Making Money on Airbnb2019-11-04T10:21:44+02:00

Making Money on Airbnb: Learn How to Use Short-Term Rentals for Long-Term Results

This book tells you how to use Airbnb to generate a high monthly income, with very little ongoing effort. You’ll learn how to invest in real estate that returns good profit from short-term rentals.

This book tells you how to use Airbnb to generate a high monthly income, with very little ongoing effort. You’ll learn how to invest in real estate that returns good profit from short-term rentals.

About the Author & the Story of the book

My name is Stanimir Nenov, but you can call me Stan. I have a passion for entrepreneurship, making people’s lives easier, travelling, and making money. I’ve found a way to combine my passions to improve my lifestyle and live an incredible life. The results are so easy to duplicate that I want to share them with everybody.  That’s what this book is about.

My first passion has always been entrepreneurship. In 2012 I founded a non-profit that leverages modern technology to make legal information more accessible to people. A few years later, I co-founded Advomi, a legal tech company that provides affordable legal services. We create useful software products in the Singapore and Eastern Europe legal space to empower lawyers with technology. This results in better legal services at better prices.

My second passion is travelling. During one of my European travels in 2014, I signed up for Airbnb. This first experience was great, and it got me to thinking. Shortly after this trip, my life circumstances required me to move out of my little apartment. Instead of going the conventional route and finding a long-term renter, I decided to try listing the apartment on Airbnb. It was one of the best decisions I have ever made. I earned good money right from the start.

Back then, short term rentals on Airbnb made almost twice the money of a long-term rental. My wife helped with the cleaning, I managed the Airbnb app and handled all communications. I felt we were really onto something. At the same time, we had a second apartment in another major Bulgarian city that was just sitting empty. Once again, I was faced with the option of finding a long-term renter or putting it up on Airbnb. Based on the great experience with my initial listing, I went with Airbnb. The apartment was in another city and I had to hire a cleaning maid. However, I still handled all communications. I discovered my initial experience with Airbnb was no fluke. Both of my apartments performed well on Airbnb. This was the early days of the platform in Europe. There was very high demand from guests and very little competition as most other property owners didn’t know about Airbnb.

I discovered Airbnb rentals could be a very lucrative source of income. My apartments always had an 80% or more occupancy rate, were booked up to two months ahead, and commanded great prices. And remember, this wasn’t my day job. Airbnb was my side hustle.

In late 2015, as I was up to my elbows in managing Advomi, I had inherited some money. Since the Airbnb gig was working so well, I decided to invest that money in a third apartment. I bought a unit in a very good location, renovated it, and listed it on Airbnb in the spring of 2016. Again, right from the start the apartment was always booked and commanded a great rate. I was generating profit right off the bat.  To this day, this apartment is the top performer in my portfolio. It consistently returns about 10% a year on the investment.

I was hooked. The entrepreneur in me saw Airbnb as a revenue stream with tremendous potential for growth. Within another year I purchased a fourth apartment dedicated to Airbnb rentals. But this is when I started to feel the strain of running my legal tech business, meeting my family obligations, and still running my Airbnb side hustle. I realized I didn’t have the personal bandwidth to handle it all. What I needed was a system for managing my properties that left me free to concentrate on Advomi and my family. So, I created a system that combined people and software with a set of rules and principles for decision making. My system replaced my day-to-day involvement with Airbnb but still allowed me to generate profit and maintain good ratings with the platform.  I became a true believer in the ability of Airbnb to transform lives. It changed my life my generating additional income and in turn, I changed the lives of students and others looking to make a little cash by helping me maintain my Airbnb business. Together, we changed the lives of countless travelers by providing them with an exceptional experience as they visited our properties.

When I had to spend a year in San Francisco on business, I tried duplicating my Airbnb success across the pond. In San Francisco, I took a long-term lease on a 2-bedroom apartment and sublet the small bedroom on Airbnb. Again, my system worked beautifully. I earned money while living abroad in a top location in one of the most expensive cities in the U.S.

