Becoming an Airbnb Host | Turno Guide for New Hosts

How to Set Prices On Airbnb

Rented — Fri, 21 Oct 2022 18:08:50 +0000

Define Your Business Goals

It’s a good idea to understand your overall goals for your property before you list it on Airbnb. Crunch some numbers and estimate an average amount of profit that would cover your overhead while increasing your revenue. You’ll set your prices with the goal of hitting that number or higher.

Then, figure out your occupancy goals. Remember that more bookings equal more revenue, so getting as many nights booked as possible is key to hitting your profit goals.

There will be times of the year when you won’t be able to accept bookings for a variety of reasons. Maybe you like to take a week between the busy season and slow season to perform maintenance on the property, or you have upcoming renovations and know you’ll need to set those dates aside. You may even like to use the rental for your own personal use.

Estimate how many days a month you’ll want to use the rental for yourself, add the maintenance days, and voila: an occupancy rate.

Estimate Your Expenses

While the overall goal of listing your vacation rental on Airbnb is to turn a profit, you have to remember that there are costs associated with inviting guests into your property. This is particularly true for short-term rentals as they see a lot more action than long-term rentals.

Pull out your calculator and make some rough estimates of how much overhead will cost. This should include funds to manage the wear and tear, cleaning funds, an emergency fund in case of major damage, and restocking costs for things like toilet paper, towels, and cleaning supplies.

“Don’t forget about cleaning fees. You can opt to build it into your rate or add it in as a standalone fee. Planning to do your own cleaning? Be sure to factor in a small amount to offset the time and materials that you will spend on this commitment.”

– Futurestay

Establish Your Market Value

Now that you have some goals in mind, it’s time to calculate the rough market value of your property. This will be the foundation from which you set rates, helping you decide what’s the absolute minimum nightly rate you can accept and what your average rate might look like.

This is where comp sets come in handy. You can use Airbnb to search for properties that are similar enough to your own — same bedroom/bathroom count, similar amenities, same location — and look at their rates. Then, based on your business goals, you can start estimating a base rate and a minimum rate.

Understand the Makeup of Your Price

Your Airbnb rate is made up of these main components:

Nightly pricing: Here, you can decide whether you want to charge per guest or up to the maximum number of guests.
Security deposit: Some Airbnb hosts charge a refundable damage deposit to cover any potential damage that might occur during a stay.
Cleaning fee: This covers the cost of turnover, whether you clean the property yourself or outsource to a professional cleaning service.
Additional charges: This may include pet fees, additional guest fees, late check-in or check-out fees, etc.

Fees are often considered a kind of protection for Airbnb hosts and property managers — in case something does happen, the cost comes out of a separate account and not the bottom line — and they may be legitimate depending on the market or the age and modernity of the home.

But remember: expensive fees are just as much of a turnoff as overly high rates. When you can, consider incorporating as many Airbnb fees as you can into the nightly rate.

Make Price Adjustments When Necessary

Whether you have one or one hundred Airbnb listings, you can still use key principles of dynamic pricing to entice more bookings and maximize your revenue.

For example, consider lowering your prices during times of the week or season when demand is the slowest, and even consider throwing in a discount or two to achieve more bookings during slower times. When demand is high, like during your peak season, a major event, or the holidays, raise your rates to match.

Most importantly, stay on top of your calendar. In the event of a major change, such as a horrid weather forecast or a spike in overall demand, you can adjust your prices to meet it.

Should You Use Your Channel Manager’s Free Pricing Tool?

As you grow your vacation rental business and take on more and more properties, the free pricing tools offered by OTAs like Airbnb and Vrbo may not cut it.

These tools can come with a bit of conflicting interest. An OTA is, of course, looking to get bookings for itself but not necessarily for the property managers who use it. So, take any recommendations from those tools with a grain of salt.

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Understanding How to Source Rentals

Rabbu — Fri, 05 Aug 2022 23:09:44 +0000

Taking a Bird’s Eye View of a Market in Flux

Low volatility and high returns have traditionally characterized the real estate asset class, making it a great way to diversify a portfolio and achieve safe but significant gains.

In some ways, the vacation rental market offers an even better equation. Short-term rentals have higher average daily rental rates than traditional accommodations, as well as long-term rentals, and payment events occur more frequently, bringing some liquidity into the investment.

But the recent market disruption of the COVID-19 pandemic has complicated the volatility in the market, and home prices have risen to new heights faster than they normally would move. As purchase prices continue to change along with consumer preference and traveler demand, it’s important to take a big-picture view of the short-term rental market at the sourcing stage.

The Digital Starting Line

A pandemic-era article named browsing homes on Zillow one of the more popular pandemic pastimes. For an aspiring host, this first browse is more than just escapism. It’s important to be thorough in the first digital search, using standard real estate listing sites like Zillow, realtor.com, and others to start to get a sense of the market as it stands.

Using the locational considerations reviewed above, hosts can begin their own online audit, understanding the purchase prices in those areas and what kinds of properties remain on the market. Crossing those findings with a basic revenue predictor analysis, also covered above, can help to give hosts a sense of their potential bottom line.

This aspect of the purchase process is another place that the COVID-hand of innovation has left fundamentally changed.

Today, more artificial reality (AR) empowered open houses, 3D video tours, and automation software can make it easy for hosts to get a real sense of the properties they’re assessing without spending too much time playing phone tag with property representatives or traveling on a whim to see a property that might disappoint.

Hosts can use this new look behind the scenes to their advantage for a fast and effective first phase.

Time to Go Local

When a host has a sense of the market as it’s represented through digital listing sites, it’s time for them to get in touch with a realtor in the surrounding area.

As the ascent of short-term rentals has become more pronounced, many realtors have a strong sense of the Airbnb market in their areas. With their experience and immersion in the dynamics of the specific market a host is targeting, realtors are invaluable at this stage of the property search.

