Get Paid For Your Pad | Airbnb Hosting | Vacation Rentals | STR Revenue Management

The beautiful thing about Airbnb is that it provides an avenue for inspired entrepreneurs to leave jobs that aren’t fulfilling and start their own businesses in the vacation rental ecosystem, and today’s guest is a perfect example. Beautification Specialist Lily Troupe is the founder of Under Control Short Stay Management, Melbourne’s premiere turnover service and management company.

Lily’s previous career as a social worker was incredibly demanding: She was working 12-hour days, but enjoying little financial reward. Feeling drained, she took a sales job with a network marketing firm and started cleaning and styling homes for extra money. One of Lily’s clients happened to be an Airbnb host, and when she went away on holiday, Lily was asked to help with check-in.

Lily’s reputation for attention to detail and exceptional communication soon spread, and her contact information was passed on to other hosts. In June of 2016, she officially expanded her offerings to include Airbnb servicing and management, and Lily established Under Control Short Stay Management. Today she shares how her service goes beyond just cleaning, what you can do to make a space more welcoming, and important information to share with your Airbnb guests. Listen in to learn how Lily has made cleaning an art form!

Topics Covered

Lily’s introduction to Airbnb
•Cleaning homes for extra money
•Airbnb host as client going on holiday
•Asked Lily to do check-ins, co-host
•Referred to other Airbnb hosts

The skills Lily leveraged to turn this service into a business
•Communication with hosts
•Connection with clients (hosts and guests)
•Understand needs beyond cleaning (five-star ratings)
•Respect for home

How Under Control Short Stay Management is more than just a cleaning service
•Relationships with parties involved
•Offers cleaning as ‘art form’
•Connection with space
•Commitment to make space beautiful
•Provides sense of peace for guest

The importance of an initial scan of the property
•Look for damage, anything untoward
•Take photos and contact host immediately

How Lily makes a space more welcoming
•Towel, toilet paper origami (e.g.: lotus flower)
•Attention to detail (i.e.: spotless mirrors)

How Lily approaches guest interaction
•Gather info about guest at check-in (personality, purpose of trip)
•Spends additional time with talkative guests
•Respond immediately to questions through Airbnb app

The information Lily shares with guests
•Local entertainment
•Closest coffee shop, cafes
•Where to catch train/tram
•Affordable carpark

How Lily handles a double booking
•Support on standby to provide backup

Connect with Lily
Under Control Short Stay Management

Resources
Drop Bears on Wikipedia
Hoop Snakes on Wikipedia

Connect with Jasper
Email: [email protected]
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad

This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!

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Sometimes you get away because you want to, and sometimes you get away because you have no choice. Airbnb news this week features stories of both—from Americans heading to Britain to enjoy an affordable escape to Floridians fleeing the imminent threat of Hurricane Irma.

Jasper is joined by Glenn Carter, Head of Marketing at Hostfully, to discuss the incredible jump in Airbnb visitors to Britain since Brexit, as well as the heartening story of the Miller family who found refuge from the hurricane barreling toward Florida with an Airbnb host in Indiana who offered his listing for free. They also cover the fire at a New Zealand Airbnb that sent its Malaysian guests to the hospital, highlighting the need for safety precautions and the difficulty of enforcing the Responsible Hosting Guidelines.

It wouldn’t be a Get Paid for Your Pad news episode without the latest developments in vacation rental regulations, so Glenn and Jasper are duty-bound to discuss the German host who managed to get away from the municipality’s very strict Airbnb rules via a lawsuit against the State of Berlin, and a rule-following host in Iceland who learned why so many hosts list on Airbnb illegally. Finally, they explain the surge in cryptocurrency startups who seek to get away from platforms like Expedia and Airbnb entirely, using blockchain technology to decentralize the travel industry.

