty similar. It’s funny because we actually started Minoan primarily with the shoppable experiences for guests and then we realized that, you know, hosts were coming to us and it was so easy for guests to buy through this experience that we were creating that they’re like “Can we buy from you guys?”, so that’s when we ended up creating this procurement or furnishing platform where hosts can buy for their property. But the guests purchasing process is pretty similar, they would go into this custom experience that we built for the property and they will have an option to explore all of the products, explore by room, they can pick on a product they like, add it to their cart and then they check out just as you would on any normal E-commerce or retail website, our team gets the order and we send the order directly to the guests, wherever they, you know, put in their shipping location. So it should be frictionless exactly as if you were going to any brands website directly and ordering something, you know, directly to your home.

Delia:

Okay, that sounds great! And do they also get some discount by any chance?

Sage Nathan:

Currently, we price everything at full retail, meaning it’s at parity with what the brands are offering. So if the article sofa on our website is $1,000, it’s also going to be $1,000 on Articles website, we want to make sure that we’re at parity. We’re really capitalizing on the moment of inspiration when a guest comes in and you know, they wake up from the best night’s sleep ever on the mattress that they love, the taste of the local coffee that they had in the property. But we should never be more expensive than what a guest could go and get on their own. But we’re also testing you know, different promotional ways of merchandising the site especially during, you know, maybe Labor Day sales or summer savings to where we can allied with some of the promotions that brands are running on their own websites.

Delia:

Okay, that sounds good. And can you tell me a little bit about the brands that are involved in this whole Minoan thing? Also what kind of items can they get? For example, furniture kitchenware, items in the bathroom.

Sage Nathan:

Good question, I will do my best to make this concise because I could probably speak 40 minutes just on the brands that we work with. But again, we work with, you know, over 200 brands at this point and really, almost everything you would need to furnish a property. So we work with furniture brands like Article and Crate and Barrel and Walker Ediso. You know, some of these brands are in the higher end category and some of these brands are more in the value category because you know, we want to make sure that we can serve as hosts, no matter what type of property that they’re working with. So that’s furniture in terms of mattresses, we work with Purple, we work with Casper, we work with Semmens, linens, I mean Casper techs, Parachute, Brooklyn and the list goes on and on. And then we have consumables, we have snack partners, we have, you know, brands like public goods who do gallon refillable for their soaps and shampoos and also all you would need to outfit your kitchen. We work with brands who have appliances like microwaves and coffee makers and dishwashers. And the discounts, of course, vary depending on the brand, but most of our brands are what we call trade + pricing, meaning if you’re a designer or someone, you know, who can get these credited memberships yourself, our discounts are typically, you know, 5 to 10 points below what that standard discount is because of the value that we’re providing, you know, for these brands as well. For brands, it’s kind of a no brainer, I mean, I won’t bore you with these details, but you know, the digital space is really crowded with how much brands are spending on digital advertising to get people to click on ads. But these short-term rental properties are creating really meaningful moments between people and products in the real world and so it’s something that, you know, we position, that’s how we position ourselves to brand. So ton of different brand partners, I’ll just name a few more Westown I think I mentioned already, we work with Crosley, they do really cool record players, you know, everything that you would need to furnish a rental, Polywood does incredible outdoor furniture, you know, the list goes on and on.

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Delia:

Wow, that’s amazing, actually! And can you tell us a little bit about, is it easy to get the brands to work with you in this? How do you pitch them? Do you think they actually are pretty accessible when you explain to them how does this work?

Sage Nathan:

Yeah, you know, for brands that we’ve talked to thus far and onboarded has always come from a host telling us “Hey, we work with Westown” “Hey, our mattresses are from Casper” and that’s when the conversations kicked off. And basically the way that we have these conversations with the brands is we tell them that Hey guys, digital advertising is expensive. You guys are spending a tremendous amount of money on, you know, the digital side and we’re not saying that digital is wrong. I mean, digital is definitely an important component of a brand’s, you know, marketing proposition. But the reality is the best way to experience a product is to use it. The best experiences don’t happen on screens and they don’t happen on shelves, they happen when you’re actually able to use a product for what it was designed to be used for. And the reality is that’s exactly what these properties are creating these moments every single day, someone is sleeping on a mattress for three to four nights, someone is using the soap and shampoo on their hair when they are in the shower. And so we say “You know, these are the moments where you guys want to be present” and the reality is they’re already in these spaces, right? Casper mattresses are all over the place, public goods has their soap and shampoo and all of these properties. But it hasn’t been properly illuminated yet. And what I mean by that is people aren’t necessarily being made aware, “Hey, you love that mattress? It’s a Casper mattress and here’s why it was so comfortable” or “You loved the way that the Public Good shampoo fell on your hair? Here’s why” and so we’re really connecting the two to make sure that when someone wakes up from the best night’s sleep or they love the coffee, that it’s not just “Okay, great” and then life goes on, that we’re capitalizing on that moment and making the connection between guests in the property and the products that they’re using. So it’s been a fun time, you know, getting all of these brands on boarded and we’ve found them to be extremely receptive and excited honestly, about what we’re doing and this new retail channel is what we’re calling Native Retail.

Delia:

Native retail. So that’s a really interesting concept, right? I think it’s a really old concept to be honest because people that go to at a house and you look at the shoe rug, you look at the curtains, you look at something and you ask, “Hey, where did you buy this?”, right? “How much did it cost?” It’s really, really an old concept and you were the first one to capitalize on it. So it’s really great.

Sage Nathan:

It’s everywhere, right? It’s not just, we’re just starting in hospitality, but if you think about it, you know, it’s everywhere. It’s in your own home, it’s in if you’re going on, you know, a fishing charters, like what rod? What reels do you have? It’s everywhere, this native retail concept in gyms, if you like the treadmill or if you like, you know, the dumbbells, whatever it may be, we’re just starting in hospitality. So, you know, the opportunity for this native retail concept is just about everywhere, you can imagine. But it’s been really fun. And to your point, exactly, it’s not that we’re reinventing the wheel here, we’re just taking these moments and bringing them to life and starting in hospitality. So it’s been really fun.

Delia:

Yeah, that’s amazing! And now that you talked about brands previously, what about, for example, new startup brands? Do you think someone can reach you out, for example, if they have beauty products, if they have art or decor and try to work with you?

Sage Nathan:

Definitely! Yeah, we’re open to exploring new partnerships always, you know, as long as it’s a good fit. As long as we can secure a good discount, you know, that’s really important to us, hosts come to us, they trust that they’re gonna get a lot of value out of the brands and discounts that we offer. And so typically, it’s one of the first, you know, we want to understand the brand, what’s the value offering? What type of category a niche maybe are they filling in terms of assortment? You know, are they providing eco-friendly toilet paper? Are they providing really affordable mattresses and then we work out the logistics and making sure that it’s easy to route and have them fulfill orders. But yeah, we’re always open to learning about new brands I mean, the big brands like West Elm article, Crate and Barrel, most people are familiar with them, but it’s really fun for us when we get to work with some of these smaller, maybe not as well-known brands because this is the perfect avenue to help get them, you know, distribution in the real world and in these moments and times of use for people are going to be using their products.

Delia:

Okay, that sounds amazing! And how about like, can the hosts make money with Minoan?

Sage Nathan:

Yeah, they can save money and make money. So they’ll save money up front, of course, with all of the purchases that they can make through Minoan to, you know, for items for their property. And if they decide to make their property shoppable, anytime a guest comes in, buys something, there is a 50/50 profit share on any things that sold. So they save money up front and then they have the opportunity to make, you know, recurring revenue anytime a guest buys something from their property. And these products at this point are already a sunk cost, right? They’ve already bought the mattress, they’ve already bought the sofa, now let’s just let’s bring your property to life. And I’m sure a lot of these hosts from what we’ve heard, they’re always getting questions, “Where did you get the mattress? Where did you get the sofa”. But the reality is, these hosts don’t have time to be, you know, to manage a full retail operation, they’re already managing a lot, being a full-time host and so for us, it’s really easy to just take that work off of their plate and allow them to still capitalize on those moments and earn some additional, you know, incremental revenue. It’s just gravy on top of, you know, the money that they’re getting in bookings, but, you know, that’s how they can make money is by making their property shoppable and having those commission’s flowing anytime guests order something from their property.

Delia:

So if I’m thinking right, if you sell for example, five times your mattress, that mattress will be paying for itself, right?

Sage Nathan:

Exactly. Yeah, that’s the whole idea of it. If you can, you know, and again, we’re a relatively young company, but we’re a technology company and so we’re building all of these platforms to be able to capture information exactly like what you were referring to on, hey, if you spend an additional, you know, $200 on this mattress, here’s the commission that you will earn, if you to your point sell five of these, it’s already paid for itself and now it’s just a net profitable asset that you’re earning incremental revenue time and time again. There’s a lot of interesting data and things that we’re working to collect and thinking around such as, you know, if you buy, we don’t work with Dyson just yet, but if you were to put a Dyson hairdryer in your property, could you charge $10 more a night? If so, not only, you know, someone necessarily just didn’t have to buy it, if they do, of course, that’s additional money on top, but if you can charge $10 more a night, that will pay for itself in three weeks or whatever it is. And so there’s a lot of interesting analytics that go behind purchasing decisions and all of this is to be able to come back and share this with the hosts to empower them, to make the decisions that are going to be most beneficial to them and also create the best guest experience. So yeah, what you’re saying is exactly right, it’s an opportunity, basically, to pay off the upfront costs that they’re having to put into furnishing the property.

Delia:

That sounds amazing! And like you said before, you are working on a tool to allow them to calculate how much can they put the average daily rate at with the amenities and items they sell there, right?

Sage Nathan:

Not yet. We’re working on figuring out how to best display data like that and offer suggestions, so that’s probably a ways out, but it’s certainly something that thinking about. We want to make sure that we get the product or the platform right first. So later this summer, we’re going to be releasing Minoan 2.0, which we’re really excited about. A lot of changes and enhancements that we’ve made based on the incredible feedback that we’ve heard from hosts in our network. So we’re making the changes, were listening to what they want to see, what would be helpful for them and our team is, you know, over 70% engineers and so it allows us to move really quickly to make these changes and updates that are going to be really helpful to the hosts.

Delia:

Okay, that sounds really exciting! So can you tell me a little bit of how can a host apply and get accepted into Minoan?

Sage Nathan:

Definitely. So we have a really quick, probably takes 2-3 minutes application process on our website, so a host would go to www.minoanexperience.com, which is our website and there will be a “Join Us” button on the top right. We just asked for a few pieces of information. So how many properties do they have? How many guests do they see a month? It’s a really quick, again, probably 2-3 minute application process. Once they submit that it gets passed to our partnerships team to do a really quick review. I mean, we’re typically reviewing these applications as soon as they come in and then we will approve their account and then they will get an automated email from our system with information on how to get their account set up and they can start shopping. So as soon as they put their information, it’s a very quick timeline to get their account are approved. And right now we are only working with hosts in the US and so if a host is, you know, we’ve had some hosts come in from Spain and Mexico, which is incredible, all places I would love for us to be and I’m sure eventually one day we will. But right now, again, only available to host in the US but quick application process, no cost to sign up, no cost to working with us and as soon as we review it, they get approved and get their account information via email.

Delia:

And is this open to any kind of host? Or are you looking for a specific niche group of like hosts or a specific type of rentals to work with you?

Sage Nathan:

Yep, so we’re open to, you know, any host who believes in creating beautiful spaces and really cares, you know, it’s not just about heads and beds, they want to create an experience for their property and for their guests, so a lot of that we’re able to see through the application process. But no, we don’t really have, you know, we just want to work with hosts who, again, like realize the potential of their properties and take this, it’s an investment, right? To be a host and to have a short-term rental, it’s a big financial investment. So we want to help them, you know, make it a bit easier to do all of those, a lot of the operational things that come along with being a host. But, you know, we have a lot of pockets in New York and Florida and California in the mountain areas, but we don’t have a specific geography that we’re looking for. We’re excited to work and learn from hosts all over with all sorts of different backgrounds.

Delia:

Great, this sounds amazing! Can you tell us a little bit about the reviews and the feedback that you have got from either the hosts or what they got from the guest? What kind of value do you bring to their property, right?