If a host is approaching the property less for personal use and more for portfolio optimization, they might need to further explore the asset independent of locational considerations. Once they’ve narrowed down their interest, they might then need to be in conversation with multiple realtors in the different market segments they’re considering.

Don’t Re-Invent the Data Wheel

Airbnb investing isn’t rocket science, but it is increasingly data-intensive, and as is often the case for fail-proof investing, more data is better. But this shouldn’t deter hosts who might not find their calling in the facts and figures side of things. Partnerships at this stage are absolutely crucial to sourcing a property that has the right potential for each individual host.

Hosts can use the Rabbu platform to set individual and personalized investment criteria, then browse a “Zillow-like” experience (but with specific STR stats) to find properties that match it, or view all sourced properties across the U.S. These on- and off-market deals come accompanied by rich data projections to allow for efficient sourcing and analysis.

With a pulse on how property values and rental demand are changing in real-time, this strategy helps to make sure that investors don’t have to be chained to their desks to have access to a time-sensitive deal. It also reduces the mental fatigue that can set in at this stage of property sourcing, when the numbers blur and all of the properties start to resemble one another.

By leading with specific data inputs, the host will only be alerted to the properties that fit the terms of their interest and correspond with what they’ve prioritized for their acquisition.

Find Your Community, Early

Tech, experts, and data — all of these things are great to have on your side. But there’s nothing like connecting with a community of like-minded people who have walked the same path.

New-to-market companies have online communities in which hosts and experts can connect in casual conversation. Further, the ever-present corners of Reddit, LinkedIn, Discord, Clubhouse, and Quora are full of experienced hosts who would love to help.

It’s always beneficial to survey frequent travelers and guests at the acquisition stage as well. Understand what guests have loved in their own Airbnb experience.

Think of the trips your family has taken that will stay in your memory for the many years ahead. What made those experiences special? What makes people want to come back? Those insights can help guide the sourcing process just as much as a balance sheet can.

Find Calm in the Property Search Storm

A thorough property search takes time. But there’s no reason for hosts to go through the process alone.

Digital searches now have enhanced property viewing capacities, allowing hosts to get a strong sense of the market without leaving the comfort of their homes. Having spent some time on Zillow or other listing platforms, engaging a local realtor will be the best next step.

From there, turning to market partners that have made the data easy to leverage will be crucial. Rabbu’s short-term rental investing platform takes a lot of the stress out of the search and allows relevant listings to find investors, rather than the other way around.

Through it all, keeping in close conversation with an experienced and forward-thinking community will help the property search process feel exciting, engaging, and full of potential.

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How to Select the Right Airbnb Investment Property

Rabbu — Fri, 05 Aug 2022 23:01:29 +0000

1. Choosing the Best Location

Your intention for the property will influence the first buy box consideration: location. If the property is slated for ample personal use, whether on the weekend between guests or for full summers away, then you should consider your optimal property destination.

Is it best if the property is close by, or near friends and family? Would you prefer, for personal use, proximity to nature, local immersion, or a vacation spot you love to return to?

If the property isn’t intended primarily for personal use, then other metrics and considerations come into the equation.

Some new-to-market companies are making it easier to access market insights, including the average stay length, occupancy, and price rate for properties across different markets. Study the trends in primary, secondary, or tertiary markets with high nightly averages that can likewise sustain high occupancy rates.

Beginning with those high-demand markets, real estate investors can then get more specific in keying in on their desired location. Properties located near attractions like football stadiums, colleges, conference centers, concert halls, hiking trails, or waterfronts often see improved demand and Airbnb guest affinity.

2. Setting Your Budget

Following location, a crucial consideration is a realistic look at an expected budget. The financial planning stage incorporates important questions regarding the property’s funding strategy.

Short-term rentals are unique in the real estate market, which, as an asset class, has outperformed its market peers for more than 150 years. Holding most investors back from scaling their real estate portfolio is the fact that real estate investments are largely illiquid. Even as properties increase in their value, it’s hard to access those gains in wealth.

But short-term rentals are unique in that along with the property appreciation, frequent tenant payments — as often as every few days — create real returns early on. With a little bit of research, hosts can understand the revenue potential of their property and plan for a multi-tiered performance that’s seasonally adjusted to understand how the monthly returns will impact their financial strategy.

The inertia of real estate investing is that property values are high, mortgage rates are rising, and investors need clarity around their purchase strategy. Do they plan to finance the property, pay in cash, or invest in a small group? Are they hoping to scale their portfolio quickly, or will this one property be the focus for most of their investable capital?

All of these change the host’s initial orientation as they set themselves up for financial success with their rental.

3. What’s Your Type?

The short-term rental market is a niche that’s gained popularity with the ascent of Airbnb and the demonstrable traveler preference toward alternative accommodations after the wake of the COVID-19 pandemic.

But even within this market niche, there are subclasses of property types that hosts need to consider before they source their property. Single-family homes, multifamily units, and properties in condo buildings all have slightly different audiences.

Surprisingly, multifamily properties in buildings with 40 doors or less have seen some of the best returns from travelers in recent months. Hosts can seek more data through free tools as they consider which kind of property they’d like to begin with.

In conjunction with proper data-based due diligence, the property type question also returns the host to their initial objective, and whether or not the property is intended for personal use.

4. A Nuanced Look at Monthly Returns

Having goals for target returns and revenue outcomes is useful in two important ways.

First, goals — when properly researched — can be a way of keeping the property strategy aligned with its potential. They can also highlight opportunities to make changes that might increase the rental income closer to what the numbers say it should be.

The second benefit of proper financial goal setting is the ability to move with those numbers through the months, ensuring that the net operating income (NOI) will be where it needs to be considering both the necessary investments, the expected returns, and the inevitable cash-intensive turns in the road that can happen along the way.

