As Airbnb Falls apart. Only these properties will Survive
Summary
TLDRIn the era of oversupply in the Airbnb market, Sean from YouTube emphasizes the importance of novelty in property listings to stand out. He suggests focusing on unique design, contrasting with competitors, and creating a curiosity gap through artistic photos. Sean also discusses the significance of offering novel experiences and amenities that are underserviced in the market, such as ADA accessible spaces. He highlights the importance of market research to identify gaps and adapt to the local context, ultimately suggesting that being different and innovative is key to success in the short-term rental business.
Takeaways
- 😀 The ease of making money from Airbnb properties has decreased due to oversupply and economic factors leading to more real estate in the short-term rental market.
- 📈 To stand out in an oversupply market, Airbnb hosts should focus on creating 'novelty' in their properties to attract guests.
- 🏠 Novelty in design is crucial; hosts should aim for a unique aesthetic that contrasts with the competition and creates a curiosity gap for potential guests.
- 📷 The 'hero photo' of a listing should be strategically chosen to represent the property's uniqueness and should change with the seasons to highlight relevant amenities.
- 🌞 Novel experiences provided by a property, such as unique locations or themed stays, can be a significant draw for guests seeking something different from standard accommodations.
- 🎨 Market research is essential for identifying under-serviced amenities and opportunities to offer novel combinations that are not widely available in the local Airbnb market.
- 🛋️ Basic furniture and designs are being left behind; properties with a commitment to a full and unique design are more likely to be booked.
- 🚀 Novel amenities, such as EV chargers or ADA accessibility, can provide a competitive edge by catering to specific guest needs that are not commonly met.
- 💡 The concept of 'novelty' can be applied to various aspects of a property, including design, amenities, and the overall experience offered to guests.
- 🏡 Properties that are inherently unique or located in a remarkable setting can provide a novel experience without needing additional thematic elements.
- 📊 Cost efficiency in operations, such as hiring and managing housekeeping staff, is crucial for maintaining profitability in the short-term rental business.
Q & A
What was the initial ease of setting up an Airbnb property according to the script?
-The script describes the initial ease of setting up an Airbnb property as simply requiring a bed on the floor, which would then be booked for a high price, leading to a quick cash flow and perceived wealth.
What factors have contributed to the oversupply of properties on Airbnb?
-The oversupply of properties on Airbnb is attributed to the platform's previous reputation for easy money, the influence of 'covid-19 and revenge travel', inflation leading to real estate purchases, and economic factors encouraging people to invest in short-term rental properties.
What is the main theme suggested for profitable Airbnb properties in 2023?
-The main theme suggested for profitable Airbnb properties in 2023 is 'novelty', which includes unique, hard-to-recreate aspects that set the property apart from the competition.
Why is 'novelty' important in the context of short-term rentals?
-Novelty is important because it allows a property to stand out among a sea of similar listings, attracting guests who are looking for unique experiences and potentially leading to higher bookings.
What are the three areas of novelty mentioned in the script?
-The three areas of novelty mentioned are: novelty in design, providing a novel experience, and offering novel amenities.
How does the script suggest improving the 'hero photo' of an Airbnb listing?
-The script suggests using a photo that contrasts with the competition, possibly changing the hero photo according to the seasons to highlight relevant amenities, and considering artistic, zoomed-in shots to create a curiosity gap.
What is the significance of creating a curiosity gap in the hero photo?
-Creating a curiosity gap in the hero photo is meant to intrigue potential guests, making them want to click on the listing to learn more, which can improve the listing's SEO and ranking on Airbnb.
How does the script relate the concept of novelty to the idea of market research?
-The script relates novelty to market research by emphasizing the importance of understanding what the competition is offering and identifying gaps in the market where a unique property can fill a niche.
What is an example of a novel experience that could be offered by an Airbnb property?
-An example of a novel experience mentioned in the script is providing accommodations in unique structures like spaceships, tree houses, or themed properties that are inherently experiential.
How does the script suggest using novel amenities to differentiate an Airbnb property?
