How to Start An Airbnb Business in 2021 [Full Free Course]

what is up guys my name is greg welcome to the course on how to start an airbnb business for the longest time i've been wanting to put this together for you guys but finally i'm happy to announce that the free course is finally here to be honest i don't think there's anything as good as this for free out there so the only thing that i can ask for you guys in return is to like this video subscribe to the channel and comment down any questions that you might have related to the video also don't forget to check the links in the description if you guys need a book a one-on-one consultation with me i can guide you through the process on how to get started just book a call with me and i'll be happy to assist you so without further ado let's get started with the course once again welcome to the course on how to start an airbnb business by the end of this course you guys should have a basic understanding on how to start as well as knowing how to pitch a landlord so you can start this business without owning no properties of course there is more to this but i'm going to try my best to give you guys as much details as possible in this video as well if you guys have more questions about a topic i have a bunch of other videos in my channel so feel free to check them out if you guys want me to cover something else make sure you guys leave a comment down below and i'll be happy to make a video on that topic in the future so let's get started okay guys so let's go over the course objectives of this course now the first thing that we will be going over will be the opportunity what makes airbnb a good business opportunity the fundamentals of the airbnb business we're going to dive in into understanding what short-term rentals are also we're going to be going over uh what short-term rental laws you should be looking out for in your city so you can do this business legally also setting up your llc i know many of you guys been wanting a video of me showing you guys how to do an llc we're going to be talking more about that too also studying the short-term rental market by the way str means short-term rentals so for those of you that are new and don't know what that means that means short-term rentals also i'm going to be teaching you guys how to do uh rental arbitrage how to pitch a landlord furnish your property listing your property on airbnb and a couple of tips on how to become a good host on airbnb as well to possibly become an airbnb super host and get more bookings that way too and finally i'm gonna be giving you guys some tips on how to automate your business so you can have this working for you instead of you working for the business so as you guys can see right there i have a picture of the first airbnb that i actually did when i was uh back in 2019 and uh up to this day i'm still doing airbnb in those properties before we jump into the course i do want to give you guys a little background about myself so i started airbnb back in 2019 back when airbnb was at its peak it was the best time to start airbnb i remember uh those couple of years i've made over a hundred thousand dollars on the airbnb platform i've also been an airbnb super host i've um i got into real estate investing back when i was in my early 20s but i actually started doing wholesale but that didn't work out so that's when i found airbnb and i jumped into that idea and i'm still doing it to this day and everything that i've learned has been self-taught so just by watching youtube videos reading books and asking questions to uh various mentors that i've had in the past and i'm also trying to become a real estate agent just so i can get more educated on the business as well as learning how to buy and sell homes so let's start by talking about what makes airbnb a good business model so the first thing that comes to mind is that you don't have to have no experience required basically anybody can get started as well as little to no money down the initial investment is anywhere from five to ten thousand dollars if you don't have that money you can always use a credit card a business loan or you can always raise money with your friends and family as well also this is gonna be a flexible business model so you can do this part-time or full-time this is gonna be perfect for all of you guys that have in a nine-to-five job you can always just do it on the side to make some extra money as well as you don't have to have no license or degree at all so i know i get this question asked a lot if you need a real estate license to do this you don't need no license whatsoever maybe a business license but it's just depending on the city that you are in uh this business is fully automated also this is the fastest way to make passive income believe it or not literally when i uh listed my first property on airbnb uh within a couple days i was getting bookings and i was getting payments from airbnb so that's i think that's pretty cool also it's a low-risk business what i mean by a low-risk business is that that's why i'm going to teach you guys how to do rental arbitrage so you can go rent a property from a landlord and if you think that it's not a good fit for you you can always just uh return the property to the owner and then just walk away you don't have to stick to a property that you invested in and bought for like a lot of money and you have to stick around with it no if you don't like it you can always just call it quiz and just walk away another cool thing i like about this business is that you can do it from anywhere in the world so let's just say that you're gonna go travel to another place you can basically just take your laptop or your phone and then just do your business remotely without having to be there and that leads me to having no office space required so you don't have to have a an office with employees and also basically you can make money without owning no property so there's a lot of good things about this business model and i feel like a lot of people are going to start noticing it so the faster you get started the better so let's move over to the fundamentals of the airbnb business now let's dive in to knowing the basic uh terms for this business so what is a short-term rental a short-term rental is a furnished unit or property that is rendered