Get Paid For Your Pad | Airbnb Hosting | Vacation Rentals | STR Revenue Management EP171: Long-Term Rental vs. Airbnb
Jul 17, 2017
25:27
So you’ve invested in a property, finished the remodel, and now you are ready for tenants. Would it be more lucrative to pursue a long-term rental agreement? Or could you generate more revenue by listing the space on Airbnb?
Ande Burchfield is an attorney with Burchfield Law, PLLC, serving businesses, non-profits, and real estate investors. Ande has an extensive real estate portfolio of her own, and she was already managing several long-term rental properties when she joined Airbnb in 2012. The vacation rental market in Oklahoma City proved profitable, and she has since expanded her short-term rental business to include three properties in the area. Ande is prepared to explain the formula she uses to determine whether a property is a good candidate for Airbnb, or would serve her better as a long-term rental. She also explains how to evaluate the demand for short-term rentals in your area, as well as the expenses associated with Airbnb that will affect your decision to rent to either travelers or lessees.
Topics Covered
The evolution of Ande’s Airbnb business
•Established long-term rental portfolio
•Wanted to try Airbnb as experiment
•Managed herself first nine months
•Created systems, added cleaning staff
•Eventually hired property manager
•Added two listings
•Airbnb now self-sustaining business
Ande’s first Airbnb listing
•Duplex on golf course
•Remodeled inside
•One of better homes in neighborhood
The Airbnb lessons Ande learned early on
•Cater to guest standards (not your own)
•Provide blackout curtains for jetlagged guests
How to determine if demand exists for Airbnb in your town
•Hotels point to a need for accommodations
•Won’t know until you try
•Consider listing on multiple platforms (easy to sync calendars)
How to decide whether to offer long-term rental or list property on Airbnb
•Compare Airbnb net profit to long-term rental gross revenue potential on traditional one-year lease
•Calculate net profit by subtracting Airbnb expenses (mowing, utilities, Wi-Fi, cleaning, management, consumables, wear-and-tear of furnishings, general maintenance) from gross
•Consider the neighborhood and tourist presence
•Remember that real estate is underlying asset
Airbnb’s push to pay cleaners $15/hour
•Big cut into profit margin for Airbnb’s in certain areas
•Ande pays fixed amount per job
Connect with Ande
Connect on LinkedIn
burchfieldlegal.com
Resources
Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom by Robert T. Kiyosaki
Rich Dad Poor Dad: What the Rich Teach their Kids About Money – That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
CASHFLOW Game App
HomeAway
Expedia
Booking.com
TripAdvisor
VRBO
AirDNA
getproperly.com/en
Connect with Jasper
Email: jasper@getpaidforyourpad.com
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!
Ande Burchfield is an attorney with Burchfield Law, PLLC, serving businesses, non-profits, and real estate investors. Ande has an extensive real estate portfolio of her own, and she was already managing several long-term rental properties when she joined Airbnb in 2012. The vacation rental market in Oklahoma City proved profitable, and she has since expanded her short-term rental business to include three properties in the area. Ande is prepared to explain the formula she uses to determine whether a property is a good candidate for Airbnb, or would serve her better as a long-term rental. She also explains how to evaluate the demand for short-term rentals in your area, as well as the expenses associated with Airbnb that will affect your decision to rent to either travelers or lessees.
Topics Covered
The evolution of Ande’s Airbnb business
•Established long-term rental portfolio
•Wanted to try Airbnb as experiment
•Managed herself first nine months
•Created systems, added cleaning staff
•Eventually hired property manager
•Added two listings
•Airbnb now self-sustaining business
Ande’s first Airbnb listing
•Duplex on golf course
•Remodeled inside
•One of better homes in neighborhood
The Airbnb lessons Ande learned early on
•Cater to guest standards (not your own)
•Provide blackout curtains for jetlagged guests
How to determine if demand exists for Airbnb in your town
•Hotels point to a need for accommodations
•Won’t know until you try
•Consider listing on multiple platforms (easy to sync calendars)
How to decide whether to offer long-term rental or list property on Airbnb
•Compare Airbnb net profit to long-term rental gross revenue potential on traditional one-year lease
•Calculate net profit by subtracting Airbnb expenses (mowing, utilities, Wi-Fi, cleaning, management, consumables, wear-and-tear of furnishings, general maintenance) from gross
•Consider the neighborhood and tourist presence
•Remember that real estate is underlying asset
Airbnb’s push to pay cleaners $15/hour
•Big cut into profit margin for Airbnb’s in certain areas
•Ande pays fixed amount per job
Connect with Ande
Connect on LinkedIn
burchfieldlegal.com
Resources
Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom by Robert T. Kiyosaki
Rich Dad Poor Dad: What the Rich Teach their Kids About Money – That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
CASHFLOW Game App
HomeAway
Expedia
Booking.com
TripAdvisor
VRBO
AirDNA
getproperly.com/en
Connect with Jasper
Email: jasper@getpaidforyourpad.com
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!
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