I have a live listing with reviews on my personal account an...
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I have a live listing with reviews on my personal account and want add the LLC for tax purposes. When I go to "professional b...
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SO many of my friends and acquaintances have been asking for my advice on how to "make money" on ABB/how to find the right property. Its crazy! Anyone else noticing this uptick in hopeful hosts?
Since I started hosting about 4 years ago I have seen so, so many listings come and go (I heavily stock the search results in my area on a regular basis.) It is rare for a listing in my area to have more than 100 reviews.
It seems that people are eager to start Airbnb but don't realize how much work it entails. I also think that a lot of hosts get discouraged when they follow Airbnb's pricing recommendations. They may think it's not worth it for the amount of work and then back to long-term rentals they go.
Most people reach a point of burnout, myself included. This is my last season after only doing 5 months per year for 3 of the last 4 years. The free government money from last year made it all worthwhile while though!
Doing Airbnb is like hitting singles (in baseball). Unless you have multiple properties, you're not going to get rich doing this. One thing that puts a damper on profits is if your city taxes Airbnb. Here in Los Angeles they steal 14% plus a $91 annual license fee.
Emilia42 That's totally in line with my experience also. I've been at it four years next month, and hardly anyone who was hosting in my area when I started is still at it - I just looked, and maybe 2 of the closest 50. All of my closest competition is long gone (places offering something similar for a similar price). Very few people seem to stick it out long term.
Interestingly... this place has been open since I started, although I'm disappointed to see that it hardly ever gets any bookings. I'm really curious. I need more tea!
@Alexandra316 omg! I just spit out my coffee when I clicked that link and saw the front photo! What is she doing on that couch?!
@Emilia42 The mind boggles. I don't understand any of it. But it seems that at least two brave travellers did decide to find out what was up. It's definitely one of the sketchiest listings I've ever seen.
@Laura2592 Yes, not really sure what's being implied by the "but... !" but I feel like it might not be entirely above board.
@Emilia42 that's my experience as well. It makes me scratch my head when people say it drives up rental prices long term. I am sure in some markets that's true, but in my area they might be ABB for a minute, but they don't tend to stay that way long. If anything, it creates more rental stock after discouraged "investors" realize they need to do something with this property.
Yes, huge increase in people that are trying to become hosts. I have encountered plenty of driven people trying for rental arbitrage or any means of becoming hosts. I think a good place to start for these people is property management so they can experience what is required to run a successful VR.
@Sam4395 the rental arbitrage thing just blows my mind. I can't believe anyone would even try that. So many ways this can go wrong.
@Laura2592 There is a professional host in my area who is operating that way with over 25 listings.
@Emilia42 I hope that host has enough set aside to pay off 25 leases if something goes south. All we saw on the discussion boards during the first part of lockdown were hosts who didn't have a cushion doing rental arbitrage. Just not thought through. And as a former landlord, the liability issues involved would make your head spin. But I am sure some people think its a great way to operate.
I don't think going into arbitrage without a large cushion is wise at all. You'e right @Laura2592 , so many things can go wrong. What was most daunting for me at the beginning of my host journey was the starting costs and fixed costs.
Airbnb generates bookings. If you put up a listing (and it's attractive and priced right) you'll get bookings. Guaranteed. More than any other platform. And that's very attractive. Airbnb's greatest strength.
But that's where it ends. Most newbies buy into the whole earthy, "we love hosts" rhetoric, only to discover that Airbnb is just another big business, like your internet provider. You can't expect much other than bookings.
And today, those bookings come from all different sorts, often they never read your description, expect 5 star service at 2 star prices, sometimes behave badly or are disappointed because they didn't pay attention, and put that blame on the host. And there's little that hosts can do about it, other than try to prevent that in the first place.
As a rather gargantuan business nowadays, Airbnb simply cannot be burdened with that. They're interested in bookings. And that's what they're really good at. And they'll protect that strength religiously.
So, carefully watch who's booking, use your own sensibilities, and you should be ok. Airbnb can't really help you if it goes badly, and with millions of various issues daily, naturally make mistakes in judgement, often penalising the host for irresponsible guest behaviours.
I believe that's just the new norm. Enter this with your eyes open.