Start Up Timeline
Oct 2016
Chad enrolled in Extended Stays for Landlords and we started sketching out a strategy.
Dec 29, 2016
Chad said, “Spent the last month furnishing and tweaking. Down to the last details, which always seem to take longer than expected….We have a [3bd 1 ba] and will be marketing to business travelers. Starting out we will likely also market to vacationers to get the reviews needed.
Have had 4 requests from OKC Dodger players or their managers in the last 3 days. Working on locking down a reservation on a 3 month lease at our target price of $1950/month!
Reflections from a Start Up Airbnb Landlord
We wanted to try something new and push our profit levels up. Traditional landlording involves risks we don’t normally see as risks, one of which is simply not making much money. I love real estate, but it is not a hobby and I can’t do it for free or for not much return. Another risk is having someone longer term in your property that doesn’t pay or take good care of the place. Also, there is so much competition with the traditional model in our part of the country. Tons of investors all doing the same exact thing. We wanted to try something different with potential to have higher rewards.2 – What was your big objection about trying a different operating model?
Other than “we have always done it this way”, our biggest objection was the cost involved in furnishing a place. We were going to have to come up with cash and it took time to get our first property furnished and ready to move someone into.
3 – What would your net income be as a traditional?
Net on our first property would normally be around $300/mo or around $3,600/yr.
4 – What would you guess your net income is under extended stay conditions?
Right now we are at around $800/mo [$9,600/yr] which is around 2 1/2 as much as we would in a traditional scenario.
5 – What would you tell other landlords who have doubts about operating on a more profitable level?….Give it a try and see if it works for you. You have to commit to it for awhile, but the risk is certainly worth the reward for us. We are already working on our next properties!