Ep. 104: Diving into the Arbitrage Airbnb Business
Jan 20, 2023
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Guest Emily, a real estate investor and founder of The Clair Co., shares her unique spin on design for short term rental properties. She discusses the strategy of arbitrage, sourcing listings, optimizing performance, and team operations. Her goal is to expand internationally and become a seven-figure revenue company. Tune in for insights on the Airbnb business and interior design tips.
Airbnb arbitrage involves renting properties from landlords and listing them on short-term rental platforms to generate active income.
Market selection for optimizing Airbnb listings involves analyzing data to determine profitability and finding unique selling points for the listings.
Staying ahead of competition in Airbnb arbitrage requires focusing on unique design, exceptional amenities, and delivering excellent customer service.
Deep dives
The Strategy of Airbnb Arbitrage
One of the main topics discussed in this podcast episode is the strategy of Airbnb arbitrage. The speaker explains that Airbnb arbitrage involves renting properties from landlords and then listing them on short-term rental platforms like Airbnb. The goal is to generate active income quickly by leveraging other people's properties. The speaker shares their experience in negotiating with landlords, finding rental opportunities, and setting up the Airbnb listings. They emphasize the importance of maintaining high standards for the properties and providing excellent service to guests.
Selecting Markets and Optimizing Listings
Another key point discussed in the podcast is the process of selecting markets and optimizing Airbnb listings. The speaker explains that market selection involves analyzing data from platforms like AirDNA to determine the profitability and demand in different cities. They also mention the importance of finding unique selling points for the listings and creating attractive titles and descriptions. Additionally, the speaker highlights the significance of pricing the listings effectively to attract bookings and leverage Airbnb's discount feature for new listings.
Staying Ahead of the Competition
The podcast episode concludes with a discussion on staying ahead of the competition in the Airbnb arbitrage business. The speaker acknowledges the increasing competition in the market and shares strategies to stand out. This includes focusing on unique design, providing exceptional amenities, and delivering excellent customer service. The speaker also emphasizes the importance of managing and responding to guest reviews to maintain a positive reputation. By differentiating themselves and consistently delivering a great experience, the speaker suggests that it is possible to stay successful in the ever-evolving landscape of Airbnb arbitrage.
The importance of strategic location and amenities for short-term rental success
The podcast episode emphasizes the significance of choosing a location for short-term rentals that is in close proximity to popular amenities such as hotels, hospitals, and major retailers like Walmart and Costco. The presence of these establishments can indicate a thriving and desirable area for short-term rentals. The podcast also highlights the importance of research and due diligence in identifying locations that attract high-paying guests. Additionally, it is advised to invest in high-quality furnishings, including comfortable mattresses and well-designed living spaces, to ensure guest satisfaction and positive reviews.
Building and managing a remote team for Airbnb arbitrage
The episode discusses the crucial role of building and managing a remote team in the success of an Airbnb arbitrage business. It recommends having a portfolio manager who oversees the entire portfolio, conducts due diligence, and coordinates with cleaners and handymen in each city. The team consists of cleaners, with backup teams, and handymen who can quickly address any issues that may arise. Effective communication among team members is facilitated through messaging platforms. The episode emphasizes the importance of delegation and creating systems and standard operating procedures to ensure smooth operations. It also mentions the potential for partnering with others through joint ventures (JVs) for capital and expertise.
After quitting her 9-5 earlier this year to pursue real estate investing full time with a focus on STR, Emily has grown both her arbitrage, and PM portfolio at a steady rate over the past year. Emily founded The Clair Co. a short term rental property management company last year with the focus of bringing on multifamily properties under her management and ownership. Her company is known to have a unique spin on design to get their listings to stand out which lead to her branching out and offering interior design for her PM and non PM clients.
In this episode we discussed:
What arbitrage entails and why she loves the strategy
Her strategy to source the listings and decide on locations
Her team composition for operations
How she optimizes listings for performance and to win over competitors