Topics Covered

Article #1: Airbnb Host Waives Cost for Jacksonville Family That Evacuated Due to Irma
•Airbnb activated Disaster Response Program (through September 29th)
•Free listings in NC, SC, GA, AL and IN
•Miller family from Jacksonville traveled 795 miles to New Albany, IN
•Kids have special needs
•Brought pets
•Airbnb host Brandon Thompson waived fee for family

Article #2: Airbnb Urges Housing Reform in Berlin After Court Overturns Permit Rejection
•Very strict short-term rental regulations in Berlin, steep fines
•Host took State of Berlin to court and won
•Judge granted permit to rent for 182 days/year
•Municipalities willing to compromise will see increase in tourism dollars
•Efficient use of space when resident on holiday
•Location-specific rules based on tourism, location

Article #3: An Airbnb Owner Speaks Out
•Airbnb host in Iceland travels with circus for work
•Out of country up to six months/year
•Following rules, complicated permitting process
•Commercial operators should be taxed as businesses

Article #4: Christchurch Airbnb Fire a Wakeup Call for the Accommodation Industry
•Malaysian family hospitalized after fire in New Zealand Airbnb
•Did not have fire escapes, other safety measures
•Airbnb encourages hosts to install smoke alarms, carbon monoxide detectors
•Hosts also urged to provide fire extinguisher, evacuation plan
•Difficult to enforce Responsible Hosting Guidelines
•Airbnb providing 36,000 ‘free’ smoke detectors
•Debate around adhering to same safety standards as hotels
•Could be easy win for Airbnb

Article #5: Airbnb Sees 80% Jump in Visitors to Britain
•Influenced by Brexit, decrease in value of £
•More affordable for Americans, Canadians
•Average UK host makes $4,000 /year (36 nights)
•Average age of host is 43
•Fifth largest geography for Airbnb globally
•Benefits for growing # of hosts over 65 (e.g.: supplemental income, social aspect)

Article #6: Winding Tree is the New Kid on the Blockchain Set on Disrupting Airbnb and Expedia
•Envision world where platforms out of picture
•Seek to decentralize travel industry, all done on blockchain tech
•Startups raising millions of dollars
•Would eventually make Airbnb obsolete

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As the saying goes, ‘Keep your friends close and your enemies closer.’ So when Jasper had the chance to speak with one of Airbnb’s fiercest critics in Amsterdam, he took full advantage of the opportunity and invited the journalist to be a guest on this week’s Get Paid for Your Pad.

Sander Schimmelpenninck is the editor-in-chief of Quote magazine, a Dutch monthly publication most well-known for the Quote 500, a list of the 500 wealthiest people in the Netherlands. Quote focuses on the business, finances, and networks of life at the top. In 2014, Sander wrote an opinion piece on the dangers of Airbnb in the Amsterdam market, discussing the impact of the vacation rental platform on the city as its concept shifted from that of a shared experience to a money-making machine for real estate investors avoiding income tax. He shared his concerns about the lack of regulation and how Airbnb made it increasingly difficult for Dutch residents to find an affordable home in a city overrun with the wrong kind of tourists.

Though he is not opposed to Airbnb as a concept, Sander does advocate for local governments to establish legislation specific to the needs of each city. Today he shares his love-hate relationship with the vacation rental market, explaining why regulations were necessary in Amsterdam, the downside of hosting so many tourists in the city, and his take on short-term rental management companies. Listen in as Jasper and Sander debate the pros and cons of Airbnb!

Topics Covered

Sander’s introduction to Airbnb
•First heard about platform when traveling west coast of US
•Family members enthusiastic about concept
•Friends started using as hosts, some made lifestyle
•Sander annoyed by fact that people not paying taxes

Why Sander wrote the anti-Airbnb article in 2014
•Airbnb still relatively small
•Sander saw what platform could do
•Real estate moguls renting to tourists to double their money
•As small, densely populated city, Amsterdam vulnerable
•Favored concept during crisis, helped regular people
•Real estate investors buying property solely for Airbnb
•Important that Dutch who want to live in city can find affordable home

The downside of tourists vs. Dutch renters
•City branding attracts certain type of tourist (drug use, prostitution)
•Short-term rental platforms bring in low-cost travelers
•Tourists not invested in property as home

The current Airbnb stats in Amsterdam
•15,000 active rentals
•$178 average daily rate
•75% entire homes, 25% private rooms
•Can only rent entire home for 60 days
•10,000 active hosts (88% single listing, 12% multiple listings)
•18% Superhosts
•Hosts with multiple listings comprise 38% of available listings