Hosts should have target returns for their short-term rental’s gross yield, cash-on-cash returns, and capitalization rate.

Gross yield: The gross yield of an investment is its profit before taxes and expenses are deducted.
Cash-on-cash returns: Cash-on-cash returns refers to the cash income earned on the cash invested in a property. It’s calculated by dividing the annual pre-tax cash flow by the total cash invested.
Capitalization rate: The capitalization rate measures an investment property’s yield in a one-year time frame. Also known as cap rate, it is used to compare the rate of return on multiple real estate properties. It’s calculated by dividing the net operating income by the current market value of the asset.

In addition to the above, monthly revenue goals should be calculated with real-time, seasonally adjusted data from comparable rentals in the area. It’s important to understand the performance of similar market offerings to understand what a host can expect for market demand, which is highly location- and season-dependent.

With those variables taken into consideration, hosts will have a more accurate understanding of how their property can be expected to create returns at different times of the calendar year.

Do the Math and Choose the Right Airbnb Investment Property

Ideating around location, planning a budget, considering property type, and undergoing a proper target return analysis will leave investors well prepared to take on the next stage of their short-term rental journey.

From there, it’s time to leave some of the math behind and move on to the art of property sourcing.

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The Importance of Property Underwriting and Analysis

Rabbu — Fri, 05 Aug 2022 21:57:08 +0000

Informed Predictions

In simple terms, underwriting assesses the viability of an investment decision by taking a deeper look into the financials to determine potential returns.

Throughout the process, you should be working through a number of different models to take most of the guesswork out of your revenue prediction. Using the wealth of data that’s available and analyzing it for patterns, trends, and outcomes, you can be very close to accurate in predicting a multi-tiered performance production regarding your monthly income and cash flow.

Those should be the first knowns in the underwriting process.

From there, it’s important to predict the upfront costs associated with the purchase and the equity that can be leveraged as part of the equation. Those two factors will greatly influence the early financial beginnings.

On the same balance sheet should be the predicted gross yield, cash-on-cash return expectations, capitalization rate, and internal rate of return (IRR).

With these factors all taken into consideration, you’re beginning to establish a realistic picture of the risk and the return involved in your short-term rental venture, and that can inform your approach to borrowing, underwriting, and negotiating.

Keep Your Comps Close

Experienced hosts will be familiar with the use of comps in setting valuations. Comps — or comparables — are similar assets that have recently been sold. Their sale can presumably inform the valuation of the similar asset in question.

A recent list of home prices at the point of sale for comparable properties normally informs the value of a home and the line of equity that can be taken out against it.

Short-term rentals are again unique in that when you do their due diligence, comparable properties can inform more than the property’s sale price.

The need to analyze the property’s performance with real-time market data gleaned from similar properties in the surrounding area was touched on earlier. But getting specific and accurate data on the comps at the underwriting stage is valuable. Estimates should be kept conservative, and you should pause here to ensure your model still fits.

Check for Red Tape

Rules and regulations change quickly in the short-term rental space, and there’s nothing like an unexpected dead end to turn a real estate investment upside down. It’s crucial at the final stage of analysis that you search high and low for any regulation or litigation you might’ve missed, especially if you’re operating in new market areas.

Homeowner associations (HOAs), neighborhood laws, and city bylaws change across an invisible grid. There are town and municipality restrictions to take into consideration, and there are county restrictions that might not be common knowledge.

You should not only do a thorough search for laws and regulations in your market, but you should also reach out to that community of experienced hosts to see if any of their peers have experience in your specific location.

Ask for Quotes

Part of a complete analysis and underwriting model is acquiring the quote for the full-scale property management. This is a priority whether or not you plan to self-manage the property.

In the short-term rental space, many proposals include the underwriting, the revenue estimates, and the expected cost of management as part of the proposed offer. It’s to everyone’s benefit that this part of the equation is as accurate as it can be.

Engaging with a property manager to establish an initial quote, or learning from other hands-on hosts about the costs they encountered, will help ensure this fundamental part of the financial model doesn’t go overlooked.

Leave Emotions Behind

This is the stage at which the water can get choppy. The numbers can get big, loaners can misunderstand the short-term potential, and no can be a word that’s hard to hear. But some of the household name lenders have recently made waves in understanding short-term rentals as the business opportunities — not the personal assets — that they really are.

All signs point toward more support and understanding ahead. It’s important that you leave your emotions at the door and commit to making the numbers make sense. When the deal is right, nothing will stop it from finalizing.

One Last Gut Check

With the end in sight, it’s time to return to the beginning. The first exercise outlined in this chapter had nothing to do with the optimal market positioning, the math behind a great investment, or the optimal strategy for property management. It simply asked you to begin with an image of what wealth would mean to you.

The short-term rental market is the kind of boom that comes around, if they’re lucky, once in a host’s career. The market continues to support the Airbnb model with no signs of slowing down, and the personal and financial freedom the venture can bring is unparalleled.

As the housing market climbs further out of reach for many Americans, short-term rentals are a hopeful and necessary strategy to regain some financial security and portfolio diversity.

But none of that means much if the strategy has strayed from your initial intentions.

Take this moment as an invitation to return to that vision of wealth. Are you traveling? Are you sitting on a 50+ property portfolio? Most importantly, does this property model you’ve arrived at set you up in that direction?

If the answer is yes, you have the green light — sign the dotted line and let the short-term rental fun begin.

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Nuances That Impact Airbnb Cash Flow and Buying Power

Azibo — Fri, 05 Aug 2022 21:52:12 +0000

Short-Term Rental Insurance Is a Must

For short-term rental owners, in particular, landlord insurance is not a fringe benefit — it’s a necessity. The possibility of property damage and injury only increases when multiple people are coming and going from your property. You want to protect your assets and reduce your liability risk.

