Welcome to another episode of Master Airbnb & Vacation Rentals with Vacation Home Help. Tim and I decided to discuss the airbnb economy today and how inflation is rearing its ugly head against both us hosts and our guests. First off, thank you for your support as we get this podcast off the group. We are doing this for those first time hosts that need a little boost to start off on the right foot.
Usually, when you start something new its because something bothers you, right? What bothered us the most is the lack of integrity in the industry. Many property managers sell you with unrealistic revenue expectations and do a half job, leaving your guests dissatisfied and you financially dissatisfied. Great contractors are hard to source, and many hosts are discouraged during the first 12 months either due to problems they did not expect or lackluster income.
Our podcast aims to help new hosts who want to do it themselves, without a property manager. Why? We feel that with the OTAs (Airbnb and VRBO) increasing their service fees and property managers exorbitant commissions, most vacation rental owners will not earn a dime. The margins, when you take a realistic view of the space are not as attractive as many vacation rental managers lead on. So tune in, we are here to bring you our experiences from the school of hard knocks.
Best of all, our podcast is completely free.
How inflation is impacting Airbnb hosts and guests
Here we are, August. Most hosts are experiencing a slow down with kids returning to school. Inflation is increasing the costs of hosting and renting. Everything from clean fees to supplies are going up, and consumers are feeling the pinch. Clean fees in some cases are 30% higher and nightly rates have gone up significantly. For those hosts furnishing a new rental property, the cost of setup really pinches the wallet…
Don’t panic, here is how to prepare your airbnb for slow season
First off, don’t panic. Stay calm. Every area of the country has an off-season. Reducing your rates slightly or running a promotion (think 10-25% off for dates that would sit empty) may work for your slow season. Remember, not all seasons will be fully occupied.
Try not to compete on price alone, it is a losing war with vacation rentals…
Try to differentiate yourself from your competitors by adding a theme room or setting a nice welcome gift out for each guests. There is a glut of inventory on the market and the best way to keep guests happy and a full calendar is to differentiate yourself. This can be through service, decor, experience, or marketing.
Stay grounded, review your financial model, projections, and yes…expectations
While no one is a fan of slow season, times like these are great to reflect, review, and tweak your business model. Ask yourself, are your projections and nightly rates realistic? Do you need to tweak a few things to entice more guests and run a tighter ship? Self-reflection is a cornerstone of any successful host, use this slow period to make necessary repairs, renovations, and tweaks so you can enter busy season with a bang.
Listen to the podcast episode here…
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