Sander’s take on Airbnb regulations in Amsterdam
•Necessary to stabilize tourism
•60 days still quite long (30 days would be better)
•Meeting tourists in shared hallway, doesn’t feel like home
•Sander endorses shared rooms on Airbnb

Why Sander supports regulations specific to each city
•Some cities rely on tourism for economic development
•Empty homes make regulations unnecessary
•Holland boasts strong economy, need people to live and work there

Sander’s attitude toward other vacation rental platforms
•booking.com very aggressive, focus on promoting short-term rentals
•Attracts different kind of traveler than Airbnb
•All platforms should follow same rules as Airbnb

How Sander views short-term management companies
•Some companies legit, don’t take illegal listings
•Others aggressive, must rent illegally to afford up-front payment

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Airbnb has the capacity to change lives—for better or worse. This week’s headlines include an inspiring story of how the short-term rental platform has helped a Superhost from Tanzania afford schooling and travel, and even become an advocate for the Maasai culture around the world.

Another story of Airbnb changing a host’s life for the better features Jasper himself. In an interview with the Huffington Post, he explains how he used Airbnb to quit his successful career in finance and travel the world. Today on the podcast, our newsworthy host is joined by David Jacoby, President and Co-Founder of Hostfully, to discuss these stories of Airbnb’s positive influence, as well as a couple of situations where vacation rental sites changed someone’s life for the worse: The Miami homeowner facing $500K in fines because his tenants listed illegally on Airbnb, and travelers who lost a lawsuit against HomeAway over a fraudulent listing.

Jasper and David also answer listener questions about furnishing your Airbnb, offering suggestions regarding where to shop as well as ideas around branding. Listen and learn how to budget for your Airbnb furnishings and what qualifies as a business deduction!

Topics Covered

Article #1: Whatever Happened to … the Airbnb ‘Superhost’ From Tanzania?
•Godwin Ndosi joined Airbnb in 2015
•Rented rooms in family home for $15/night
•200 guests in first year
•Met people from all over the world
•Became Superhost, built additional dwellings in backyard
•Able to afford university, travel
•Advocate for Maassai culture

Article #2: These Homeowners Faced an Airbnb Nightmare as Renters Left Them Facing Huge Fines and Angry Neighbors
•Miami Beach landlord rented to tenants who listed illegally on Airbnb
•Homeowner fined nearly $500K
•Airbnb slow to respond (until media coverage began)
•Landlord had to find listing himself
•Home also listed on new site, Vacayo
•As cities develop best practices, homeowners should not be held liable for tenants acting illegally
•More and more landlords do allow Airbnb
•Platforms like Pillow facilitate win-win for renters, landlords

Article #3: Section 230 Helps VRBO Defeat Claim Over Fraudulent Listing—Hiam v. HomeAway
•Traveler booked listing on VRBO, sent wire transfer
•Booking fell through, but money not returned
•Judge ruled in favor of HomeAway
•Communications Decency Act Section 230 provides immunity from liability for platforms publishing content provided by others
•Precedent went other way in San Francisco (Airbnb not ‘just a listing platform’)

Article #4: The Disgruntled Ex-Stock Trader Who Used Airbnb to Create a Jetsetting Lifestyle
•Jasper featured as successful online entrepreneur
•Left lucrative career in finance
•Travels the world, financed via Airbnb
•Continued focus on personal growth
•Negative reaction led to next podcast interview with Airbnb opponent

Q: How much should I spend on furnishings for my Airbnb? Where do hosts get their furnishings?
•Discussed in detail on EP175
•Hire local interior designer
•Buy from local artists
•Decorate around theme (branding differentiates your listing)
•$5,000—$7,000 budget (depending upon location, theme)
•Shop at IKEA, secondhand stores
•Deduct purchases as business expense (30% off)

Resources Mentioned
Article #1: npr.org/sections/goatsandsoda/2017/09/02/547028077/whatever-happened-to-the-airbnb-superhost-from-tanzania
Article #2: cnbc.com/2017/09/01/airbnb-nightmare-homeowners-fined-after-renters-illegal-listings.html
Vacayo
500 Startups
Pillow
GPFYP EP175: How to Integrate Airbnb in Your Real Estate Business...