Sage Nathan:

Of course, yeah, I’ll start with the host who use us for purchasing items for their property, just having visibility into everything in one place, so they can order from as many Minoan brands as they want, but they don’t have to, again, look at their inbox, look at these Google Spreadsheets, everything is available to them within Minoan and they’ve loved that. They’ve loved not having to worry about where is their item, what if I do if it comes damaged? Because they know they can rely on us. So having the visibility end to end about their order with tracking, with estimated delivery dates, has been incredibly helpful. Of course, the discounts, that’s incredibly useful as well like a host, I’ve been shocked at how many hosts I’ve talked to have paid full retail, for sofas, for linens, for whatever. The moments that these hosts are creating in their spaces, they should never, ever be paying for retail. So being able to save 1000s of dollars when furnishing their home. Of course, any money that you can save, but if you’re able to even upgrade the items that you were maybe going to buy, let’s say maybe you’re going to buy an Ikea table, with the discounts were able to, we’ve negotiated, now they can get a Westown table for not too much more than they were planning on getting before. So it helps them elevate their spaces. In turn, they can charge a higher ADR, have, you know, different clientele of guests coming in. And then for guests, it’s been awesome for them because they can now connect with the products that they’ve used during their stay. It’s no longer “Oh, I love that coffeemaker, what is it'” and then life happens and you know, the moment passes, we’ve created a really easy way for them to discover new products and to easily buy the ones they love most. So it helps enhance the guest experience for the host, the host is able to save money, the host is able to make money and it’s just this really nice ecosystem between the host, the guests and Minoan that works in all different ways. So we’ve had a ton of great feedback on the discounts, on the ease of use, on the ability to have the same ordering process no matter which brand you’re going to, you just use the extension and it makes it super easy. So you know, we’ve tripled our host network in the past month or so, which has been fantastic. And we love the feedback that we get from hosts, you know, a lot of the feedback that we’ve had, even if constructive, we welcome it because it helps make our product better and a lot of those changes are coming later, you know, this summer in Minoan 2.0.

Delia:

That’s great. So basically, if a host works with you, they can expect to save their time, save a lot of money, also maybe making profit out of their items to get and also get much more happy experience for the guests, right?

Sage Nathan:

Yeah. It’s just a value add. It’s a unique experience, right? It’s not something that every property offers and it’s one of those things that can differentiate you from the person or from the property next door or down the road. So it’s just a value add and again, there’s no cost, so you can try it out, see how it works for you and you can go from there. So there’s no commitment required or anything like that.

Delia:

Okay, that’s amazing! So the last question that I would like to make is, why do you think Minoan needs to exist?

Sage Nathan:

Minoan needs to exist because hosts are incredibly time strapped and it is expensive and time consuming to own and manage a property. So Minoan needs to exist to help simplify that. So hosts can spend more time, you know, dealing with guests, getting connecting with housekeeping, getting new properties, let us handle all of the messy stuff and you can focus on, you know, the components that are most important to running your business, not spending time on the phone with customer service, not having a look where item is and when it’s going to be delivered. So that’s why Minoan needs to exist. And again, we’re young and we’re growing, but if we can help host save time and save money on ordering, we’ve heard it’s one of the biggest pain points when getting a rental is furnishing the property. It’s overwhelming, you have like a blank slate to look at. So us being able to save on the time and the money and time is money especially for these hosts who likely have a 9 to 5 five job outside of being a host. So you know, if we’re able to win on those two pieces, we’ve had a lot of incredible feedback from hosts on, you know, just making their lives a lot easier.

Delia:

Brilliant. Okay, so that’s all the time we have for today. Thank you a lot for being with us today. It has been amazing hearing about this new opportunity for hosts, right? And I cannot wait to see your success and also being in every short-term rental out there. That will be amazing!

Sage Nathan:

Thank you! We’re excited too. Thanks for having me and appreciate the time. It’s always fun, you know, sharing a bit about our story. So thank you again for having me on!

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Interview with an Airbnb Host from South Rivers, Ontario – S2 EP44

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 Mike Cameron, a superhost who owns and manages two listings in South Rivers, Ontario. He launched his three houses listings last year in October, doing C$20K on revenue only in 2021. Despite them being such unique listings, Mike and his wife weren’t expecting how successful they would be. Join us in this interview to hear more about Mike’s journey, experience and challenges as an Airbnb host.

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 44: 26% ROI in less than a year – Treehouses Airbnb units in South Rivers, Ontario
airbnb occupancy south rivers ontario

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

Delia:

So do you please tell me how did you get started with Airbnb and short-term rentals?

Mike Cameron:

Yeah, so I got started, maybe five or six years ago. We had a little cottage on a river that we had picked up for fairly cheap and we were using it as a family retreat and decided, “hey, I’m gonna see if we can make a couple extra dollars through Airbnb” and so we jumped in that way. And we were just kind of doing it on the side, it wasn’t a main source of income or anything like that, but we just enjoyed kind of getting a feel for it.

Delia:

And was Airbnb popular back then when you were like, just moved there and had your property there?

Mike Cameron:

Yeah, it certainly was gaining popularity. It was the way that people were booking getaways and vacations and even just, you know, a night away. That’s where people were turning was Airbnb. So we could see the the writing on the wall that this was something that was certainly had potential and was growing. So that was what kind of motivated us as we took our next big step in developing our current units.

Delia:

So I’ve seen your Airbnb profile and your properties both look like three houses.

Mike Cameron:

Yeah, so we decided to, you know, it’s those unique rentals that we wanted to capitalize on the all the hype around those and we knew that in our area, lots of people have homes that they can go to. Lots of people have cottages, but we wanted something really unique and so I remember to scrolling through social media one night and I saw a picture of a little cabin that was lofted way up into the treetops and I was like, “I want to do something like that”. Yeah, that was that we decided to go is was doing something different than what others were doing.

Delia:

So you build both of them from scratch?

Mike Cameron:

Yeah, we did. They were new builds. We did everything from clearing the trees on the property to building the actual units themselves and everything that comes with that. We worked with, you know, a builder and electricians and plumbers and all that, but yeah, we took a big lead and getting these things up off the ground, literally.

Delia:

So it must have taken like a big, big investment, right?

Mike Cameron:

Yeah, so it wasn’t cheap. Nothing these days is and we picked, probably the worst possible time to build and most of our building happened, you know, the high of the pandemic, when pandemic pricing just cause materials to go up through the roof and so, yeah, there was a big investment. So it was a big gamble, you know, we were looking at just a raw piece of land, you know, trees in the middle of nowhere and it’s like, “are we really sure that this is the right choice? Do we really know what we’re doing here?” and so it was a gamble, you know, do we want to, you know, invest, you know, all of our money into this project? And we decided that yeah, we were going to and I’m glad that we did.

Delia:

And how much on average was your investment on these properties? If you can, if you feel comfortable sharing the numbers.

Mike Cameron:

Yeah, so our total investment on this project, I get that expensive can be a relative term. For us, we spend about C$250,000 on this project. So I know, you know there’s people out there that are buying a million dollar homes and using those as Airbnb. We did, yeah, about a quarter of a million Canadian dollars and it gave us two little tree houses that are pretty unique.

Delia:

And since it was, you know, like a big investment, something you had to build from scratch, what kind of market research did you do? So you thought “Okay, this is may going to work? So I’m deciding to go ahead with it”.

Mike Cameron:

Yeah. So leading up to it, I did you know, a little bit of a business plan and some thinking around, you know, “what do I need to do to count this as a success?” and, you know, I looked at the relative success that we had with our little Airbnb on the river and some of our local people who have been doing it in town. And I said, “you know what, I think that we can carve out, you know, enough of a demand here, that it’s going to cover our expenses” and so we said, you know, we could aim for 50% occupancy, kind of, you know, as our big goal, you know, realizing that it might take a little bit of time, you know, we’re brand new to this. But we said, you know, “if we got 50%, that would be fantastic” and so that was kind of the number and the thought that we went into it thinking that, you know, that was our goal, if we could do that, money was going to make sense, numbers were going to work out. Little did we know that, you know, 50% was way less than the reality of our bookings.

Delia:

So you were doing Airbnb with another property before these two?

Mike Cameron:

Yeah! So that was the one that I mentioned at the beginning. It was just a little teeny cottage that we had picked up, it was on a little no name river type thing, it was fully off grid. It was nothing special at all and we made sure that we listed it for what it actually was. But we found that, you know, as long as we were clearing our listing and people knew what they were getting, there was a niche for it, that there was people who wanted to just fully get off the grid and escape and were not looking for any amenities at all. And so we’re like, “okay, there’s people who are interested in this” and so, that wasn’t the approach that we wanted to take long-term and our current one certainly have all the amenities that, you know, your average person would expect and benefit from. But we knew that there was something that we could do there.

Delia:

Oh so you already had experience with Airbnb before starting with these two, so that’s great! And can you tell me how was the experience with the first Airbnb you have? Like, you know, was it enough to cover your Airbnb experience? And, you know, get into it, how is it like and stuff like that?

Mike Cameron:

Yeah, so our first one, like I mentioned, it was kind of our property, you know, it was something that we bought for our family to use and so we were just kind of doing, you know, a little bit of Airbnb on the side when we weren’t using it, you know, it was just a way to make a couple extra dollars and it worked. You know, we were happy with that, you know, I think our first year we did that property, we only did it for two years before we sold it and, you know, took a different approach to our Airbnb investments. But I remember our first year, I think we made like $3K and I was ecstatic about that because it was just a little side hustle like, it wasn’t anything big, we were only doing it for a couple months during the summer and that was it. So it was like, “Okay, this is kind of neat”. From there, we’ve made the decision that “okay, if that worked on a small scale and that was the type of property we had, I think that we could do even better”, you know, and yeah, the goal was that with our new one, I’d be able to replace my current income and make this my full-time work.

Delia:

And were you able to do that?

Mike Cameron:

I was and it happened a lot sooner than I expected it to happen, which actually was problematic, you know. As I mentioned, you know, we had that goal of building up to 50% occupancy and if we could do that, you know, that would be amazing. Little did we know, our very first month, we were at 89% occupancy, so we just hit the ground running. And we opened in October, here where we are spectacular fall colors, there is huge demand. So it was like, “wow, I am so busy and consumed with the work that this is providing that I need to make some big decisions a little bit quicker than I thought I was going to need to”. And so it was nice to see the success, but it also led to some stress because we weren’t expecting to succeed that well that quickly.

Delia:

When doing your market research, were there any similar listings there that were doing same numbers or something that you think “oh, maybe I can compare to them?” Or were you the first time in your market?

Mike Cameron:

There was nothing like what we did, you know, there was some things that you could sort of compare, you know, some unique listings, you know, domes and cabins and other things like that, but nothing quite like us and where I think we excelled was we said you know, like we want to winterize these like we want to make them year round rentals. And, you know, again here where we are and I get that everyone’s location leads to different challenges, but winters in northern Ontario are not nice, you know, we experienced really, really cold winter this past year, many days were below -30 and when you’re looking at a tree house in the middle of the woods, there’s a lot of challenges with that. But we said, you know, if we build it, we believe that they’ll come. And so we splurged on a few things, we made sure that, you know, in the middle of February, people could have a hot shower, that they could cook a meal, all the things that they wanted to do. And so when we did that, and we took that approach, nobody else could compare to us and that was the feedback that we had from many guests was just like, there is nothing else like in all of Ontario type thing that they could find that allowed them to get, you know, completely into the woods, immersed in nature, but still have some of those amenities that were important to them.

Delia:

Yeah, that’s actually pretty amazing! And you told me you started in October, what year?

Mike Cameron:

We started only October of last year, so 2021. It’s been fairly new, it’s been a wild ride, but we’ve only been at this for not even a year with these current properties.

Delia:

Not even a year and you’re already like really busy! I can see your superhost, you have like over 1000 reviews and everything is almost five stars. Wow can’t believe it! And can you tell me a little bit of the experience of managing three houses? First of all, you have like these really rough winters, what are the things you do to provide the right amenities for that rough winter, like you said, like the hot shower, that they’re able to be like hot and cozy inside the listing?