for a short period of time mainly rental periods of less than 30 days so if you are renting a property that is less than 30 days that will fit into the category of a short-term rental now what is airbnb airbnb is a short-term rental platform where where you can list the property rent it out and make money doing so so now what is an airbnb host a host is a personal assistant guest and the person providing the rental space so as soon as you have a property and you listed on airbnb you automatically become the host meaning that you're going to be messaging guests you're going to be having uh to provide a hospitality and also the an airbnb business means that you are in the hospitality business so you have to keep your your uh your a game with customer service you have to make sure that your customers are always being well treated and now what is rental arbitrage so rental arbitrage is a method of renting properties and re-renting them on a short-term rental websites like airbnb and home away so rent arbitrage we're going to be talking more about this uh more in other slides and basically it's when you go out and look for properties for rent you talk to the landlord and then you agree with with them to let you uh airbnb or sublease a property and then that becomes the rental arbitrage method which i think it's a good way to start if you guys don't want to invest a lot of money into this business and last but not least in order for you to make passive income and build literally wealth and freedom with this uh you guys have to learn how to automate your airbnb business so plan ahead and create your team before your business takes off because if you started like like me when i started off i did everything by myself so and that that wasn't a good idea because at that time i had a job and i was getting my first guest and then they were checking out and then guess what it wasn't a clean i had to do the work and i didn't realize this that i had to be doing everything so i mean it was my mistake but that's why i'm going to teach you guys everything that you guys need to learn in this course so let's move over now to talking about the initial investment it's very important that you guys know your numbers especially when starting off this business because if you guys are just start throwing money everywhere you guys are gonna lose track of everything and you're not gonna maintain that budget you know so let's talk about that first so the first thing we're gonna be talking about is uh let's just say that we're doing the rental arbitrage method we look for a property for rent and we negotiated with the landlord for fifteen hundred dollars per month now the first thing is gonna be for us to uh to start the initial investment is gonna be the first month's rent so in order for us to start the lease we're gonna have to give the the landlord 1500 upfront with also with the deposit which is going to be 800 depending uh for property this can be different you know some properties can be less deposit some some will ask you uh to give in maybe like a thousand to fifteen hundred dollars uh deposit now we're going to be adding the utilities so with this business you guys have to keep in mind that we have to pay utilities like the water the sewer uh electricity the internet so for when i started i think i spent anywhere from a hundred dollars to install everything uh because i had to call all the companies for the electricity they they asked for like a deposit it was like 20 per like every utility i guess and so let's just keep it at 100 right here and llc this is optional now you don't have to get an llc when you start but if you do so you're probably going to spend anywhere from like 300 to a thousand dollars but for me it cost a hundred and twelve dollars when i got my llc so we're gonna add it to there to those expenses city permits also this is gonna be another thing that uh it depends whether your city requires for you to pay up front for any permits uh or things that will allow you to do this business legally so in the city of san diego anywhere from six hundred dollars for uh to get the permits also the furniture let's talk about the furniture now so with with an airbnb business you're going to be responsible to buying the furniture and all the upfront costs that's going to uh have to be to in order for for you to get the property from being vacant to having furniture and being ready to uh to rent it out as for airbnb so now let's talk about the furniture so the furniture cost can be different depending on the size of your property but i ended up spending anywhere from like three to thirty five hundred dollars i remember for my first property but i'm gonna show you guys a formula which this is like the wrong formula i actually meant to put 2.5 but basically to get a budget of how much you should spend for the furniture you should get the rent and times it by two and that's what that's where i got this uh number here three thousand i'm going to talk more about the subject uh more forward uh in this course but the total for for the our first initial investment is gonna be 600 and 812 dollars so as you guys can see this doesn't uh require a lot of money down you can literally start with six thousand dollars and uh if you guys are curious to know how you guys can make that money back then this is going to be the formula that i i i put out for myself so divide the total by how many months you will like to break even so let's just say that we let's just say that you started this investment of eight hundred and twelve dollars now let's just say that you want to make your money back within a year so you take the total and divide it by 12 months and that will let you uh to make to yourself payments of 567 dollars with 66 cents so don't make this mistake guys i literally made this mistake when i started and i feel dumb but uh in in the first year or in the first couple months try your best to set aside to recover your investment because if you just start blowing all your money away you're not gonna know whether if you broke even into this business and you're always gonna be like trying to recover so the faster you get your your investment the faster you open another airbnb so as you guys can see right here on the right this is going to be the first properties that i got on airbnb this