While securing traditional property insurance may be easy, getting short-term rental insurance is often more challenging — and costly — for a few reasons. Some of these include:

Heightened risk for submitted claims
Higher risk of prolonged vacancy based on seasonality
Increased personal property coverage requirements (considering short-term rentals are typically furnished)

With these added risks, it’s unsurprising that the cost of short-term rental insurance tends to be 20% to 30% higher than other property insurance. That said, it’s a crucial investing strategy to secure short-term rental property insurance to protect your asset and have proof of insurance at closing.

The key to securing cost-effective, short-term rental insurance? Partner with a reliable broker or carrier to find the right coverage at the right price.

A trustworthy partner like Azibo can help you weigh different coverage options, gain insight into state-specific requirements, and make decisions that align with your budget and financial goals. Among the most well-known and reputable short-term rental carriers are CBIZ and Proper Insurance — and an effective partner can help you determine your best fit.

Hosts should also consider creating renter guidelines and house rules to set expectations early on with tenants. This may help mitigate risk, prevent damage, and minimize complaints from neighbors.

Financing a Short-Term Rental May Come With Prepayment Penalties

Maybe you’ve evaluated your budget, calculated anticipated rental income, and set aside more than enough money for a down payment. Everything seems ready to go — until you find out that financing your short-term rental comes with prepayment penalties.

For these properties, in particular, lenders may charge a fee for paying off loans within several years of taking out a loan. Lenders often do this to dissuade borrowers from paying off their mortgage right away or refinancing, since it means less interest income on their end.

It’s important that investors do their research and account for prepayment penalties in advance. For example, if your lender has steeper penalties for prepayments in the first five years, you should know that up front.

You May Be Subject to Licensing Fees or Annual Fee Requirements

Depending on your state and municipality, your short-term rental property may be subject to licensing fees or annual fee requirements. Many hosts don’t factor this into their budget at first.

Be sure to check with the local municipality and state to account for additional fees specific to your short-term rental property. If you have multiple short-term rental properties across different states, consider how licensing fees or annual fee requirements may vary.

Short-Term Rentals Have Their Own Set of Property Ownership Costs

The cost of ownership for a short-term rental property is very different than the cost of ownership for a primary residence. Between property management, vacation platform fees, maintenance, and cleaning costs, short-term rental hosts have many additional expenses — and responsibilities — on their plate. These include:

Property Management and Vacation Platform Fees

Many short-term rental property owners use property managers to handle the day-to-day responsibilities of property ownership, like creating online listings, booking guests, coordinating check-ins, collecting rent, and managing maintenance.

If you’re using a vacation rental management platform like Vacasa or Turnkey, you probably already have property management support. But if you’re using a bookings site like Airbnb or Vrbo, you may want to hire a reputable property manager.

That said, property management fees are much higher for short-term rentals because of the added risk. Keep in mind that platforms like Airbnb, Vacasa, and Vrbo have hosting fees that range from 3-5% of your gross revenue.

Repairs and Maintenance Costs

Similarly, the cost of repairs and maintenance rises significantly for short-term rental properties. As a host, be sure to budget at least twice as much money as you would for long-term rentals. It’s better to be financially prepared in the event of a broken washing machine or window because scenarios like this will happen more often than you expect.

In the same vein, many real estate investors underestimate the cost of utilities. While internet, electricity, gas, and water typically aren’t covered by long-term rental property owners, short-term rental property owners often pay for these expenses — and that means they must budget accordingly.

Cleaning Fees

Finally, a large part of short-term rental maintenance is making sure your property is clean and cared for when tenants arrive. For this reason, it’s important to budget the time and money it’s going to cost you to clean your property before the next tenant arrives.

You might consider a reliable, affordable cleaning service or opt to clean the property yourself. Either way, consider what your time is worth and what you can reasonably charge guests if you include a cleaning fee on top of your nightly rate.

Make the Most Out of Your Short-Term Rental Investment

Futurestay recommends that “in the same way that you wouldn’t want to finance a new car while a home loan is going through, beware of the temptation to use credit to outfit your new property with upgraded furniture and amenities.

Sure, you’ll want to do this before you list, but you’ll really want to take care of this with cash to ensure there are no inconsistencies for your lending officer to find as they work to process your loan.”

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What Is an OTA? Top Vacation Rental Channels

Hostaway — Sat, 30 Jul 2022 00:54:53 +0000

Understanding Vacation Rental Online Travel Agencies

In the vacation rental industry, a channel — also called an online travel agency, or OTA — is a place where consumers can find accommodation, and providers can provide a supply of accommodation. They operate as marketplaces just like Uber or Amazon do.

Most of the top vacation rental channels, like Airbnb and Vrbo, are two-sided marketplaces. No marketplace can exist without inventory to be sold, however.

This is where you come in. You have the most valuable asset for an OTA in your hands: the property you are renting out.

In addition to inventory, OTAs also need a stream of visitors. They can increase their number of website visitors by optimizing their marketing. Similarly, they can improve their inventory by attracting hosts or property owners such as yourself.

The key driver for success, however, is conversion. How many of those expensive visitors will end up actually booking a place and paying a commission to the OTA? This is where Airbnb, Vrbo, and Booking.com have excelled.

Keep in mind that the main objective of an OTA isn’t to rent out your place — it’s to increase their conversion rate, which makes their advertising dollar more competitive. You can benefit from their efforts by making sure your property has a better price, a better description and pictures, better reviews, and, ultimately, a better conversion rate than competitors.

Which Channels Are Important for Vacation Rentals?

Many hosts start by listing their homes on either Vrbo or Airbnb. Over time, and given enough effort, many other channels are able to generate better results, on better terms, and with less effort. However, just like Uber and Amazon have a huge market share, these household names will continue to stay strong.

