The Everest Newsletter: Residential, February ’19 Edition
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Just the Peaks This newsletter, at a glance
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Online hospitality services are having a serious moment Can you take the trend to the bank?
Read on for the best tips of the trade.
In late 2018, the Netflix reality series Instant Hotel garnered overwhelming audience acclaim. The premise was simple: Australian homeowners team up to compete for the title of ‘Best Instant Hotel,’ which is the equivalent of America’s popular Airbnb service.
In the show, competitors stay at each others’ rentals and rate the experience on four major criteria: location, amenities, value for money, and quality of a night’s rest. The process was riveting. The personalities, a recipe for ratings success. Most importantly, Instant Hotel had binge-watchers everywhere wondering if they too could cash in.
The rise of sharing economy
Like Uber, Lyft and other peer-to-peer goods and services, Airbnb has its obvious perks. Homeowners (and some renters) can earn extra income without taking on all the typical responsibilities of a landlord. Best of all, you set the parameters.
Hosts decide the minimum and maximum number of days guests can book. You can even block out dates on the calendar, so the transaction is truly personalized to your schedule. And while you have the power to set per-night costs, it’s best to consult with comparable prices in your area based on the rental’s size.
Nowadays, more and more cities are cracking down on Airbnb regulation, but a little research can confirm you’re in compliance. In fact, as of 2018, there are 640,000 hosts and approximately 150 million active users. Despite some troubling headlines, Airbnb enthusiasts are clearly undeterred. More on that in a minute.
Instant hotel. Instant success.
Airbnb stats (updated 2018)
-4 million – Number of active Airbnb listings
– $31 billion – Company’s total valuation
– $3.4 billion – Funding raised since 2008
– 65,000 – Cities with active Airbnb rentals
– 190 – Countries with active Airbnb rentals
-4 million – Total Airbnb listings for rent
– 660,000 – Total Airbnb listings for rent in the U.S.
– 300 million – Total guest arrivals (all time)
*For more amazing Airbnb stats, visit Expanded Ramblings
How to maximize your Airbnb income
Your dream of becoming an hotelier is finally a reality. But without the proper management experience, you run the risk of inconveniencing yourself, your family, and your wallet. Not to mention, landing a hit reality show requires a bit of forethought.
The good news is, Airbnb vets potential guests and has measures in place to ensure they pay prior to arrival. Still, your safety and privacy are not guaranteed. To make money, you should market listings aggressively while exercising sound judgment.
Here’s a list of steps to follow to help you make the most of your instant hotel.
1. Consult your city’s bylaws – To avoid unnecessary fines, always remain in compliance. For instance, if you rent an apartment, subletting could cause a problem. Every area is different, so do your research.
2. Be the hostess with the mostest – Horror stories abound with Airbnb guests arriving to discover the rental has no blankets, towels, toilet paper—the essentials you would find in a ‘real’ hotel. Don’t be that host.
3. Deck out your profile – When a rental has few pictures and scant details in its listing, potential guests usually run for the hills. This is your marketing moment, so be transparent and play up your home’s amenities.
4. Stow away any personal belongings – If you live on the property, it’s impossible to rid yourself completely. However, any expensive items or accessories should be out of sight and locked away for security.
5. Find your niche – Every city is different. While some areas attract businesspeople looking for a simple room at an affordable rate, others bring in families or groups of friends looking for the luxury experience.
Everest says: ‘Overnight’ success is yours for the listing
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