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Many Airbnb guests are looking for a chance to unplug and truly get away from the madness of modern life. David Fraser has developed a low-risk Airbnb model that capitalizes on this by building log cabins on his property, and he is keen to share his best practices with the Get Paid for Your Pad audience.

David happened into the idea accidentally because his family had no place to sleep when they visited his country home outside Toronto. His mother sent him an ad for a cabin on Kijiji, and David began to wonder if such a rustic experience would do well on Airbnb when his family wasn’t staying there. He did a little market research by creating a listing, using stock photos of the cabin and pictures of the view from his backyard, and to his surprise, there was significant interest. David accepted his first booking and built the cabin from a kit—two days before the guests arrived!

Nearly three years later, David has expanded his enterprise to three cabins and a shared bathroom facility. All the units have paid for themselves, and he is able to generate $4,000 CAD/month in cashflow. Today he explains how he developed the concept, from choosing a cabin to furnishings to maintenance. Listen to understand how David handles the seasonality of bookings and the potential for regulations down the road. If you are in the right situation, the log cabin model might work for you!

Topics Covered

How David developed the log cabin concept
•Moved to the country
•No place for family to sleep when visiting
•Mom sent ad for cabin on Kijiji
•Created Airbnb listing to test market
•Received interest, accepted booking
•Built cabin two days before arrival of first guest
•Refined process, added amenities
•Built two additional cabins and shared bathroom

How much the cabins cost
•$4,400 CAD for the first one
•Negotiated with European company for wholesale price on next two
•Between $3,500-$8,000 CAD
•All cabins are 105 ft² (don’t need building permit)

How David furnishes the cabins
•Queen bed
•Writer’s table
•Dressers
•Heaters
•Electric blanket, fan
•Premium cabin has loft, A/C
•Rustic theme (most furniture used)
•Spend $1,000 per cabin on furnishings

The process of building the cabins
•David, his wife and father-in-law built in two days
•Comes with complete kit
•Ensure area is level
•Could pour cement pad as foundation
•David recommends 6x6 pressure-treated lumber

David’s ROI
•First year with single cabin, made $6,000 CAD (170% ROI)
•Single cabin this year generated $8,000 CAD (200% ROI)
•Additional cabins built this spring have already paid for selves
•Made $4,000 CAD last month

How David approaches maintenance
•Changeover requires sweeping, change of bedsheets
•Simple because no bath/shower to clean
•Replace bedsheets as necessary
•Few things to break, not costly to replace

The seasonality of bookings
•Didn’t anticipate bookings in January, February
•Closed listing in 2016 while traveling
•Kept open in 2017, still made $2,000 from January—March
•Installed two heavy-duty heaters
•May try pellet stoves this winter

The legality of Airbnb in David’s municipality
•Hasn’t ruled for or against (only two hosts in area)
•David is building up client base of regulars in case of eventual regulations

The primary market for David’s cabins
•People in nearby cities looking to getaway
•One- or two-day trip

The benefits of the log cabin concept
•Low risk
•David is willing to chat about your specific situation,

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Airbnb has gone Hollywood on us this week, enlisting the help of A-list celebrity Danny Glover to combat racism on the platform as well as marketing several insider Hollywood Airbnb experiences with costume designers and choreographers, among others.

Jasper is joined by Hostfully CEO and Co-Founder Margot Lee Schmorak to discuss these high-profile stories from La La Land and other Airbnb headlines, including the activation of the Disaster Response Program for evacuees of Hurricane Harvey and how competitors HomeAway and TripAdvisor are differentiating themselves from Airbnb—and enjoying continued growth.

Jasper and Margot also cover an article explaining how to handle guests who break the rules, offering their own tips and tricks born from experience. Finally, they address listener confusion around cancelling reservations and declining booking requests. Listen and learn how to set filters for Instant Book and what to do if you don’t feel comfortable with a guest who booked your Airbnb.