-The script suggests identifying under-serviced amenities in the market, such as EV chargers or ADA accessible spaces, and incorporating these into the property to attract guests who are looking for those specific features.
What is the importance of cost efficiency in running a short-term rental business according to the script?
-Cost efficiency is crucial as it directly impacts profitability. The script highlights the importance of managing housekeeping costs, suggesting that having in-house staff can significantly reduce expenses and increase profit margins.
What advice does the script give on adapting to market changes in the short-term rental industry?
-The script advises being flexible and adaptable, learning from market research, and being brave enough to implement unique designs and amenities that are not yet common in the market to gain a competitive edge.
Outlines
🛏️ The Evolution of Airbnb Profitability
Sean, an experienced Airbnb host and educator, discusses the changing landscape of Airbnb profitability. Initially, it was easy to make substantial income with minimal effort, but an influx of properties due to factors like inflation and the appeal of 'easy money' has led to an oversupply in the market. He emphasizes the importance of novelty to stand out in an oversaturated market, suggesting that unique and hard-to-recreate properties will be the most profitable in 2023 and beyond. Sean introduces three areas of novelty to focus on, promising to teach viewers how to rethink their Airbnb approach by the end of the video.
🎨 Novelty in Design for Airbnb Success
The speaker delves into the first type of novelty: design. He stresses the need for properties to stand out from the competition by offering a unique aesthetic that creates a contrast. The use of a distinctive 'hero photo' in listings is highlighted as a crucial marketing tool to attract potential guests. Sean advises hosts to change their hero photo according to the seasons to maintain relevance and curiosity. He also hints at the importance of understanding the local market to identify gaps in what's being offered and capitalize on them with unique design elements that can significantly increase a property's appeal and booking potential.
🌳 Providing Unique Experiences in Short-Term Rentals
Sean explores the second aspect of novelty: offering unique experiences. He mentions that properties located in special settings or with inherent experiential value, like spaceships, tree houses, or unusual architectural designs, can naturally attract guests. The speaker also talks about the potential of glamping and staycation trends, suggesting that hosts can tap into these markets by providing themed properties or finding locations with natural draws. He warns, however, that hosts must be aware of the size of the market they are entering and the competition within it, advising to conduct thorough market research to find gaps and opportunities for differentiation.
🛋️ Novelty in Amenities for Competitive Edge
In the final section on novelty, Sean focuses on amenities, which are key to providing memorable experiences for guests. He explains the concept of 'under-serviced amenities' and how finding the right combinations of these can give a property a competitive edge. The speaker suggests that hosts look for opportunities to offer unique amenity combinations that are not widely available in their market. He also points out the significant potential in making properties accessible for people with disabilities, which is an underserved market with a high reward for those who can meet this need. Sean concludes by emphasizing the importance of cost-effective management practices in running a successful short-term rental business, inviting viewers to a webinar on hiring and managing housekeepers to reduce costs.
🚀 Embracing Failure as a Path to Success
Sean wraps up the video by sharing his personal journey, including the failures and lessons learned along the way. He encourages viewers to embrace the process of trial and error as a necessary part of growth and success. The video ends on a motivational note, with Sean thanking viewers for watching and inviting them to continue the conversation in the comments section. He positions his teachings not just as Airbnb strategies but as broader business and hospitality fundamentals that can be applied to various aspects of the industry.
Mindmap
Keywords
💡Airbnb
💡Oversupply
💡Novelty
💡Design
💡Experience
💡Amenities
💡Market Research
💡SEO
💡Pricing Strategy
💡Hospitality Fundamentals
💡Housekeeping
Highlights
The ease of setting up an Airbnb property has changed due to oversupply and economic factors.
Properties that stand out as most profitable in 2023 and beyond are characterized by the element of novelty.
Novelty in short-term rentals can be achieved through unique design, experiences, and amenities.
Design novelty involves creating contrast with competitors and using artistic representation in photos.
Seasonal changes in hero photos can attract attention and bookings based on current demand.
