7 Secrets to Airbnb Success

1st Jul 2017

7 Secrets to Airbnb Success

 

But first a bit of background…

 

My eldest brother and I started on the Airbnb journey several years ago. Our first property was a condominium in Arlington, Virginia, right outside Washington, D.C. It happened coincidentally as he was living there, I renovated the entire place into a modern thing of beauty with American made furnishings and beautiful hardwoods. His job took him away from the area and we wondered how to handle this gem. Selling was not a wise choice, as property values in the area are on the rise, so we looked into Airbnb. I loved the platform and concept but was a bit hesitant, we plunged in anyway. I managed everything from the turnover and cleaning, to listing, pricing and booking. I fell in love. Not only was I in love with the property, but I enjoyed bringing its beauty to as many people as possible. I quickly became a “Superhost” with almost all 5 star reviews. We continued this venture for a couple years until our condo association cracked down on short term rentals and we decided to rent long term.

Whilst managing our Arlington rental, we had been discussing more investment opportunities but a bit more local. I was driving 45 minutes-1.5 hours (depending on horrid D.C. traffic) once or twice per week to do turnovers and it was becoming more difficult with a new baby and toddler in tow. So we began looking in my current town Frederick, Maryland. It is a charming little city with an exceptional downtown area wrought with boutiques, restaurants, parks, and immense history. We toured a few places and the income potential was high, but then came upon our gem…As soon as he and I entered the building we fell in love. It was a beautiful, spacious, historic townhome in the very heart of downtown, built in the 1890s! It was in immaculate condition (except for the A/C units, ugly kitchen, and non-functional boiler and water heater) with wallpaper that appear to be hand painted. The detailing in the home was so astounding, it was obvious it had been loved by the prior owner. We were not even to the second (of four!) levels when we looked at each other and agreed that this was IT. We finished the tour then went to the local coffee shop and hashed out financials and an offer. We knew there were competing bids by commercial companies offering over ask, so we drafted a heartfelt letter about our ties to the area and our offer was accepted! We ended up with about $30,000 in repairs and another $20,000 to furnish and prep the home for guests. I spent several months redoing the kitchen, moving and setting up each of the 6 bedrooms, and boy did I get my workout in going up and down those stairs!

By the time we were ready to list the property, our Arlington place was getting touch and go so I was splitting my time between the two. Shortly thereafter, we began long term renting which took a heavy burden off my back and allowed me to focus 110% on what we ended up calling East Church Manor. It was a bit tricky to get off the ground because there were no other rentals like ours in the area: sleeps 12, located in the very best part of town with private parking! While I was a super host, my reviews did not carry over, so as with all new things, guests were skeptical. I had to do some tours to prove it was like the photos, and spoke a lot on the phone with potential guests.  Once our listing was off the ground, it was much easier. We have had a couple of groups, often foreign or company based, who do not treat our home with respect nor follow the rules, but for the most part our guests are fantastic.  I am now up to 52 reviews with an average of 5 stars (two guests gave me 4 stars for the mere reason they did not ask us for help with minor things).

I have had countless Family members and friends, and even some strangers, ask me about how I achieved success and if I have any tips for them.  That is tricky because is a combination of my personality, the property itself, the clientele who are coming to our property, and my attention to perfection.

So let’s get down to brass tacks!  Here is my shortlist of keys to Airbnb success! I assume this would applied to any manner of rentals, especially short-term.

 

 

  1. Money cannot be your number one motivation.

-Sure, we all want to make money, but if that is your main focus you will begin to cut corners which will be apparent to guests, who are likely paying a premium to stay at your home. It is the little things that make a big difference, things like quality coffee, three ply toilet paper, good smelling soft hand soap, state-of-the-art technology and quality televisions, premium cable and high speed internet, and beds so comfortable guests ask where you bought them! If you focus on guests first, your money will follow.

  1. Care about every single one of your guests.

-I always want to know why guests are coming to the home. Not only am I simply curious and I want to know how to better market the property, but I want to be able to personalize each stay. Depending on the turnover timeline, I might get some balloons for birthday, soft tissues for a wedding, maybe even some cupcakes for a holiday. It does not cost me very much money, but it makes the guest feel special. And, the guest is special, they are the lifeblood of a rental property. Also, their reviews are at least 50% of the marketing for short term rentals especially on Airbnb. If you have ever gone to a hotel, mentioned it is your anniversary or birthday, and they have balloons, champagne, or your favorite cupcakes in the room, you will understand.