Topics Covered

Article #1: How to Handle Airbnb Guests Who Break the Rules
•Publish house rules (booking indicates acceptance)
•Provide guests with printed copy, mention as well
•Request a security deposit (must still file claim with Airbnb)
•Some hosts ask guests to sign separate agreement
•Ignore minor infractions
•Discuss issues with guests first in effort to resolve
•Use Airbnb resolution tool as last resort
•Must have evidence (e.g.: photos, admission from guest)
•Include charge for cleaning fee
•Safeguard private documents, valuables in safe or locked closet

Article #2: Airbnb Hires Danny Glover to Address Racism Allegations
•High-profile actor, social justice advocate
•Will serve as advisor to Airbnb
•Aim to get more communities of color to list on platform
•Glover impressed by Airbnb’s commitment (Blog post on Medium)
•Partnership with NAACP

Article #3: Airbnb Launches Insider Hollywood Experiences with Choreographers, Costume Designers and More
•Highlights Airbnb Experiences available in Hollywood
•Shopping tour with Mad Men, Deadwood costume designer
•Dance instruction with Michael Jackson’s choreographer, Kenny Ortega

Article #4: Airbnb is Helping Hurricane Harvey Evacuees Find Shelter
•Airbnb is waiving service fees for evacuees
•Check-ins between 8/23 and 9/1
•Encouraging homeowners to list for free
•Approximately 168 free listings in Dallas, Austin and San Antonio

Article #5: How Two Old School Travel Platforms are Beating Airbnb
•HomeAway reported 50% quarter-over-quarter revenue growth
•Positioning selves as platform for higher-end vacation rentals, popular tourist destinations
•TripAdvisor has seen listing numbers increase from 50,000 to 830,000
•Growth may be attributed to acquisitions
•All players growing
•Short-term rental market at $100B currently
•Projected to reach $285B by 2025

Q: I have concerns about being penalized for canceling reservations. Under what circumstances am I allowed to decline an inquiry? How about an instant booking?
•No penalties associated with declining an inquiry/booking request
•Only consequence is fewer reviews, bookings (affects position in search results)
•Can set filters for Instant Book so only guests who meet requirements can book instantly
•Standard—profile picture, confirmed email address, phone number and payment info
•Additional options—government issued ID, host recommendation, all positive reviews
•Allowed to cancel instant booking three times per year without penalty if uncomfortable with guest
•To cancel fourth time, must contact Airbnb in advance of cancellation

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What happens in Vegas, stays in Vegas?

The city may have a reputation for forgiving indiscretions, but not-so-much if your misdeed involves Airbnb hosting without the proper permit. In fact, the regulations around short-term rentals are incredibly strict in Las Vegas, and only the serious Airbnb entrepreneur will invest the time and money required to clear all the necessary hurdles.

Dillon is very familiar with the complex process of licensing in Las Vegas. He and his wife found their dream home in the city, but it was a little large for just the two of them. They decided to pursue Airbnb as a way to maintain the home and generate extra income. Unfortunately, Dillon was ‘turned in’ by an anonymous tipster, and forced to cancel upcoming bookings until he received the appropriate permit.

Today Dillon walks us through the process, explaining the different types of available short-term rental permits, the fines associated with illegal hosting in Sin City, and the reason why regulations are so severe. Listen in as he shares the extra steps he took to secure the coveted Special Use Permit.

Topics Covered

Why Dillon chose Airbnb over long-term rental
•Make three to five times more with short-term
•Make money rather than break even

How Dillon got caught doing Airbnb without a permit
•City putting together task force to go after hosts
•Until then, rely on neighbors to turn people in
•Anonymous tip may be from competitors with permits

The financial hit Dillon took pursuing the licensing process
•Seven months lost income (bookings)
•$2,000 in costs associated with obtaining permit
•Approximately $10,000 total

The fines associated with illegal Airbnb hosting in Las Vegas
•Dillon received warning first (cease and desist)
•Given ten days to come into compliance
•Had to cancel future bookings ($50 each)
•Can be fined for noise, lack of business license/permit ($2,000/day)

Why regulations are so severe in Las Vegas
•Scotch Eighties neighborhood (not gated)
•Mansions owned by older, wealthy citizens
•Homes purchased for Airbnb (parties)
•Disruption of quiet area led to legislation

The Conditional Use Verification permit
•Only available to small subset
•Owner-occupied, renting portion of home
•Pay $500 to obtain approval
•Must renew annually

The process of obtaining a special use permit
•Go to Department of Planning, set up process
•Attend pre-application meeting (architectural drawings, plan)
•Appear at Planning Commission hearing (automatic denial)
•Appeal to City Council ($500 fee)
•Once approved, valid permit stays with property forever

How Dillon took extra steps to receive approval
•Wrote letters to City Council members, mayor
•Met with individual members of City Council
•Asked for feedback on improving plan
•Got neighbors on board

The rules around short-term rentals outside the city proper
•Illegal in unincorporated townships and county
•Illegal in North Las Vegas as well
•Anything under 30 days is considered short-term rental

Resources
Audible
Get Paid for Your Pad Audiobook

Connect with Jasper
Email: [email protected]
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!