The importance of a unique hero photo to create a curiosity gap and improve SEO ranking on Airbnb.
Committing to a full design with unique elements can help properties stand out in a saturated market.
Providing a novel experience through the property's location or unique features can attract bookings.
Market research is crucial for identifying underserviced amenities and gaps in the market.
Combining amenities in unique ways can give a competitive edge in the short-term rental market.
Adapting to market needs, like making properties ADA accessible, can significantly increase bookings.
The importance of cost-effective management practices in running a profitable short-term rental business.
Hiring and training housekeepers can lead to significant cost savings in property management.
Webinar on hiring housekeepers to reduce housekeeping costs by 60-70%.
The value of learning from failures and adapting strategies in the short-term rental industry.
The speaker's experience in building multiple seven-figure businesses and applying lessons to Airbnb.
Invitation for viewers to ask questions about running a profitable short-term rental business.
Transcripts
an Airbnb property used to be so easy
right you threw a bed on the floor and
somebody would book the place for like a
million dollars and you'd be like cash
flow Rich everybody was like yes I'm
making so much money but then in comes
coveted right and then Revenge travel
and then this time where everyone's like
oh all my real estate should be on
Airbnb it's gonna make way more cash
flow and then people were gobbling up
real estate because of inflation and now
we've just got a bunch of real estate in
the Airbnb space right we have over
supply for a lot of reasons and not just
because airbnb's been easy money but
other economic factors have led people
to buy up more properties and then put
them into the short-term rental space so
now here you are with some properties
that aren't making as much money as they
used to what do you do well this video I
want to tell you what properties are
going to make the most money in 2023 and
probably on for a good long while in an
era of oversupply all of the best and
most profitable properties can be
summarized by one word novelty there's
gonna be three areas of novelty I want
you to focus on and in this video I'm
going to teach you those by the end of
this video you'll be rethinking your
entire Airbnb approach let's go Welcome
Back YouTube world my name is Sean as
you might know I've been doing Airbnb
for eight years been teaching it for
roughly six and this is where you go to
learn everything on how to run the
business because this is a business can
I get a like and an amen what I mean by
novel is unique different something
that's harder to recreate we are going
to dive into the three types of novelty
in the short-term rental space but let's
first talk about why it's so important
for us see hotels are very much
different but they compete with us
directly people can stay at a hotel I'm
staring at the W right here and they've
got how many hundreds of doors there so
what they can do is they can spend a
bunch of money on making this beautiful
bar at this beautiful pool and then they
could spend a bunch of money on
marketing and build out a brand where
people are searching to stay in Dallas
the W pops up in search because they
have so many keys there's this higher
reward that comes with spending that
money if you tried to do the same thing
you try to put a bar in your house with
a full-time bartender that's not going
to work you cannot have enough guests to
fund something like a bar you can't have
enough guests every night to fund
something like an ad campaign you have a
one-to-one relationship with your
property typically even myself with
places that have 10 or 15 properties
it's really not price efficient to try
to do some big marketing campaign to put
myself on the map you'd want to have a
hotel so there are advantages to
short-term rentals and there are
disadvantages and one of the main
disadvantages is you don't have the
scale for a marketing campaign you don't
have the scale to build a bar or
restaurant in your space right it's that
one-to-one relationship this affects so
much of your property like how you
should design it what kind of
experiences you should give what your
pricing strategy should be and yes this
channel has been all about pricing
strategy for years I even did a recent
webinar on how to do one with a zero
dollar cleaning fee you should check
that out because Airbnb is pushing
listings that have a zero dollar
cleaning fee right now because of their
whole PR Fiasco where everybody's been
mad at Airbnb off fees that one's called
my Target price webinar check it out the
benefits of novelty here is if you can
do something right once you can be the
one person getting booked because you're
the one person who's cornered that
Market Per Se if there's 10 000 listings
in somewhere like Dallas and there's 10
or 15 super interesting listings they
will always get booked there are
inexpensive two-bedroom properties here
that are making 14 000 a month because
they have a really interesting design
style and that's all they ever needed
and now these little two bedroom
properties are popping design case in
point is a good example of creating
novelty so let's jump in with that as to
