How to start an Airbnb co-hosting business with little money

0:00 this is a full course on how to make money from airbnbs without owning a single property having any experience or needing more than $1,000 to get started this course will help you start earning more income by managing other people's airbnbs my name is Preston I build a $15 million real estate portfolio and earn over $400,000 per year in net profit for my airbnbs in this course we're going to cover what coasting is and how it can help you start an Airbnb with minimal investment how to find clients who will hire you ways to appear credible even if you have zero experience a walkthr of the coast in contract a step-by-step checklist covering everything from setup to management so you can start making money as a co-host immediately and a whole lot more and the course I'm sharing is pulled directly for my paid program but I'm releasing this for free for everyone so enjoy hey guys welcome to the coasting masterclass where I'll be walking you step by step how to start your own coasting business with as little as $1,000 what coasting is is you're essentially acting as the property manager for another person's Airbnb making it a completely passive investment for them all they have to do is collect cash and get their income reports each month so what does a co-host do you'll be handling all the pricing handling guest messages coordinating with cleaners handyman Etc basically all the day-to-day stuff now most Airbnb investors are old school and they don't have systems and processes in place to make this a mostly passive investment for them this is where you come in and take that off their plate and you can charge them a percentage of the gross revenue now most property management companies will charge anywhere from 20 to 40% of the gross

1:18 revenue to do the day-to-day and a lot of the times these property management companies won't assist on the setup of the property now if you came in and offered a full service where you help Source the furniture get it staged and by the way you can hire interior designers to do this and then also help on finding the boots on the ground team and also managing the day-to-day while charging 10 to 25% of the gross revenue that's a lot more enticing to these investors and here's a secret guys it should only take you a couple hours per week per property for you to manage so as you can see that you can take on a whole bunch of properties without getting overwhelmed so let's put some numbers behind this so you can see the power behind co-hosting let's say you're managing 10 properties that average $50,000 in Revenue per year per property even if you charge 10% of gross revenue for all 10 properties The Profit you'd be making is $50,000 per year and it would take you about 20 hours a week on average for all the properties now that's a pretty sweet gig for not a lot of work and if you start becoming a pro which you will if you actively manage and learn the strategies that I lay out on this course and you can start to charge more let's say 15 to 20 even 25% and as you start to become good at this you'll be able to increase your Investor's Revenue as well so let's say you're able to bump up those 10 properties a 75,000 in revenue and a 15% Revenue split to you now you'd be making $112,500 per year on those same properties so as you can see you're incentivized to have these properties perform better since

2:35 you'll be getting higher pay if you do so so this sounds great and all but you're probably thinking of a few questions like why would an investor let me do this and how do I find investors in the first place now I'll be answering those questions and go more in depth in later modules but let's first talk about how I would go about doing the strategy first if you go through this entire course you'll know more than 90% of Airbnb investors out there to optimize their listing how to automate and also how to give a great guest experience so right off the bat you'll have an Advantage however most investors won't hand this over unless they feel comfortable that you can actually perform so in order to gain the trust of these investors you can give them a trial month or two where you manage their properties for free or receive a very small percentage split like 5% just to pay for some of your time and that's completely up to you those trial months will be incredibly important for you to show your worth and also optimize their listings and ultimately make them more money and this is a great strategy as well because it will give you real life practice on how you can get into this game yourself eventually either through Arbitrage or purchasing airbnbs we'll be going more in depth on all this but I wanted to give you first an overview of why this strategy can be powerful for those that don't have a lot of money to get started finding investors for this business model is the most important part of this entire operation so I'm going to give you a bunch of different channels for you to search for them now the best part is all of this is free it'll just take some hustle to do it I'm going to list on the screen right now how you can find clients first let's talk about getting referrals through