Mike Cameron:

Yes, so some of the things that we focused on, were again making sure that, you know, we had water, and it’s a challenge to bring water up out of the ground, up into the trees and not have it freeze when it hits -30. So that was a significant investment, you know, over and above our build just to keep water from freezing. You know, one of the other things that we found though, that just makes it over-the-top for people is making sure that we had a good clear trail for people to access their units. So making sure that we’re out there, you know, before people woke up shoveling snow blowing, that we maintain really good accessibility for them because, you know, for a lot of people coming from the city, even though you know, Toronto is just four hours south of us and that’s where a lot of our guests come from, because of, you know, Lake Effect, snow and conditions, they experienced winter much differently than we do just a few hours north and so they’re coming to a real winter. So making sure that, you know, they still felt comfortable when they stepped out of their car, that they had their footing when they were climbing upstairs into the trees, they felt comfortable and secure. And so making sure that we spent the extra effort on things like that, I think went to a long ways.

Delia:

And what are other challenges you have when building these properties?

Mike Cameron:

So some of the other challenges I think that we had with these was finding someone to work with actually build it. There’s not a lot of, you know, precedent for these types of bill. So finding somebody who is comfortable taking on the challenge of building up in the trees. There’s not a lot of builders who are willing to do that, even with codes and stuff like that. We can’t conform to a lot of those traditional building codes just because of the type of build that we are in. And we had some things that worked to our advantage. And we had some things that were challenged. I remember, we decided, you know, we were going to get the unit spray foamed with insulation, getting a spray foam truck up into the middle of the woods, that was not easy. I felt bad for them. They knocked off their side mirrors, and they had some troubles getting wedged between trees, but they got it done. So it was like “okay, this is kind of neat”, you know. Then there is the other aspects of the build itself. I had to carry up every single piece of wood, building material up from the side of the road up into the woods and, you know, I look at it and I think “well, it’s not terribly far, you know, we’re maybe 250 feet up into the bush”, but when you’re carrying, you know, like big pieces of lumber, it’s like, “Oh, this feels far!”. So there was a lot of challenges with the actual build itself and then once we got the build done, it’s like, “okay, it’s not too bad. It’s kind of going fairly smoothly” and we haven’t run into any major challenges. There’s a few hiccups as we went through our first winter but we got to a spot now where things are running the way that they should be running.

Delia:

Okay, so no major challenges so far. That means that you did a really good work with the building, with the initial setup with it, right? So you don’t have many, like maintenance to do or anything with it?

Mike Cameron:

There’s certainly lots of maintenance to do, especially with people, you know, coming in and out all the time. You know, there’s all the regular maintenance that you have and, you know, that’s increased, you know, beyond what we experienced. At our personal home, even, you know, I find that I’m over there doing little touch up paints, painting jobs all the time, you know, fixing little things. All the regular maintenance just kind of enhanced.

Delia:

Okay, and you told me that there are people coming in and out all the time, how many minimum next do you have for your listings? And what’s the average length of stay of the guests there?

Mike Cameron:

Yeah, so we have a minimum stay of two nights right now. Our average stay is probably three nights, I would say. In the summer, we’ve got some longer bookings. But it’s not uncommon for most months for people just to kind of come up for two nights or three nights. So that’s worked out well for us, you know, we recognize that the type of people that we’re appealing to or people that are just looking for kind of a quick little getaway, they’re not necessarily able to get away for longer chunks of time. And so we cater to that shorter length of stay where people are just looking for a couple of nights way to escape. We also, you know, we tailor specifically to couples, I tell people, you know, we’re not overly a family friendly place and we don’t allow more than two people in the units. We don’t recommend them for kids, you know. We recognize that there’s a million places that families can go, almost every Airbnb, you know, is family friendly. We wanted something that was specifically for couples, where they could go, they could experience quiet, they could experience privacy, they could have that kind of escape from their life and that is exactly the type of guests that we get, you know, so many of them say like, you know, “we had our parents coming up, they were able to watch the kids for a couple nights, and we just needed to get away” and they’re so excited to get to a place that is, you know, quiet and secluded and they don’t have to worry about kids screaming. So yeah, that was one of the big choices that we made was making it not a family friendly place, but geared specifically and primarily just for couples.

how much can you make on airbnb

Delia:

That sounds really nice. I’m not sure if you do not accept kids there? Or do you just say, “Okay, it’s not a family friendly place” and they just don’t request it for families?

Mike Cameron:

Yeah, so we’re clear in our listing that, you know, it’s a maximum of two people right off the top filters that a lot. However, we still commonly get asked, “Can we bring in our kids anyways? They would love to experience this”, you know, people will say, you know, they’ll sleep on the floor and they’ll sleep on the couch, we will bring a little air mattress like and sadly, you know, I have to let them know that, you know, as much as we would love to accommodate that, we feel like any more than two people in our units takes away from the experience we want people to walk away with. And so we protect and we honor, and we keep that kind of sacred, you know, there’s a certain experience that we want people to have when they come to us and we work hard to make sure that they have that. Also knowing that, you know, there’s another unit close by, we want to honor and respect the fact that people are coming because they want to escape, they want to get away, they want quiet and we need to protect that. And even though the units might be able to accommodate an extra person, an extra kid, that’s not the route that we’ve gone and we certainly will help them and recommend some other places that we know locally. But we’re not the place if you’re looking for a family getaway.

Delia:

Oh, so it’s more for the sake of the experience than just safety or any other, you know, factor?

Mike Cameron:

Yeah, exactly. So, safety, it’s a set of stairs, there’s railings. It’s just as safe as anybody, you know, going anywhere. But it’s the experience that we want people to have. It’s the environment that we’ve worked hard to create, that we want to protect.

Delia:

And do you plan to maybe invest on some more properties that can accommodate families maybe?

Mike Cameron:

So we’ve thought about it and we’ve gone kind of back and forth. So when we designed our systems and services for this build, so things like our septic system and the electrical service, we designed it could accommodate more than we currently have and so we’ve been thinking, “Okay, what comes next? Is there a next for us? It makes sense to build on the same property because we’ve already got a lot of that infrastructure in place and so that saves us a lot of money”. But at the same time, we again, keep going back to that idea of “Okay, if we were to build a third unit, what impact is that going to have on other guests?”. We don’t want to get to the spot where people are constantly coming and going and you’re running into people and you hear, you know, the noise from this couple over here having a campfire, you know. We want to still find a way to protect that and so we believe that there’s a way to do both. So we’re looking into a couple of thoughts and ideas as to how that might work out and what that would look like because yeah, we feel we can still protect that environment well, allowing even more people to benefit from it.

Delia:

So both rentals you have are like, fairly far away from each other, so both of them can have privacy?

Mike Cameron:

Yeah, they’re about 250 feet apart from each other separated by forest, so you know that there’s another unit there, but privacy is not an issue. Again, you know, that they’re there, but you don’t really see people a lot, you know, maybe if you’re coming and going at the same time, you’ll see each other in the parking area. But otherwise, you know, there’s private campfire areas for both units that are even further apart. So people have that privacy that they come for.

Delia:

Okay it’s amazing that you can keep that, you know, privacy thing! Another thing that I would like to ask you about if you don’t mind sharing the numbers, how much revenue have you made from October last year to this point?

Mike Cameron:

It’s been good. Airbnb has been good to us, I can’t complain. So we’ve done around 47K this year and then in the October, November, December, I think we did around 20K. So I think we’re around 65K or so for the year. And the year is not, you know, we’ve still got a number of months before we hit a full year, so we’re expecting, you know, to be around that 80K mark for our first year.

Delia:

Wow, it’s a lot! And do you think this is going to cover your investment fully in the next year, maybe?

Mike Cameron:

So probably not in the next year. So again, our total investment was around 250K. You know, if we can make around $80K a year and then you’ve got expenses, on top of that, we’re still looking at, you know, totally paying off a significant investment within just a few years, you know, within 3-4 years, it’s not unreasonable to think that the majority of that investment will be paid off, which when you’re talking about, you know, amounts like a quarter of a million dollars, it’s not bad to be able to pay that in 4 years. So we’re pretty happy with it.

Delia:

Yeah, I can imagine! Four years is a really, really short time comparing to, you know, other people’s investment that might be even a little bit smaller than this and they don’t get to cover it. But yeah, you have been very lucky with it. I mean, it’s your area, like busy with Airbnb, that’s why you get many bookings?

Mike Cameron:

No, so we’re in the middle of nowhere, like, you don’t get much more in the middle of nowhere, we’re, you know, 4 hours north of Toronto, where our nearest town is only 1000 people. We’re an hour away from the nearest place that, you know, has anything of significance. So people come solely for this experience, which is kind of neat, you know, it’s not that we’re in just a desirable area, it’s that we’re a desirable place. So that’s kind of neat as we made that realization and so we’ve done more and more. And, you know, part of our plan moving forward is to make this more of a destination for people so that they’re not coming to this area to do things, but they’re coming to see us. And so as we can add more amenities and more activities, we cut a big snowshoe trail this past winter and we purchased snowshoes that guests could use and so little things like that, it was like “okay, now they’ve got another reason they can come, they don’t need to leave the property. They can just enjoy everything right here”. So yeah, that’s kind of one of our goals moving forward is just to make this the destination.

Delia:

I see and how far do usually the guests travel to get to your place? They usually probably like from everywhere or just like neighbors cities and stuff like that?

Mike Cameron:

Yeah. So I would say that probably, you know, a good 80% of our guests come from Toronto or the Greater Toronto area. So they’re coming from the city and we’re only four hours, three hours from some parts. So it’s reasonable, you know, they’ll come up, they can get here in a few hours, enjoy their weekend or those weekdays. It’s not terribly far and then I would say our other 25% are local people, you know, people from within an hour of us that have heard about us and again, the most common one is couples that have kids at home and they just need a couple nights away with no kids, no distractions, they just need time for themselves as couples. So we get regular couples that come from local towns around us and that’s always neat to talk to them and hear their stories. We can completely relate to because, you know, we’ve got young kids and I think so often it’s like, “I want to go over and stay at the tree house. I want that break”. So I can empathize and relate with them.

Delia:

Yeah, that’s right, that’s right! And you told me that you try to make your listing like a year round listing, you can join it in winter, you can join in summer, do you see any particular seasonality for your listing? Is it like more popular around the winter or more popular on summer?

Mike Cameron:

Yeah. So again, with this being our first year, it’s a little bit difficult to judge, but we’re getting a pretty good sense and we quickly realized that winter, we thought would be a quiet season, but it turned out to be, I can’t imagine that we’ll have a busier season than winter. And for our winter months, especially January, February and March, we’re up over 90% occupancy. So it was, you know, nonstop, those months. We saw a bit of a low in November, you know, the fall colors, they had come, they had gone, things were cold, but there wasn’t a lot of snow, so not a whole lot of things to do. And currently here in June, we’re experiencing our slowest month right now, which I absolutely can’t blame people for because June in the north is bug season and it’s just horrific. So I don’t blame people for that, but as we look to our calendar and as soon as July hits, it looks like, you know, we’re hitting the ground running again and you know, there’s gonna be a couple months here and there where things are a little bit slower, but yeah, we haven’t noticed big lows or seasons, where things slow down just short little chunks of time.

Delia:

Okay, that’s pretty good then! And what pricing strategy, do you keep the fee the same all year round? Or do you alternate sometimes?

Mike Cameron:

Yeah. So with fees and our pricing, that’s one that we’ve struggled with a little bit and we’ve wrestled with. So to answer the question quickly, we basically keep the same price across the board. We have it a little bit higher for weekends and when holidays come, the price of course goes up a little bit for those days too. Pricing in general though, I recognize that many hosts have different approaches to how they decide to price and some people, you know, you want to maximize your earnings, it’s about making as much as possible, this is a business. And then other people, you know, they’re in it solely for that hospitality experience, money kind of come secondary, if they can make a little bit of money on the side, that’s just a bonus. And so I view it kind of as a spectrum and we fall somewhere in the middle there. Yes, this is a business, this is my main source of income right now, but we also want to, I guess, ethically decide our pricing. And while we know that our unit could fetch, you know, significantly more than what we priced them at, we also wanted to make them accessible for normal people. So that was kind of our ethical dilemma that we had to work through and so we said, you know, “if we’re covering our expenses, if I’m making, you know, what we need to be happy as a family, then I don’t want to just jack the prices up as much as we possibly can just because we could get that much money”. So again, knowing that, you know, at 90% occupancy, we probably could raise the price another $100-$150 a night and we would still be getting bookings. But we don’t want to cater only to the wealthy people, you know, we want to be able to cater to everybody who wants this experience. We’re happy with the price point that we’ve landed on, you know, we believe that guests are happy, it makes it an accessible experience for them. And we’re happy at the end of the day too, you know, we’re making good money out of it. So, yeah, that’s been a journey for us is, you know, what is the right pricing strategy?

