If you manage multiple Airbnbs, how is it going?

Laura2592
Level 10
Frederick, MD

If you manage multiple Airbnbs, how is it going?

We currently have an Airbnb which we just put up this year, and a rental which has been occupied by a long term tenant for the last several years (not on Airbnb.) I have found that a generally enjoy hosting more than landlording despite the occasional headaches. Because our Airbnb was originally purchased as a weekend cottage and maybe eventual home for us in a few years when we are planning some career changes, our business model is just to cover the cost of ownership. Sure we would love to make a profit, but at the moment, we are happy if it pays for itself.

 

We are planning to acquire more property and/or sell our rental when our tenant's current lease expires. My husband and I debate about doing another Airbnb-- one that has a business model more geared to profit, vice a rental for a long term tenant. We currently live about a half hour from our Airbnb and can easily visit and do turn over if the cleaning crew is not available. We would be looking to get another within about an hour radius of home base but in a different county/different market than our current one. Obviously we could not be in two places at once for turnover so we would probably need a manager or co-host. We would want this one to be profit driven and would have a different business model for it (maybe allowing longer stays tho not long term. higher nightly price, etc.)

 

So if you are managing multiple Airbnbs in different geographic location, how is it working? Would you recommend this to someone else? What pitfalls or lessons learned do you have? Any recommendations?

8 Replies 8
Inna22
Level 10
Chicago, IL

@Laura2592 I have more than one property and they are all within 15 min drive and most within 5 min walk from my hose. While I know it will be profitable for me to have more in other locations, I personally know it is not a good idea FOR ME in my market and my style of life (kids etc). Also, it will no longer be really worth it once I pay a co host. 

@Inna22 We would consider making our current long term rental a STR through Airbnb-- its only a few blocks from our primary home. Cleaning is the issue. In our small city, cleaners are expensive and not great-- a few companies have monopolies and individual cleaners take a VERY long time or are unreliable. Certainly these services are not providing the deep clean between guests that is demanded by Airbnb for anything remotely affordable cost-wise. In the years we have lived here I have been through pretty much every service and not found a single one that is actually good. I am not a picky person by any stretch but if I pay you to clean I should not have to dust and vacuum immediately behind you. So if we did turn our closest property into an airbnb we would need to clean which would be difficult to do with turning over the other as well. And frankly that property is cute but nothing super special. Furnishing and decorating it to make it stand out would be costly.

 

I have my eye on a little dollhouse looking place about an hour away in a good market for Airbnb. I just don't know if it will work 🙂

@Laura2592  I've put forth this idea in the past on another thread- I think a good place to look for a cleaner, or even a co-host, would be to put up a notice at a local seniors' center- there are plenty of seniors who are quite healthy and active, might be really detailed and fussy about cleaning, would have flexible schedules and be happy to earn some extra money. Might be worth a try.

Yadira22
Level 10
London, United Kingdom

Hi @Laura2592 

interesting topic.

we cover two properties that we  STR based on single bedrooms or as entire places. 
Our wonderful cleaning person, Sonia helps once every two weeks and we outsource the check in for the property which has the most turnovers. So even though we get help it’s not as much as I would realistically like but given certain expenses it’s about as much as I am willing to consider at the moment. 

For me, buying a property to Airbnb (STR)  is really risky- every year London is closing down on STR and has more restrictions, which is needed as with any market but also makes it high risk. For me I think the money is in the co-hosting side of it. 

-rent the property and pay a fixed sum to landlord with their permission of course (most financially rewarding but riskier model)

 

- you do not rent the property out but manage it, so your income is commission based only (less risk but less reward)

 

I think look at your market/schedules/flexibility  and act accordingly. Not trying to lead you away from your plan but frankly if I got to that point I would eventually look into having an actual hotel with paid staff as my endgame.

 

But this is not completely for me as truth be told I begun doing this as a means to relief our cash flow situation (which we have) and now to buy more property but short term (5 years) this will be very good for us. And don’t get me wrong I am very grateful as I have been able to pay off a lot of credit debt we had- I have paid for my parents to travel, in February they go on an all inclusive luxury holiday to Mexico for a week or so, we backpacked through South America, etc and we have met such lovely people. Before starting I was very skeptical of people in general and still not trusting but my guard is slowly and naturally coming down. 


So- do you and think with your brain but consider your heart! 🙂

@Yadira22  I don't think we would ever do an Airbnb in a major market. Too many risks, too much competition. We have good friends who have places in DC and New Orleans that they Airbnb and its no joke to keep up with the constant churn of legal restrictions and protests from neighbors about everything from the noise of suitcase wheels in the hallway to complaints that their rents are going up because there is an Airbnb down the street. I am sure there is a lot more profit in those markets, but I just wouldn't want to deal with the headache. My hat is off to those who can make a go of it!

 

 

Yadira22
Level 10
London, United Kingdom

What I would note- is properties which make for good STR places usually are great for renting- as location, space, cleanliness, general comfort etc are naturally taken in attention just need to be renovated slightly different to reflect the LTR needs, ie have a living room instead of an extra room. At least this makes sense to me. 

If you had the means to buy a property and retain it as an asset vs a liability, why not? You don’t need to keep it on Airbnb as to pay the mortgage in full, you can rent (3months only or longer etc) and if possible with this added profits you could pay it quicker, you can even remodel for the STR crowd and resell it with listing descriptions, photos etc so it’s ready to go- of course not your profile or listing but yes the model to replicate it. A lot of people want to do this but have no idea/ too caught up in the “what if” as to start...

Don’t limit yourself by others- ultimately in business you are your biggest asset and cheerleader- question is,... do you believe in yourself enough as to do this? 
Have a beautiful day and good luck to you 

Emilia42
Level 10
Orono, ME

@Laura2592 

Over the last 3 winters my family and I have renovated existing apartments with the purpose of listing them on Airbnb. Three are now Airbnb apartments. One attached to my home and the other two across the street. We have six more long term apartments and could potential renovate those at some point. My family is fortunate to run our own business so I have a lot of flexibility in managing and cleaning. It is more than a part time job in the busy months but we wouldn't make any money if I had a co host or hired out cleaning.

 

The only problem is that I do not trust Airbnb and don't think that it's sustainable. At any point, a guest could report me for assuming that a night light is a hidden camera and then I'm banished. Then it's back to long term renting. Unfortunately, there is no competition for Airbnb in my area. So in the meantime, I do not feel comfortable expanding beyond what I already have to work with.

Paul154
Level 10
Seattle, WA

Buying and selling real estate is expensive. In my city, real estate commissions, transfer tax, fixup and just having your property empty will cost about 10-15 %.  Buying  is about 5-8% . So a round trip is 15-22% expense.

Have you considered just keeping your rental and making it an Airbnb?  That is what I have done and am very happy with the increased profit. Along with the  lower risk of bad tenants with strong (expensive) legal rights.