3:51 cleaners and more specifically airb cleaners you can find cleaners through Google Facebook groups Etc you want to specifically find cleaners that are working primarily with Airbnb hosts so what you'll want to do is start reaching out to all these cleaners and make sure that you're keeping track through an Excel spreadsheet so I have this script that you can use when you reach out to these cleaners typically I start off the conversation introducing yourself that you're an investor and that you're looking for a great cleaner with experience cleaning airbnbs in whatever area that you're going after so a lot of the time Airbnb cleaners are working with a lot of Airbnb investors so essentially you want to go through and you want to make sure that they're incentivized as well because a lot of the time they're not going to want to just hand out the information of all these different cents clients if there's not something in it for them so essentially the value prop for them and also the host is that you're going to be maximizing the revenue for everyone involved and if this is of interest that they can reach out to you so you want to make sure after the call that you send them a text with your info have them introduce you to these different hosts that might be interested in working with you so from here you can end the conversation or can use my cleaner interview guide to make sure that they're actually a good cleaner as well if you want to potentially use them in the future and this is important because you want to have a big Rolodex of a lot of cleaners that can be great U for you to use in the future so definitely make sure to give them an interview and see if that they' be a good fit moving forward for not only this client but for other clients in the future another great place to find investors is through

5:07 Facebook groups I'm going to link a few Facebook groups that I personally like that you can use and sign up for this is a great place to go and network with other investors and just make sure that you're dming them adding value and just see how you can potentially work with them now you don't want to go in here and spam a bunch of posts about hey I'm co-hosting is there any investor that's interested you want to provide value and also DM these different people that are active inside the group another great place to go is through family and friends start talking about what you're doing that you're going to start a co-hosting business and kind of explain high level about what you do and offer them a referral bonus let's call it you know $750 to $11,000 you can pay them a percentage of the revenue until you pay them back so you don't have to pay anything out of pocket another great place to go Is Bigger Pockets forums so I'm here logged in on my account if you don't know what Bigger Pockets is it's essentially a huge network of investors that are into real estate investing this ranges from topics from short-term rentals flipping wholesaling Etc this is a great site where you can Network work you can post on forums and a lot of people are very helpful on this forums from my experience again you want to start reaching out to people make some posts comment on other people's posts as well and add value and you want to try to expand your network this way as well another great place to go is local Ria Aria is a real estate investor Association there are Ras across the entire country and there's probably one in your local area as well the biggest thing that I found with local Ras is going to these different meetups so you

6:23 can start meeting other investors now they might not necessarily be into short-term rentals but I guarantee you at least one person at the those R know someone else that's into short-term rentals so start to expand your reach that way as well you can also go to Airbnb Reddit forums you can also go to a site like meetup.com and this is another site where you can go and network with other people with like-minded interests it's similar to AIA but the people might be a little bit different and if there aren't any in your local area then you can start one yourself now another great way that I found is start calling Real Estate brokerages now you want to talk to someone and ask for their best agent that works with short-term rental investors this is a great way to develop relationships with agents that have short-term rental investors as clients you can pitch them on what you do and if they have any clients that are interested that they can send them your way and again you can also offer them a referral bonus like you do with your friends and family now another way that you can find potential clients is pitching landlords for co-hosting so what you want to do is go on zillow.com or Facebook Marketplace and you want to start looking at different rental listings now this is a script that you can use when you reach out to these different landlords now of course you want to pitch them on the business model and then you want to also qualify them as well now one of the biggest qualifiers if they're interested is if they have enough Capital to do this and remember this is all coming out of their pocket you're essentially just acting as an adviser to help them set up this property for Airbnb so as you start going through and explaining to them exactly what you do and if of course if

7:40 they're interested you want to close by saying that you'll be doing a complimentary analysis of your property and then you also share with them how much money the property can potentially make this will always Intrigue the landlord especially if you pitch them correctly and if you want to know how to analyze properties thoroughly go to module 3 in the airb Arbitrage road map section now remember you're interviewing them as much as they're interviewing you keep keep that in mind and you also want to make sure that you go through the finding your dream team modules before you take on any clients because if you don't have the solid boots on the ground team especially if you're doing this remote then you'll run into a lot of issues later on again I'm going to include all these scripts for you that you can use so you want to make sure that you go through this get really comfortable practice a lot and then go out there and start making calls so again I go through all the common questions that they might ask and also how to answer them now again this takes a lot of Hustle but this is another great way where you can find potential clients and the best part is they already have the property so as long as you pitch them the model and show them that they can make a ton of cash flow on top of it then this is just a no-brainer for them now this is more of a long-term play but another great way to find investors is through creating content on social media so this isn't a social media course by any means but in order for you to build trust and at the same time Market your services creating content on social media will be one of the best ways for you to get more clients now keep in mind creating content on social media can be a grind and you won't reap the rewards instantly in fact I started posting on social