Airbnb

In many markets, especially urban, Airbnb is a very strong player. It’s worth noting that just as Airbnb is strong in some segments, it’s weak in others. For example, business travelers searching for accommodation for shorter stays in major cities will find much bigger selections and benefit from loyalty programs that include hotels.

Marketing on Airbnb is strongly driven by reviews, and their Superhost program is mostly based on reviews. In some segments, Airbnb offers more visibility in exchange for exclusivity or other tradeoffs. For example, Airbnb Luxe is great in the luxury segment.

Vrbo

Vrbo is the umbrella term for a long series of mergers and acquisitions that culminated in Expedia acquiring the merged Vrbo and HomeAway. Vrbo is incredibly strong in vacation and rural destinations, especially in the family vacation segment.

Marketing on Vrbo is very performance-driven, and they give preference to those who pay them more. On Vrbo, you should aim for a positive feedback loop: get bookings, pay commissions, get more bookings, pay more commissions.

The top performers on Vrbo often outperform top performers on Airbnb.

Expedia

Expedia is great for hotels and aparthotels, as they have one of the widest distribution networks in the world. However, you cannot simply list vacation homes on Expedia — you will be redirected to Vrbo for those.

If you manage aparthotels, especially more than 20 of them, you’ll want to reach out to your local Expedia office.

Booking.com

Booking.com is strong in some markets in Europe and is a behemoth in the world of business travel.

It offers the traveler a lot of benefits with a choice of cancellation policies and room rates. For the host, Booking.com is able to differentiate between refundable and non-refundable rates and has a lot of flexibility when it comes to its rate strategies.

Homes and Villas by Marriott

A latecomer, Marriott offers unique properties for unique travelers. They select each property manually, so they have a curated selection for their customers. Their Marriott Bonvoy program can be used to pay for trips, although hosts are paid in dollars.

The type of clientele that would have points on Marriott Bonvoy is quite exclusive, which usually results in high-quality guests.

Google Travel

Google Travel isn’t an OTA but rather a marketing tool, just like AdWords is. When combined with an effective booking engine, it can be powerful if the properties are in a market that consumers search for.

Other Channels

It’s worth mentioning that for certain properties, locations, and types of guests, there are channels that will perform better than these listed above. However, be conscious of your time.

If a site for traveling health care professionals offers good bookings for others, don’t list there unless you actually have properties near a hospital. Pet-friendly sites are great, but you should ensure you want to allow pets before listing there.

3 Tips and Tricks for Vacation Rental Channel Distribution

Now that you know some of the top short-term rental channels, learn top recommendations when it comes to listing your property on an OTA.

1. Don’t List on Every OTA

Each OTA has a slightly different target market for your area, and the same marketing approach simply won’t work for each one. Instead, take one channel or OTA at a time. Each of them requires a specific marketing message, plus you need to collect reviews and look up the images compared to the competition.

Do not list your properties on every site in hopes of bookings. You’re better off focusing your efforts and getting really good on a few big ones before expanding.

2. Consistently Check Your Rankings

Your competition is changing all the time. So are their rates, photos, and descriptions. To see how you stack up, regularly check search engines (like Google) for your OTA listing or your own website.

You’ll be able to see how travelers can find you and which sites come up for various terms. Check the traffic and conversion, and work to improve. We suggest using “incognito mode” for this — and be sure to check both the paid ads and organic results.

Also, search the big OTAs, like Airbnb and Vrbo, and see if you are at the top. If you’re not, try to figure out why. If you see trends, adjust your marketing to ensure you won’t be left behind.

Keep in mind that the demand for a given OTA also changes. If they don’t advertise in your area today, they might be the top advertiser tomorrow.

3. Know What You Sign Up For

Review the terms of each site and compare them with your own business model. Many property managers sign agreements with their owners that force them to operate in certain ways. This can be very costly, as some ways of dealing with guests may not be allowed on a popular OTA.

Therefore, be sure you have a flexible contract with the owners, and take the time to familiarize yourself with the OTAs.

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How to Write the Best Airbnb Descriptions for Your Listing

Angel Host — Fri, 22 Jul 2022 22:56:12 +0000

Start With a Brainstorming Session

During this process, we must put ourselves back in the traveler’s shoes. Think of the type of people who would book your property and what would appeal to them. Go back to the exercise where you walked through your home as if it was the first time and wrote down the highlights of your property. Identify what makes it special.

It’s important to be very objective as too much information can cloud any reader. You might find that the property’s highlights are the amenities, the neighborhood, the access to public transportation, the location, and more. From all these assets, the key is to choose 4 or 5 selling points.

The things that set your property apart from the rest will be used to “brand” your property.

They’ll be used to create a cohesive listing that translates into a strong brand. If you have trouble finding your selling points, check out the property’s reviews to find what people find most valuable.

Craft an Engaging Headline

A great headline (along with your hero image) is the main point of attraction for your listing. You know you have a great headline when people click through to your listing from the channels’ search catalogs.

To craft a clickable headline, it needs to be creative and catchy for your guest target. For example, a headline like “1 bedroom apt. in Toronto” might resonate well with some, while “Stunning Designer Flat in Toronto” will speak better to others. Throw out bland, meaningless words like “nice,” “great,” and “clean” — you want to describe your unique home.

And be specific — you only get 50 characters to convince guests to click, so don’t waste them.