Delia:

Yeah, that’s right and I believe it’s really nice that you keep it accessible for everyone. Can you talk a little bit about that price point you have for your listing?

Mike Cameron:

Yeah, so in general, I would say we’re probably around $200 a night and that’s with Airbnbs fees. So we get a little bit less than that. And then you know, some of the slower months, we might drop it down a little bit. So typically, our take home pay, what we get, usually varies from, you know, between $150 and $180 a night and we’ve got two units going that are almost always full. So really our take home is feeling like, you know, $300 to $400 per night is what we’re bringing in. So we’re happy with that and I thought like for myself, you know, like “what would I be comfortable be paying?” and, you know, I’m myself am a little bit on the cheaper end of the spectrum and so when I would book a hotel, it’s always like, “I can’t believe that these are over $100!”. But I think for most people when they go on Airbnb and they see around $200 per night, you know, a good amount of money, I think to pay per night. But it’s still an amount that people are willing to pay. I’ve seen comparable places, when you go on Airbnb and you search by tree houses or something, you know, it’s not uncommon to see the average price being $400, $500, $600 per night, and people are still booking them. And so I get that you can charge more. But for us around $200 a night, we’re happy with that, the guests are happy with that. There’s no need to, you know, try to squeeze every dollar out of somebody. In our mind that’s possible.

Delia:

Yeah, that’s right! I also agree with it and it is very, you know, kind of huge think about your guests as well, there is a high possibility that you might lost a little bit of your guests if you raise your price, like really, really high, right? That’s right. So two last things I would like you to talk me about is, any particular challenges, not necessarily with the tree house, you have as an Airbnb host? And also some tips that you could give out for Airbnb hosts?

Mike Cameron:

So I fortunately have not had too many challenges with the platform. I’ve had to work with Airbnb and their support team, on a couple of occasions that I’ve fortunately had some good experiences with them with prompt replies. And I think part of that just kind of lends itself to the guests that we’ve had, you know, we had our first air cover claim somewhat recently, as a guest accidentally caused some damage and, you know, we put that claim through and we were able to work with Airbnb and the guest and it was quickly resolved. So we were really happy with the outcome. So yeah, at this point, you know, we’re, we’re pretty happy with Airbnb and the support that we’ve received from them. If I were making suggestions to hosts, I think, you know, from my experience, I would say do something unique, do something fun. I get that houses, residential homes are kind of the bread and butter, but I think especially as we see more and more towns and municipalities putting restrictions on Airbnbs and some rules and legislation around what that looks like in those communities, I think it makes more and more sense to kind of do something a little bit more unique. I know in towns, there’s housing shortages and that’s what you know, kind of drives a lot of the concern. I’m not hearing anybody talk about, you know, the domes or the cabins or the tree houses. So it’s like, I like it from that perspective, doing something unique because I feel like I’m not contributing to some of the challenges that municipalities are facing. Also though, I think that’s the bread and butter of Airbnb. So for hosts, it’s residential homes, but I think for guests, guests like unique experiences, something that they’re going to remember and if they can go away, I think that 9/10, they would pick something unique over something cookie cutter. At least that’s the experience that I’ve had with guests. So yeah, I make the recommendation anytime I talk to somebody, do something unique, do something different. Don’t try to be just like every other Airbnb out there because then you have to compete with every other Airbnb out there. Whereas I’m not competing, I’m the only one around here that has a tree house. It makes it easy.

Delia:

Yeah, that’s right. That’s a really amazing tips and I agree with it. Airbnb is more of a experience than anything. So thank you so much for your time!

Mike Cameron:

No problem. Thank you.

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Interview with Short Term Rental Experts from Host Life – S2 EP43

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

Our guests for today are Melissa and Zev Forrest, two Airbnb super hosts who got started on Airbnb Rental Arbitrage after realizing owning real estate was not their thing. They got hit by the first COVID outbreak after recently starting with their first owned rental and it went downhill for them until they found out about the Rental Arbitrage business model. Since then, they have been excelling in the Rental Arbitrage business and now they’re offering educational courses to teach people how to get started and succeed on the Airbnb work LEGALLY, without owning real estate.

This episode is sponsored by Airbtics, short-term rental analytics for a 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 43: How to start an Airbnb business without buying real estate? – Coaches Melissa & Zev Forrest are here to help!

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

Delia:

So can you both tell me how did you get started with the whole short-term rental business?

Melissa:

Yeah, so we come from a background in real estate but we got started with Airbnb about four and a half years ago. We went to a free workshop on Airbnb and we were interested in quitting our real estate job at the time, we were both commercial real estate agents and we were just looking for something else, so we went to this free workshop. And from there, we bought our first pretty much property that we were able to leverage out from us a unit that was connected to the home and so we were able to have two Airbnbs from our first home purchase. And from there, we discovered that we wanted to continue growing in this business, but buying was harder to do, so we discover the rental arbitrage model we wanted to jump into on that.

Zev:

Yeah, Melissa was actually the one that had the idea of going to a free workshop on Airbnb and leasing out, renting out a part of our home and honestly, I was a little bit not really into it and to go into that, but I’m so grateful to go to that with her. She opened my eyes to that and ever since then we’ve really hit the ground running with Airbnb and it’s been a life changer.

Delia:

That’s great! And how did you get started with doing rental arbitrage? So it wasn’t right away because you told me you already have purchased our property, right?

Melissa:

Yes.

Delia:

So that workshop you went to, that’s what inspired you to go with rental arbitrage?

Melissa:

No, no. So the workshop we went to was focus about on buying a home, so after we bought our first home, we our investment in that was about… what was it like 80,000? $80,000 total and so we were pretty much left with not so much liquid cash to continue growing our business. So we invested in other mentors at the time that we’re doing rental arbitrage and that’s where we learned that model and then we combine our skills in real estate sales because we were doing a lot of role playing at the time and we were trained on how to overcome objections and talk to landlords already at that time, but just a different side of business. So we combined our skills with what we learned from other mentors and we came up with a pitch that really worked for us so we could continue on this business with rental arbitrage.

Delia:

Oh, that’s great! And can you tell me a little bit how was like your first approach to rental arbitrage when you did it for the first time? How was it like?

Zev:

Yeah, so one of the ways that we heard from someone to go about speaking with landlords was not the right way that we do now, it wasn’t a good way to approach landlords. So the first time was actually pretty funny, what we did is we reached out to a landlord to go look at their home that which they had for rent online and when we got there, we met with the leasing agent and after we toured the whole property, she was under the assumption that we were looking for it to live in ourselves and build a family or whatnot. But at the end of the tour, we told her what our intentions were and that we wanted to sublease it for rental arbitrage and she actually she threw up her hands in the air and she’s like “You completely wasted my time! Why didn’t you tell me this from the beginning? The owners are absolutely not going to be okay with this” and that’s somewhat expected especially when we surprised her, we didn’t let her know why we were meeting so I could understand, I had some empathy why she felt like we wasted her time. But, you know, I told her “Hey, look, what are some of your concerns? Why wouldn’t it be something that the owner is open to?” and she had a couple of concerns that weren’t super valid, but she said, “You know what? The owner lives nearby, why don’t I have her come over and you can talk to her? See if she’s open to it”. And long story short, the owner came by we told her all the benefits of having us as a tenant, and the owner was like, “Okay, yeah, great. Let’s give it a try” and we’ve been here ever since. Actually, yeah, the property that we looked at was two units. It was a back house, the garage that was converted and it was a main home, and we use both of them.

Delia:

And what was the pitch that sold you to that owner?

Zev:

You know, things like telling them that we’re going to take care of their property, you know, it’s always going to be maintained and well kept and we showed them that our experience as hosts, you know, that we are, we keep the property in good shape. We’re always monitoring it, there’s security cameras, and I’m sure at first she was kind of on the fence about letting us or not, but the fact that we were going to take both units on her property and also the fact that we were very approachable, and we’re very professional in person. I think that was, we were able to push her over the ledge on “Oh, hey, okay, let’s give these guys a try and see if we can work something out with them”.

Melissa:

When they first looked at the home, the home was recently remodeled, but they had tenants that were living in the home, I think for about one year only and they had already left the wall, like with scratches and all wrapped up, and not in the best condition than we mentioned, I’m like, “Hey, look with us, you will never have this problem because we’re always going to keep the home in prime 5-star conditions because, you know, our business is a 5-star business and so your home will be a 5-star home”.

Delia:

Okay, that’s great! So those are always right now, like the basis to convince a landlord, right? I’ve heard it before. But do you think that’s a pitch that cancel everyone, right? That there are some landlords that are still going to say no?

Melissa:

Yeah. I mean, I feel that one pitch, I don’t believe there’s one same script for every landlord. I think, number one, building your rapport, it’s like he was saying that we were approachable in the way we delivered our pitch, right? So it’s more than what you say. But it’s how you say it and how you build rapport with that person because this becomes a trust essence, they get to trust you and your business in their home. So number one is building rapport. It’s not so much, you know what you’re going to say because if you stay with in a way that it’s not going to project competence, they’re not going to have the trust in you, and they’re not going to say yes to you. So I would say number one is building rapport. Number two is just knowing what objections they’re going to have and how to overcome them, what concerns you’re going to have, and how to overcome them so that, you know, they feel that you could take on their home.

Zev:

Every landlord is going to be different and it’s just, it’s all sales. So in sales, cross every single industry, everyone’s going to be different, every prospect, what you call them is going to be different, right? So everyone’s going to have in sales, it’s all about listening, you know, it’s all about asking the right questions and listening to them. You want to be an active listener and you want to hear what their problems are because, as me the person that’s selling my business to you, I want to make sure that I solve your problems. So for this landlord, you know, maybe their problem was, their concern/problem is “Okay, the house is going to be ruined because of long-term tenants, they tend to trash the place”. So we overcame that objection, you know, if there’s another landlord where their problem is not getting paid rent on time because their experience in the past has always been chasing tenants for rent, then we say, “Hey, what has been your biggest concerns? Or what’s your biggest problems in the past with previous tenants?” and they go, “Oh, well, you know what, I’ve always had to chase down the rent” and we go, “Well, you know, what if we pay rent early? guaranteed, and we have references to prove that”. So sales is always trying to uncover what that specific person in front of us problems are, and explain to them how you solve that.

Delia:

That makes a lot of sense, actually and it’s my first time hearing about it this way. When people try to talk about rental arbitrage, you know, in the Facebook groups, where is where I’m more familiar with that is, seems like people think there is one secret pathway to it, right?

Zev:

Right. It’s, I mean, I hear them and I understand them and usually, the top concerns and problems for a landlord fall into those categories that you’re talking about and that you see. And people that are inexperienced with sales, they think all the person wants to hear is their main pitch like everything but they think it solves their problems and everything that is good about their business, they just like smother the other person with that, like, imagine going on a date and then just like telling the other person all the things you think are good about yourself, but they really don’t care about any of that, right? What if they just care about, are you gonna be a good step father to my child? But meanwhile, you’re telling them how like you work out every day and how healthy you are, right? They don’t care about it. So yeah, those categories fall into the main things that usually the most common ones that come up, but still, you can never expect that you always gotta go into a meeting, thinking, “How can I listen to this to this person? And how can I solve their problems?”.

Melissa:

Right? It’s to be a conversation, when you go out there and we tell a lot of our mentees is like, “Don’t go out there and have the squared binges, blah blah blah Mr. Landlord”, right? Like you get to have a conversation like, it’s a perfect example, like you’re going on a first day, you’re building rapport, right? You’re listening to them, you’re listening to the things they’re looking for and if they’re looking for something, then you say, okay, well, you try to pitch something at that, right? To make it a win-win for them.

Delia:

Yeah, that makes a lot of sense! And now that you told me about your background, and all this new knowledge that also reached me, right? It makes sense that you decided to start the mentorship program. Can you tell me a little more how you decided to start with this, with the whole mentorship program?

