Get Paid For Your Pad | Airbnb Hosting | Vacation Rentals | STR Revenue Management EP185: How to Turn Your Backyard into Cash Renting Log Cabins on Airbnb
Sep 4, 2017
25:46
Many Airbnb guests are looking for a chance to unplug and truly get away from the madness of modern life. David Fraser has developed a low-risk Airbnb model that capitalizes on this by building log cabins on his property, and he is keen to share his best practices with the Get Paid for Your Pad audience.
David happened into the idea accidentally because his family had no place to sleep when they visited his country home outside Toronto. His mother sent him an ad for a cabin on Kijiji, and David began to wonder if such a rustic experience would do well on Airbnb when his family wasn’t staying there. He did a little market research by creating a listing, using stock photos of the cabin and pictures of the view from his backyard, and to his surprise, there was significant interest. David accepted his first booking and built the cabin from a kit—two days before the guests arrived!
Nearly three years later, David has expanded his enterprise to three cabins and a shared bathroom facility. All the units have paid for themselves, and he is able to generate $4,000 CAD/month in cashflow. Today he explains how he developed the concept, from choosing a cabin to furnishings to maintenance. Listen to understand how David handles the seasonality of bookings and the potential for regulations down the road. If you are in the right situation, the log cabin model might work for you!
Topics Covered
How David developed the log cabin concept
•Moved to the country
•No place for family to sleep when visiting
•Mom sent ad for cabin on Kijiji
•Created Airbnb listing to test market
•Received interest, accepted booking
•Built cabin two days before arrival of first guest
•Refined process, added amenities
•Built two additional cabins and shared bathroom
How much the cabins cost
•$4,400 CAD for the first one
•Negotiated with European company for wholesale price on next two
•Between $3,500-$8,000 CAD
•All cabins are 105 ft² (don’t need building permit)
How David furnishes the cabins
•Queen bed
•Writer’s table
•Dressers
•Heaters
•Electric blanket, fan
•Premium cabin has loft, A/C
•Rustic theme (most furniture used)
•Spend $1,000 per cabin on furnishings
The process of building the cabins
•David, his wife and father-in-law built in two days
•Comes with complete kit
•Ensure area is level
•Could pour cement pad as foundation
•David recommends 6x6 pressure-treated lumber
David’s ROI
•First year with single cabin, made $6,000 CAD (170% ROI)
•Single cabin this year generated $8,000 CAD (200% ROI)
•Additional cabins built this spring have already paid for selves
•Made $4,000 CAD last month
How David approaches maintenance
•Changeover requires sweeping, change of bedsheets
•Simple because no bath/shower to clean
•Replace bedsheets as necessary
•Few things to break, not costly to replace
The seasonality of bookings
•Didn’t anticipate bookings in January, February
•Closed listing in 2016 while traveling
•Kept open in 2017, still made $2,000 from January—March
•Installed two heavy-duty heaters
•May try pellet stoves this winter
The legality of Airbnb in David’s municipality
•Hasn’t ruled for or against (only two hosts in area)
•David is building up client base of regulars in case of eventual regulations
The primary market for David’s cabins
•People in nearby cities looking to getaway
•One- or two-day trip
The benefits of the log cabin concept
•Low risk
•David is willing to chat about your specific situation,
David happened into the idea accidentally because his family had no place to sleep when they visited his country home outside Toronto. His mother sent him an ad for a cabin on Kijiji, and David began to wonder if such a rustic experience would do well on Airbnb when his family wasn’t staying there. He did a little market research by creating a listing, using stock photos of the cabin and pictures of the view from his backyard, and to his surprise, there was significant interest. David accepted his first booking and built the cabin from a kit—two days before the guests arrived!
Nearly three years later, David has expanded his enterprise to three cabins and a shared bathroom facility. All the units have paid for themselves, and he is able to generate $4,000 CAD/month in cashflow. Today he explains how he developed the concept, from choosing a cabin to furnishings to maintenance. Listen to understand how David handles the seasonality of bookings and the potential for regulations down the road. If you are in the right situation, the log cabin model might work for you!
Topics Covered
How David developed the log cabin concept
•Moved to the country
•No place for family to sleep when visiting
•Mom sent ad for cabin on Kijiji
•Created Airbnb listing to test market
•Received interest, accepted booking
•Built cabin two days before arrival of first guest
•Refined process, added amenities
•Built two additional cabins and shared bathroom
How much the cabins cost
•$4,400 CAD for the first one
•Negotiated with European company for wholesale price on next two
•Between $3,500-$8,000 CAD
•All cabins are 105 ft² (don’t need building permit)
How David furnishes the cabins
•Queen bed
•Writer’s table
•Dressers
•Heaters
•Electric blanket, fan
•Premium cabin has loft, A/C
•Rustic theme (most furniture used)
•Spend $1,000 per cabin on furnishings
The process of building the cabins
•David, his wife and father-in-law built in two days
•Comes with complete kit
•Ensure area is level
•Could pour cement pad as foundation
•David recommends 6x6 pressure-treated lumber
David’s ROI
•First year with single cabin, made $6,000 CAD (170% ROI)
•Single cabin this year generated $8,000 CAD (200% ROI)
•Additional cabins built this spring have already paid for selves
•Made $4,000 CAD last month
How David approaches maintenance
•Changeover requires sweeping, change of bedsheets
•Simple because no bath/shower to clean
•Replace bedsheets as necessary
•Few things to break, not costly to replace
The seasonality of bookings
•Didn’t anticipate bookings in January, February
•Closed listing in 2016 while traveling
•Kept open in 2017, still made $2,000 from January—March
•Installed two heavy-duty heaters
•May try pellet stoves this winter
The legality of Airbnb in David’s municipality
•Hasn’t ruled for or against (only two hosts in area)
•David is building up client base of regulars in case of eventual regulations
The primary market for David’s cabins
•People in nearby cities looking to getaway
•One- or two-day trip
The benefits of the log cabin concept
•Low risk
•David is willing to chat about your specific situation,
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