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Airbnb Host Guide That Everyone Went Crazy Over It?

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STEP 1 BACKGROUND RESEARCH
STEP 2 BUSINESS SET UP
STEP 3 ACQUISITION OF PROPERTIES
STEP 4 SET UP & SYSTEMS
STEP 5 ONGOING REVIEWS & LONG BOOKINGS

 

 

INTRO

hello, people in today’s tutorial I’m going to give you the ultimate step-by-step Airbnb Host Guide to starting an Airbnb business in this article, I’m going to cover the five main steps to starting an Airbnb business,

step one is background research

step two is setting up your business in the right way

step three is the acquisition of properties

step four is the setup of the property and the background systems and finally,

step five is making sure you get good reviews and how to get longer bookings

so let’s jump right into it first up I’m going to talk about the background

STEP 1 BACKGROUND RESEARCH

the research you need to do before you start

your Airbnb

business if you’ve seen my video

everything you need to know

to start an Airbnb business then this

the first session will sound familiar

so feel free to jump to step two so

where are you going to operate your

Airbnb business from

this is the most important decision you

will make as it will affect your target

markets

and how much money you could potentially

make I recommend that you pick a gold

mined area of around the

away from where you live

this is so in case anything happens you

can quickly hop over

and sort out any issues and like

anything in life stuff will go wrong

with running an Airbnb business so get

ready for it

Do you want to do research into the gold

the mined area you are picking a good list

of attractions and amenities to look for

are the following

building sites city centers tourist

locations

train stations big business slash

industry airports

sports or music venues conference

centers hospitals and universities

if you know the area chances are you

already know this information

but it’s a useful exercise to write them

down in a list so you can see them all

this will help when you are looking at

your target market

finding your target market is

by the area

so you need to make sure you have a

clear picture in your mind who you want

to stay

in your Airbnb now of course you will

not get these guests all of the time but

will help you

and the guests if you have a clear idea

who the target market is there are

broadly three main groups when it comes

to target markets

corporate or business guests contractor

guests and leisure guests now all of

these three groups will have different

needs and expectations

business guests will typically stay with

you between Monday and Friday

while they are working away in a

different city or area depending on the

type of business guest they may have a

the higher expectation of the quality of

accommodation

so this will have to inform your

the decision when you are setting up the

unit

whereas contractor guests typically are

driven by cost per person per night

so they want a good balance between nice

accommodation and a good price

these types of guests can be really

profitable as they may stay with you for

a

lower your change over fees

but I’ll talk more about this in step

four where I talk about the unit setup

and systems

finally, leisure guests might be families

or couples who are coming away for the

weekend

and they might like nice little touches

around the property to make their state

all the more special

i hope it is clear now why you let your

area drive the decision on your target

market

you’re not going to target contractors

in an area where there are a lot of

tourist activity

that’s not to say you will not get them

as there might be big jobs in the area

from time to time

but you want to stack the deck in your

favor and target the market

which is most likely to spend the most

time in your area

all this workaround area and target

markets will help you inform what type

of property you want to target for your

Airbnb

business for example a standard

the terrorist house will work well for

contractor market

but might not work for the leisure guest

they might want a nice converted barn

type of property

so much of this will depend on your area

and market

so have this at the front of your mind

when you’re making these decisions

something which will help massively with

this is to research your competitors in

your area

you’ll be able to see what type of

properties they are using and how they

have it laid out

fingers crossed you should be able to

tell which target market they are

targeting by looking at the property

and it should not be a million miles

away from the type of guest

you are looking to attract at this stage

it’s a way of seeing what sort of pricing

your competitors are charging by looking

at different dates and lengths of stays

i would also make sure you see if they

are charging more for the weekend i

would also look at their calendar on

Airbnb

and see how booked up they are this

could be due to a lack of demand or

might be seasonality which is something

you’ll have to factor in

down the line when it comes to your

pricing you might have to charge more in

the summertime

to cover your costs in the winter when

looking at competitors properties I like

to ask me the following questions

what do they do well what do they do

badly I also like to read as many

reviews as I can to see what the guests

are saying

if you are serious I’d recommend that

while booking a few nights of them and

seeing how they communicate with you

what their service is like and what

their Airbnb is like to stay in this

will give you so much information for

when you come to set up your unit and

you will have a good measure of your

competition for more detail about demand

for your area and pricing i

recommend using a website called air DNA

you have to pay for their service but

it’s worth doing it upfront

to make sure that setting up your Airbnb

is a viable business you’ll get

information about average occupancy

rates

and how much people charge in your area

so this is a fantastic yardstick to go

off when it comes to pricing you want to

make sure that you’re always breaking

even at

occupancy in the month and making a good

profit at

occupancy your pricing is something

you’ll always be looking at at the start

you might offer a lower price to get

people in the property

and get some reviews on the board and

over time you might slowly increase them

to drive up your profits

or you might offer a good discount for

longer bookings this is something which

you will always need to be tweaking

during the year

but when you have a ballpark figure of

how much you can charge per night in the

a week and at the weekend

ideally, you want to charge a bit more of

the weekend you can do some rough

numbers

about how the unit will perform the main

cost to consider will be the following

company set up and accounting insurances

furniture and soft furnishings

cleaning and linen laundry gas

electricity water

broadband tv license and council tax or

business rates now some of these costs

are upfront costs and some are monthly

costs

so you want to work out how much you’ll

be making each month remember

to break even you on

make a good profit you want

occupancy then you want to work out how

long it will take to pay back your

initial investments

at this stage, you’ll not have fair

numbers but you want to get quotes for

all of the above you could even look at

your competitors and look at what they

offer and reverse engineer how much

their stuff has cost them by looking

online

cleaning and linen it is worth bringing

a few local businesses to you to get

some quotes

Do you want to factor in two changeovers a

week all a changeover is is when the

The cleaning team comes in and cleans the

house

changes the sheets and washes all the

used items I think it is safe to account

for two of these a week at this stage you also want to spend some time thinking about the maximum number of guests you want to stay at your property will you have single beds in each room and a safer bed downstairs personally, I like having single beds which can be pushed together to make a double this gives you flexibility if guests

want to have a double bed then this is something you could ask them when they book with you also, it might be worth having a sofa bed in the property, so you can get more guests to stay over this will be useful for the contracted market as they want the price per person per night to be at its lowest I would use your competition as a guide in terms of what they have charged for extra guests the price and model might be something like a basic price for two guests and then for every guest on top, you are competition here is vital to make sure you’re in the right price range for the area now you want to do all this before you can even properly start the business as no one wants to go into something not prepared and find out down the line that the business is going to lose them loads of money next up we’re going to

