Real Estate Market, Then and Now
Traditionally, the real estate market is seen as either veterans turf, or a playground for those who have more tolerance to risk – which in layman terms is someone who possesses a comfortable enough reserve to throw significant lump sums of cash into physical properties. They are simply buyers in a high-ticket market.
That being said, it’s important to remember that not all investors are created equal, and the strategies through which they execute their decisions to invest differ as well. As even mature markets are dynamic and subject to disruption by forces such as policy and economic fluctuations, the sharpest investors allow themselves to adapt to said disruptions and position themselves favorably.
In recent years we find that more and more barriers to entry are being removed by the advances in technology, specifically by platform-based companies that exploit the untapped market that is willing to pay for a service that is conventionally unavailable.
One of the most successful players to do this in the real estate sphere is AirBnB. With a mission that aims to give anyone with a little extra “space” the ability to monetize it through hosting, it has provided another door for the conservative investor to get involved in the world of real estate. And even now the ways to capitalize are getting creative.
Step 1: Determine What Kind Of Airbnb You Want To Have
The first step is to determine what kind of Airbnb user you are you going to be.
Do you want to rent out a room in your house/apartment?
The most simple model to follow if you don’t mind sharing your living space.
Do you have your own rental property that you can rent out on Airbnb?
This is usually seen as an upgrade for those who already own rental property but rather than holding tenants on traditional annual terms, host as short term rentals to secure higher daily rates due to seasonal or location demands.
Do you want to co-host other people’s properties?
The easiest method if you have experience with the platform and are more interested in hosting – you don’t own the property but are instead focused on the management aspect .
Do you want to do “Master Leasing” and use other people’s properties to put on Airbnb?
Perhaps the most lucrative and low-entry method to hosting properties on AirBnB.
Each one of the above methods has its advantages, but the right choice is ultimately determined by your circumstances.
Step 2: Find the Gold
Success leaves clues. Find what is currently trending in your market by searching the listing for the highest rated properties in your area.
The objective is not to employ guesswork, but rather leverage the efforts of others to understand what your audience is looking for and what can ensure the most comfortable and pleasant experience you can offer.
What do you notice about them that sets them apart from others?
How are they decorated?
How many people do they accommodate?
Are there any special offerings they have that you can provide as well?
Step 3: List your Property
Once you know the type of AirBnB model that works best for you, and you’ve found the patterns of success in your market, it’s time to list your property.
There are several components to making the listing; some of the most important aspects include the pictures that display the property, the title of the listing itself, and the wording of the description of the listing.
Here are my best tips for attracting the bookings and maximizing revenue with your your pictures, title and description:
On of the highest correlated qualities between the cover photo and success of of the listing is the amount of natural light the unit contains. Make sure the photo is the highest definition possible and the unit is clean and well-lit.
Your headline must include a benefit and not just be fluffy adjectives.
Ex: Newly Renovated 3BR – Beach Views & Bikes!
The description should speak to what the guest actually wants, not what you think is best
The description allows you have 500 characters to influence a potential guest to stay with you.
Focus on painting a picture of what your guest will experience. Don’t just list features of the house.
Talk about how they will feel, as opposed to what it contains… when they can go on the porch with a cup of fresh coffee and enjoy the breeze in your quiet neighborhood.
Get creative and focus on your guests’ experience.
Step 4: Be at the Top of the Search Rank
There are so many options to enhance your visibility, but here are just a few to think about that directly affect search rank visibility.
Make sure instant-book is on.
This allows guests to book your place instantly without inquiring first, but this makes a huge difference in your search rank.
Be sure to set your minimum night stay to one night.
The lower your minimum night stay the higher your search rank will be.
Be sure to respond to guests quickly.
How fast you respond will affect your search rank and will influence the rating you receive from your guests.
Step 5: Prep for Your First Guest
Your first guest is the most important – do not underestimate the effect that your first review will have on guests to follow and your search rank results.
Be prepared for your guest, be sure you have your check-in information ready to go and you have all that they might need ready and set out for them.
One big tip is to always have extras of whatever they might need, including:
Furthermore, based on your location, think about what might be unique to your unit that could add value to the stay of the guest. Don’t forget to revisit other successful listing and scope out what they have featured in their photos and description.
Step 6: Get Great Reviews
One of the most important factors for the success of your AirBnB is the number and quality of the reviews that you receive.
In order to get 5-star reviews, focus on a few areas:
Always over deliver on the guest’s experience.
Leave out some water, gatorade, or even wine when they arrive – small gestures make a big difference.
Be sure to ask the guests for a review when they leave.
Don’t be shy about asking for a review. Sometimes people just forget.
Have a friend stay at your Airbnb for the first stay.
This way you can do a “test-run” to genuinely identify any areas of improvement and, more importantly, start off with a 5-star review.
Step 7: Automate Your Money Machine
The last step is to automate your Airbnb.
Initially, it would be best if you clean the property once or twice yourself, message the guests, and handle all the fine details.
This will allow you to get a feel for what needs to be automated and how to do so, ensuring you are able to provide a comprehensive list to the company or helper when you choose to outsource. You should hire cleaners to handle turnovers, digital locks to remove the need to greet guests and we can even hire a handyman to handle any minor things around the house that need fixing.
This is especially important for those with the goal of never having to manage the property. Outsourcing and automating is in fact your ticket to freedom, and there are so many companies to choose from that assist with these services, if that’s the route you choose to take.
What is Your Objective:
Revisit Step 1 and weigh your options – there are great opportunities available in the short-term-rental space and the demand for hosts are growing. Perhaps you will find that one of the methods discussed will be able to provide value to you as you navigate your financial path.
You can find more information about this strategy by clicking here.