How To Invest and Manage an Airbnb Property Out of State
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- Опубликовано: 11 сен 2024
- This is how to set up and manage an Airbnb property from out of state!
Airbnb Investor Academy: financial-free...
PriceLabs: lddy.no/tld7
YourPorter: yourporter.com...
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Why you should self manage your properties before considering using a property manager
- They will charge you (typically) 20-40% of revenue. This eats into your revenue and ultimately your cash flow and profitability!
- They don't need to have someone sit in a management office to provide keys and resources for guests anymore - you can do this virtually and with keyless entry, etc.
- They don't need to pay money to market your properties anymore, at least not to the extent they used to. Most bookings happen over Airbnb, VRBO, Booking.com, etc.
- YOU can automate around 90% of the work through technology and smart applications! This used to consume a TON of time, but not you can automate much of the day to day, making it possible to manage multiple properties from a distance on your own!
Here are the necessary steps to setting up and managing an Airbnb property from anywhere!
1) Cleaners. You MUST interview and hire GREAT cleaners. They are the most critical part of your team. Make sure to pay them well and tip them when you have consistent, positive reviews from guests! You should make sure your cleaners use some sort of calendar syncing tool to make sure they are up to date with your bookings, check in and check out dates, so you don't have to constantly communicate this information. They will also be in your property more than any other person, including yourself. They will communicate damages when they occur, which is critical so you can appropriately charge guests if necessary.
2) Maintenance. This includes preventative maintenance, routine check ups on your property, landscaping and HVAC services. It is important to outsource this at the forefront and trust me.... it is worth paying a monthly subscription to have this done for peace of mind and knowing that if an issue does occur, you don't have to scramble as much to figure out the resolution, especially not living close by! You can use services such as Mend bnb - depending on what city you are currently in. They are quickly growing and expanding into new markets. You can also lean on your cleaners if they are handy, offer to pay them a fee just to go out and address any issues, minor and major and then pay them additionally for time and materials! This is a win win situation, because if your cleaners are the ones doing some maintenance, they will go out of their way to check of issues and ensure they are fixed in a timely manner for you!
3) Keyless entry. Use locks that have both a keypad so you can provide codes to guests instead of a physical key. This will eliminate the potential for keys being lost or accidentally taken at check out. Get a smart lock that also has a physical key hole so you can use that as back up incase the battery dies of the keypad malfunctions.
4) Security Camera. Have one at the entrance to your property. This will allow you to check in on the place from the outside, ensure cleaners are showing up and leaving on time, make sure no parties are being thrown at your house, and just give you some peace of mind.
5) Property Management Software (PMS system). I personally use YourPorter, but Smartbnb and Guesty are also well known and heavily used platforms. This will allow you to automate much of the day to day. It will cross sync calendars between platforms such as Airbnb, VRBO and Booking.com, it will allow you to send automated messages to your guests, auto review your guests, sync calendars and messaging with your cleaners and maintenance, and much more. A good PMS system is a MUST in my book.
6) Automate pricing with a smart pricing tool such as PriceLabs. This was honestly one of the biggest time savers for me! You can set up customizations to intuitively change pricing based on time of year, day of week, min stay requirements, and much much more... The coolest part of this tool, is it will change your pricing for you based on not only your customizations, but also demand in that local market! So it will up your pricing for high demand days, and lower for low demand days. This will allow you to capture MORE bookings, boosting occupancy rate, and also charge a higher daily rate for dates that are heavily searched for.
That is how you can automate much of the day to day and put systems in place that allow this to be a (mostly) passive income investment that can pay extremely large dividends in the form of monthly cash flow. Any beginner real estate investor can do this! You can also start with little or no money in real estate. Consider rental arbitrage or cohosting to start out or perhaps partner with another investor!
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What questions do you have?
Hey Michael, I watched this video twice and maybe I overlooked it but I feel like you didn’t address the “invest” portion very much. Was wondering if you could do a video or link an old video on the process of investing/purchasing a short term rental property from afar. We are looking into investing into a property several hours away but honestly don’t even know where to begin. Thanks for the content!
@@anthonywoody3105 for sure thanks for pointing that out! This was definitely geared more towards operating from a distance and I can definitely do one focusing on investing from a distance in the near future! Thanks for pointing that out!
@@melefante6 thanks!! I have been searching around your page and found this video you posted last week so I think you may have already answered all of my questions with this video. Watching currently!!
ruclips.net/video/-KzJQsg7edo/видео.html
@@anthonywoody3105 awesome!
What’s a good way to build capital to be able to invest into a air bnb?
Bro this was gold. I own long term rentals but want a vacation home in Florida soon and this puts my mind at ease that I can manage remotely. You have a new subscriber dude! Excited to see more content !
Thanks Michael! I’m a few weeks out from listing my place and will definitely use Yourporter and Pricelabs. Thanks for the suggestions. I was pretty nervous about the added workload of managing the property on top of my day job, but this should help me out! Hopefully 6 months from now, I will be looking to get my second property right across the street from my current place. If you could possibly talk about that your journey with taking the leap to getting your second property and how you knew you were ready financially and personally, that would be really interesting. I know you said it happened sooner than you could have predicted. It would be cool to hear you elaborate on that also. Best wishes on your traveling! Def will hit you up for traveling suggestions in the old motorhome once I’m financially free like you.
