If you need assistance, please call 647-405-6878

How to avoid the biggest mistakes and pitfalls using Airbnb as a source of Cash Flow

Friday, October 18, 2019   /   by Gianfranco

How to avoid the biggest mistakes and pitfalls using Airbnb as a source of Cash Flow

Biggest mistake most Airbnb hosts make is not educate themselves on how Airbnb really works. You have to furnish the property but not the way you may think. There is a formula for you to follow so you don't make the mistakes we made.


1.png

Today we wanted to talk to you about how to avoid some of the mistakes and pitfalls when using Airbnb as a second source of income or a source of income. What are some of the pitfalls?

Basically, like you want to make sure that you don't treat this the same as the traditional long-term rental. It's completely different. A lot of the guests you're going to get are not local people. A lot of are traveling abroad or they're coming there, they're just either looking to move here and they're looking to stay for short term. At a few different places to find out which area they like, or their professionals are just traveling for business or vacation. What is more like you're going to get guests that would normally be checking into hotels. Now they're checking into Airbnb for a lot of different reasons.


Your competition is our hotels. You're not really, you know, when you're a long-term landlord, you're just, you're just providing an empty house and they furnish your home. But this is totally different. This is not a landlord business. This is a hospitality business and that's how it needs to be treated.


That's one of the biggest mistakes. And not valuing the review system. Like there's a review. Basically, you get five-star review or if you don't do a good job, you get one star. So you want to make sure that you keep your review at a five star review and you become a Superhost because once you become a super host, people will pay you more money for the same house down the street. Like the down the street could be $150 a night. But you can be charging even $200 a night just because you're a super host, because that's telling people that you already proved. You understand how Airbnb consumer experience works.


And to explain a little about a hosting and becoming a super host. The idea is that people come into the city and they want a full-blown experience. So sometimes some people are not, as, you know, they don't need a lot of Terps and they don't really communicate much. They just need a place to sleep. But there are people that are visiting the city. They want to know where the restaurants are. They want to know where the bars are, they want to know where to take their kids. The millennials, the millennials, they'll find them. Like for, I'll tell you an example. When I traveled to Europe, I usually said Airbnbs. And the reason I like Airbnbs is because the host is a local. They know all the good places. So, always ask them, always get recommendations and they never failed me. The Superhost don't.


That's why by putting all this information in your guidebook or in your account, and you could just guide them to that page and they'll go and find all that information but make, but getting a five star review is the most important thing because that's when you're able to get higher price for your properties when others aren't.


It has to be treated like any other business. And most businesses care immensely about their reviews on Google, on Facebook. So that's how you need to treat him. You need to treat it as a business, as a product.


And another one is just, you know, targeting the wrong location. So you need to do some research and we're going to share with you in other videos where some of the best locations are that we have done based on our research and how you're able to make sure you know, you have more nights booked just because you're in the right location, you're accommodating the right guest. So if you like these videos and you find them useful, make sure you subscribe to our channel and turn on your notification and share them with people though who would also find this useful, who want to create cashflow and create a better future for themselves and their families.

Watch the full video here: 
https://youtu.be/JLa4Ya4vw7I


  broker, real estate, toronto platinum realty team, toronto home selling