is how i finish them and still doing good now let's go over the short-term rental local laws and regulations now this is very important guys i don't know if you guys have seen some of my videos in the past where i say to do your research before you get started because uh there can be a case where when you start doing airbnb and you don't know that the city requires for you to have a permit and then the city goes there and shuts down your airbnb and you lose a lot of money so the first thing is understand your local laws and regulations do a basic search on google.com and search short-term rental regulations in your city that's why i put like currencies right there so you guys can uh import your your city and and also you can go visit your city hall to get that information so you can speak with somebody in person and they can give you details uh some cities require a business license short-term rental permit or license we already talked about that and also you have to get familiar with the transient occupancy tax the tot or transit transient lodging tax now in some cities they require you to pay this tax because and if you guys are not yet familiar with the hotels hotels have to pay this tax so that's why when you go to a hotel they they ask you to pay extra fees so this is this is what it's for so as an airbnb host you guys have to be ready to set aside any money to pay the transit lodging tax and don't worry guys uh the the city will guide you on doing that so it's really easy and right here on the right we have a picture showing uh the the different requirements that every city uh needs so right here in new york uh you can't rent out your entire apartment so that really sucks so if you're in the city of new york basically you can't rent out the whole apartment you have to like live in there and stuff like that they have strict regulations so make sure you do your research first now for the next slide guys this is going to be a disclaimer because we're gonna be talking about more legal stuff like the llc so let's read this together greg from until me is not an attorney or accountant and the following information provided in this section of the video isn't legal or accounting advice we strongly urge you to check with your attorney in accounting before implementing any tax or legal strategies related to your airbnb investing activities now that we have gone over this let's go over setting up an llc now this is going to be optional guys you don't have to get started with setting up your llc i know some people will rather save that money for later in the future when they start making money uh with their airbnb business they can set it up and actually fun fact i didn't start with my llc i started my llc later when i was uh operating my my my airbnb business so there's this is an optional thing so but still let's go over it so what is an llc an llc is a limited liability company a type of business structure that protects your business and can be used for tax and liability benefits as a business owner now there's a lot of good benefits for having an llc like asset protection uh by this we mean that um let's just say that a person goes in your in your airbnb they fall they get hurt and then they try to sue you well if you have an llc they can't sue you personally they're gonna sue the business so let's keep in mind that your whole airbnb business is gonna be protected in a little bubble with an llc so everything inside the business the person that's trying to sue you is gonna try is isn't that it's gonna only be able to suit what's in the business they can't go after all your assets like all your your lambos your ferraris your houses they can't do anything about it because this happened inside the the business so they're gonna that's why uh the llc has as a protection and also any debts as well so if the business goes bankrupt the business goes uh bankrupt not you so that's another thing that i like it so if you have loans under the business don't worry they're not going to go to your personal name tax benefits uh there's a lot of good reasons why an llc is good for tax benefits because everything that you buy for your business you can write it off and you don't have to pay taxes on it so that's another good thing i like about uh an llc so if you guys want to know more information on this talk to your tax advisor or anybody like an attorney with llc you can open a business account with your ein number and apply for business credit so when you start an llc you get an eia number so basically an e i n number it's like um it's like a social security for your business so it's its own entity and you can open a business account have uh get loans with that business and technically like makes your business look legit with uh within the llc it's not like a like a sole proprietorship or anything like that if you have an llc you are legit uh is it worth getting an llc for your business yes guys so definitely if you're gonna be doing this for the long term get an llc how to acquire an llc now there's a lot of different ways to get an llc but the the the place that i recommend you guys to do it is to go to legalzoom.com that's how i did mine it literally was the easiest thing i just went online i went legalzoom.com i searched the name that i wanted to uh name my llc or business and then i chose to stay and i was able to find the name and i and it was basically just asking like just answering questions it was the easiest thing so if you guys have no knowledge with this just go to legalzoom if you if you give them a call they can probably guide you through it it's the most easiest thing guys i promise you i'm probably gonna make another video of this in the future so stay tuned for that okay so now let's jump into the study your short-term rental market so before we start airbnb we want to make sure that we are safe to to know that hey our city is going to work for airbnb now there's a lot of different ways you can figure out if your city works for airbnb now the first thing that you need to know is how big is your city how big is the population how many people go to that city every year if you are in a small town don't worry you can still do airbnb so ask this question to yourself if you live in a small town ask yourself this question is there hotels in there if there is hotels