Melissa:

Yes, of course. So I had already, we’ve been in this business for four and a half years and prior to starting host life, which is our mentorship program, I was already in mentoring in another coaching program for about two years. So I’ve mentored hundreds of people already. But then when COVID hit, and he got laid off of his job, I’m like, “Why don’t we do this together and create a bigger impact in the world?”. And we felt that he had a strong background and I have my own strong background and together, we could just be a powerhouse and mentoring people. So last year, around this time actually, we have one year since we created host live. And with host live we have a direct mentorship program where people get the course that we created and then one on one direct mentorship access in a group setting with Zev and I, with a big focus on sales training because part of the pitch, as he was saying is sales training, right? So if you’re not comfortable with sales, if you’re not comfortable with talking to people, if you’re not comfortable getting on the phone and overcoming objections, then this is not going to work for you, this model is not going to work for you. So we have a big emphasis on training them. He does the training and then I focus a lot on teaching them about: how to become an Airbnb super host, how to create systems, how to create a team, how to create design, and automation and communication.

Delia:

When people reach, you know, to your mentorship program, what kind of people are they usually? Are these people who are already in the Airbnb and short-term rental business, doing long-term rentals maybe or just curious about the rental arbitrage model?

Zev:

Yeah, the majority of our students so far don’t have any Airbnb, they don’t have any real estate and most of them are either currently an entrepreneur or they have an entrepreneurial mindset, meaning that they are in a job at nine to five maybe, but there’s just something inside of them everyday that tells them that they’re not in the right place, right? They want to get out of that job. So yeah, maybe entrepreneurs and people that either maybe they want to keep their job or they want a side hustle or they’re very interested in the hospitality industry. But usually just entrepreneurs are the ones that are reaching out to us.

how much can you make on airbnb

Delia:

How does the people come out of your mentorship program? How does they mindset change during that period?

Melissa:

I love that you mentioned the word mindset because we truly believe that success first starts in your mind. We could give you all the tools that you need, we could give you the scripts, the templates, and how to do this and this and that, right? But if you don’t have the mindset of success, you’re going to take everything we learn, finish our program and continue doing the same thing you’ve been doing in your life, right? So as far as mindset, we really try to connect people back to their “why?”. And even in our selection process, we do have a selection process and who we accept into our program, we want to make sure that they have a strong “why?”, why do they want to do this? Why do they want to do Airbnb? Why do they want to join our course? And once they have a strong why, then we really try to have them encounter breakthroughs in having their mindset shift into complete possibilities and not impossible, right? So really having an open mindset into possibilities and that’s the life that they want, really is possible for them.

Zev:

Yeah, now that Melissa mentioned possibilities, our more recent student is, so he would say things like, “Oh, but what if the landlord doesn’t allow this? Or what if the call goes wrong? Or what if, you know, we’re so close to getting the landlord to allow us, we’re talking to them, but what if he wants us to do something that’s not so great for our business?” and we’re thinking, “Look, don’t think about what kind of make it impossible. Think about all the things that are going to make this possible”, you know, that’s just a little tweak of your mindset to making keep going, keep trying and having more confidence in yourself too.

Delia:

And essentially, what path do you take to get your students in this mentorship programs? Like, what are the steps you take to change their mindset? And what do you teach to them?

Melissa:

It goes, just in general, with our direct coaching, we have pretty much set up weekly things to do in our mentorship program for the 90 days and so if we’re seeing that a student is pretty much falling behind, and really not taking action and we check in with our students on a weekly basis and we’re seeing that they’re really not doing what they’re saying they’re going to do, then this is when we do a call with them, that it’s all a mindset call with them and we really go with them. We’re not there to be their friends and tell them what they want to hear, we tell them what they need to hear to really elevate their lives, right? Because a lot of times, our circle of people only tell you what you want to hear, right? So we are the mentors that are going to tell you what’s on your blind side that you’re probably not seeing, that’s blocking your mind from seeing the possibility that’s available to you. So we really just go into BRAC coaching.

Delia:

Yeah, and now that you mentioned this, that is like, really valuable from your side because we always see these mentors, like Airbnb coaches that are like really, they just want to sell their mentorship, you know, they really don’t want to, they really don’t do this personal approach that you say you do with your students, which is like very important, but it’s really valuable what you do with them and thinking can really make some change in their mindset, in their lives.

Melissa:

Right. Yeah, we just did and it’s more than Airbnb, it’s more than that just then wanting to make additional $5,000. But it’s what impact can we really create in their lives that when they leave, you know, our mentorship program, their life is just completely transformed and they are transformed. That’s what it’s really all about for us.

Delia:

And I think that’s fantastic, is like my very first time in all these times hearing about mentors hearing, like the kind of pipe you take for them, so it’s really great, real valuable. And can you tell me a little bit, so what does rental arbitrage mean to you? I know many of our listeners know about rental arbitrage, essentially, like what does mean to you? What does it represent for you?

Melissa:

I just thought freedom.

Zev:

Yeah, well, to me, it represents something that is tangible and something that seems, like an easy, I mean, on the one hand, it’s an easy low barrier for entry, so a lot of people can start this. So that can be good or bad, right? For any marketplace, something such a low barrier for entry, it has the possibility of becoming either saturated or as the possibility of becoming, taking advantage of the people doing it, getting in that are not so professional and not taking care of it, but that’s like any other marketplace for any business. But the difference here is if you truly care about your business, you truly care about this hospitality and you can really make a lot of good money cashflow from something like this and it’s a win-win. So you know, most landlords out there are traditional landlords where they just take a long-term tenant, and they just want to collect the check, which is great. We act as a long-term tenant, but where we act differently than a long-term tenant is that we really care for their property, we turn their property into our business. So it becomes, so for me what I love about arbitrage is, it’s a win for the landlord, when you have really good tenants like us doing that business and it’s also a win for people that are not sure what to do with their life to make good money, you know, and it’s something that I definitely recommend everyone trying out because you can make cash flow really quickly and the return is really high and then you can use that money towards something that you really want to, which for us is real estate.

Melissa:

We’ve created relationships with our landlords that now they’re at the point whenever they have any vacancies, we’re the first ones they reach out to and they’ve also become our mentors. A lot of our landlords, they’ve multi million dollar portfolio of real estate and that’s the goal, right? Ownership a real estate is the goal. And so we have created such good rapport with them because of how we function as a business and how we take care of their properties. So they’ve always told us like, “Hey, we’re just a phone call away, if you ever have any questions on buying a deal or financing a deal”, and so they become mentors.

Delia:

That’s really good! And what can you say about, there must be out there, like some people who have tried the rental arbitrage model and it didn’t work for them and it also like traumatized the landlord, how can you approach a landlord that has not had a good experience with someone who previously did rental arbitrage on their building?

Zev:

Yeah, well, I would say, that also still goes back to sales, which is what I mentioned, right? So obviously, you always want to build rapport when it comes to sales, so you can try to get them comfortable with you in a short amount of time. And then you want to try to open them up as much as you can and ask them “Well, what was your experience with the previous person that ran that business, that ran their business similar?” and, you know, maybe they’ll say it was parties or whatnot, you know, whatever the thing is, you want to try to overcome it and it usually comes down to separating ourselves from them just because they have the same business doesn’t make us the same, right? Nike and Adidas are completely two separate businesses, right? They, I mean, they can compete and sell the same products, but they do it differently, right? Or Puma, and Nike, they’re different. Reebok and Nike, I mean, you can already see the difference in the shoes in your head, Reebok and Nike, just from what I mentioned them. So we’re not the same, just because there’s a bad apple in the bunch doesn’t mean that we should be treated the same, right? When I worked in a real estate office,I don’t know what’s a really common real estate firm name, like Keller Williams is a common real estate firm. Everyone that works in the real estate office runs their own business, so if I have a bad experience with an agent at Keller Williams, that does not mean that the agent two doors down from him in the same office is going to be just as bad, you know, they might be running things completely differently and they deal with their clients completely differently than the one that I had an experience with. So yeah, you know, unfortunately, because I mentioned the arbitrage in business is a low barrier for entry, you do get a lot of people that are not professional or don’t have any experience or are not trained and they leave a bad taste in the landlord’s mouth. So it’s kind of impossible to have overcome those landlords objections, but it will be a little bit tougher.

Delia:

Yeah, I understand. I completely understand. So can you give us a little bit of intro to your mentorship program, so the listeners can have an overview and visit your media if they like it?

Melissa:

Yeah, so our mentorship program is called Host Life, it’s a 90 day mentorship program. So in those 90 days, you have again, a course with videos that focus on role playing, focus on the pitch, focus on overcoming objection, just a really big emphasis on sales. And then we have an next section of the course, which really focuses on communication and hospitality because again, like the examples he was giving you, every business is different. Airbnb is the hospitality game. If you’re not giving a 5-star hospitality to your guests, you’re not going to be in this for the long run, right? You get to really create a business where you’re going to have returning guests and build a brand. And so we really focused on pretty much teaching our students how to develop that hospitality way of talking to their guests. And then we have a big focus on design as well because in our experience, when we first started this business, we didn’t know so much about the structuring or design of our business, so we created, our first Airbnb pretty much looked like a hospital. And now we have a big focus on design and we seen that whenever we started an Airbnb in an area, we are the highest comp, we are the highest priced Airbnb, with the highest occupancy and highest rating as well. We’ve been super hosts 17 times. So not once since we started this business, have we not achieved super hosts. For those of you guys listening, if you don’t know what super host is, is pretty much the way Airbnb rates you which is quarterly and you’re supposed to pretty much meet a certain criteria for them and a big one is on the reviews. And so we’ve been super hosts 17 times since since we’ve started, so we are very competent that we know what we’re doing and we really teach our experience to our students in regard to how they could also create a business that’s going to be in the long run and they will be super hosts as well. So yes, in 90 days, they get the course and then we have weekly classes. In those weekly classes we covered different topics, and then we open it up for Q&A, so they were able to support them on one on one basis. And then they also have access to our private Facebook community, which we build a little community where we support each other. And anytime they have any personal questions in regards to their journey, then that’s when we support them as well, on a one on one basis as well.

Delia:

So the whole program sounds amazing! One last thing that I would like you to talk me about is your success rate, what are some success stories that you’ve seen from your students?

Melissa:

Yeah, so our success rate has been 100% since we’ve started this a year ago, so I think it goes to show because I totally like, we have an application process that we have people fill out and then we get on a phone call with them. And we only will accept someone that we know we could really help, okay? We’re not just going to take anyone that wants to enroll into our course. But if we really feel that we could help you and you really already just have that strong desire to be successful, that’s what we’re looking for. If you have that strong desire and you’re really willing to be teachable and coachable, and do everything we’re telling you to do, and follow our formula, you will be successful and we will be your biggest cheerleader and hold your hand throughout the journey.

Delia:

That’s sounds fantastic! So that will be it for today. Thank you a lot for your time, for being here with me.

Melissa & Zev:

Yeah, yeah, thank you. It was a pleasure. Nice meeting you. Bye!

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’d like to experience financial freedom through passive income, then we recommend you learn more about how you can make money without owning a property through Airbnb rental arbitrage

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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Interview with an Airbnb Host from Fayetteville, West Virginia – S2 EP42

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

Today’s episode guest is Kim Sayre based in Fayette County, West Virginia; she owns and manages tow listings in Fayette County: one is her primary residence, and the other one is a property they managed to get ready thanks to their first listing’s revenue. Come hear how she’s taking advantage of her market recent rise of popularity, how has been her experience with Airbnb, along with some interesting insights from her area.

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 42: Expecting $10k during ONE high season month – Smart investment tips with a host from Fayetteville, West Virginia
smart hosting tips west virginia

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

Delia:

Can you please tell me how did you get started with Airbnb and short-term rentals?

Kim Sayre:

In Fayette County, West Virginia, the New River Gorge and all of its surrounding just turned into a National Park. So there was a lot more tourists and stuff come into our area and I knew of a few people who had started doing Airbnb, so we knew more of the tourists, you know, would come. So that’s where we got started, the idea from.

Delia:

And can you tell me how did you acquire your first listing, your first property to the Airbnb?

Kim Sayre:

Yeah, we bought our first home a year ago. So we were still living in our home. So we didn’t really want, like go out on the limb where there wasn’t many Airbnb started yet. So we decided to start our own home and just list our own home at first just to see how it would do. So we actually moved out of our own home and we just listed our house just for the summer just to kind of like, just as a trial run.

Delia:

I see and you told me recently there was a change around your area, it turned into a National Park, right?

Kim Sayre:

Yes.

Delia:

How long ago was that?

Kim Sayre:

Within a year or two.

Delia:

Oh, and you did get started on Airbnb at the same time? Or did it take a little bit more?

Kim Sayre:

I think it was within the same year we started.

Delia:

That’s great! And while you were listing your own house, did you move out from it? Or were you still in there?

