Get Paid For Your Pad | Airbnb Hosting | Vacation Rentals | STR Revenue Management The “Airbnb Mother-in-Law” Strategy Explained
You’ve probably heard of the mother-in-law apartment, a small suite on the same lot as a single-family home, where an in-law (or other family member) can live while maintaining their own privacy and independence. But what if you want to list an in-law property on Airbnb? Is it wise to list two units on the same lot as short-term rentals (STR)? Or is there a better way?
Kyle Stanley is an avid real estate investor and experienced STR host. He is also the host of the Fearless Flipping Podcast, a show dedicated to helping listeners learn to flip houses and earn passive income with real estate. After buying a property with a secondary unit onsite, Kyle created the mother-in-law model to earn money on Airbnb and provide a unique opportunity for his long-term tenants.
On this episode of Get Paid for Your Pad, Kyle joins me to explain how he came up with the mother-in-law model, discussing how it can be a win-win-win for long-term tenants, Airbnb guests and property owners alike. He describes how to find willing onsite managers for mother-in-law units and the challenges of relying on an individual rather than a business. Listen in for Kyle’s insight around the current real estate market and learn whether the mother-in-law strategy makes sense for your STR business!
Topics Covered
How Kyle got into the STR space
- Unexpected expenses with first house in Scottsdale
- Friend introduced to idea of renting room on Airbnb
How Kyle expanded his STR business
- Moved back to California for dad’s health in 2016
- Airbnb guests generally in town for business or family
- Discovered income potential of renting whole house
- Increased portfolio to five listings in Fresno
How Kyle came upon the mother-in-law model
- Nervous about listing two houses on one lot on Airbnb
- Idea to make one long-term rental with reduced rent
- Serve as onsite manager/cleaner of Airbnb property
The advantages of Kyle’s mother-in-law strategy
- Win-win-win for tenant, STR guest and owner
- Increased profits from $1500 to $2500/month
Finding a tenant who is willing to serve as onsite manager
- Stay-at-home moms + individuals looking for low rent
- Consider fair wage laws, track time and offer bonuses
How guests respond to having an onsite manager
- Make clear on listing to attract right people
- Guests inclined to break rules unlikely to book
The challenges of using the mother-in-law strategy
- Relying on person vs. business
- Backup plan in place for emergencies, trips
Kyle’s tips for replicating the mother-in-law model
- Choose onsite managers you trust 100%
- Ensure that model makes financial sense
Kyle’s insight around the current real estate market
- Likely 12-18 months away from downturn
- All-in on special terms and arbitrage model
How to approach a property manager about Airbnb
- Use FORM sales formula to make friends first
- Explain how differ from other tenants (pros + realities)
- One of every nine will say YES
Kyle’s best advice for GPFYP listeners
- Access likeminded people and information
- Do research to expand mindse
Connect with Kyle
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