51) Backup Plan for Airbnbs & Is this market bottom?

House Money Weekly

In this week’s House Money Weekly segment, Lauren and Alan get together with their special guest Matthew Teifke. They discuss blog 147, the five most important things about your short-term rental business. Alan wrote this blog with Lauren’s help, obviously. One important thing to remember is that short-term rentals are more than just real estate investing. You are a host - not just a property manager. You have guests - not tenants. You must provide an experience for your guests. Lauren shares that she spends 20 minutes a day for her 9 short-term rentals. Matthew’s opinion is to never buy real estate that has only one strategy that works. The 2nd important thing to remember is the systems are good for both the host and the guest. If everything is systematized (rules, check in procedures, check out procedures, communication, house rules) then every guest has the exact same experience then the reviews will reflect that which is an excellent way to make the short-term rental investing successful. For Lauren, if you're not systematizing and automating, you're going to end up in a lot of difficult one-off situations. The 3rd important thing is to never stop analyzing your market. Look at the average daily rate of the neighborhood and the average length of stay because it changes from pre-purchasing to the quarter after buying and then the year after buying. Lauren analyzes her markets approximately monthly and she looks at which amenities other people add while still keeping the amenities she offers very limited. The 4th important thing is to treat your extended team very well even if it means overpaying them because it will go much further in the long run. And the 5th important thing is that reviews trump everything. Remember, you're running an online review business and not just a real estate investing business because reviews will either make or break you.

 

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