8:56 media for my own personal brand in January of 2021 and I really didn't see meaningful traction for a couple of months however I committed myself to posting every single day for 90 days no matter what the outcome was and the outcome was now I have over 3.4 million followers across all my Platforms in a matter of 1 and 1/2 years I highly recommend you not only consume content but you also study it there's never been a better time to get your content seen by potentially millions of people platforms like Tik Tok YouTube shorts Instagram reals Etc all make it so the average person can be seen the key is to have a strategy execute and then analyze the results your content will never be perfect heck go look at my first videos and you'll probably get secondhand embarrassment just from watching it well that's the thing you just need to get started here's the formula that I use in most of my videos you have the hook your credibility the value and finally the call to action so let's break this down the hook is the first 3 to 5 Seconds of your video and it's arguably the most important think about it for a second you either scroll past or stop on a video if the video does a good job of capturing your attention so I'm going to list on the screen a bunch of the hooks that you can use and a lot of these hooks are from Rachel Peterson on t talk she puts out great content for social media influencers so make sure to give her a follow if you find this helpful so for co-hosting in particular here are a few great hooks that you can use here's how you can make x a month on Airbnb in x amount of days another hook that you can use is here's how I'm making my

10:12 client x a month on Airbnb and how you can do it too here are the three best tips to maximize your Airbnb to outperform your competition now those are just a few off the top of my head and again a lot of this is trial Nar and what fits within your own unique voice now the next is credibility credibility needs to be a reason why the person should be be listening to you now it's okay if you don't feel like you have the credibility yet one thing that I think is important to mention is you want to at least have some experience under your belt before you start posting content for me I feel you'll be much more credible and have more things to talk about if you're actually doing it instead of just talking about it now of course you can still talk about your journey even if you're new but it goes a long way if you actually done it and you can provide value so one way that you can do this is my name is Preston and I've been able to generate x amount of dollars from my clients in the past x amount of days weeks or months the next is value the best creators out there are providing in real tangible value in the form of information entertainment Etc and if you can do both even better this is where trial and error will come into play remember you only have 20 to 60 seconds of a video if you're doing Tik Tok or IG to pack as much valuable information to the video as possible so it needs to be concise and the point so here's a couple of examples some of the ways that I've been able to do this is by optimizing their listings through professional photos like show examples another way is through getting five-star guest reviews like this and then of course you want to provide proof so we can be boosted in the algorithm and get

11:29 more bookings and finally the call to action the call to action is an incredibly important part of this puzzle piece you could have done the other three things perfectly but if you don't have a clear call to action then you're potentially losing out on a customer a call to action can come in the form of asking for a like a follow or going to a certain Link in your bio or simply just having them comment on your video Etc now depending on what you want the viewer to do you can adjust this so here's an example of a call to action to learn more about how you can do this too check the link in BIO creating content on social media doesn't have to be for hosting only in fact I highly recommend you switch up your content and not just pigeon hole yourself to talk about just one thing as it can get really repetitive quick but to start if your goal is to get more customers then you will need to focus more of your content for your ideal customer all right now that we have a good idea on how to find clients let's talk about why not all clients are created equal even if you're starting off you want to make sure that you look out for any signs that may be a red flag when it comes to working with clients and yes even if you have zero clients right now I want you to be picky because if you aren't careful these clients can turn a semi-passive investment for you into a nightmare so let's talk about some of the red flags that you should be aware of of the first one is that they're too stingy with their money look I get it none of us want to throw away our hard-earned money but you are the professional here and know what will make or break a property an easy little tip that I like to use is let them know that you have a discretionary spending of up to $150 before you have to go and ask for their permission now obviously you can get reimbursed for this but you want to wait

