Income potential for guest house in Redding, Ca

Shawna71
Level 2
Eureka, CA

Income potential for guest house in Redding, Ca

Hello All,

 

I am trying to find information on the potential earning for a 1 bed 1 bath guest house in Redding, Ca.  I am looking at purchasing a property that has a 3 bed 1 bath in the front with a 1 bed 1 bath guest house in the back that would be perfect for an Airbnb space.  I would be staying there every other weekend.  I really need to know how much this space could potentially earn so that I can decide if this would be a good investment.  I live 3 hours away from the property and would also need to find a house keeper to come clean after guests or possibly a cohost.  Any advice or information is Greatly appreciated!

Thanks,

Shawna

4 Replies 4
Helen3
Top Contributor
Bristol, United Kingdom

1. Treat it like you would any other business. Start by doing your own market research. For example buy market research reports from your tourism body for sort of guest you are targeting, research STR platforms to see what people are charging for comparable properties. Use Airdna.

 

2. Put together a business plan and budget with set up and ongoing costs.

 

3. Use 1 and 2 to estimate how many days a year you might let it out.  Estimate how many days a year you need to let it out to make a profit. The difference will be your net profit.

 

Presume you have already checked that you can operate STRs in this area and have a back up plan for what you would do if predicted bookings don't materialise or STRs are banned. @Shawna71 

Sarah977
Level 10
Sayulita, Mexico

@Shawna71  Helen has addressed your main question, so I'll add something else- if you live 3 hours from the property, you will either need a co-host who also does the cleaning, or a cleaner and a co-host. There has to be someone nearby who is prepared to deal with anything that might come up during a stay, and also for things such as dealing with or evicting guests who have snuck in more people than they booked for, or pets if you don't allow them, or is disturbing the neighbors, or throws a party.

 

Entire home listings with remote hosts, especially new hosts, are the exact type of listings which get hit with these types of rule-breakers. You'll want to word the listing in a way that makes it clear that the co-host lives nearby, rather than emphasize that they'll have the place to themselves and complete privacy, even though those things are actually true. You also may want to not use the Instant Book option, so that you have the opportunity to communicate with guests and vet them as well as possible before accepting their bookings. 

 

And while self-check-in is a feature many guests like, hosts have also reported that they've found guests to be more respectful of the place if there is a short meet and greet on their arrival or shortly after. If the place seems anonymous and faceless, guests are more likely to take liberties than if they register that this is someone's home and that there is someone who is looking out for it.

Thank  you for your feedback.  I definitely feel the need for a co-host.  Does anyone have advise on the best way to find one in the area of my potential air b&b space?

Helen3
Top Contributor
Bristol, United Kingdom

Advertise on a local host group for your area and ask for recommendations @Shawna71