By the start of 2017, I had learned quite a lot about Airbnb. I knew every detail of the platform, inside and out. I had developed a system to manage my properties that required minimal involvement from me, and I didn’t things could get any better.  But they were.

This was when I discovered that Mila, a person I knew through the startup ecosystem, was also enjoying great success with her own Airbnb venture. Like me, Mila is an entrepreneur at heart. She and I became business partners, merged our systems, and started the Airbnb property management company, Instahost. We had such a fantastic start and could hardly keep up with the number of upcoming new clients. Instahost managed properties in Sofia and three other large Bulgarian cities. It was a great run. But after two short years we realized it was time to scale back the business and focus on just a few apartments. Mila started a family and I was focused on Advomi. As owners, we realized we weren’t in the position we needed to be to give Instahost the attention it required. We parted ways and went back to taking care of our individual units. It wasn’t a bad place to be in. Heck, I still worked my day job at Advomi while by Airbnb apartments made profits and required little of my personal attention.

During this time period, I gained an incredible amount of knowledge about Airbnb. I learned from my mistakes and I learned from the mistakes of others. Most importantly, I learned from personal experience. What I know about Airbnb I learned by doing and experiencing.

When I achieved some amount of fame with Instahost, people started asking me questions about how they could make money on Airbnb. I’ve been fielding these inquiries and responding one on one for years. Then one day I decided I should accumulate all the answers to the questions people ask, sprinkle in my own knowledge and experience and create a guidebook for making money with Airbnb hosting.

When my international friends heard the news about the book, they encouraged me to translate it into other languages. Everyone all over the world loves to make money and Airbnb is a profit generating engine when you know how to use it. So here we are! The first edition of this book was written in English and has already been translated into five other languages. Inside, you are going to find everything I know about Airbnb and everything I know about the related topics that are important for your success. I hope you find this information useful. When you succeed, I have succeeded as your teacher.

Stanimir is 30-years old, a father and a husband. Founder and CEO of Advomi – LegalTech company that provides affordable legal services for businesses and individuals. Founder of “MyRights – The Decoded Law (pravatami.bg)” – a non-profit that promotes legal rights and active citizenship for 200,000 monthly web users in Bulgaria. For his work Stanimir is honored with “John Atanassov” diploma from the President of Bulgaria, as well one of “40 under 40”.

Contents

This book tells you how to use Airbnb to generate a high monthly income, with very little ongoing effort. You’ll learn how to invest in real estate that returns good profit from short-term rentals and discover how short-term rentals can be far more profitable than their long-term counterparts. This book covers all the information you needed to be successful with Airbnb. From A to Z, I reveal the possible ways you can benefit from real estate. Want to know when is the right time to buy real estate? Keep reading! Wonder how to compare an investment in Airbnb property with other investment alternatives? I’ll explain. If you need to know how to estimate the cash flow and the profit from the property and calculate your return on investment, I’ll take you step by step. I even include a calculator and other financial tools for this purpose. I’ll cover the alternatives to investing in Airbnb and show you how to determine if Airbnb is right for you. This book will take you through the steps of deciding where to buy an apartment and what kind of unit is best. I’ll tell you how to furnish it and even provide a furnishing checklist. You’ll learn how to successfully list your property on Airbnb and how to set your pricing. I’ll show you how to set monthly and yearly key metrics for you to measure your success. You’ll learn how to save money on bank fees and currency transactions when receiving your payouts from Airbnb. Worried about how to comply with the law? I’ve got your back. This book has step by step instructions on property management from checking in and out to communicating and cleaning. You’ll get a feel for the kinds of guests that travel with Airbnb and even learn if the Superhost badge is worth pursuing. From dealing with neighbors and other residents to getting the most out of Google Maps, I’ll teach you based on my extensive and profitable experience. We’ll even take a look at Booking.com, the alternative to Airbnb. You’ll find this book is focused on practical and actionable information for current and future Airbnb hosts, as well as to people interested in real estate.