STEP 2 BUSINESS SET UP

talk about how to set up your business

now this will be based on my experience

which is only in the UK

so my advice for anyone is to speak with

an accountant as everyone’s situation is

different

so it could vary from person to person

but the setup which is most likely to

work for most people

is to have two separate limited

companies one for owning the asset

and one for operating the asset now this

will depend on how you’re going to

acquire the properties which I’m going

to talk through next but if you’re going

to own the property you’ll be operating

as an Airbnb unit then you want that to

be in one company and you want a

separate company to operate the property

this will help with your tax as the

the operating company is hopefully going to

have a decent revenue

so you will not be taxed in its own

the company but I’m not an accountant so my

the best advice here is to go and speak to

one of them

if you’re not going to own the property

then all you need is an operating

limited company

which is a pretty simple step

STEP 3 ACQUISITION OF PROPERTIES

how we’re going to acquire properties

for our Airbnb business

in simple terms, this is how an Airbnb

the business works when you own or control a

property

you’ll pay rent or a mortgage each month

and then pay for everything else to run

the property

so let’s say all your costs are one

thousand five hundred pounds a month

which will be your rent

utilities insurance wi-fi and tv

packages

and let’s say you have a booking for one

month and you’re cleaning the property

once a week with a change of linen

and this costs you

change over

meaning it costs you

so you’re all in for

after all the groundwork you can see you

can charge an average of

night for your property

and you’ll have that nice long month

booking so your turnover will be three

thousand nine hundred pounds meaning

after all your expenses you’ll have made

two thousand two hundred and sixty

pounds now these are rough numbers and

some other costs need to be considered

like Airbnb

fees but you can start to see how you

can make some serious money on Airbnb so

now I’m going to talk about the most

common ways for beginners to acquire

properties

the most obvious way is if you own the

property outright now this could have

been a cash purchase or using a mortgage

but you need to make sure you have a

holiday let mortgage for doing Airbnb

you cannot do this with a normal buy to

let mortgage as the product does not

cover

you for renting the property out by the

night if you’re in a lucky position

where you already have a few buy-to-let

properties

then you could convert some of these

properties across and start doing Airbnb

with them obviously doing any of these

involves you needing a fair bit of cash

in order to purchase the property

outright or the mortgage with the

deposit so what is the cheapest way to

get an Airbnb with as little money as

possible the way to do this is via rent

and rent agreements

all this is is a corporate letter

agreement between the landlord or

letting agents with your company

to repurpose the property for guests who

stay on a short-term basis the reason

why this is a cheaper entry point is

because you do not have to spend any

money to purchase the property

all you pay for is to furnish the

the property the best way to think about

this

is if someone could pick up a house

shake it then everything which would

fall out

will be your responsibility although

this is certainly a cheaper entry point

be aware you still need money to kit out

the property like I spoke about earlier

the amount you’ll spend depends on the

type of guest who will be staying in

your property so how do you find these

deals

well you can go directly to the landlord

and come to an agreement or you can go

viral Latin agents

the best way to find landlords for doing

rent and rent deals are to get well known

within your area

so make sure you attend networking

events whether that’s online or in

person

and join online communities and make

sure people are aware you’re looking to

partner with landlords to do

rent-to-rent deals within any business

deal you need to create a win-win

situation so let’s break down some of

the benefits for both parties what is

the landlord getting out of

disagreements

well they could potentially get

long-term income for their property

it makes sense that if this property

works as an Airbnb unit you’re going to

want to stick with it they get their

property maintained to a high standard

it’s going to be within your best

interest as the Airbnb operator to make

sure the property isn’t good nick

as if it’s not it could lead to you

getting negative reviews the landlord

does not have to worry about voids or

evictions as any voids are covered by

your Airbnb business not by the landlord

this will be different if you are

managing the property for the landlord

if you had voyage during the month this

will come out of the landlord’s pocket

but in a rent-a-rent deal, it comes out

of your pocket linking to this the

the landlord is more likely to not have to

chase the company doing a rent-a-rent

deal for the rent each month

now nothing is guaranteed in business

but as this is a business relationship

the idea is that the business managing

the units will act in a more

professional manner

this could include paying rent fully and

on time some of the benefits for you as

an Airbnb operator as that you can set

the units up quickly

you’ll not have to go through