in that city that means that there is demand then how are those hotels staying in business you have to think about that guys so basically anywhere where there's hotels there's a possibility that you can do airbnb so also do your your research on that go on airbnb.com and search in your city to see if there's airbnbs how much they're charging now uh we're to be jumping over the the market research for to start an airbnb make sure before you get started with the research sign up for airbnb there's going to be a link in the description do that first before doing anything else sign up under my link that will help me out a lot if you guys sign up under my link and you guys can have like a little calculator that that shows uh how much money you can make and everything and then you guys should go to airdna.co and you're gonna find a lot of information on uh the on your city where you're trying to do airbnb they're gonna give you uh like a charts on on how much money every host is making how much they're charging per night and if that makes sense then go for it you know also almost forgot about this you should check how much our property is running out for in your area so if you plan on doing air uh airbnb rental arbitrage definitely check how much are the prices for a for rentals because let's just say that there's a one bedroom one bag like in san francisco running out for like three thousand dollars a month you have to make sure you run your numbers by that because you have to know that uh whether you're gonna be uh profitable whether you're gonna be able to break even it goes there's a lot more details i'm gonna probably make another video uh in this in the future um and explaining it more you know so apartments versus houses so when starting airbnb you have to make a choice what do you want to do you want to do apartments or houses i actually have a video in my channel go check that out i give you guys a lot of information on on choosing which one is better for you but long story short i think apartments are overall better just because i like to deal with less people so if you like to deal with bigger groups of people then i think houses are going to be for you but if you want to uh just bring it out for like two people four people max stick to a one to two bedroom apartments they're still profitable and they're easy to manage but houses they do make more money than apartments i just wanna let you know that right off the bat but it's just gonna depend all on you so please go check that video i'm gonna put it in the description so you guys can get more information on that now uh let's choose the right neighborhood to airbnb this is a good thing to go over because uh when doing airbnb you want to make sure that you are in the right neighborhood because if you don't check this you're going to fail with airbnb so the first thing that you should check is how quiet is the area like i know that for to live a quiet area is a good thing but to do airbnb you should avoid doing airbnb in a quiet area and the reason why is because if you go into an area where there's a lot of retirement homes a lot of older people that don't like the noise i guarantee you that with your airbnb is gonna make a little bit of noise and then people gonna get upset and you have to like talk to the owners and they're gonna be complaining blah blah blah so make sure you you do airbnb more like in uh more like in a more busier side of this side of town so when things go down whether you're airbnb when people start coming into airbnb they start talking blah blah blah they won't be complaining because they're used to that you know so i'm not saying that with airbnb uh people are gonna get rowdy like that but i just i just think that if you are in a quiet area they're gonna complain a lot the neighbors are gonna complain so also another thing that you should consider when finding a place for airbnb you should look into how far is it away from the city attractions now the closer you are from downtown or any theme parks the better you're going to be like getting your airbnb rented all the time because if you have an airbnb like that you say 30 minutes from the airport from downtown from all the cool bars in the city then your airbnb is probably not gonna get uh booked the first this that that's gonna be probably like the last resort for people and you don't want to be the last resort you're gonna be the first ones to getting booked so do your research on the neighborhoods on the properties that you want to get and that's gonna lead to you getting a good property to do airbnb and getting the best return of investment okay so now let's talk about how to rent an arbitrage so the goal with rental arbitrage is to make passive income using leverage basically using other people's properties to make money now don't think that this is going to be like ripping off the the property owner no because we're going to be actually providing value to them and even paying them extra if we have to so don't think that we're going to be just running our properties and then without letting them know we're going to be putting them on airbnb i'm going to teach you guys how to do it successfully so the step number one that we're going to be going over is looking for a property to rent this can be either apartments or houses now a good way to looking for properties to rent out for airbnb is to drive in certain areas that you choose there are good areas and hunt for rentals basically just looking for properties that have a for rent sign because the thing that we want to do is get a hold of the property owner because if we start calling uh phone numbers that are like property management that's going to be a little bit harder we want to look for property owners so another place that we can look for property is to go online facebook marketplace craigslist and do a basic google search another thing that i want to mention is that just try to stay away from property management for now we want to get more practice with like talking to landlords and and because if we go directly to property management that's when we're going to be getting uh a lot of no's and what we want is getting a yes so basically we have to filter those things out a step number two is to be to pre-qualify the rental now with that i mean that we have to make sure