  1. Do your research.

-This seems like a no-brainer, but I’m going to say it anyway. Research the other properties in the area, using the other competitive short-term rental websites out there. Is there a place for your property? Also, figure out what the very minimum income you are going to need to stay afloat. Not only do you need to factor in mortgage and taxes, but maintenance, amenities, cleaning, utilities, and incidental funds for the air conditioning randomly breaking on the hottest day of the summer because a guest left it too low and open the windows for no reason…yes that happened…

  1. Do the majority of management yourself, or find some like-minded individual to assist.

-I struggle with this constantly. As of right now, I do not have a consistent cleaning crew for our large property. I do all the turnover, unless I absolutely do not have anytime. In that case, I have found on my fourth attempt, a local cleaning crew to help me out in a pinch. I say a pinch, but they still need at least two weeks notice. They do not do an exceptional job, and I still have to do all the linens, amenity set up, and trash taking out, by myself. So, it just works out for me to do everything myself. Every time I have a turnover which can be anytime from 1 to 3 times per week, I spend at least two hours in the home cleaning and turning over and resetting everything. I then take the copious amounts of dirty linens home with me to bleach, fold, and organize for the next round. I went away for a week, and had my mother-in-law do a turnover and my husband to the other. I still don’t trust what they did, even though I had no complaints from guests, but that is the perfectionist in me. If I have to take a trip, I strategically plan it around my current guest calendar. It is a pain, but I would rather sacrifice my freedoms for the happiness of my guests. I am presently 6 months pregnant with my third child, so it is getting a bit more difficult to traipse the stairs, haul the laundry and trash, and clean so much square footage, but I will just deal with it when I can no longer function!  The prior cleaning companies I have hired, do not do linens, leave hair in the bathtub, do not understand everything must be thrown out because there are new guests coming, have very poor communication, and are very expensive because of this home is very large.

  1. Do not expect immediate returns on investment.

-This goes back to #1 a bit, but just general investment advice. Of course, everyone wants to earn money right away, but you have to take into consideration all the money that needs to be put in an initially to start off on the right foot. Because I did almost everything myself, I saved a lot of money, but I still had to furnish it and had to have a boiler built from scratch, which I have yet to learn how to do myself 😉 Also, understand that there are down months and up months, depending on why your guests are coming to your home, you may have an influx in the summer, but struggle to fill your days in the winter. It just goes with the territory.

  1. Be prepared to devote your time to your properties and guests.

-One of the most frequent comments I receive is regarding my communication. I respond to my guests almost immediately, whether it is via text, Airbnb messenger, or cell phone call. They are in a new home, and most often in a new city, so I need to be sure that I am available for them with any questions they may have. And boy do they have questions!  This is definitely goes back to caring about your guests, but also understand that this isn’t an easy surefire way to get a couple extra dollars in your pocket. It takes many hours per week in the home as well on your phone dealing with bookings, answering questions, and providing guests with the little things they may need. If the toaster breaks, go buy a new one and deliver it ASAP. If the A/C is not working as well, get the plumbers out straight away!

  1. Do not reside in the homes you are renting!

-Don’t get mad at me for saying this! I have been on the other end of renting a home in which a family permanently resides. It was awful. The entire time my family and I felt as though we were walking on eggshells, unable to settle in and feel at home. The owners’ make up, clothing, unmentionables, and even their food and specialty supplements surrounding us. Where do we put our clothes? Can we even put some milk in the fridge? It is one thing to have extra toiletries available and common spices, cooking ingredients and condiments available for guest use. It is another thing to have all of your personal belongings and your personal organic specialty foods that guests cannot touch in the space in which they are paying very good money to stay.  The other odd thing was that the family was in the car outside of the home when I went to check in. The husband was still in the house, because he forgot something and he decided to stick around until I got there. That is fine to have someone physically there for check-in, but he was simply there to get some of their items out of the garage. It was very awkward for me, and this was all before I knew they permanently resided in the home and used short-term renting as a way to get away from the home for a weekend of skiing.  I personally do not understand the concept of staying in your home, and renting out a room to strangers, so I can’t really touch on that. It is obviously a very different clientele, and I know a lot of hosts do that to meet new people. But if you are going to reside in the home, whether or not you are staying for the guests stay or not, please make that very well known in your listing!

 

 

 

Check us out:

Website

Instagram

Booking Site on Airbnb

Facebook

 

 

 

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.