conveyancing like when you purchase a

normal property

so the process can happen quickly and

you can have the units operational

within a couple of weeks

link with this is the fact you do not

have to stump up the money to purchase

the property

you are simply controlling and

repurposing the property to operate on

Airbnb

is the lowest cost way of getting

involved in Airbnb as you only have to

pay for the fit-out of the property like

previously mentioned you can get rent to

rent deals through Latin agents

this is relatively simple once you know

the type of property you’re targeting

after you’ve nailed your target market

you can start looking on Rightmove to

find the property to rent that fits the

bill

it’s worth booking a viewing for the

the property however I would recommend

mentioning to them that you want to

repurpose the property for clients who

will be staying with you

by the night this is normally something

those Latin agents will have to run by

the landlord so it was

worth mentioning the benefits we spoke

about before

once you have viewed the house and seen

if it’s right for you and your business

you can start to negotiate the terms of

the corporate tenancy

now you want to make sure that the

the agreement states that you’ll be housing

clients and not employees

it is also worth making sure you have a

break clause in the contract which means

if the unit is not performing you can

hand back the property within a certain

time period it is also worth stating

that any minor maintenance will be paid

for by you

if you are to ring the Latin agents

every time something has gone wrong

you’ll be waiting a while

and this is a business so you want

sources as soon as possible to give your

clients the best possible stay

around this stage, the Latin agents will

reference your limited company

now if you’ve just started the business

you will fail a credit check as you have

no history as operating and you will

have to offer a personal guarantee

for the agreements, it’s also worth

getting in writing that the landlord has

the right mortgage products for

operating the units as an Airbnb unit

if the property is mortgage-free then

you’re golden so you have nothing to

worry about

sometimes agents do not understand rent

to rent deals which is fine

it is often best to move on and try a

a different group of agents who understand

the model now I have operated at rent to

rent Airbnb

unit and I have my own personal opinions

on rent and rent

so please subscribe to the channel as

I’m going to make a video called what

they do not tell you about rent and rent

deals

so if you want to be the first to hear

about this please make sure you have

notifications turned on finally I’m

going to talk about becoming an Airbnb

management agent

now this is not a beginner strategy in

my opinion but here’s something you can

grow your business to once you have

experience

and it’s a good way to scale quickly it

involves you simply managing the

property for the landlord

you act like a letting agent buffer

Airbnb so you will market on the

platform and manage all guest stays as

well as background systems

such as the cleaning of the property

after people have stayed which I’m going

to break down in step four

normally you charge anywhere between

to

the owner of the property pays for all

the costs and pays to kick the property

out

you deal with everything relating to the

getting the guests on the property and

managing them

while they are there in this situation

all the risk sits with the owner of the

property

but the potential is there for them to

make a lot of money as they will have a

higher revenue

as you’ll be charging by the night but

this is a nice blend of risk and reward

for you as an operator

as you do not have to worry about paying

rent and you can still make decent money

and once you have a few units it should

be easy to plug in some new properties

to your systems

now we move on to step four which

STEP 4 SET UP & SYSTEMS

involves you actually setting up your

units and creating the background

systems

is a lot of work to get to this stage

but that we will be super valuable now

when you’ve researched your competitors

you should know how their unit is set up

and this is where if you’ve done an

undercover operation and stayed in one

of their units, you have learned lots

the best piece of advice is to model the

best units in your area

you want to be at least as good as them

but ideally better as you want to stand

out within your area when it comes to

configuring the property

you want those two magic words at the

front of your mind target market

I know i’ve mentioned that a lot but is

critical to creating good product and

service when it comes to the

configuration

this could be something like having a

dirty area for contractors to leave

their tools and boots

or making sure the whole house is family

friendly in case you have guests with

young children these types of touches

will show the guests you’ve thought

about them

and will lead to repeat business and

most importantly it will lead to good

reviews

which will help you to get the super hose

status on Airbnb

this is something which guests can see

when they book on the platform and super

host means you are one of the top hosts

on the platform

the criteria to become a super host is

as follows completing at least

or three reservations that total at

least

maintained a

maintain a one percent

cancellation rate or lower maintained a

 