12:46 for their reaction if they say that's too much then it's likely a sign that they're way too singy with their money because you don't want to inundate them with every little purches as it takes a precious time you also want to give them an idea of what the furniture will cost based on their space now everyone has a budget in mind but if it's incredibly small then it's probably a sign that they just don't have the funds or don't want to properly invest into making their property great the second thing to look out for is that their house isn't well-kept now this is important on a couple levels number one if the property isn't well kept then it likely means that there will be maintenance issues that arise in the future now obviously things happen and no one can foresee major maintenance or repairs that are needed but if you can visibly see that the property hasn't been well kept it means that they're too cheap to invest into their property and this will lead to bad reviews and issues down the line for guests the third thing to look out for is that they want to be too involved in the business you need to be able to sniff this out from the beginning if they're overly wanting to be evolved this might not be a great fit they should trust you to handle the management side because you're the professional here you wouldn't tell a doctor how to do their job so why should they tell you what to do now obviously some clients will want to add their feedback which is totally fine it is their money and house after all but if they're wanting to enforce a bunch of restrictive rules they second guess your ideas Etc then this could cause a lot of headaches down the line number four they won't allow you to manage the payments this is important and this should be considered a deal breaker if the client doesn't agree to this now it can get messy if they are the ones collecting the payments as most won't be on top of the bookkeeping and there's occasional

14:02 horror stories of them not paying out your portion this will also show their level of trust if they don't trust you to do this then there might be additional concerns that you may need to resolve now there might be some people no matter what you say that won't allow you to manage the payments and this is totally okay you just need to move on if they trust you enough to watch out for their house then they should trust you on the payments as well and the fifth thing to look out for is they have unrealistic expectations now again you want to sniff this out before you get into an agreement lay out the expectations as the property ramps up it's likely it will take a couple weeks to a couple months for the property to stabilize and start seeing profits usually you can be profitable right out of the gate but you need to set the expectation that they likely won't be seeing thousands of dollars in cash flow right away if they have pine in the sky expectations then it's likely a sign that they won't be a good fit now these are the biggest red flags that I've seen when it comes to working with clients now remember just because someone is interested in working with you doesn't mean you should take them on as a client if you follow the steps laid out here just know that you will find clients just be patient and vet them as much as they vet you in this business you'll typically work with two different types of clients so let's talk about each of them first are the investors now generally speaking these will be some of the best clients you work with as long as you're making them money they just want to make sure that it's profitable and passive for them there are some things that you have to do differently with this type of client when it comes to larger maintenance issues you can offer to call around and find someone who can get you the best deal as they're typically more price conscious now investors are usually busier so if you do this for them they'll greatly appreciate it and they'll want to keep

15:18 you around for the long haul it goes a long way to show that you're there for them and remember investors usually don't stop at just one or two houses if you help them make this a true passive income stream for them then they'll likely purchase more homes or or give you more business down the line making you more money so the second type of clients are the Livin owners or they have one or two properties now these types of owners can be a mixed bag but it doesn't mean you shouldn't work with them they will typically rent out their mother-in-law suites additional dwelling units or maybe one or two of their rental properties now if they're living on the property you want to be extra sensitive to the guest you accept and don't of course you should do this for all your guests but you especially want to do this for these clients these are the screening questions that I like to ask the guest up front so we say thank you for your interest in our property to ensure that our property will be a great fit for you and your group can you please answer the following questions so what this will do is ensure that they're going to be a good fit for your property you also want to reiterate multiple times throughout your messaging sequence and also Place signs on the house that say no smoking as this is a common violation that you'll see so these types of owners can be a bit stingy on cost too so you want to make sure up front that they understand the cost expectations before you do business with them if you find any red flags as I've listed earlier in this module then I would recommend dropping them as a client but keep in mind that a lot of these live-in owners and investors will have a lot of questions at first and that's okay especially if this is their first time doing something like this after a month it'll get better but if it doesn't then that's when you should look into terminating the agreement with them so one of the most important aspects of co-hosting is becoming credible