it's in a great location compare it with other airbnbs in the area to see if there's any other airbnbs to see how much uh they're doing and also run the numbers on the property and if you and if you think that it makes sense then definitely go for it now step number three is gonna be to setting up a meeting with the landlord now this is where it kind of gets a little bit scary and a little bit hard so like i said before look for properties that have a for rent sign on the door or on the property and call that number and make sure you get a hold of the property owner sometimes the assistant or somebody's gonna answer you have to you have to make sure that you get the property owner on the phone or make sure you get a meeting with them and they are there present when they do a a home tour or something like that step number four is to pitch the landlord so i'm gonna be talking about how to push the landlord in the next slide but that's step number four we're gonna pitch the landlord and step five get the property under contract with a clause that states that you can sublease or airbnb the property that's very important guys and don't worry you can always ask the landlord to write the clause in there uh for the contract you don't have to come up with your own contract because remember it's a property they should have the lease agreement and they should include that or also what you can do is you can actually go go to a lawyer and tell them to write you a contract that that states that you can do airbnb in the property because if you get the property and then later the landlord wants to kick you out for doing airbnb or something was wrong you can tell them hey you know what look i have a contract that states that i can do airbnb so you can't do anything about it so those are the steps to renting a property and without without you owning it and putting it on airbnb as simple as that so that is the simple part now right now we're going to be getting over to which is pitching the landlord that's the hardest part because i mean it's so much easier to look for a property and say you know what that property is gonna be doing good on airbnb but is a landlord gonna be okay with that so now let's dive into the most important thing about this course which is how to pitch a landlord i know many of you guys have been waiting for this and i'm going to give you guys a quick summary on how to do it i know there is more information to be uh talked about in this subject so i'm going to be making another video in the future so make sure you subscribe to the channel so you won't miss that video i'm also going to be providing a landlord script so you can know exactly what to say on the next video so in this video i'm just going to go give you guys some quick tips on how to do it and so you can potentially pitch a landlord and get that yes so let's get started so the step number one is gonna be to understand the business this is very important because you wanna go there like you're the expert you know what you're talking about you don't wanna go in there and be clueless because let me just tell you something that landlord is going to be asking you a lot of questions and you have to know how to answer them so know your numbers be aware of city laws insurance policies airbnb has a 1 million dollar host protection so you want to make sure you tell the landlord that their property will be protected with and a 1 million dollar host protection insurance from airbnb so just in case a property gets damaged uh airbnb will cover you also have a plan to show the landlord how you will run your business this is very important because it's gonna be asking you oh so how are you gonna do it how how are you gonna bring all these people and you're gonna have to explain to them you have to know the pros and cons of guest versus tenants this is very important guys because you're gonna go in there and you're gonna be selling the landlord on the idea that airbnb guests are overall better than tenants now when landlords rent out their property and the tenant's lease is over the landlord has to go in there and fix all the damages done from that tenant now with airbnb guests on the other side urban because they just go there they sleep they cook they shower and then they just leave and the property is still in great condition so you want to have a lot of pros and cons so you guys can compare airbnb guests with tenants now step number two is setting up the meeting with the landlord i know i talked about it in the previous slide but let me just go over a little bit more so before you set the meeting with the landlord you want to make sure that the property is the it fits all the criteria it's in a great location it's for a good price and it's it it and it's perfect for airbnb after you do that you want to call the owner instead of the meeting for him to meet you in person so make sure the owner is the one giving you the house tour so you can pitch the idea to him that airbnb is the way to go now step number three after you call the landlord you set up the meeting now it's time to pitch the idea to the landlord so before you go there make sure you prepare you're well prepared uh you go in there uh dress dressed up nice you don't have to go in there with a student tie or anything like that you just have to go in there looking looking nice uh make sure you're there on time and when you go there just me meet him and greet him and get to know him and then when you go there make sure you shake hands with him you you exchange names and get to know that person because he's not just going to be your landlord he's going to be your business partner as well in the long run because let's just say that that landlord has maybe other 20 properties in and you guys can just partner up so when you go there walk the property and build a rapport with the owner by asking questions about the property making sure that you ask for how long has this property been on the market uh what are you looking for in a tenant uh let's just say ask him um what is the worst thing that a tenant has done and if they uh respond to you guys and negative things that uh that tenants have done in the past then doesn't give you guys an advantage to offering the landlord a solution for that because probably that landlord is fed up with tenants and other