number one you need novelty in your
design but what does that mean you might
ask let's go deeper you want contrast
from your competition that is why in one
of my recent videos I talked about why
we were painting all of our wall star
now you'll see with your hero photo the
very first photo that anybody can see in
your listing if you go through map view
and you're searching through your city
your listing pops up next to your
competition everybody has one photo to
represent themselves your one photo can
either fall in line with everyone else's
or pop in contrast against theirs now
big brain move is to actually change
your hero photo for the seasons right if
you have an amenity that's a hot winter
amenity then you want to have that photo
showing when it matters but in the
summer if that amenity no longer matters
you take it off of your hero photo you
want your best photo forward at all
times and that can change that might
actually be the first time I've given
you guys that advice for free and with
that a lot of the advice that I give
comes from me like years and years of
experience I test it out on myself and
then I give it to my students usually
first and then they get to run with it
and then if it works out and it seems
like it's safe enough for me to share
it'll come to you guys here now my
mentorship program is called cracking
super roast and most of the people in my
program are hosts who already have
properties what I've noticed lately in
the last three or four months because of
the winter bust a lot of hosts were
underperforming and didn't know what to
do with their listings how to save
themselves from losing money and a lot
of people have jumped into my coaching
because their listings was just suddenly
had empty calendars and just so you guys
know I'm not just a rental Arbitrage guy
I'm the guy who runs these businesses at
scale 150 properties they run the same
way whether or not you own them so the
concept of novelty has been something
we've been talking about for the last
six months the dark wall color something
that we've been talking about for the
last six months creating unique artistic
photos artistic representation of your
space to create novel marketing of your
space is something that we've been
talking about for six months this
concept of the hero photo is something
that we've been talking about for a long
while so to bring this to a very basic
level if you painted your walls some
extravagantly different color than your
comp Edition and you did a photo that's
not your typical wide real estate shot
you did something that's more akin to
like a headshot using a portrait lens
something that's more zoomed in these
artistic style shots could get somebody
to click on your space because they like
the vibe that you're sending off that
one photo and the less representative
that photo is of your entire space the
more creates what we would call a
curiosity Gap and that's why I do think
one of the best photos for your hero
photo is to have an outdoor photo if
your outdoor is wonderful like if your
yard is well manicured you have a
Pergola or Cabana you have a hot tub
you've got a pool you've got you know
textured lawn with like gravel and grass
and wood chip or you have really cool
Landscaping anything like that having an
outdoor photo makes people curious to
what's on the inside you do want to
leave enough of a curiosity Gap in your
hero photo that people click on your
listing because for SEO clicks lead to
better ranking the more clicks you get
the more that they're going to push your
listing that's one of the elements
that's still very important in airbnb's
ranking system being novel in the way
that you color your space a novel in the
way that you photograph your space is
one way to start getting clicks but
people still need to choose your space
and one thing that we're noticing is
that people who haven't really committed
to a full design right they've just got
basic Furniture they've got this
Farmhouse design that they picked up
from Ashley Furniture or something like
that and they just went with that but
they don't have any elements of a
short-term rental in it those ones are
getting left behind even the smaller
listings are getting left behind there's
things that you can add in I've got this
plant mirror combination and I'm
actually going to be selling different
Decor combos here soon we're actually
testing out a website model before I can
start giving you some of my cool Decor
combos but this plant mirror combination
that I do I think has been really
effective for bedrooms using little LED
signs can be fun too plant walls are
great as well one of my students asked
about designing a bachelorette style
space and what we found when we did
market research was pretty basic you
just need places for women to do makeup
and you need an Instagram wall and
that's what people are booking there's
not a lot there you want a cool space
but the amenities were really just
makeup stations and an Instagram one to
summarize the point novelty is different
than your competition so what that will
look like for you will be different
something that I have set up here that
might look like more of the same in
Dallas might be really cool in a Beach
town because nobody else is doing it
like the whole dark wall color this
might be really popular in New Orleans