Kim Sayre:

We just moved somewhere else just for the summer and we listed our house full time through the summer.

Delia:

And how was your experience with that?

Kim Sayre:

We actually put it one Airbnb in March and we listed it through the very first of October. Within I would say three days, we got our very first listing and it hasn’t stopped since then. It’s been a great turnout.

Delia:

That’s great. And during that period where you’re renting like your own house, was everything good? How was like your feeling renting your own private home?

Kim Sayre:

We just took extra safety as far as like mattress protectors, I clean them. So it made me feel good that I could clean them and then give everyone a good experience and where it’s my own home? I don’t know. It’s actually a little bit better just because I make it special for the guests coming in.

Delia:

What about your second listing? How did you get it?

Kim Sayre:

Our second listing, it was just luck of the draw. Honestly, we know we wanted to expand. It was a little bit smaller house but it was in town. We just came across that and we just jumped on it and it we’ve had a great experience with that too. We just listed it last week. Yeah.

Delia:

Last week? Oh my god, so it’s pretty recent! Your first listing is still your primary house or not?

Kim Sayre:

Yeah, our first listing was our own home and then our second listing is our rental home.

Delia:

And did it take a long financing process to finance that second listing you just told me about?

Kim Sayre:

Yeah, with our own home it was a little bit easier because we just kind of like left all of our furniture, all the beds and everything in there, so it took way less money. I would say we took all of our income which was two months income from Airbnb on our very first home and then we invested it into the second home as far as like furniture decor stuff like that.

Delia:

And did you have to make a loan for that one?

Kim Sayre:

No, we got to really get, it was kind of like a rental deal, so we didn’t have to put like the down payment. So we were able to invest more money into the home as far as like, making it homey for our guest.

Delia:

Okay, that’s great to hear! Okay, so two months of income to invest in furnishing the property, right?

Kim Sayre:

Yes.

Delia:

And can you tell me about how much was that? And what amenities and furniture did you manage to get with the two month’s income?

Kim Sayre:

Not including, like, what we were paying for our actual home. I would say we only had to put maybe like, maybe two grand in at all. Well, it was a smaller house, we didn’t have to invest much.

Delia:

Okay, yeah, that’s a good amount actually. And how small is the house, just one-bedroom, one-bathroom?

Kim Sayre:

Um, it’s a three-bedroom, two-bath, but the house itself is a little bit smaller wherein it’s in town.

how much can you make on airbnb

Delia:

So can you tell me a little bit about your market?

Kim Sayre:

Yeah, our very first, our home is a four-bedroom, two-bath, so our market ranges, July is kind of our highest month. It’s like our high season. So the very house that we went is 298 per night and then when we first listed it, we were just kind of like playing the field a little bit, playing off of other listings and kind of things like that. And for a floor bedroom, we went to 189 a night.

Delia:

And can you tell me if the market currently is very, like, busy and competitive with Airbnb? Or are there very few of them?

Kim Sayre:

Yes, even July our highest month, we don’t have a single day open. It’s completely booked up and that’s with our own home. So with our rental house, it being listed only last week, it hit the market last week. We have, I would say maybe 20 bookings already.

Delia:

Wow 20 bookings, that’s a lot! So the stock market is very good then. So it’s still like in the stage where it’s a very good place to invest in?

Kim Sayre:

I would say so yes. Especially where it’s becoming a National Forest, so a lot more people are starting to come.

Delia:

So with your first listing, what could you say was your high season in your low season during, you know, a year of renting?

Kim Sayre:

With our very first home, we started and we listed it in March and we’re only listing our own home until October and we’re going to move back in. I would say our high season definitely is July. We have a lot of things going on in Fayette County too as far as like whitewater rafting, we do live music stuff like that here too. So I feel like there’s a lot of that going on, so that’s definitely our high season. Even with our low season, even if we’re pulling off the market in October, we still have in Fayette County golly season. It’s a part of whitewater rafting too. So I don’t even think that we would have a low season until maybe December-January.

Delia:

Okay, and how much revenue do you estimate during the high season? Like you said July-October?

Kim Sayre:

July alone with one home, just with our own house, we are expected to make 10 grand in just July.

Delia:

10 grand, that’s a lot. So can you tell me a little bit more about how did you make your market research to find out for example, the pricing? And to estimate how much could you make and stuff like that?

Kim Sayre:

We definitely joined like Facebook groups as far as that goes. They’re really helpful as far as like across the nation, good things, bad things, you know, what to expect stuff like that. As far as pricing goes, we honestly just got on Airbnb ourselves as travelers traveling to Fayette County and just like started searching the market around houses that are worth kind of like ours, like the bigger four-bedroom home stuff like that. And just kind of see what the market is around us and we just went from there.

Delia:

I understand and with your current situation, do you have to change the prices manually basically every day? Or do you keep like this steady daily rate and it gets booked still?

Kim Sayre:

Well, whenever we first did our list, our daily rate was very, very low. I will say that Airbnb kind of like low balled us as far as that goes. So we did go through manually and bump up our prices and then when we found out that July was such a booming month, we went in again and changed our price ratings. But yeah, we do that manually as far as like what our bookings are and if like we’re having a slower month we’ll go and adjust.

Delia:

Okay, yeah, that makes a lot of sense! Do you use any pricing strategy? Do you open for example, your calendar for months in advance and how do you plan to rise during the highest months that are oncoming?

Kim Sayre:

We were mainly just going through Airbnb as far as like where to start? what our competitors were doing? wherein it was our first year, we were kind of like new to everything. So mainly, we just went around through Airbnb, just, you know, with houses just like ours and went from there.

Delia:

Okay, yeah, makes a lot of sense. And so far has there been in any particular big challenges that you went through as an Airbnb host?

Kim Sayre:

Not really, we have had a great experience as far as like, I mean, everyone has been great. We’ve never got a horror story yet as far as that goes. No, not really, it’s been really great. But we have, you know, we did have a little bit of an advantage of like listing our own home. So we didn’t have that first big hiccup of investment money, you know what I mean? That we had to come up with for furniture and stuff like that. So I feel like that did help us. But no, we’ve had a great experience. I cleaned them myself. So even then, I mean, walking into our homes, we’ve always had a great experience with all of our guests so far.

Delia:

Okay, that’s great. And do you also plan on expanding your Airbnb business in the future?

Kim Sayre:

Yes, we’re actually looking at another listing. I don’t know how many in Fayette County we will still get, we’ll probably do at least another one to two listings in Fayette County. And then we want to try to expand, I don’t know, maybe in different areas, maybe in different states, just so we could be able to travel too, just have an extra house, you know, to go to.

Delia:

I get it! And are you also planning to deal with remote hosting? I mean, is there an option for you as well?

Kim Sayre:

It could be. I feel like I would want to be more season host before we go to remote just because two is already a lot to deal with. So I want to get those under my belt first before we, you know, go remote.

Delia:

Yeah, makes a lot of sense. And lastly, are there any tips that you would like to give out for future Airbnb hosts or current Airbnb host?

Kim Sayre:

I will say amenities go a long way, the price that you pay for an extra shampoo, conditioner and so, just to have just in case they forget theirs goes a long way. And a washer and dryer, I mean, you can’t really accommodate that for every home, but that has been a lifesaver for us, as far as me personally cleaning them faster flips for sure. Yeah. And it will help it too, me and my husband both, he’s the main host, I’m the co-host, so the faster that you reply to people, the better it is all around.

Delia:

That’s right. Communication is key, absolutely! Now that you talk about amenities, I would like to make you one last question. When you did the market research, did you find out any particular amenities that are popular around your area? Did you consider that when you were getting ready for this last listing?

Kim Sayre:

We did, wherein it was our own home, we already had the full kitchen and stuff, so that went a long way to as far as like people are already paying so much, you know, during the high seasons that they do want a full kitchen to where like, you know, it’d be cheaper on them to have like pots and pans to be able to cook one night or something like that. I will say the full kitchen definitely is an advantage. I mean, just having that extra few things like we do maybe just the toothpaste and toothbrushes just like to have them there just in case someone forget and that’s been a really great thing. We, on our second home, we invested in a hot tub, so we’re gonna see how that goes. We haven’t actually, our very first listing comes this weekend, so I don’t know if that would be, you know, more trouble than it would be helpful as an amenity, but we will see.

Delia:

Okay, yeah thank you for sharing with us about it! I’m also excited to hear about your future stories when, you know, this listing also has like more time in the market. And yeah, thank you for your time and thank you for your tips as well!

Kim Sayre:

Okay, thank you very much for having me!

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.

Can’t decide which city in the world you should invest in an Airbnb? Make an informed decision by looking at the Airbnb occupancy rates by city

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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Interview with an Airbnb Host from Atwater Village, Los Angeles – S2 EP41

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

Today’s guest is Courtney Morris, a super host who owns and manages a 30 day minimum pet-friendly listing in Atwater Village, Los Angeles, California since 2018. Even though her listing is not available all year round, she gets around 4500 on revenue per month and around 40,000 revenue a year, and stays more booked than the other listings in this area that don’t allow pets. Join us today to learn more about Courtney’s journey and experience and also gets super interesting insights and tips from her.

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 41: $40K/ year & 30% more booked: Increase your annual revenue by being a Pet friendly Airbnb listing in Los Angeles, CA
pet friendly airbnb los angeles

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

Delia:

Can you first start by telling us how you got started on Airbnb?

Courtney Morris:

Well, I used to occupy the unit full-time myself, I purchased a triplex in 2011. So I rented two of the units out to long-term tenants and I occupied the third. When we decided to move out to a larger home, we put the property up on Airbnb for short-term rentals, but that was in September of 2018 and shortly after that, the city of Los Angeles actually stopped allowing short-term rentals. So we’ve transitioned the property to +30 night  rentals and we occupy it about 50% of the time with our own family at this point, so we rent the other 50% of the year, we rent to people who are staying for at least a month at a time.

Delia:

Oh, and did you not thought of getting the short-term rental permit? Or is it really hard to get it there?

Courtney Morris:

You know, I don’t have to, you have to do the short-term rental permit if you want to rent. So in order to comply with the city and also not have to pay for the permit, you know, I just rent to guests who are staying 30 nights or longer.

Delia:

And is the permit really expensive?

Courtney Morris:

I don’t think it’s particularly expensive, but I haven’t looked into it too much, though, I think it was somewhere around the $200 a year mark. The issue with the permit, of course, it’s for properties that are your primary residence and this is no longer considered our primary residence anymore. Even though we do occupy it 50% of the time, we’re not depending on the year, and especially with COVID, we haven’t been occupying it as often. So I think it’s relatively easy to get, but again, I think you can only rent like 180 days per year, even if you do get the permit. So like I said, it’s just been easier for us to and we’ve had great success with just booking people who want more than a month at a time. So I would say our average guests stay anywhere between two months and four months.

Delia:

Now we have two things, the fact that you only rent over 30 days, right?

Courtney Morris:

Yeah.

Delia:

And the fact that you are pet-friendly listing?

Courtney Morris:

Yes.

Delia:

Yes. Okay, so I like to make you some questions about the pet-friendly thing, so are most of your guests bring their pets to your listing?

Courtney Morris:

I would say about 75% of our guests bring a pet and it’s always a dog. We’ve never had anybody bring a cat or anything else.

Delia:

Okay, so 75%, is a lot of guests in this. All of them stay over 30 days with the dog there, right?

Courtney Morris:

Yep, that’s correct.

Delia:

Okay, so over 30 days with the dog. That’s, I haven’t heard about that before because people out there really complain about bringing dogs into the listing, right? And they only do short-term rentals, so I’ll like to know about your personal experience, like in general, with people staying with their pets there for over 30 days.

