The short term rental industry is waiting for people like you who want to be professional operators delivering a high quality experience. The hardest way to do this business is to go through the first year with only one unit. Putting the right short term rental systems in place that allow you to grow past that point and start running more units is the secret to long term success. Learn what systems you must implement in your short term rental business.
- Have you ever asked a traditional real estate investor or landlord about short term rentals?
A good analogy is imagining what a person who owns a Costco franchise or someone who owns a vending machine business. Each person will have firmly believe that what they are doing is the best option, but the Costco person probably thinks the vending business is too much work, and the vending machine owner thinks the Costco is too much money upfront.
The traditional landlord is like Costco, they are wholesaling their property in 12 month terms. Short term rentals are like the vending machine business, you’re both selling the same product, just with a different package and sales channel. The differences are the customers being served and the level of services you are providing.
Short term rental operators are the retail version of real estate, we sell the property one day at a time, and the power is in our ability to be efficient. It’s the system that delivers the service, and that’s the difference between the two.
As a resource becomes more available and efficient, demand for that resource starts to go up. Cell phones are a good example, they started off big and clunky and difficult to manufacture, but now they are small, powerful, and ubiquitous. Short term rental operators make real estate more efficient.
The more efficiency we bring to the table, the more revenue we can drive in our businesses and other people’s organizations as well. The key to your future is putting this principle into effect for your life.
- Putting Short Term Rental Systems In Place
There are a few key short term rental systems that have to be in place if you’re going to capture this efficiency. This includes a system for cleaning the unit on a regular basis, a maintenance and repair system for fixtures like doorknobs, a communication system for communicating with your guests, and a system for managing the availability of multiple calendars per property.
Most of the time, we recommend people start out with AirBnB because they have the absolute best system for customer acquisition. But there are other platforms as well, and if you can operate efficiently on those platforms, you can make much more money per booking.
If you’re going to make the maximum amount of profit in this business you need to have a system in place for availability 24 hours a day, 7 days a week. This is probably the easiest area for us to outperform the market because the average short term rental operator has no system in place to handle inquiries and can sometimes take days to respond.
You have to provide more value to the marketplace than just you are able to provide. It has to be bigger than you. That kind of thinking is how you unlock five figure paydays, six figure success, and seven figure freedom. Learning how to provide value to the marketplace efficiently allows you to scale and reach levels of income that most people have no idea how to achieve, in less time than you would think possible.
Taking your customers direct will make your business more efficient, it will allow you to deliver your service more efficiently with a lower cost, while also increasing your profit. Once you get your customer from a marketplace like AirBnB, it’s your job to keep them happy so that they only want to do business with you, that way you pay the customer acquisition just once instead of every time.
If your business feels like work, that’s a sign that your short term rental systems are broken. You can’t just add tools and technologies to your business, you need the knowledge and training on how to use them well.
- How much value are you providing to the marketplace?
When you have one unit, you are providing 30 days of value each month. What happens when you have 12 units? That means that every single month you are delivering a year’s worth of economic value. This is why short term rental systems are so important, without them there would be no way to seperate your time from your income, and no way to grow a business to a level that makes an impact on the world.