issues so if that's the case then you're then you're good to go another thing is you want to identify what kind of landlord you're dealing with so there's two types of landlords there is the more laid-back entrepreneur landlord that are is always there to listen to your ideas and then the other person that just really doesn't care and he's just like so tight with with uh trying new things so if you're there with a cool guy or cool person that that isn't a like uh more likely to say yes to you then that's probably the type of person that you want to pitch the idea if if that landlord is like with a bad mood is giving you guys bad vibes you can give it a try you can pitch the landlord but most likely they're gonna say no so identify what kind of landlord he is after you guys are done walking the property you get to know him pitch the idea so tell them hey landlord thank you so much for showing me this property this is actually a good property i loved it but now i actually want to tell you something and that's when you pitch them that hey i you know what i want to list this property on airbnb i believe this is going to be a great opportunity for you to having to avoid tenants destroying your property i know that airbnb we're going to be getting more people coming in and now but we have everything under control we have a plan on how we plan on uh keeping guests under control with like having no parties being respectful to the property and just give them a lot of good pointers on why airbnb is a good option for the landlord and if and probably he's gonna say yes or no and if he says no then you have to be ready for uh any objectives and even an account offer so let's go over the common landlord objectives so if a landlord is skeptical it's going to be asking you about airbnb guests are going to be carrying on my place so now that's where you come in and compare guest versus tenants we talked about this and then also they're going to be he's probably going to tell you how do you avoid parties because that's a big concern with a lot of landlords they don't want their property to be a party house so we're going to say that you're going to install noise monitors cameras have strict policies and even hold a deposit for every guest so if that guest violates that rule you can uh charge a deposit basically just keep the deposit you can even charge even to a thousand dollars and that's how you're going to prevent parties now maybe the lander the download is going to be well what about my keys i don't want my keys to be going everywhere and that's gonna and then you're gonna be telling them that we're gonna be installing smart locks so we're gonna be giving each guest a code so they can have access to the to the airbnb and after they check out we automatically change the code so they won't go in there again another thing that they they might ask you uh the landlord is they're gonna be like oh well the wear and tear is gonna increase no it's not why because every other day you're going to have to bring a professional cleaning company to clean up after the guest and that property is going to be in great condition so that's another common landlord objective that they're gonna have you know be like whoa you have to just explain to them why it's better uh another thing they're gonna be like i can just get a regular tenant why do i have to work with you no you're gonna be like look listen what other what other tenant is an insurgent property a weather tenant has a one million dollar liability towards your property and i even gonna provide my own insurance so if anything happens to that property you're going to be protected landlord and that's going to be another thing that's going to get them thinking like hmm my my properties are going to be well protected and also you're going to tell them that what other tenant keeps your property in great condition while other tenant brings a cleaning company to clean uh after themselves nobody so that's gonna get them thinking so last but not least they're gonna probably they're gonna be like well i can do this myself and you're gonna be like well okay not a big deal you know like uh if they're gonna do it themselves just explain to them all the hard work they need to be doing and also if they can do them themselves why isn't the property on airbnb yet you know what i'm saying this all these landlords that say i can do this myself it's just like a bunch of uh lies because for the most part a lot of landlords are already busy with all their work and their businesses and they don't want to take care of another business which is airbnb so you can explain that so let's go back to the other slide which is following up is a key thing so it just if they say no or they're still skeptical make sure you give them a business card and now if they say yes to your to your to your proposal that's gonna be step four close the deal sign the contract with a clause that states that you can do airbnb and still release it that's very important guys don't forget that because later if that landlord doesn't like what you're doing he can just kick you out and try to sue you and you'll have a contract that's that states that you can legally do it and last but not least follow up with the landlord and keep them on board with your business don't forget about them don't think that oh yeah just because they say yes to you you're gonna just like not inform him of what's going on build a solid relationship with them guys you never know if that landlord has more properties available and the next thing he knows that oh i have a vacant property he's gonna automatically tell you to put on airbnb so that's why you have to keep them in form of everything that you're doing uh tell them how business is going and just basically just keep them well informed with everything you don't want to hide anything from them so hopefully all this information makes sense and you guys can implement this uh to talk to landlords but the first thing you guys have to do is just take action just do it if you guys never pitch a landlord you guys will never know if it actually works because a lot of people they get discouraged because they don't know what to say if you guys follow everything that i talked about this in this section right now and you guys implement it in real life you guys will get