Courtney Morris:

Sure. So our experience hosting people with pets has been fantastic. We often cater to guests who are local to Los Angeles and either remodeling their home or moving into a home that they’re remodeling and need to get out of their house for a period of time. And of course, because we rent for 30 days plus those kinds of guests often have pets because they’re used to living in their own home. The other type of guests that we often have is grandparents who are traveling from out of town to come to Los Angeles to either meet a new grandchild or stay and spend the summer with their grandkids, so those are also people who are going to be leaving their home for an extended period of time and they don’t necessarily want to leave their dog with a pet sitter for an entire month. So we have absolutely no problem hosting pets at our house and we have had very minimal damage to any of the property. I think if you go into the Airbnb host groups, there’s a lot of irrational fear from hosts about having pets at their property. You’ll see comment after comment of people saying “just say you have allergies to get out of it” and while I think that that’s fine to do if you are actually hosting a Home share and Airbnb affirms that by having it in their terms of service, that if you’re hosting a Home share, you’re allowed to decline pets, but you even see people going above and beyond to like decline emotional support animals or service animals just by saying they have allergies and unless we’re just the whole host population is full of people that have allergies, I tend to think most of those folks are just trying to not host pets because they are irrationally afraid of damage. You would think hosting pets long-term like we do opens ourselves up to greater pet damage, you know, we’re pretty particular about going above and beyond at our property to make sure that we’re providing things for people who have pets that encourage them to take better care of the property. For example, if you don’t provide a dog bed and you don’t provide dog bowls and you don’t provide dog waste bags for picking up pet waste in your yard, then you’re more likely to come at the end of their stay and find a yard full of pet waste or that they’ve been using your cereal bowls for food bowls and that the pets been sleeping on your couch. So there’s a minimal upfront expense of paying for a couple pet related necessities that make the owner stay more comfortable that you know, 9 times out of 10 somebody traveling across the country is not going to bring heavy pet bowls, they’re not going to bring a bed, so providing those things just makes their stay more comfortable, but it also ensures that they’re going to use those things rather than other things in your house in order to like, you know, meet the needs of their pet. And then you know, we really also go above and beyond in cleaning. Personally, I’m not a huge fan of having pet hair around my house either, so I have no problem going above and beyond in the cleaning, you know. We’ve actually had people message us saying “I noticed that your house is pet-friendly, we actually have a child who has severe pet allergies. What is it that you do in your cleaning to make sure that we won’t have an allergy issue?” and I have never had a complaint of pet hair and I have never had a complaint of pet allergy or pet smell in my house. You know, I’d say the things that we do that I would encourage other owners to do especially if they’re considering opening their property to pets. You know we put extra allergy covers on all of our bedding. There’s actually pillow covers that zip around the pillow, they’re actually, I believe meant for protecting, you know, folks who have allergies to down comforters and down pillows from getting the allergens of the down in their face but it also provides another layer that I can strip off at the end of a stay, I can wash that and it just protects the inside of the pillow from any buddies, you know, pet dander or hair. I know that this is controversial amongst the Airbnb host community. We have comforters on our beds and we wash our comforters between every guest and as weird as it sounds, I have definitely seen some hosts that they wash the sheets, they don’t wash the comforters. Even if we didn’t host pets that would be something we did every single time because it’s very gross. We also have air purifiers that we run inside the house in between guests. So whether we have a vacancy of two days or we have a vacancy of seven, we leave that air purifier on in between every single guest. We also provide ruggable rugs in our house, those are great because you can actually strip the top of the rug off, throw it in the washing machine and wash it, so we never have any pet hair or pet dander left on any of our rugs. We don’t have carpet anywhere in our house. Wood Floors upstairs and epoxy flooring downstairs and both of those floorings are extremely pet-friendly and we watch almost every single piece of fabric in between every guest, so even throw pillows and things on our couch, we stripped the covers off of them. If there’s a guest that’s only staying in one of our bedrooms, we still wash all the bedding from all of the bedrooms. We kind of just go above and beyond to make sure that in between every single guest you’re not smelling or seeing remnants of a prior guests pet because of that I’ve had zero complaints, we have five star reviews. So I think that there’s a little bit of irrational fear out there that somebody’s going to have a pet just urinate all over their house, and leave pet waste everywhere. I’m certain that has happened to a handful of people, I know it very well could happen to me one day, but I would say, we’ve been doing this since 2018, we haven’t had any scenario like that happen before. And you know, I kind of chalk it up to the cost of doing business, if we ended up with a situation like that, we will deal with it, you know, we will replace the rugs, we will do those things, but we build that stuff into the cost of our nightly rate, so that if something like that happens, we’re prepared.

Delia:

The fact that you have good reviews makes sense because that is one of the best services I’ve ever heard of. The fact that you clean all the fabrics in the house, I’ve never heard that even if the owner doesn’t allow pets there. That’s really, really good.

Courtney Morris:

You know, I stay in Airbnbs myself. When we travel as a family, we like to stay at Airbnbs and I’ve gone into somewhere, it’s pretty obvious that some of those things are not getting attention often enough. I don’t want to be that host. And typically the way it works because I know, obviously, there’s a cost associated with that sort of cleaning, we do have a housekeeper who comes in and she does sort of the standard turnover between guests. And then my husband and I actually go over there ourselves and we’re the ones that take the rugs out of the house, we invested in a steam cleaner, we steam clean all of the rugs that can’t be thrown in the washing machine, we do the ruggable, we put the air purifier and we do all this stuff.

Delia:

That’s great, but it must require a lot of your time as well sometimes, like in between the guests, right?

Courtney Morris:

I actually don’t think it takes a whole lot of time, you know, because my guests stay for over 30 days, oftentimes, they will kind of get things started for me, you know, we usually do ask that our guests start at least their first load of laundry and towels, they’ve used the dog bowls or anything like that, that they put them in the dishwasher to get them going. And then you know, I’ll usually go over there, maybe two or three times to kind of keep the laundry going because that’s probably the biggest thing for us. Especially because we do wash all the bedding, regardless of whether somebody slept in the bedroom or not. That part just takes time because the washing machine only goes as fast as the washing machine goes. So it’s not a lot of time I’m spending over there, I’m just making a handful of trips to keep the washing machine going. And then you know, our housekeeper is usually there for four hours, five hours or so depending on what’s needed. It’s actually it’s not that labor intensive, you know, I think it obviously is time, but you know, I’m a full time employed person myself, Airbnb is not our only source of income. So my husband and I both work full time, we have a toddler, we both do a relatively excessive amount of volunteer work and like I said, I do animal rescue as well. So I would say like anybody can make the time, you know if this is something that they’re interested in, and they’re absolutely terrified of the idea that they might one day have a negative review about like, you know, cleaning or pet hair or something like that, I kind of fully believe that if you do that you can make the time if this is something that you’re actually interested in pursuing.

Delia:

Yeah, I agree with that, as well. Do you also send cleaning or do any type of cleaning?

Courtney Morris:

I do a cleaning service at the end of first month. So if they’ve extended, I tried to offer a cleaning, just to keep up with things, I try to offer a cleaning service every single month. So if I have a guest that staying for four months, they get more cleanings. Because of COVID some of our guests have declined that just because they haven’t wanted an additional person in the house while they’re staying there and we’ve been respectful of that. We’ve only run into a couple issues where folks weren’t kind of cleaning as they go, but even still, it’s not really difficult to do a little bit extra between those folks stay. But turnovers really are not particularly difficult for us, even though it sounds like I’m doing a lot I really, you know, just doesn’t feel like a lot. So.

Delia:

Yeah, I understand. So you previously talk about some things that I’d like to question you about. So the first thing was, you provide things for the dogs like plate, beds, bags for the dog waste, right?

Courtney Morris:

I do. Yep.

Delia:

How much did you initially spend with them? And how much do you spend changing them? If you do change them regularly.

Courtney Morris:

We get most of our pet related items from either like a home goods or a TJ Maxx. People don’t tend to care kind of what these items look like exactly, just that they’re clean, you know. Nobody wants to bring their dog to a house and then put it in a dirty dog bed. So I would say for pet bowls, honestly, we probably spent about $15 on those initially, and we never had them broken knock on wood, but it’s not a huge investment to replace them if we if that did happen, but we are still using exactly the same ceramic pet bowls since 2018 and they clean just fine. And then we provide a pet bed, that’s like a medium size, it the cover actually zips off of that and can be washed. So it we’re also we have exactly the same pet bed, it’s in a brand new looking condition every single time we have a new guest and again, we would be happy to replace that if we needed to. That probably also cost us about $15. It does only probably fit about a 40 pound dog, though and we have had some guests lately that have larger pets than that. So most of those travel with their own beds and things if they have a bigger dog. And then we do we provide pet waste bags. Just like I provide like countertops spray and toilet paper and things that I want people to have to make their state comfortable and certainly the absolute last thing is, we don’t want people to feel like they’re not going to clean the house up in a month long stay because we didn’t provide them any of the things. So we do exactly the same stuff, dog things, you know, if we don’t provide the pet waste bags, they could potentially just leave it in the yard. So why not? I mean, it’s like 25 cents per roll and one role will last me through a guest. So that’s a 25 cent thing that’s, I have absolutely no problem providing, we do also provide a leash because Los Angeles requires that anybody walk their dog on a leash, you know, we have leash laws around here, no dogs are allowed to be off leash. Our guests sometimes come from out of state and they’re not familiar with the local leash laws and we want them to not, you know, get in trouble, should they be walking down the street without a leash. So we provide one of those as well and we require that they, you know, sign off that they, we do have a list of dog related requirements that we ask them to sign off on as well, which I can go into in more detail, but we do make sure that they acknowledge that if they leave the gate that the dog has to be on a leash. So we don’t provide anything that would be like, you know, something specific to each pet, but the things that every dog needs, we provide those.

Delia:

Okay, it’s not a big of funds investment. It’s really cheap considering, right?

Courtney Morris:

It’s less than $100 worth of things that I’ve not had to replace even yet. So.

Delia:

Yeah, so I guess if people are considering get pet friendly, they should also consider to get these items because it’s not a big of funds investment and I think it’s worth it.

Courtney Morris:

I agree, we used to provide like a little toy each time, like a little stuffed monkey or a little stuffed rabbit or something like that every single time we had a guest come. And those things are the things that ended up getting a little too gross for us to leave them for the next guests pet. And some dogs just, you know, frankly don’t like certain kinds of toys, so we don’t offer those anymore.

Delia:

I’ll like to talk about some numbers related to being pet-friendly. Do you see that your revenue, either monthly or yearly, can dramatically increase or increase at least just a little bit with allowing pets in your house? Does it bring more guests? How much is your pet fee? Things related to that.

Courtney Morris:

Sure. So I guess I can’t say for sure that it increases my revenue. I mean, I think that we do pretty well for the area, to be honest with you. The house is only a two bedroom, one bathroom house and it rents, you know, for what I would consider very decent price per night. But what I will say is that I think it dramatically increases our bookings. A lot of the hosts sentiment in the area and certainly I think just across the country really is that folks do not want to host people’s pets and so that puts us in a very small amount of, it just makes our market a little bit smaller being one of the only pet friendly rentals in the area means that anybody who does want to travel with our pets is obviously looking at our listing and not all of the ones that don’t allow pets. So you know, right now, I would say between now and the end of November because we don’t have a booking for December yet. But now through the end of November, we will have had less than 30 days vacant all year long.

Delia:

Wow, that’s really good. And you told me for the you do not charge pet fee. So I assume that if there would be any cost is already included in the booking fee. Would you say that?

Courtney Morris:

That’s correct. We try not to nickel and dime our guests. So we don’t charge any sort of pet deposit or pet fee. You know, we feel like the nightly rate encompasses sort of the potential for any additional cleaning or anything that might be needed. And you know, unless it’s like, extreme and above and beyond, and that’s what the Airbnb Resolution Center is for, we don’t charge any additional fees.

how much can you make on airbnb

Delia:

Okay, that sounds great. And have your listing been pet-friendly since the very beginning?

Courtney Morris:

It has, like I said, we’re big animal lovers. So we’ve always had when we lived in the unit full time ourselves, we always had pets there. We took, you know, all the measures possible when we were living there to make the home pet-friendly, so that it was, you know, as much as can be indestructible. So we haven’t had any time where we were not allowing pets.

Delia:

And would you say, between a listing in your area that is not pet-friendly and yours, is there any significant difference when it comes to revenue?

Courtney Morris:

I’m not entirely sure there is a revenue difference. You know, there are other two bedroom, one bathroom homes that are not pet-friendly that are in our exact same area at our exact same price point. But we are booked more than they are. In terms of my annual revenue, I’m probably making more money because I am consistently booked and the guests that could not go stay in their place because they had a dog comes to me. But we’re renting for about the same amount per night.

Delia:

And would you mind sharing about those numbers with us? How much revenue are you getting per stay? And how much would be your estimated per year?

Courtney Morris:

Sure, that’s a good question. Because we do, Airbnb is not our only booking method and we do offer discounts to people who are local and who find us through other means than Airbnb. But we rent on average for $4,600 a month.