Here are a few practical tips and examples to help you get it right:

Do mention any new amenities or special features that other properties in your area don’t have.
- Example: Quaint Coastal Cottage w/ New Finnish Sauna
Do update your title with the seasons.
- Example: Sun-Soaked Days! Patio w/ Pool, BBQ, Lake Views
- Example: Wintery 1BD Cabin: Snowy Hills & Warm Fireplace
Do change your title for upcoming special events in your area.
- Example: Enjoy Semana Santa Processions from Your Balcony
- Example: Headed to Lollapalooza? 5-min Walk to Grant Park!
Do tastefully use symbols to help your title stand out.
- Example: Penthouse Near Penn’s Landing: 5★ Views

Don’t use tags or labels in your title to make tracking your listing more convenient for you.
- Example: 3BD Condo Santa Fe TR0501B
Don’t exaggerate or use superlatives.
- Example: Best House in All of Atlanta- Amazing!!!
Don’t write in all caps — it can make your listing look cheap.
- Example: AWESOME APARTMENT WITH FAST WIFI! GREAT DEAL!
Don’t go overboard with the symbols.
- Example: ★✈ Feel like a ♕, Walk➜Beach! Fun in ☀! You Will ♡

Include a Concise But Helpful Description

Before jumping into the writing, there are two important things to take into consideration: voice and length.

The tone of voice you will use throughout your listing depends on many things: your personality, the property, and most importantly — you guessed it — the type of guest you want to attract. Also, to truly capture the essence of your home, there’s no shame in looking up words in a thesaurus.

Most travelers will skim the description, so keep it short and informative. The description should allow them to easily identify if your property will fulfill their needs and expectations.

Get straight to the point and avoid long descriptive paragraphs. Break down larger chunks of texts into smaller bits and use spacing, bullets, or headings to make everything more digestible.

If you’re not sure if you need to add a particular text, ask yourself: Do guests need to know this specific piece of information before making their booking? If so, go ahead and include it, but keep it short and simple.

Sell the Experience You Provide

When writing your description, it’s important to focus on the experience. People are choosing to book a home rather than a hotel. The reason: the unique experience. They want to “live like a local.”

Aside from listing the amenities, which are important, focus on what they can expect. Does the neighborhood have a weekly market they can go to? Do they wake up hearing church bells or birds chirping? That’s an experience, and that’s why people book through these channels.

What to Avoid in Your Listing Description

Up until now, we’ve talked about things to focus on, but there are some things that may slip your mind.

For example, you want to avoid having people leave your listing. One way to do this is to avoid introducing unfamiliar words. When this happens, the potential guest will likely leave your listing to look up a certain word, completely distracting them from their booking process.

Here’s the golden rule: Never mention something (with no further explanation) that a first-timer to your town or city wouldn’t easily understand. Avoid:

Local slang
Obscure neighborhood acronyms
Abbreviations
Using the name of your condo community in your title or as one of your key selling points

Also, don’t conveniently “forget to mention” your property’s flaws. We can’t stress enough the importance of not overselling and managing guests’ expectations.

To avoid having underwhelmed and disappointed guests, leading to bad reviews, we encourage you to be honest and upfront about anything that could affect their stay. For example, if your property faces a busy, loud street full of bars and restaurants, you need to mention that.

This doesn’t mean that you can’t turn a negative into a positive. On the contrary, this may attract a specific type of guest and will let other travelers — in this example, families with younger children — know that this property might not be what they’re looking for.

Remember, if you’re proactive and disclose these details upfront, guests won’t feel let down.

Once the Listing Is Launched, the Magic Happens

Listing is the first part of making sure you maximize your revenue, but this must be complemented with its optimization, a bullet-proof dynamic pricing strategy, and excellent customer service.

The post How to Write the Best Airbnb Descriptions for Your Listing appeared first on Turno.

How to Price Your Rental Property: 5 Top Considerations

Rented — Wed, 20 Jul 2022 19:18:10 +0000

1. Research Your Competition

“It’s important to set a solid pricing strategy. First, we recommend that you check out the market prices. Impersonate someone looking to go on vacation in the town your rental property is located in. What do the options look like? If you ranked those from worst to best, where does your property fall? Be honest with yourself and price out a stay at your property from there.”

– Futurestay

Take a look at a few vacation rental listings that are as similar to yours as possible — the same number of bedrooms and bathrooms and a similar location is the bare minimum.

Take a look at their calendars and ask yourself:

How often are they booked?
When are they the busiest, and what do their prices look like during those times?
What are their prices like during slower seasons? Mid-week?

Are competitors’ rates especially high during an annual festival? How do they change over the course of a week? What about during the winter holidays, or over spring break? Jot down some numbers and calculate an average to establish a basis for comparison.

2. Don’t Go Overboard With Fees

One of the hardest parts of pricing a vacation rental is the fees. Just like overly high prices, overly high fees can turn guests off to booking.

You may find yourself with questions like: Should cleaning fees be an add-on or included in the nightly rate? What about pet fees or late check-in fees?

Two common ways to handle fees are bundling (combining all of your fees into a single fee) or splitting the cost of fees between you and your guests.

3. Establish Pricing for Times of High Demand

Pricing your rentals for times of high demand is both exciting and delicate. You have to strike a good balance between staying competitive and not overcharging while still taking advantage of the surge of demand.

What Does High Demand Look Like?

Every market has its own ebbs and flows of demand, called market sensitivities. Some of the most common ones include:

Seasonality: The various seasons of the year will impact demand in different ways. For example, September through November may be considered shoulder season in Hawaii, where the rains tend to increase. But in Vermont, property managers will be experiencing a peak thanks to popular events like leaf-peeping.
Days of the week: Some properties do better on certain days of the week. Urban markets may experience a high mid-week due to business travel, whereas a ski cabin in the mountains may be more likely to sell out on the weekends.
Major events: Marathons, film festivals, and other popular events are always a good time to increase bookings.
Holidays: While the holidays are generally busy for all rental markets, hosts who offer larger properties may see an uptick in interest as families travel to be together.

The type of rental and the amenities provided can also impact high demand. For example, homes with pools will be more popular when a heatwave is in the forecast, while condos with private hot tubs may sell better around Valentine’s Day.