practice and maybe uh figure out a way to get the latter to say yes because you have to consider that there's no right or wrong way to do it guys just have to go and do it okay guys so now that we have the property it's time to furnish our rental now this is the fun part about starting an airbnb business because this is where you get creative and furnish your property so the first thing that we have to go over is setting up a budget it's very important that we don't overspend when we're trying to uh furnish our unit because if we overspend we're going to have to spend more money and sometimes it's really not necessary so i have a furniture budget formula that i use i know in the beginning of the video i kind of just gave you guys a explanation about uh how i do it but to be honest this is the the actual uh formula that you guys need to use so you have to take if you're doing wrench arbitrage take the monthly rent and times it by 2.5 so let's do the math you guys can know what i'm talking about so let's take the monthly rent for our property which is going to be 1500 i don't know depends on what kind of property you have and then we times it by 2.5 now we get thousand seven hundred and fifty dollars now you might be wondering where do i get the 2.5 it just makes sense for me i've been doing this for quite a while now and every time i do this formula it works for me so uh this this might not work for you you might have to overspend or maybe buy more uh more things if that's the case just make sure that you don't go more than this number because if you are that means say i don't know what the heck you're doing so that's the way it works so now we have to choose a theme for our airbnb there's plenty of themes online but you guys can just uh look on google and search them up like bohemian earthy modern minimalist luxury depending on what kind of people that you want to target you should decorate your airbnb that way and also where should you buy your furniture there's a lot of places where you should buy your furniture like ikea walmart home goods amazon hobby lobby costco facebook marketplace craigslist offer up there's plenty of locations but if you're just starting off and you're limited with money you should look into the options of like maybe getting used furniture i've i've got a lot of use furniture on on facebook marketplace in the past and it's really good quality guys and i save a ton of money doing that also add good amenities to your airbnb like provided coffee maker kitchen essentials towels bedding setup a comfy couch games etc just be creative and when you finish furnishing your airbnb make sure you guys hire a professional photographer to take pictures once everything is furnished because if you try to save money and try to take pictures with your phone i mean probably you're not gonna get as much uh bookings because sometimes people make the mistake to take pictures with their phone and they don't know how to take pictures they take them all dark with no lighting and a professional photographer is like knows what to look for and knows how to make your space looks so attractive so invest the money it's all worth it you guys are not going to regret it and last but not least i do want to leave you guys with this with quality over quantity less is more so if you have a taste of putting a lot of decorations a lot of things on the walls a lot of furniture this is probably not going to be the best option for you because with airbnb you want to you want to stay in a place where there's a where there's a lot of space when a place where it's like simple and nobody wants to stay in a place where there's a lot of a lot of decor a lot of furniture i mean it's all it's all in the way so i've learned this that less is more so keep it simple guys so now that we have furniture our property we want to list our property on airbnb this is very simple to do basically you just have to just get information and just literally just answer the questions so before you do that go on airbnb.com there's a link in the description so like i said before if you guys uh sign up through my link is totally free without any cost for you i get compensated and i will greatly appreciate that so use my link in the description sign up as an airbnb host and get started so what's required so when you list your property in airbnb you just have to gather basic information about the property have good pictures have information about like um how many bedrooms bathrooms you have in the property what you want to offer so what makes a great listing on airbnb make sure you have a great description a good title good quality pictures uh your location of the airbnb is good good amenities and price don't go in there and trying to overprice your airbnb guys you're not gonna get any booking make sure you guys do a good job on this and i guarantee you you will always stay booked now how to price your airbnb now pay attention to this one because this can get a little bit confusing but first things first you want to know what your break-even point is so to gather up that information let me get my calculator once again so the let's get our break-even point let's just say that our rent with expenses equals to let's just say let's keep it simple i guess two thousand dollars so that's gonna be rent and expenses that we add them up and then we divide it by 30 days we don't want to put 31 because every other month has only 30 days so that equals to our nightly rate so in order for us to break even we have to charge 66 dollars with 66 cents i also have a video on this in my channel so feel free to go check it out i'm going to put in the descriptions so now this is going to be our nightly rate to break even so if you rent our airbnb every day for this price we'll break even now let's just say that we we want to make i just say a thousand dollars a month profit we want to do the profit formula which is rent plus expenses we already said that it was two thousand dollars now we wanna add the profit that we wanna make which is a thousand dollars this is going to be depend on the area let's just say that the most common airbnb gets makes about 3 000 a month then we have to put that in there so we now that we have added the rampless expenses and the profit that we want to make it's going to be 3 000 total and then