INTRODUCTION 7
WHAT THE BOOK IS ABOUT 12
WHO IS THIS BOOK SUITABLE FOR? 13
HOW TO READ THIS BOOK 14
SOME DEFINITIONS 14
PROS AND CONS OF LISTING A PROPERTY ON AIRBNB 16
     Pros: 16
     Cons: 17
WHEN IS THE RIGHT TIME TO BUY REAL ESTATE? 18
INVESTMENT ALTERNATIVES 19
SHOULD YOU OPERATE AS AN INDIVIDUAL, A CORPORATION, OR A LIMITED LIABILITY COMPANY? 25
METRICS 26
RESEARCHING THE AIRBNB MARKET 29
     A better way to research the market 30
AIRBNB GUESTS 36
     What kind of people use Airbnb? 37
IDENTIFYING SUITABLE PROPERTY FOR AIRBNB RENTALS 38
     Suitable cities 38
     The location 39
WHAT IS THE BEST SIZE APARTMENT FOR AIRBNB? 40
SUBLETTING AND AIRBNB 45
SETTING UP THE APARTMENT 46
     Apartment furnishing 46
     Purchasing supplies 48
PRICING YOUR PROPERTY THE SMART WAY 49
WHAT IS AIRBNB’S PRICING? 51
MY SEMI-AUTOMATIC PRICE ADJUSTING STRATEGY 54
DECIDE HOW TO WELCOME GUESTS 57
     Self-check-in 57
     Self-check-in Products 60
     Personally welcoming guests 63
LISTING THE PROPERTY ON AIRBNB 65
CREATING YOUR PERSONAL PROFILE 65
PUBLISHING THE LISTING 68
BOOKING TERMS AND CONDITIONS 79
BOOKING POLICIES 80
AVAILABILITY 83
SETTING UP PRICES 84
     Special Offers 86
     Discounts 86
    Set and Update Prices 86
CO-HOST PROFILES 88
COMMUNICATING WITH GUESTS 89
     Automation 89
     Templates for communicating with guests 94
     Additional templates 103
BOOKING CHANGE OR CANCELLATION 104
NEIGHBORS AND RESIDENTIAL MANAGERS 105
GETTING FEEDBACK ONCE YOU HAVE GUESTS 108
     Ratings and reviews by guests 108
     Reviews 109
CLEANING AFTER GUESTS LEAVE 110
     Cleaning, laundry, maids 110
     What are the available cleaning options? 111
GETTING PAID 113
PAYOUT 113
PAYOUT ROUTING RULES 114
PAYSERA 115
REVOLUT 116
TRADITIONAL BANK 118
PAYPAL 119
PUTTING TOGETHER A TEAM 120
HIRING THE MEET AND GREET TEAM 120
HIRING THE MAID 123
HIRING AN ONLINE COMMUNICATOR 128
     Hiring Process 130
HIRING FOR MAINTENANCE AND EMERGENCY REPAIRS 133
DAMAGES, SECURITY, AND THEFT 134
SECURITY IN GENERAL 134
CLAIMS FOR DAMAGES AND REVIEWS/FEEDBACK 136
WHEN IS DAMAGE COMPENSATION APPROPRIATE? 137
HOW TO FILE A CLAIM 137
REIMBURSING GUESTS 140
SUPERHOST 140
NEGOTIATING WITH GUESTS 142
CONTACTING AIRBNB 143
GOOGLE MAPS 146
BOOKING.COM – THE AIRBNB ALTERNATIVE 148
DISHONEST BUSINESS PRACTICES 150
TAXES AND LEGAL MATTERS 151
THE FUTURE OF AIRBNB AND TOURISM IS BRIGHT 153
AIRBNB 155
THE RISE OF CHINA 156
THE AIRBNB MARKET 156
SUMMING THINGS UP 158
APPENDIX A 163
APARTMENT FURNISHING CHECKLIST 163
APPENDIX B 166
WORKFLOW FOR CLEANING THE APARTMENT UPON VACANCY 166
PROCESS FOR CLEANING THE PROPERTY 166
     Step 1: Evaluate general status 166
     Step 2: Cleaning 167
     Step 3: Changing the linens 169
     Step 4: Bathroom clean-up 169
     Step 5: Cleaning the kitchen and the dining areas 172
     Step 6: Making the beds 174
     Step 7: Dusting 175
     Step 8: Floor cleaning 176
     Step 9: Cleaning the entrance hall 177
     Step 10: Restocking the property 177
     Step 11: Final inspection 178
APPENDIX C 180
MEET & GREET TEAM MEMBER JOB LISTING 180
APPENDIX D 183
ONLINE COMMUNICATOR JOB POST 183
APPENDIX E 186
7 HABITS OF A SUCCESSFUL ONLINE COMMUNICATOR 186
APPENDIX F 188
DISCLAIMER 189