16:36 especially if you don't have a client yet so in this module we'll talk about how you can become credible now in my mind these things are absolutely necessary in order to run a co-hosting business so I highly recommend you do these before you start so the first thing is to get an LLC set up I have an in-depth module that goes over how to set up an LLC in module one so make sure to go check that out the next thing is to set up a website I'm here at card.co and it's the easiest way that I found to build a website now I'm a complete new when it comes to building websites and it's completely out of my comfort zone but it's something that even I'm able to do you can get a free domain but it'll have card in the URL so here are their plans it's pretty affordable I mean it ranges anywhere from $9 to $49 per year so I would just go ahead and just pick one of these the Pro standard should be enough to get everything going that you need now this helps so much in helping your credibility and having a domain that looks professional if you want to get rid of the card here in the URL then you want to go to a domain and hosting service like GoDaddy or Google domains and follow the directions there they usually walk you through how to do it step by step and I highly recommend going with Google domains it's been the most userfriendly from my experience and the reason you want to do this is because you'll be able to create a custom domain and you won't have the card.co here in the URL and I'm going to leave a link to a YouTube video on how to use Google sites to create a website with the domain if you want to learn how to do that now again this is super easy to do this is just a template that I've been working on so let me show you what it looks like here so first you want to tell people what you do okay so you know you're going to be you know Nashville's Premier Property Management Group let's say so the next thing you want to do is

17:53 you want to list out your testimonials so to start you can just use your friends or family or someone that can just vouch for you because testimonials are going to go a long way to you know establishing that credibility from here you can list out your spaces and here you can just use stock photos if you don't have any properties currently to give the clients and also potential prospects of what your property will look like once it's all complete the reason I really like this is because you don't need to know any coding you just literally just click on this and just type in what you want it to be called so let's say your property management company is called blackbear BNB so you click done you can add you know a bunch of lists buttons links you know videos images again this makes it super dummy proof even again I can do with this and I am not Savvy when it comes to you know coding and building websites at all so if I can do this so can you so once you go in here and customize this this is what the website's going to look like when it's live so as you can see you know the graphics are really cool it looks clean this is a property of ours that we use in the background here so you can learn more and again you can customize all these buttons and also you know as you scroll through here if this is a site that I saw of someone that wanted to co-host you know this looks like a legitimate website and again this website isn't perfect by any means so I would definitely add a few more things here just make it you know a little bit better depending on what you want your branding to look like but again this is just a quick example of something that you can do to build more credibility okay another place I like to go is name checker.com what this will do is it'll scrub all the different sites just to see if your handle is actually available on all these different sites so let's

19:10 say we want to look at blackbear B&B and as you can see here it's available on most sites except for this.org so this might be important for you if you want to have the same handle across all your sites again so this is just a cool tool if you want to use to see if your s's available and also your handles on different websites now again the reason why you want to have a site is because especially if you're co-hosting you won't have a lot of skin in the game so you want to do The Upfront work to show that you're a legitimate business and again this isn't the only place where you can go to build a site you can go to Wordpress Wix even Squarespace there's a bunch of other sites that are a lot more technical if you're into that thing or if you have experience doing that so you know again you can do whatever that works best for you if you want to get a logo you can go on a site like Fiverr it's pretty straightforward you just search for you know logo maker and then find someone that has a style you're looking for this shouldn't cost more than you know 20 bucks this is a site that I go to all the time for you know different things that I need like logos and things like that so this step in creating a website is important to show your credibility but I don't want you spending weeks or even days creating a logo on a website it should be simple functional and to the point so you can get started all right so in this module I'm going to share with you how to audit an existing listing and also things to look out for for potential property that you'll be co-hosting now I like to give free audits to homeowners that have raised interest in you potentially co-hosting their property these clients will usually already have an Airbnb listing but they might be struggling with it so this audit usually takes less than 10 minutes so something that I just