Increase Your Rates Based On Data

To increase your vacation rental rates strategically during times of high demand, it helps to lean into some data, both authoritative data from your own project management system (PMS) as well as local market data.

Average Daily Rate: This data point can act as a base expectation for past busy seasons, and you can make adjustments to optimize your return on those specific days based on past performance.
Comp Sets: Comparing your properties to others in the market can help you see what your competition is up to and make adjustments accordingly.

4. Adjust Pricing During Slower Seasons

Like everything else in the travel industry, vacation rental pricing is largely dependent on when people try to book and why. Your beachfront properties will have different rates than townhomes in Aspen, which will have different rates than condos in Vegas or New York.

Changing your rates to match slower seasons means that you’re always getting your money’s worth and reducing vacancies. Don’t forget: You’ll make more by booking your property at a lower rate than if you don’t book at all.

5. Analyze Data to Make Evidence-Based Decisions

“To successfully run an Airbnb business, you’ll want to keep track of a couple of key data points.

First, you’ll want to know when guests are booking and when they’re staying on your property. This can offer you insight into what times of year are most lucrative for your business, as well as which times might be a little leaner. Additionally, knowing how far in advance guests are booking may help you to understand times to target ad campaigns or other marketing devices to make sure your rooms are never empty.

You’ll also want to know where your money is going. What are you earning from your properties? Where are there opportunities to earn additional income? Best of all, when is that money showing up in your bank account? Again, this data will provide opportunities to hone your strategy to increase your profits over time.”

– Futurestay

Price Your Vacation Rental Right

You have invested a lot of time and money into starting your own vacation rental business. The last thing you want to do is price your vacation rental too low and miss out on revenue. Creating a pricing strategy that best suits you and your property is the best way to maximize potential profits.

Strategically pricing your vacation rental can be done by considering your competitive market, how the seasons affect demand within the Airbnb industry, and how recurring fees affect your overall business.

The post How to Price Your Rental Property: 5 Top Considerations appeared first on Turno.

How to Take Airbnb Photos

ACT Studios — Wed, 20 Jul 2022 19:09:20 +0000

Determine the Experience You Want to Create

Photographing vacation rental properties is not exactly like real estate photography — it’s less about the property’s features and more about showing the experience guests will have in the home.

“Great images should evoke emotion and the desire to click ‘book now.’”

– ACT Studios

The exercise below will help you pinpoint the experiences your property can potentially hold and what type of guest will be the best for you to cater to.

We’d like you to walk through the property and try to see it as if it was the first time.

Does the property meet the basic expectations of someone traveling this year?
What unique amenities make the home really special?
Where do your eyes go once you open the door?
Is there anything you would need to see before deciding to book?
What would make YOU want to stay there?

These answers will help you understand exactly the areas that must be photographed.

Guidelines for Your Shoot

You have a beautiful property that you have invested time, love, and money into — and it’s ready for the world to see. The next step is to photograph it beautifully, to truly capture the experience a guest can have on vacation there.

Below, learn simple tips and guidelines from professional photographers about how to successfully showcase your vacation rental through perfect photos.

Lighting

The goal is to illuminate the rooms and help guests imagine themselves in the space. We are strong advocates for the use of natural light, when possible. Shots that pop the most (pre-editing) are the ones bathed in natural light.

When spaces don’t have enough light flowing in through the windows, we recommend investing in LED light bulbs or another form of non-incandescent lighting that won’t give photos a yellowish tinge. Whatever type of lighting you choose, make sure to use a lens hood in all photos to help avoid glare and lens flares.

Cleanliness

Whether you’re investing in a professional photoshoot or not, you need to put your best foot forward. This starts with proper cleaning and preparing your home for the photoshoot.

We do encourage attention to detail, and if you or the photographer notice any minor cleanliness or tidiness issues (for example, a crooked towel or a counter that needs to be wiped) please fix them before taking your photos.

If the home is very unclean or otherwise unfit to be photographed, please do not proceed with the shoot as this will be counterproductive to the process.

Composition

Once the cleaning is done, it’s time to stage your home. Be your own art director. Imagine how you want to frame each room of your property and make as many tweaks and rearrangements as necessary. In short, buy a fresh bouquet.

When taking photos, the idea is to scope out each room and identify the top shooting locations to show off the property’s best amenities and features. Often, that means backing into all four corners to get great angles. Keep the rule of thirds in mind, and make small adjustments where necessary to compose beautiful frames.

It is important to provide images that help guests understand how the home is laid out. That means including doorways, stairways, and other connections in your shots.

For exteriors, do not photograph garbage or recycling bins. Remove anything distracting, like hoses, empty planters, and ashtrays. If possible, incorporate some shots of the property’s surroundings.

Airbnb Professional Photography Checklist

Shoot a variety of images, both overviews and closeups.
Shoot all images horizontally. If you’re in a tight space and must shoot vertically, please also provide a horizontal alternative for the shot.
Be sure to capture a straight-on one-point composition, but be very careful when you level your camera for perfect horizontals.
Shoot into a corner (two-point composition) to show space and flow. Please capture only two walls in these shots.
Refrain from using a fisheye lens or three-point composition.
Use your tripod for every shot. Set it at about 4.5 feet. Make sure the camera is level and that you’re shooting straight — don’t tilt the camera up or down as this will create distortion.
Avoid using flash.
Don’t accidentally photograph yourself on reflective surfaces.

5 Bonus Tips from Professional Photographers

Capturing inspirational images involves work, and preparation is key. Below, learn five things professional Airbnb photographers recommend to keep in mind when snapping great photos of your short-term rental.

1. Show Off Those Views

Ensure any external feature doors can be open fully. Outdoor areas should be prepared and cleared in advance. Potential guests will love seeing those views drawn into the property. Help them to visualize themselves there and add to the value of your imagery.