Book samples

Pros & Cons of listing a property on Airbnb

As with all things in life, listing a property on Airbnb has its benefits and drawbacks. Here is a brief look at the pros and cons of listing a property on Airbnb.

Pros:

  • Better money. The income from short-term rentals generates higher profit compared to long-term rental. Success is guaranteed if the principles discussed in the book are applied.
  • Cash Flow. Airbnb pays out in 24 hours after guest check-in. This means that we have better cash flow and income at least a few times monthly, compared to the one monthly income from the long-term rental.
  • Our property depreciates slower. For example, when Jay from South Korea comes to visit London, he would prefer to explore the city and the country. He will use the apartment mainly to take showers and to sleep. This is the most common case. Thus, the property is used as much as if there were long-term renters. If John from Ireland lives in the apartment long-term, he will spend more time in the apartment. This subjects the property to more wear and tear, and it will depreciate far more quickly.
  • Personal use of the property. If you need to use the apartment for a short period of time you may. Say you have guests visiting for the holidays and they need a place to stay or your personal living space is being renovated and you must leave it for a while. You can simply block Airbnb’s calendar for the dates needed and personally use the apartment. This isn’t possible with long-term renters.

Cons:

  • Managing the property. Handling the listing in Airbnb, dealing with guests, calendars, and bookings is time-consuming. If you do the work yourself, the strain and worry   might get on your nerves. You can avoid this by using the systems and principles explained in the book.
  • Issues with neighbors. There is a possibility for tension between you and the other residents (neighbors). The book has a section dedicated to this issue. If you have problems with neighbors, I give you strategies and actionable advice dealing with the issue. After all, your activity with Airbnb is completely legitimate.

When is the right time to buy real estate?

Before 2008, conventional wisdom held that the prices of real estate would never go down. However, the events at the end of 2008 and in 2009 proved this wrong. No one can reliably predict the future of the real estate market or anything else. Here is the rule of thumb I use to analyze the situation to determine if the time is right for buying a real estate: Is there a widespread optimism? Is everyone else buying? Does everyone believe that the economy will keep growing and that real estate prices will continue to rise? If the answer is “yes”, that means it is time to be cautious and conservative. In this environment, the probability of losing money is greater than the probability of missing opportunities.

On the other hand, if you observe widespread pessimism instead of optimism, if everyone is disturbed and the market is in stagnation or correction, then this is the time to be bold and take action. In these situations, the probability of making money is much greater than the probability of losing. The goal is to assess the risk. In times of general optimism, the risk is high. In times of general pessimism, the risk is low.

More Samples:

Media

I feel comfortable in every media format. I have taken part in TV broadcasts – both live and on record (news feeds broadcasted on national television, morning shows, specialized broadcasts, etc.; I have taken part in radio broadcasts on the National radio, in podcasts, I have been interviewed for newspapers and magazines.

For contacting my PR team, please write an email to hi @ nennoff. com

Links with more information about me:
www.nennoff.com
Facebook: s.n.nenov
LinkedIn: snenov
Twitter: s_nenov
Facebook page of the Book with updates and news

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