Co-Host Q&A's

[Sam4952]

Hi 

I'm reaching out to Co-Host for information on how they started co-hosting.

It seems all the forums on Airbnb and 360 learning don't answer basic Q&A's or give information on how to start with fee's, Insurance etc and certainly have not seen any examples.

I require some hints and tips if anyone has time.

I'm a Super Host 4 yrs running from my own home and became a co-host only 3 days ago. I've been contacted by 2 potential hosts. 

This Sunday I have a meeting with 1st host and I have a million questions in my head to what information, any upfront fee's and fee rates I should provide for the host. Does anyone have any information you would be willing to share with a co-host buddy please.

Setting up listings & and room descriptions/ cleaning is easy as I already do that.

Eternally thankful for any help. 

[Helen3]

Hi @Sam4952 

Airbnb don't offer advice around cohosting, as cohosting is an independent business outside of Airbnb. 

Cohosting is like any other business. You do your market research to identify customers (hosts) who are your target market.You decide on what fees you want to charge and what services you want to offer.

You can speak to a local insurance broker about what insurance you may need for your cohosting business.

You can set up marketing channels like a website, social media pages and invest in targeted advertising to reach hosts you've identified as your target market.

Once you have decided on the above you need to develop a contract for your services.

You can read up on how co-hosting works on the Airbnb Help Centre in terms of how you access the platform as a cohost.

Good luck.

[Sam4952]

Helen,

Thank you for responding and will get my research head on asap.

regards

Sam

[Mike-And-Jane0]

@Sam4952 I think any fee structure should be fundamentally fair to both parties. As such I am always amazed when co-hosts or agencies demand 20% of the rental revenue for next to no work (as Airbnb is doing most of it for their 20%). Equally a percentage may be too low if the cleaning and laundry is included in the co hosts fees. The amount of cleaning/laundry is similar for a 2 bed place whether it rents for £100 or £300 per night.

I would consider it fair to create a table of fees for cleaning/linen/laundry services and a separate fee for managing repairs and the general upkeep of the listing. 

Finally be fair to the owner and allow them to be the host and you the co-host. That way when you part company they keep all the reviews and the listing. This will be a great USP for you as the bigger management companies insist on being the host.

[Helen3]

Hello @Mike-And-Jane0 

As a cohost I can't agree 20% is too high as it depends on the hosts charge out rate 20% of say £50 a night is £10 less than the minimum wage for an hours work in the UK or if say a three bed house in the UK @ £150 it's £30. 

For that your cohost, manages and updates your listing, makes sure your pricing is optimised, manages your cleaning and laundry services, makes sure your listing is fully stocked, deals with new guest inquiries, manages guest inquiries relating to confirmed bookings, does spot checks with cleaners, sorts out maintenance issues etc 

I agree that I think it's awful when cohosts mislead naive hosts and persuade them to listing under the cohosts profile rather than the hosts. 

Some hosts considering cohosting don't understand how much work is involved in managing a third party property.

[Mike-And-Jane0]

@Helen3 I sort of agree with you but does it really take 3 times as long to manage a 3 bed house as a 1 bed flat? Assuming it doesn't include cleaning/laundry then I would argue that the time spent is very similar for each of our 1, 2, and 3 bed apartments.

Now a percentage of revenue does give the incentive to a co-host to maximise revenues but even that is not ideal is it means whilst I am happy with 50% utilisation at £100/night a co host might drive to 100% utilisation at £51 per night (figures exaggerated for effect) This would give them more money but my costs would be much higher so I would make less money as the owner.

One other thought for @Sam4952 Make sure you define what the percentage is of. Is it what the guest pays Airbnb or what the host gets from Airbnb? There is a huge difference between the two.

[Helen3]

It depends if a three bedroom house is set up with individual rooms it can take far longer @Mike-And-Jane0 

Having been a cohost for three years I can honestly say I earn far less through cohosting then I have through any consultancy gigs.

[Mike-And-Jane0]

@Helen3 Justifying co-host fees by comparing to the ridiculous amounts companies are willing to pay for consultancy is......well it is as ridiculous as consultancy fees LOL.

[Helen3]

Whether you are a cohost, a marketing person, lawyer, accountant, interior designer, gardner etc you are all providing a service. For some services you can charge more than for others.  @Mike-And-Jane0 

I don't feel I need to justify the fees I charge whether as a cohost, a PR person, a journalist they reflect my training, education,  skills and experience.

I was just trying to be helpful to the OP.

Obviously cohosts work with hosts to agree chargeout rates and fees that mean the host gets the profit levels they are happy with.