and everybody's doing it but then you go
to Denver and no one's doing it so you
need to do your market research and find
out what your competition is doing in
order to find out what they're not doing
and choosing to go your own way will set
you apart from your competition and
change this supply and demand bottleneck
that you guys are going to be
experiencing from oversupply because if
8 000 listings don't get booked you just
need to make sure that you don't get
bundled in with that 8 000 listings if
you're one of the 2 000 or 3000 listings
that get booked there's going to be a
reason why and being different is always
a good plan for short-term rentals
number two is providing a novel
experience now this is something that
you may or may not have active control
of like for example you can find a
property that in itself is an experience
and that's going to be the move like the
OMG collection on Airbnb shows like
spaceships and tree houses and maybe a
house that looks like a boot you know
something like that and when I did
market research for a part of the world
I think it was somewhere near New Mexico
or Colorado we found that the only
properties in this one small town and
I'd remember the town now but I'm not
going to tell you because I told my
student to go there this one small town
has just a couple of properties that are
crushing it and none of the properties
are good but the bones of the properties
were cooled they're like right at the
foothills of the of like this desert
mountain spot and even though the
properties aren't doing anything special
the furniture is trash their photos are
trash the two properties have good bones
and these properties are making a ton of
money because they offer an experience
even though the host isn't doing
anything else but they had just the
right property in the right spot they're
going to make the money I was thinking
about putting buses on these overlooks
like over by Lake Mead for example
that'd be really cool there's this this
downward grade and there's all these
little spots that you probably could
pull off and park I need to get some
Land Management Group to give me permits
or something like that to park them up
there but to have fully independent
solar powered buses overlooking this
river outside of Lake Mead would be
super tight that would be like an
experience now I do think that's why the
glamping movement got so big but you do
need to recognize when you're pushing
into a fishbowl let's call it that has a
critical mass for size there are people
who love to backpack there are people
who love to road trip so if you popped
up properties off of Route 66 you're
going to get a certain amount of
business for people that are road
tripping route 66. now if you pick
spaces that are outside of urban
locations you might get some staycation
traffic where people are leaving the
city and these want to disappear for a
little while for example Glen Rose is a
couple hours from Dallas and one of my
friends owns a house out there and
there's this exotic petting zoo over
there and people will go down there and
stay for a weekend or a few days there
are staycation elements like that
whether you decide to try to do
something that's like glamping or
whether you try to do like a Suburban
staycation or just a themed property or
if you try to find a destination where
there's no good hosts but really good
balls for properties like I mentioned
just recognize that you'll be pushing
into a market that has a certain size
you're not going to change the size of
that market by adding your inventory
you're only going to be taking up share
of a current existing market so be
careful there could be ways that you can
temporarily tap into providing a unique
experience even with the very regular
properties that you have like theming
for Hall qualities can be fun I have
students that'll set up Christmas decor
for about 10 weeks of the year to try to
get a pop from that whole Christmas
element because people like it and
there's so few hosts that'll go that
direction they'll give them a temporary
advantage in the market and this segues
into the third area of novelty this is
one that you can control in large
sometimes you can't with Arbitrage
because you can't change a space that
you rent but you can still choose spaces
that have these things you can have
novel amenities after all what is a
short-term rental it's a place to sleep
it's a place to make memories it's a
place to move on from so really it's all
about the experience at the end of the
day and competitive under serviced novel
amenities are where you can go now when
I teach my students to do market
research we're looking for one thing
called under serviced amenities and
there's a way to for free without using
something like air DNA to find an
intersection of amenities that should
exist with property types but don't
where a city should have more EV
Chargers and hot tubs and pet friendly
or whatever and combinations thereof but
there's just no listings that have the
right combinations of amenities see five
years ago if you simply had a hot tub
you were cooking if you simply had a
pool also infused simply at a gym but
now as we move on and there's more
Supply we need combinations of amenities
and not just singular ones if you had a
beautifully manicured front yard and an
electronic charger for a Tesla that is