Delia:

And what about the yearly revenue so far?

Courtney Morris:

All right, 4.600 times 12 is 55,200, I’d say on average, we probably have, you know, of the time that we have available because again, we do occupied this unit partially with our own family. So I’d say probably, you know, when we’re at our quote unquote max capacity, which is not year round, for us, we’re probably about $40,000 or so.

Delia:

40,000 is still a good number, it’s still like a number even though, do you have to occupy it because of some larger or is just because you want to occupy it?

Courtney Morris:

My husband and I are actually both from out of state originally. So we used to occupy this unit full time ourselves when we moved and we live very close to it now. But when we moved, the idea was, rather than taking a long-term tenant on, we actually wanted to leave this unit available so that when our own parents or siblings came to visit that they had somewhere to stay because I know that we all understand the stress of having like house guests and so we can eliminate that by having them stay at our Airbnb property. So we do leave certain parts of the year available for our own family to use it and that’s really what’s great about it, to be honest with you is we can make a little bit of money when it is available. And we’re making $40,000 a year on it when just because sometimes it happens to be vacant. But the rest of the year our family can come in and not have the added expense of having to pay for a hotel and we don’t have the stress of having to have family stay with us. So it’s worked out really great for us.

Delia:

Okay, that’s great to hear. I know you’re not year round, right? But in terms of seasonality, would you say there are some months that book more than others?

Courtney Morris:

I don’t think so. I think that’s probably just because we’re in Los Angeles. We have the luxury of the 70 and sunny weather almost year round here. So we don’t have any high seasons or low seasons.

Delia:

Yeah, that makes a lot of sense. And lastly I’d like to ask you, is there any number you think about when you think of what extra expenses do you have as a pet-friendly host?

Courtney Morris:

We’re probably spending about $500 a year on replacing items from quote unquote pet damage. Now again, I think when potential hosts get worried that they’re going to incur a lot of pet damage, you know, that might be a lot for some people, like I said, we’ve kind of raised our nightly rate to reflect that. But we do, obviously, things still wear out and they do kind of wear out a little bit faster when you’re talking about pets. So, where possible, we have the ruggable rugs on the ground, but there are other places in the house where that’s not possible. So we probably replace our floor rugs about once a year, we don’t spend a ton of money on those rugs because we know that we’re going to replace them. So we just try to, you know, put a new, like a front door rug out every single year. And then also, like, you know, people who are staying for a month, they will bathe their pets at the house, most often. I mean, some of them, send them to the groomer, I’m sure, but you know, our towels occasionally will come back looking like they’ve washed a dog, we don’t want our next guest to have to use a towel like that, so we have a bunch of extra towels that we have for, you know, getting rid of a towel like that. And then you know, there’s the dog waste bags and things like that. And of course, because we do run the air purifier in between every guest, we also are replacing the HEPA filters in those all the time. So in general, it’s probably costing us about $500 a year. And like I said, we have had some pet damage, you know, I did at one point, I had a dog, you know, destroy a pillow. And I have had another dog, you know, dig a little hole in the carpet and not in like floor carpet, but in a rug, but again, we replace those every single year. Those things to me feel like normal wear and tear. I know if you’re not a pet friendly host, you’re thinking about it, like, “oh, man, I can’t imagine replacing those things”. Those are few and far between, you know, four years of hosting and I’ve had, I can count on one hand the amount of times that I’ve looked at something and been like, “oh, that’s damage from their pet”. The rest the time, it’s just general wear and tear and these things have to be replaced anyways. Nobody wants to use a five year old bath towel. So it’s totally fine.

Delia:

Yeah, the expenses seem reasonable and also the amount is not that much. I would have think of something much higher giving on what the hosts usually say, the damage in their listings, but you have been lucky with the pet damage seems like.

Courtney Morris:

I don’t think that’s true. I actually don’t think it’s a situation of being luck related. I actually think it’s just because we are pet owners ourselves because we built the unit for ourselves at one point to be very pet-friendly, that we’ve prepared the unit. You know, we don’t have things in there that are easily destroyed. They are nice things, we have very nice things, but they were put in there in mind that, you know, a dog could be on these things or a dog might be, you know, how do we pick the items that are going to be best suited for being around pets? So I don’t think it’s luck, I think we’re just prepared. I had mentioned to you earlier, we do have a list of rules that we go through with each of our guests and I think that that sort of helps us weed out people that we can tell pretty easily if they’re, you know, not a responsible pet owner. So we don’t allow pets that are not spayed and neutered at our house, you know, those are the ones that typically have marking issues where they’ll pee on furniture. And it’s actually a law in Los Angeles that if your pet is over the age of six months old, it has to be spayed or neutered, so we do not allow guests to bring animals that are not spayed or neutered. Big animal rescuers over here, so we don’t deal with people who didn’t fix their dog. And we also require that anybody bringing their pets sign off saying that their animal is up to date on vaccines. Los Angeles also requires that pets have their annual rabies vaccine or their three year rabies vaccine depending on which one they got. So, you know, we make people affirm that their pet is up to date on vaccines, we go over the rules about not leaving pet waste in the yard and taking their pets out on leashes and a lot of time and we even provide a pet crate in case people you know want to crate their dog at night or when they leave the house. So it’s pretty easy to tell when if somebody comes to me and they’re like, “oh, man, I don’t vaccinate my dog and I’ve never, you know, I haven’t gotten it neutered yet” like that’s red flag number one like I’m sorry, you can’t stay at the house. But, you know, generally speaking, we can tell if somebody’s responsible. So.

Delia:

Yeah, that’s right and aside of that, you have a very big advantage on your city, expecting dog owners to vaccinate their dogs. I don’t think in other countries or I’m not sure if in other states, but in other countries, like mine for example, you cannot ask for the vaccines just to allow them into a place, right? So it’s a big advantage.

Courtney Morris:

Yeah, there’s definitely, for sure there’s some advantages to being in Los Angeles because I can require that stuff of my guests. You know, once you’re in Los Angeles for 30 days, you’ve got some residency rule rights over here. So I can require that my guests have those things for sure and if you live in an area where you can’t, it obviously gets a little bit trickier to enforce that stuff. And my guess quite frankly, I don’t go over there and like, check dogs to see if they’re vaccinated or neutered or anything like that. I don’t really, you know, I try to give my guests their space, so I’m not, you know, up close and personal with them. But oftentimes, like people will volunteer that information if I’m asking and we do, you know, the one thing that I will say also is we do unfortunately have some breed restrictions. Our homeowners insurance does not allow six different dog breeds. So I do have to ask people, if they’re bringing any dogs of those six breeds. I actually haven’t run across that in the past where I’ve had to say no to a dog. But if I did, there would be some that I unfortunately have to say no to unless it was a service animal.

Delia:

Now that you’ve mentioned about service animals, I’ve heard before that some hosts are, you know, reluctant on allowing pets because some people fake service animals and I’m not sure of how does that work. I thought, if you had a pet, like a service animal, you had to have papers for that. So can you tell us a little bit about that? If you have any knowledge of that.

Courtney Morris:

Sure. I have a little bit of knowledge of it just because I actually do have two emotional support animals myself. And, you know, I would be one of those guests that if I said, “I would like to bring my two emotional support animals” that I would have a slew of hosts telling me that I’m, you know, a liar and a faker and all of that. So I’m sympathetic to those people, for sure. Do people take advantage of that? Absolutely. Have you seen the peacock on a plane, I’m certain that there are people that take advantage of emotional support rules. But I also really try to believe people when they are saying that they need reasonable accommodation. And again, like it’s not an issue for us because we’re pet friendly anyways, so we wouldn’t be asking for that paperwork because it doesn’t matter. But I don’t see the need for a bunch of hosts to kind of come up with reasons why they shouldn’t allow emotional support animals or service animals and claim, you know, apparently, every host is anaphylactic to dogs, nobody has friends with dogs because that’s, you know, the excuse that’s given often about why they can’t host a service animal. Now, for me, so I’ll speak personally, I have a letter from my doctor. Now, this is not an online certification that my dogs have gotten. This is not a letter from a doctor I’ve never met that I found through the internet who was willing to write a letter. This is a letter from my actual primary care family physician that says that I need these two dogs. So I have that letter and I’m required to provide, you know, if I fly on an airplane with my dogs, I’m required to provide that documentation and they’re allowed to ask me two questions, you know, one is what function does this dog provide? You know, as vague as I want to be all I have to say is emotional support because that’s what it is. And then basically, like, what is your documentation for it? which is the letter that I have. You know, usually, it’s a red flag to me if somebody provide some sort of letter that, you know, is some online certification that they found because generally speaking, those things are often offered up in groups by people saying, you know, if you want to just call it an emotional support animal, you can go and get this online certification or this online doctor’s note, those things tend to be a red flag. But you know what, like, that also just might be a person who doesn’t have insurance who couldn’t go to their doctor or that could just be a person who doesn’t, you know, they read online that they might need the certification and that’s what it is, but they genuinely might have a need for that pet. I honestly just think the Airbnb host community can be a little ableist. To be honest with you, I think we need to be a little bit more inclusive and a little bit more accepting. And I really, it bothers me a whole whole lot when I see people call folks who are asking for accommodation, you know, liars and it’s fake, and they’re just trying to sneak a dog in and all of that stuff really does not sit well with me. So.

Delia:

Yeah, I understand completely and thank you for talking about this, I think is going to be very important information for hosts or future hosts to hear about. Lastly, are there any tips that you like to give for hosts who are probably thinking on getting their listing to be pet-friendly or who already are pet-friendly?

Courtney Morris:

You know, I think my tips are just to kind of relax about it a little bit. And just to think through like if this were a dog in your own house and we all know dogs are dogs, pets are pets, like they are not immune to having accidents, especially when they are in a new environment. My own dogs if I take them out of my house, like God knows what will happen and I would be horrified if they did something in somebody else’s house, so that’s kind of the framework that I’m working with when I choose rugs, when I choose furniture, you know, and then the stuff that I provide, you know, like, if I were traveling somewhere, would I want to haul a dog bed? Would I want to haul big heavy ceramic dishes with me? No. I think it’s worth spending a little bit of money to make sure that you’re thinking, that you’re getting the things that you need that are going to protect your property, that are going to make their stay more pleasant. And then you bake that stuff into your nightly rate, you add $5 a night if you need to and in a month, that kind of stuff will pay for itself. I mean, we’re talking about $100 worth of dog bowls, dog poop bags and a bed, you know. So I just tend to think like, people will pay a little bit more money to know that they’re taking their pet somewhere and that they don’t have to haul that stuff with them. So if it’s a cost thing that’s holding you back, just add a little bit to your nightly rate, I do think it will pay off. And then you know, make sure that you’re, you know, going over your house rules with the person, I don’t ever think that, I’d never assumed that my guests are reading my house rules on my listing, listings can be so long and by the time somebody has booked your property, they’ve probably looked at a dozen other listings and your rules are blending with everybody else’s rules. So it’s better just to send them a friendly reminder, like, “hey, you know, I just wanted to remind you like, at the end of your stay, please pick up all of the dog waste from the yard”. If there’s furniture that you don’t allow the pets on, make sure you list what that furniture is. And then make sure that they reply to that stuff and acknowledge it and that will really go a long way because our guests have been incredibly respectful of our rules and I think a lot of that is just because we’re just having a normal conversation with them about like, here’s what the expectations are and we’re not coming down hard on them or living in fear that we’re going to have a rug ruined. So.

Delia:

That sounds great. And I’m sure because you’re friendly approaching, that’s the reason why they respect your listing a lot because I agree that there are some hosts that might be a little bit harsh on the guests when they’re talking about their specific rules. So the friendly approaching is like 10 out of 10 of you.

Courtney Morris:

Well, have you seen the hosts that are like “if you leave the house, your dog has to stay in a crate 24/7”.

Delia:

Yes, I’ve seen that.

Courtney Morris:

Why would you ever go stay at somebody’s house, unless you’re the kind of person that creates your dog 24/7 at home and they’re used to that, your dog is going to lose its mind at sitting in a crate all day long. You would never want to stay in that person’s house like just, it’s just not that hard to be reasonable.

Delia:

Yeah, I agree with that. So that would be it for today. Thank you a lot for your time and your tips. This has been a really interesting experience to hear about.

Courtney Morris:

Yeah, no problem. Thanks for having me!

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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!

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