20:26 do for free but you can go ahead and charge a small if you want so here's a random listing that I found on Airbnb so let's just go through this listing and share with you my thoughts all right so first and foremost this is going to be their main photo that people will see and as you can see that they haven't taken professional photos now this is one of the biggest mistakes that I see people doing is they want to cheap out on spending a couple hundred bucks on professional photos and it really does make the world a difference so first and foremost we need to get professional photos taken and the second thing I noticed is that the furniture is really outdated and again that is going to be another huge differentiator that you can do uh to stand out on airb B is to update the furniture the bones of it looks pretty good I mean the ceilings we got the vaed ceilings we got these beams here that look cool we got this cool fireplace that we could use as an accent wall overall the bones of the property look good but the furniture has to go and also the photos are just you know absolutely horrible and honestly the photos look like they've been taking on a early 2000s camera phone so the next thing I'll do I'll go to their calendar and see if they have Dynamic pricing on if you have Dynamic pricing on it'll update depending on supply and demand so for this listing it looks like they don't have it cuz as you click through these different states the price stays the same and this is something that they're losing thousands of dollars on every single year so that's another thing that you can look at and of course make sure that you keep notes while you do this so I also like to look at how I can make this property stand out you know you want to look at things like you

21:43 know updating Furniture like we touched on is there a game room murals a hot tub you know things like that which can you know really set you apart from the competition or you know add an amenity that your other competition has to make it look better and also get more clicks and drive more Revenue so those are other things that I look at so for this property here I would look to you know maybe add like a fire pit in the backyard looks like we already have some sort of game room here even potentially a hot tub would be something that could make this property stand out even more okay I'd really try to highlight this fireplace so try to paint it a different accent color to make it really pop in pictures those are a couple of things off the top of my head so another thing I do is I go to the reviews and I look to see you know what people are saying um looks like this guest has some pretty good reviews here so far not a lot to change here probably you know there's always going to be stuff about cleaning I mean it looks like there's they're doing pretty good there but you know again you always want to come through the reviews and see what their guests are saying because these can be legitimate concerns that you can come in and fix pretty easily so in the scenario that the cleanliness wasn't good what I would do is you know I would vet other cleaners and also handymen if there's like repairs or maintenance issues that people are complaining about bringing in a complete set of new cleaners and handymen can make a world of difference when it comes to an Airbnb listing so you know that's something to keep in mind as well another thing I like to do is I like to research the competition and see what others are charging so can you increase the price or change the pricing depending on the time of year so

23:01 obviously I can't get the address here unless I booked it so what you want to do next and you're going to have the address because you know you're talking to these landlords anyway so next thing you want to do is get their address and then you want to run their comps on data. ru.com and what you're going to want to do is see if there's a possibility to increase their prices as is or if they added some amenities if we could increase their prices that way you know you want to come in here filter by guest so let's say you know your place could sleep up to 16 guests you know will increase the max radius and then let's look at if they were able to a hot tub what that would do to their revenue okay so you want to click on this listing here this looks like a pretty cool property all right so this person is charging $486 at 70% occupancy rate so looks like they've added a few amenities so you know for example if this was a comparable listing you know adding a hot tub and adding a fire pit or even adding an arcade if that would increase the revenue then you know that's something that I would suggest to the owners that they could do so the main thing you want to do here is you want to look at the competition and look at the top performers and see how they're standing out if you can you know copy them and if you're near them that's something that you could replicate their average daily rate and also their occupancy rate and you can you know really start charging more just by adding a few amenities now again it might not always be feasible to compete with those unless they invest tens of thousands of dollars unless of course they're willing to do that but again it's good to get an idea if they add a few amenities if they can really bump up their rate significantly so the next thing I like to do is look at their

24:17 description so I'm a big believer in having a three to four sentence highlight of your property here and as you can see I mean this is a decent description at the top but this is something where you really want to paint the picture and sell the property okay and another thing that I want to do after is have a bullet point list of your space so I'm going to show you an example from one of my listings but again this is just too wordy a lot of the times people just want it to be short and sweet and to the point and if it's too wordy like this then it's just going to be hard to read so we're here at one of my properties and this is how I like to do my listings okay so I like to again paint the picture right you know you want to make so that they can envion themselves and their family being at your property and of course I have my bullet point list here so it's just kind of gives a high level SN snapshot of exactly what they can expect with the listing and then if they want to learn more about it then they can come down here and expound about you know the actual property itself and again this is something that you want to you know paint a story you don't want to just list a bunch of you know random things you want to make it easy to read paint a story and as they can scroll through you know they can really look and get a feel for exactly what your property has to offer so once you audit the listing you don't have to give them everything that you find in fact it's better that you don't now the reason for this is most guests have put in a lot of work and if you list a bunch of reasons their listing is awful they might get offended and be less likely to work with you so what I typically like to say when auditing listing is this so you want to say something like so first of all homeowner your property looks great and