divided by 30 days and that gives us our nightly rate which is a hundred dollars a day so if you want to make gross dollars a month you have to charge every night an average of a hundred dollars for you to make profit you can make more you can make less because uh in the weekdays you can probably charge a hundred and then on the weekends you can charge 140 and then those extra four dollars we're gonna add up so i mean it just kind of just gives an idea of how to price your airbnb so when you start uh on airbnb don't over price your airbnb guys don't make that mistake make sure you rent it like rent it for cheap at least make a little bit of profit so you can rank higher on the search list and then later on you can maybe increase your price so now you're ready to host on airbnb you got the property you furnished it you listed on airbnb now it's time to open your calendar and price accordingly this is really exciting when you already have everything ready to go but make sure you guys add a cleaning fee to every stay because when i started i just put my my my listing on airbnb and i forgot to add a cleaning fee and then a lot of people were booking without cleaning fee so basically i had to come out of pocket which was terrible but it's not a big deal so make sure you guys add a cleaning fee there is a lot of tutorials on on youtube that can teach you how to do that it's very simple guys so like i said before say your price is low during the weekdays and higher on the weekends also get ready for your guest so your first guest you don't have to to meet them i know that many of you guys are gonna have this question do you have to meet your guest the first time like do you have to go get and give him the key you don't have to guys you can do this remotely and uh make sure that you have a guest book that's for sure so you have to be prepared to like do a guest book that has information like the wi-fi password any house rules that you might have any questions that they might have like how to turn on the stove etc and also aim for super host status so that if you become a super host on the airbnb platform you can get uh ranked higher on the website which people are gonna book you first rather than a person that is not super host and also focus on customer service so you guys can get a better chance of becoming scroll whole status make sure you guys respond to every every guest that has a question never cancel reservations that's another thing because if you cancel reservations airbnb can easily shut down your listing or it can just give you like drop you points from becoming a super host uh in the website and now also every every guest that you have that checks out message them with a nice message and ask for five star reviews that's actually how i did it and that's how i got uh super whole status like super quick i think this is gonna be the last slide which is building a team and automate your business in order for your business to be scalable for you to have freedom you have to have a team guys the most important people uh your team are gonna be a cleaner a maintenance guy and a co-host so a co-host you don't have to go up go out there hire a third-party company you can literally tell your relative or your friend that lives in that city tell them hey can you be a co-host so whenever uh something goes down like you can just go there and check the property for me and i'll pay you and that's it that's all you have to do just make sure you guys find a cleaner maybe two cleaners a maintenance guy and a co-host and also i'm gonna teach you guys how to automate your airbnb so have a turnover plan meaning that schedule cleaners to clean after guest check out uh you want to have a good relationship with your cleaners train them how the way you want them to clean and if they're if they know everything or how to clean the property everything's going to run smoothly also hire the handyman or anybody that knows how to do maintenance so whenever there's a bathroom clogged you can just give them a call and they can just do it for you and then you just pay them with venmo or zell it's that easy and last but not least a co-host is a good idea to have because they can actually be the ones to restock uh your inventory of like let's just say clean towels or toilet paper uh cleaning supplies they can go in there for you and restock everything and also they can handle any any uh personal issues in person like let's just say a guest is having a a rough stay a coast can go in there in person and talk to them and so they can just calm them down and um another good thing is going to be to have an automated check-in and checkout process you don't want to be having to go there every time there's a guest give them the key and having to go pick it up no you have to have like a a smart lock so you can give them a a code or even a lock box you can even have a lock box with a code so the guests can go in there and get the key by themselves so everything can be automated and also last but not least try your best to avoid guest disruptions and parties so with that being said add noise sensors cameras outside the unit and just make sure you you talk to them before every stay that hey you know what if you guys violate this this um this rule we're gonna be charging you a fee we have noise detectors to monitor how loud you guys are in the property so all this stuff is going to play a huge role on your airbnb to run it successfully and have it automated so that finishes off the course thank you so much for watching i hope you guys learned something and don't forget to like this video and subscribe to the channel and leave any questions that you might have in the comments down below i appreciate you guys for for everything that you guys have supported me i'll be so happy to make more videos in the future leave any recommendations down below and i'll be happy to make those videos thank you so much and i'll see you in the next one guys peace out

Channel: Greg Pimentel

Views: 99,889

Rating: 4.9771781 out of 5

Keywords: Free course, free airbnb course, course, airbnb, airbnb rental arbitrage, viral, how to, how to start an airbnb business, online business, how to pitch a landlord, real estate, real estate investing, business

Id: ECrRXZRIM54

Length: 50min 18sec (3018 seconds)

Published: Mon Apr 19 2021