this is focused on giving the best

service to the guests so once you have

your unit up and running becoming a

super host

should become one of your major focuses

back to setting up your unit

in my opinion, you want to be subtle with

the design of your unit

some places do have wacky designs and

again this will depend on your area and

target market

but a nice clean fresh Airbnb unit is

always something which will attract

guests

a top tip is to make sure the first thing

you order when you get the keys is the

wi-fi

as it can take ages for the providers to

pull their fingers out

so they should be top of the list on the day

one as there is zero chance you can

launch the unit without wi-fi

when it comes to getting furniture there

are loads of places online where you can

look

the low end will be used stuff from

Facebook marketplace or you can go with

high-end designer stuff

this stuff might work if you have a

property in the middle of Chelsea so you

need to make sure it suits your budget

and target market one of the most

important things to think about is how

the guests gain access to your property

do you do a meet and greet and show them

around or do you pay someone to do that

or do you fit a lockbox outside the

house and send them a code one hour

before checking

i personally like the lockbox approach

as it does not involve you or anyone

else having to go to the property but

there are advantages to having people go

into the property

as you might be able to work out if

they’re going to end up having a massive

rave in your Airbnb if you meet them

and stuff like this will happen so

another good tip is to install a ring

doorbell so you can monitor if

people are rocking up to your unit in

the middle of the night it is also worth

thinking about giving the guests a

Welcome book

which gives them information on the

property on local attractions and things

like numbers for taxis and local places

to eat

also, you want to make sure that the

guests have little touches like teas and

coffees

if you are running a more bespoke Airbnb

you might have a special coffee machine

with different types of coffee from your

local area something like this could be

a potential avenue of extra income as

you could sell local products to your

guest

next up we’re going to talk about

background systems this is the stuff

which makes your business run smoothly

which no one else can see the most

the important thing to any Airbnb

business is making sure you nail your

housekeeping and how you manage this as

a host is really going to be important

it is worth researching cleaning

companies within your area early doors

as you want to make sure they are right

for you when having these conversations

make sure

they understand the Airbnb model and

there is an expectation that your

property

needs to be at least hotel quality in

terms of cleaning and linen some

cleaning companies do deal with linen

and some do not

so it’s up to you which route you go

down it’s probably easier to have the

cleaning company deal with the linen

normally the cleaning fee is passed on

to the guest but you need to make sure

it is similar to the amount your

competitors are charging at the start

otherwise, people might go for the

cheaper option when it comes to

housekeeping I think the best way to

deal with it is to have a checklist for

the cleaner to go through every single

time

they enter the unit so it will start

with making sure that the guests have

left the key in the lockbox

and it might end with them spraying some

air freshen up right before they leave

so the guests walk into a nice smell

but you want every base covered in this

the case so all beds changed and a full

clean of the property

when you are making this checklist it is

worth meeting the cleaning team at the

unit

and go through what needs doing together

and agreeing with a price for a normal clean

and a change of linen there are many

good apps you can use to integrate with

cleaning companies

but something like WhatsApp is spot on

and you will not have to train them on

it so you can just ask for photos when

they have finished the clean you need to

make sure that you leave your cleaning

team enough time to fully clean the

property

so you need to think about checkout and

check-in times you might

say check out by

morning and earliest check-in is three

in the afternoon

you could offer late check-outs and

early check-in but guests will have to

pay extra

as you might have to get more cleaners

in to get the clean done quicker you