visible from the same photo in your
driveway you can show hey this place has
got a great yard and it's got an
electric charger this would be a way to
have a slight combination of amenities
shown in your hero photo and there's one
that has been around for years that no
one's still taking advantage of which is
Ada accessible spaces there's such an
under supply of spaces that are
available for people in wheelchairs
people on crutches people going through
medical issues that if you simply got
your space to level 188 compliant you
could see a 400 percent increase in the
search ratio for your property compared
to others it would be a huge land grab
that you can take advantage of and this
is where getting started in this
industry could be really cool because
what's happening is that people have
committed to a line of of value offering
let's imagine Nokia right they make
certain types of phones or let's imagine
Sears they've got a certain department
store model and they commit to a line
because they've been making enough money
with that line they start to build
systems to really serve that and now
that they've committed to a structure of
value creation it's gonna be a little
harder to change so as you do market
research right now and you see what
everybody's doing you're gonna see more
of the same you'll see people failing
you're going to see a few people doing
it right and making some money you can
get inspired by the ones that are being
different doing it right you can become
inspired to be brave enough to do a
design that no one else will do you'll
be able to find these combinations of
amenities that people don't have because
they're already committed to their
spaces their spaces are done and you can
find gaps in the market and create
beautiful spaces that no one else is
doing and a good example of finding a
gap if you find a property that sleeps
14 people that they committed to this
beautiful design style right something
kind of wonky outlandish and fun and
it's doing really well why not take that
same design theme but just do it for a
studio where it could sleep four or five
people but it's way more price
affordable that person spent a lot of
money proving that a design worked and
now you don't have to take the risk
right so you can spend a little bit more
on your design but knowing that it's
already working with a group of people
and just do it with a different property
type that's non-competitive to them your
property that sleeps four or five is not
going to compete with the property that
sleeps 14. so you can do a nearly
identical listing just a junior version
of it and you get to win that almost
seems like cheating doesn't it being
cost effective price efficient is always
going to be one of these final stands
for running your hospitality business
because I'm going to tell you guys this
again this is not a real estate Endeavor
everything that we just talked about has
nothing to do with real estate itself
you understand that but you could buy a
property if you want or you could rent
it or you can co-host but what color you
paint the walls what amenities you have
who cleans your home what your pricing
strategy is all these things are active
business management like fundamentals
these are Hospitality fundamentals I'm
teaching a webinar on hiring
housekeepers and the reason why this is
important is you might have a house that
it costs you 200 to clean because some
third party is cleaning it for you if
you could have your own housekeepers at
14 15 16 per hour you can cut that cost
to 30 percent it could cost you sixty to
seventy dollars to clean the same house
that somebody's charging you 200 for and
that 140 dollar per turn savings at the
end of a month where you do six turns
gives you over eight hundred dollars of
savings per month which is eight hundred
dollars of extra profit per month at 155
dollars we have a staff count about
thirty something and we have a lot of
housekeepers and they're making 14 to 17
dollars per hour and that allows us to
clean most of our places for about
twenty five or thirty dollars per clean
where everyone else is you know charging
50 or 60. and this is a huge cost
reduction so if you want to learn how to
hire a housekeeper how to train them
from scratch how to manage them and
operate at half your housekeeping cost
then I will be hosting this webinar
March 21st a Tuesday it will be a
day-long boot camp and you will learn
everything that you need to know in
order to hire and train and maintain a
housekeeping team that will reduce your
cost by sixty or seventy percent the
link is in the bio I'll see you there
and PS if you have any questions on how
to run a profitable short-term rental
business feel free to ask in the
comments as you guys know I've built
four seven-figure businesses a lot of
what I can teach you about how to run
short-term rentals stems from another
industry that I've experienced in one of
my other business Endeavors and one of
my many failures I've failed my way here
too guys and that's part of the learning
process we need to try things we need to
fail we need to learn we need to do it
again we win and then we celebrate with
ice cream so thank you so much for
watching this video and as always guys
I'll see you on the other side
foreign
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