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“…I am not sure Airbnb’s million-dollar insurance policy would cover rebuilding an eighteenth-century manor house.” Would you believe that British and Irish aristocrats are chewing over […]

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Want to get the girl and found a startup? Become a remote host on Airbnb. Perhaps it’s not quite that easy, but it worked for GuestBook […]

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I agree to treat everyone in the Airbnb community—regardless of their race, religion, national origin, ethnicity, disability, sex, gender identity, sexual orientation, or age—with respect, and without judgment or bias.

Creating an account on Airbnb requires agreeing to the platform’s Community Commitment. When Airbnb became aware of users making plans to attend a white supremacist rally in Charlottesville, Virginia, the company took action to delete those accounts, and CEO Brian Chesky spoke out against Unite the Right, saying, “The violence, racism and hatred demonstrated by Neo-Nazis, the alt-right, and white supremacists should have no place in this world.”

Jasper is joined by Hostfully marketing guru, Glenn Carter, to discuss Airbnb’s strong stance against the white nationalist philosophy. They also cover the latest in Airbnb’s ongoing conflict with the hotel industry, examining the Hotel Association of New York City’s hiring of a private security firm to hunt down illegal activity on the platform.

But the news isn’t all bad! Glenn and Jasper also mention Airbnb’s latest milestone: The home-sharing site’s unprecedented four million listings – which account for more than the top five hotel chains combined. Other wins for Airbnb this week? They have announced a partnership with Vice Media that will promote their Experiences travel packages, and you can now book an entire island in Belize on Airbnb for a romantic getaway. Listen in to learn about these stories, as well as Google’s entry into the short-term rental space.

Topics Covered

Article #1: Airbnb is Deactivating Accounts of People Trying to Attend a White Supremacist Rally
•Airbnb banned all accounts with suspected affiliation
•Chesky doubled down after rally, citing Airbnb Community Commitment
•Some believe Airbnb should allow accounts, ‘everyone has right to opinion’
•Others support decision, agree that hate speech is criminal in nature
•Airbnb has right to ban users from platform
•Difficult to hide behind veil of free speech when advocate violence

Article #2: Airbnb Now Has More Listings Worldwide Than the Top Five Hotel Brands Combined
•Airbnb has 4M listings in 191 countries (500K in 2012)
•US remains biggest market (660K listings), followed by France, Italy, Spain and UK
•2M listings are instantly bookable
•Popularity stems from desire to earn income from asset already own
•Would be interesting to know number of hosts (average of three listings/host in March 2016)
•Regulations requiring listing to be primary residence may alter data

Article #3: Airbnb Has Shut Down 524 Portland Locations Since January
•Violated policy against multiple listings
•City regulations require operators to live in home they’re renting

Article #4: Vice Partners with Airbnb to Offer Travel Packages
•Youth-focused digital media company, promotes ‘living on the edge’
•Joint venture will give away 100 customized tours
•Moving forward, Airbnb will keep tour profits
•Vice will receive advertising spending from Airbnb to market Experiences

Article #5: You Can Rent an Entire Island for $595 a Night on Airbnb
•Bird Island in Belize
•Perfect setting for romantic getaway
•Accommodates up to six people

Article #6: Hotel Association Hires Ex-Cop to Track Illegal Activity on Airbnb
•Former NYPD officer, Secret Service who founded private security firm
•Undercover looking for criminal activity caused by Airbnb users

Article #7: Meet Airbnb’s Newest Competitor: Google
•Google making listings viewable through hotel search engine
•7,000 listings exclusive to Europe thus far
•Links to Priceline and booking.com

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