Hey!! That’s awesome man congrats! Excited for you! For sure that is a good topic - how and when to scale!
You are so underrated!
Thank you!!
Exactly what I was looking for - whether you can change lock codes
Great advice! thank you :)
What a great video. Thank you for all the tips and advice.
:)
Great video!
Nice video & content Michael
How did u find your Gatlinburg cleaner?
Any tips or suggestions ??
Thks
Thanks for the info!
For sure!
Definitely Interested in starting something like this. I’m beginning to watch your RUclips videos. I just don’t have 700 dollars for the course yet but would be interested in any other advice you can offer. And ultimately thank you for your videos they are very clear and well done.
Great video. I like how specific you are. Thanks for the detailed video description. Thanks for explaining what you have automated and the tools you use. You estimated you spend of couple of hours a week managing these properties. What do you spend those couple of hours on?
Responding to guest specific questions and making sure pricing customizations are adjusted appropriately. And dealing with anything that pops up maintenance wise
Hey Michael! Great video and appreciate all your recommendations! Question: How often would you recommend to do a deep cleaning of your properties? EX) inside cabinets and drawers, showers, windows, etc. Assuming the cleaners you use daily just do a general clean after each guest?
Great question! Depends on the property and how much and how well the cleaners do during the regular turns, but right now we’re doing them about twice a year sometimes more - we try and rely on our cleaners and our guests input on how the place is :)
Mike do you have a video breakdown video on your personal 1.5 year strategy?
My mom and I are in the midst of setting up two, one physical and one on paper so far and my advisor is skeptical probably because he doesnt fully understand what the STR industry is capable of in our local Pocono tourism.
Im looking to press my limits and am solely looking at building/contracting strategy for 800sq/ft maximum ROI to take advantage with the high market appraisal.
That’s a great video topic idea. Yes a lot of people - advisors, lenders, even real estate agents do not understand short term rentals very well or their cash flow potential
Good stuff
don't you have to do a foreign llc in order to have properties in different states? or how does that work? cuz Im planning to expand outside of Arizona
It depends on the structure of the LLC - I recommend speaking with an attorney
How do you manage out out city/state renovations and furnishings without a property manager?
A PM wouldn't ordinarily do rehabs for you. But you can hire a local contractor for that. It's more difficult to manage a rehab remotely but doable if you find someone you can trust. For furnishing you would have to pay someone local to stage the property or an interior designer if you are unable to go furnish it
Hi Michael! I'm interested in getting involved in co-hosting, but I'm not sure where to begin. Where did you find people that were looking for a co-host?
You can either find a current Airbnb owner and offer to cohost. Or run the numbers on a new investment opportunity and plug in your cohost fee and present it to an investor who has money but doesn’t want to manage. May take a bit of networking - the first ones the hardest! I would suggest starting on bigger pockets and Facebook groups
Who do you use in Nashville for cleaning?
Hello, I can help you with a cleaning services in Nashville. Currently, I clean Airbnb’s in downtown Nashville.
How do you handle a bad guest experience? If you can give me some examples of mishaps that you've run into. Any big mistakes?
Have your cleaners document everything and send you photos. If any damage occurs charge them through Airbnb pretty simple process and Airbnb has host guarantee if guest damages something and refuses to pay. Other mistakes we’ve made is allowing locals to rent the place - very rarely would I ever do this again
How do you find local professional cleaners/AC Tech/handymen?
Usually by networking or searching online and interviewing people
What’s the best way to find a good co-host. I have been having the HARDEST time.
You are seeking someone to cohost your property or you are looking to cohost for someone else?
5:19
hi Michael, what do you think of Evolve Vacation rental company? They charge 10% of your revenue. I am in double minds whether to use them or opt for automated systems you mentioned in your video. Especially because this is my first airBNB listing and the house is located 4.5 hrs away from where I live (its pretty remote).
Your call. I have never used evolve but they are huge so I’m not sure if they will provide great property management services or lack luster. Also need to make sure they’re charging the appropriate amount per night and have a string pricing strategy and not leave it as a blanket x dollars per night regardless of day of week and time of year.
Are you currently looking for any partners to purchase more properties?
Not actively evaluating new partnerships unless it made a lot of sense to partner on a particular opportunity or multiple opportunities
@@melefante6 Michael I love to partner with you.
Do you recommend renting VS purchasing the property to then list them ?
For starting and scaling with less money yes arbitrage is the way to go. With buy and hold you get additional benefits such as more to write off come tax season, equity from principal paydown and appreciation - builds your wealth long term.
:)
🤓
Regarding the cleaning crew, have you ever used “turnoverbnb” and if so how was it?
I have not personally used it but certainly a good app to try out. I’ve heard mixed reviews from others who have used it
Great video!
Thanks!