Bill Faeth Unfiltered

Don't Make These Newbie Airbnb Mistakes

9 snips
Jul 8, 2025
Don't dive into Airbnb investments without knowing the common mistakes that can sink your cash flow. Discover why forming an LLC is crucial for liability protection. Learn about a simple yet effective $1,300 investment that could save you millions. Master revenue management and understand the importance of budgeting for renovations. Finally, uncover innovative marketing strategies, including harnessing social media and automation tools, to make your property stand out in a crowded market.
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ADVICE

Use LLCs for Protection

  • Always buy your Airbnb in an LLC to get asset protection and anonymity.
  • If closing in your name, transfer the property into a land trust then an LLC to avoid transaction taxes.
ADVICE

Get Umbrella Liability Insurance

  • Obtain a $2 million liability umbrella insurance policy above each LLC property.
  • This modest $1,300 annual investment is critical for extended liability protection beyond core policies.
ADVICE

Keep Finances Separate

  • Treat each Airbnb as an individual business with its own bank account and QuickBooks chart.
  • Never commingle funds between properties or personal accounts to maintain clean asset separation.
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