2. Keep It Cozy

Everyone loves the atmosphere a cozy fire creates, so if you have a fireplace, ensure fires are always shown beautifully alight. Realistic bright fires can be added during the editing process.

Set the scene with tasteful cushions, throws, and blankets. Guests want to picture themselves curling up and getting all warm and toasty after a day exploring the area.

3. Make It Luxurious

A few choice props can really make your property photos stand out. You want guests to fall in love with your place before they even book.

The aim is to add atmosphere and warmth. A breakfast tray or a bottle of champagne and some glasses can work wonders to sell the idea of the ultimate escape. Invest in high-quality essentials, like linens, to create a luxurious atmosphere that potential guests won’t be able to resist.

4. Dress Exterior Spaces

Treat your exterior spaces as if they were additional rooms in your property. With little effort and props including candles, lamps, and tableware, you can create absolutely stunning shots. Don’t forget to prepare everything outdoors, including any hot tubs and pools.

5. Keep It Simple

Getting ready for a photoshoot is a little different from preparing for your guests. The less clutter there is, the more impactful your images will be. Adding a few accent props is fine (it avoids everything looking too cold and clinical), but be careful not to add too many or they can distract from the full effect of the images.

Now That You Have High-Quality Images, Use Them Properly

Quality, high-resolution images of your property and experiences should always be displayed as large as possible on your Airbnb listing. You have invested time, money, and energy into these exceptional images, so make sure you showcase them properly.

The post How to Take Airbnb Photos appeared first on Turno.

The Ultimate Guide to Listing on Airbnb

Angel Host — Mon, 18 Jul 2022 15:25:00 +0000

What’s In a Listing?

When a traveler peruses a booking channel (be it Airbnb, Vrbo, Booking.com, etc.), they’re looking for a specific place to stay that fits their traveling needs. They’ve envisioned their vacation, staycation, or work trip and are on the hunt for specific things — depending on who they’re traveling with and what they’re traveling for.

The booking channel aims to offer the traveler the best search and booking experience so that they book through their platform. To do this, they must have a large catalog of properties to offer and be able to pair the traveler with the home that best fits their needs.

And then there’s you, a host who wants your home to be booked and generate revenue. To do this, you’ll need a descriptive and enticing listing.

Your vacation rental listing will contain photos and a description of your property, a list of your amenities, reviews from other guests, and an estimated price depending on the check-in and check-out dates and the number of guests.

Your listing will show and tell prospective guests that your property is the right fit for their travel needs.

For this reason, if you want bookings, it’s imperative that your listing is optimized.

How Listings Impact Rankings and Occupancy

Booking channels use complex algorithms to pair up guests and properties. These algorithms rank listings based on many factors — some of them over 100. To put it simply: algorithms will reward listings that get reserved often with higher rankings.

Now, what does “higher rankings” mean and why do we want that?

Ranking higher means that your booking channel or channels will prioritize your listing and show it at the top of the results page when a traveler is looking for a property that fits your category and their criteria.

This is ideal because, as we know, time is precious, and the faster a guest finds your property the more likely they are to book. After all, no one has the time or patience to look through pages and pages to find the right place to stay.

So, what exactly are the factors that influence rankings? Some of them are:

Competitive pricing
Beautiful photos
An attention-grabbing title
A persuasive listing description
Positive reviews
Rapid responses to guest inquiries
Instant Book

If higher rankings influence a traveler’s likelihood of booking, then they also inadvertently increase your occupancy rate — and revenue. That’s why your listing should be thoughtfully created and continually optimized.

3 Tips for Listing on Airbnb

It’s clear that having an engaging listing is imperative to having a successful Airbnb business, but where do you start? Below are three high-level tips for creating a listing that makes guests choose you over the competition.

1. Fill In Everything

All booking channels have additional information that you can fill out. We recommend taking your time to fill in every detail, as algorithms will classify your listing as fully complete and incorporate the details into the search engine.

For example, be sure to list all the amenities available, and modify this list as you update your home. Also, ensure you provide an enticing summary. This small bit of text that appears at the top of your listing is your chance to convince users to click “read more.”

Don’t forget photo captions. Guests are more likely to go straight to the photos rather than the description. This means that captioning those photos is your chance to speak to them while you’ve got their attention. In other words, captions are where you can highlight your home’s key selling points.

Remember that potential guests don’t know much about your short-term rental, so captions are the perfect way to explain the home’s layout (how rooms are connected), what makes each space special, and even label rooms (Bedroom #1, Bedroom #2, etc.).

2. Proofread Before Launching

Forget to mention something important? Spelling mistake or typo? Don’t let a little slip-up make you look unprofessional. Although some guests won’t notice errors, many will.

Proofreading your listing carefully before publishing will help you make the best impression and show that you’re a serious, attentive host.

3. Respond to All Reviews

Once you begin having reservations, be sure to respond to reviews as your clients will tell you exactly what they want and what you can improve in your listing and in-house experience.

Since most users scan reviews before booking, this can be a great opportunity to show that you’re a caring, responsible host. When responding to your reviews, short responses are fine — thank them for their stay, and remember to use the guest’s first name.

But what about those negative reviews? Just be honest, sincere, and professional. Apologize for the issues that affected their stay, and tell them what you’ve done to fix them. It’s not just about the unhappy reviewer; your potential guests will see that you’re responsive and care about your guests’ experiences.

Bonus Airbnb Listing Tip: Keep Making Improvements

Listing on Airbnb should always be seen as a live project, something to be constantly monitored and updated.

Once you upload your listing to multiple booking channels, consistently review your performance. Review your Occupancy Rate, First Page Search Impression, Average Search to Listing Conversion, Average Listing to Booking Conversion, and any other metrics you desire.

The post The Ultimate Guide to Listing on Airbnb appeared first on Turno.