Most COMMON MISTAKES made while starting Airbnb

Here are the top mistakes new Airbnb investors make and how you can avoid them!

Want to learn step by step how to successfully invest in short term rentals and automate the management on Airbnb? See below to learn more about Airbnb Investor Academy!
https://financial-freedom-university2.teachable.com/p/airbnb-investor-academy

Want to learn directly from me, in a group setting, on weekly LIVE ZOOM calls? Join my group mentorship and see all other resources I provide such as book recommendations, investment analysis templates, and more!
https://stanwith.me/melefante6

Here are the TOP mistakes to avoid as a newbie Airbnb investor:

#1) Not understanding the market

Location
Demand (tourism) steady and YoY growth
Seasonality
Use data on sites such as Airdna:
https://lddy.no/11a5w

#2) Not understanding the key investing metrics for short term rentals

What will the avg daily rate and occupancy be throughout a given year
Revenue
Expenses
Investment analysis
Cash on Cash return (having a min of 25%)
Total Return on Investment
I have a custom spreadsheet for evaluating properties in the main link below:
https://stanwith.me/melefante6

#3) Furniture

Not understanding how much it costs to furnish an entire house from scratch
Need to budget for this up front and also include it in your investment analysis

#4) How to stand out from competition

Biggest mistake is standing up a place that fits in with the status quo in a given market
Airbnb is like social media, it’s all about click rate
You need to have at least one KEY moment within the property to grab someone’s attention
This can be an interactive Mural, really well done outdoor entertainment area with a firepit
Make it instagrammable - make people want to stay there to post photos and videos of themselves having an amazing time. People will book your place because of this
Plus - free advertising to their followers on social media
Easy ways to stand out:
Accent walls in rooms, especially bedrooms
Change boring light fixtures for something that stands out and changes the mood of rooms
Adding a firepit with string lighting in a backyard, maybe a hot tub

#5) Trying to clean themselves

Yes, it is attractive to save money and clean yourself if the property is close by, but if you want to scale your investments you have to rely on cleaning services
Same goes for maintenance

#6) Automation

You need to leverage technology so you spend less time managing, and avoid paying a PM 20+% of revenue to manage for you
Use keyless entry and have a back up physical key
Use tools like yourporter or smartbnb to automate calendar syncing and communication with cleaners
You can also automate guest messaging through here
Pricelabs to automate pricing changes based on local demand in the market
You can auto review people through Yourporter

#7) Charging the same amount every day of the week / Pricing Strategy

Huge mistake… people are willing to pay for for weekends in most markets and holidays
You are either giving up money on the weekends or you are missing bookings during the middle of the week by charging too much.
Set customizations within pricelabs which will automatically change pricing for you based on day of week and time of year

#8) Not treating it like a business

Set up separate bank accounts for each property to accurately keep track of money inflows and expenses from the one account related to that property
Keep the books - whether its on a spreadsheet or through Quickbooks - this will make your life much easier come Tax season and work with a CPA who understands real estate investments
You can deduct many things against your cash flow, reducing your overall taxable income - work with a CPA to understand what you are allowed to deduct.

Let me know what questions you have!

Видео Most COMMON MISTAKES made while starting Airbnb канала Michael Elefante