need to make sure that the cleaning team

is flexible when it comes to last minute

bookings

you might get a bug at last minute and

need to clean after the last guest is

checked out

so it’s worth making sure they are

flexible with dates and timings

guest communication is key to running a

successful Airbnb

business in fact part of becoming a

the super host is how quickly you reply back

to guests

so it’s vital you stay on top of this

you can communicate with guests or

through Airbnb

I’d recommend touching bases with them

after they’ve checked in on a few days

later

and always make sure you ask them to

leave your good review if they have

enjoyed their stay

Make sure you respond to every review

is important as well you can’t just

respond to the good ones

you need to respond to the bad ones as

well in terms of creating a system for

this you should look to hire a virtual

the assistant who could be the lead for

guest communication

when you have one unit it will not be

too much work but if you scale

looking after guests will become a

the full-time job I know we are talking

about just Airbnb in this video

but you do not want to just be on this

platform there are loads of travel

platforms online now like booking.com

for example

you need to make sure your property is

on as many of these platforms as

possible now the best way to do this is

by signing up to a channel manager

this is the hub for managing your whole

the business you’ll be able to manage your

bookings and calendar

as well as your pricing throughout the

year normally they all synchronize with

online travel platforms they will be

able to give you reports on how the

business is performing

and most of them have some sort of guest

communication element to them some of

the most popular channel managers are

the following

cargo Avivo guest new book and free to

book it’s worth doing your own research

on these systems to see which one fits

your budget

there are a lot of moving parts with

channel managers so if you would like a

video around them please let me know in

the comments as if you’re not going to

be busy enough while all this is going

on

you want to go live on Airbnb you need

to make sure you’re alive before the

unit is finished

you can input the date when the unit is

available from so make sure this date is

when you’re finished kitting out the

property

the reason why you want to be visible on

the platform as soon as possible is so

you can build up the interest you might be

able to get a few bookings while you’re

still setting up the unit

if you wait until everything was

finished it might be another few weeks

before you can even get a booking

you need to pay for professional photos

when everything is finished

up until then, I will just use stock

photos of an Airbnb unit

but make sure the guests are aware the

unit is not finished and it will look

similar but not the same

as the photos but when it is finished

getting professional photos will be one

of the best investments

you can make in your Airbnb business as

iPhone photos will not cut it

and you only have a small window to make

a sale so having great photos will help

with this final step

STEP 5 ONGOING REVIEWS & LONG BOOKINGS

five which is making sure you get good

ongoing reviews and how to get longer

bookings

once you’ve gotten to your groove and

got your super host you can start adding

little touches for your guests

like boxes of chocolates or creative

beers when they arrive this sort of

the thing goes down really well and will

lead to more good reviews

which are the lifeblood of any Airbnb

business if you want them juicy

longer-term bookings we spoke about

earlier

then there are a few things you can do

you can offer a discount for a longer

bookings on Airbnb

but the best way is to remarket the

guests who have already stayed with you

once you have that contact details it’s

 

and asking if they are working back in

the area

you can offer them a discount code if

they book for long with you or if they

recommend the booking to you

you could give them a

as a referral fee

this part of the process is about making

a win-win for the guests and offering

them a fantastic service which hopefully

they will have if they’ve stayed with

you before

starting and running an Airbnb business

has its challenges like any business

but can offer some really good returns

for property investors so I hope you’ve

enjoyed my ultimate guide to starting an

Airbnb business

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