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SHOW NOTES FOR EPISODE 222: AIRBNB ON AUTO PILOT
Bill Manassero started with a test AirBNB apartment unit in August of 2017. It proved so effective that, in April 2018, he converted two more AirBNB units and now wants to add even more. AirBNB has proven to be an excellent way to significantly boost rental income from conventional rental properties. In this episode, Bill shares how his current AirBNB properties are crushing it and how he is optimizing his operations for maximum profitability and efficiency.
Properties Update
- Memphis
- New property manager
- Focused on rehabs and stabilization
- Atlanta
- Everything is good
- Indianapolis
- Duplex
- Everything great!
- 22-Unit
- Rehabbing continues
- New doors
- New flooring – trying tile
- Duplex
- 100 plus units
- Continuing search
- Training to young engineers to assist in acquisition and property analysis efforts
Introduction
The more I do, the more I learn. I have a hard time finding good tenants and have long vacancy periods. We currently have three AirBNB units that are booking up quickly, some through October.
- First got interested in AirBNB when I had Al Williamson as guest back in June 2017 – 109: Creative Strategies to Increase Your Rental Property Net Income
- Got me thinking
- Issues with 22 unit, rehabs,
- If you’re having difficulty getting tenants, AirBNB may be a solution
- I set up a test unit in August of 2017
- Require a minimum 30-day stay
- Income – $900 vs $450 per month as a one-year lease tenant
- Targeting traveling nurses who regularly have 90-day stays
- Instantly started generating income
- Added 2 more in April of this year (2018)
- And am considering a 4th!
- Have had challenges
- People don’t like the area, tenants or building is too old and have to give refunds
- One guest had things stolen out of their room
- Added security cameras which help people feel safer and allows for 24/7 monitoring
- Adding a “House Mom” (at reduced or free rent) to monitor and report any issues
The Challenge of On-Site Assistance
- In the beginning I would use a person with my property management firm who was based a few buildings away. Would pay that person a percentage of the rental fee.
- The problem was that there was turn-over for people in that role
- They didn’t understand AirBNB
- They were not always available
- AirBNB Co-Host
- Person in the local area
- Greets guests
- Does turn-overs/cleanings
- Deals with issues
- Paid from 10-25%
- Some co-hosts clean the apartments themselves and pocket the $50-150 cleaning fee and some have their cleaners and other support people.
Why Not Convert to All Units to AirBNB?
- Could potentially double income
- Local laws – are we a hotel?
- Might need full-time staff on site
- Different dynamic
- Hotel like
- Larger parking lot
Looking Ahead
- Upgrading
- Training staff to deal with common challenges
- Creative marketing
- Expanding to other portals
- Installed push-button entry locks for doors
- Looking at other areas where we can make operations more efficient
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