25:34 you've clearly put a lot of thought and effort into it so after my audit I did find a few ways that me and my team can really optimize several aspects of it you know this includes XYZ so you can you know say high Lev topics like optimizing your pricing adding features to help your property Stand Out based on what your competition is doing Etc I'd be happy to take this property on and help you maximize your revenue and make this a completely passive investment for you you want to take this approach and you'll be way more successful when it comes to securing properties all right now that we've talked about how to noted a property that's already listed on Airbnb let's talk about someone that doesn't have their property listed now not all properties are created equal and in fact they might not always perform well I'm going to leave a link to the module in the comments on how to use data. ru.com to analyze your potential clients properties but first let's talk about a few things that I always look out for before taking on a property number one is there a way for you to make this property stand out again data.

26:22 ru.com can show you other comparable properties in the area you want to take a look at the top performing properties and see what kind amenities they have to stand out is that an amazing view is it close to the beach or lake do they have a hot tub maybe they have a pool a game room a theme throughout Etc now these are all important things that you need to look out for if you can't find a way to really make this property stand out it might not generate the kind of cash flow that you're looking for or what the homeowner is looking for the next thing I look at is the layout of the house sometimes clients will want an airb be a part of their home think mother-in-law suites additional dwelling units Etc so some things that you want to look out for for these clients number one you typically won't be able to charge as much on Adu or a mother law suite and obviously this means less money for you but don't look at this as a complete deal breaker as sometimes having the owners on site can save you headaches in terms of getting things resolved quickly and so on another thing that you want to look at are are there any shared spaces if there are shared spaces I personally wouldn't work with them since it'll be a safety concern and just an overall worst experience for everyone involved and by shared spaces I mean mainly inside the home not necessarily outside of course the owner and the guest might have to share a driveway sometimes but if there's a dedicated parking space for the guest even better so you want to make sure that there are separate entrances you also want to consider if there's a separate kchen or kitchenet and washer and dryers because this can greatly affect your occupancy rates and revenue depending on where the property is located if you don't have these amenities if you're remote then you can do this All via FaceTime but if you're local definitely go and meet the

27:39 homeowner in person okay so once you receive interest from the client you'll want to do a deep dive into their property to see if their property will actually perform well as a short-term rental now it's good to quickly identify if it's going to make money if it isn't then you should just let them know that it might not be the best fit and then move on there's no point going through all the work if the property isn't going to be profitable so to get all the info on how to research and analyze properties go to section three of the airb Arbitrage road map video course so we're going to use my co-hosting calculator to determine your fee and also present these numbers to the client and you can download this calculator in the comments of this video so this is just going to be an example walk through of how I use this calculator okay so here on the left this is the bedroom and also the common space count and you want to update this depending on how many bedrooms and how many common spaces that the landlord has in their property and if you hover over these this will show you what this is for common spaces it's just going to be a living room game room outside patio Etc and it's important to fill these out as as these numbers will pull into these just to get an idea of what the client will have to pay for their initial investment so in this middle column here you can put the purchase price of what they purchase the property for or what they're going to purchase the property at if they already own the property then typically you can just leave the zero but if you do that you want to make sure if they have a mortgage on the property they you put the mortgage the principal and interest portion here but if you go this route then this cap right here isn't going to pull in and there's a couple other calculations that won't pull in but that's not really important because what they really want to know is what their cash on cash return is going to be

28:56 depending on their initial investment which we're going to go over here in a second so the estimated repair cost obviously if they want to you know add in murals if they want to update fixtures if they they just need to make you know different repairs then that's where you would put this in so startup cost will typically be interior designers handyman to install you know smart locks or ring cameras and also cleaners to deep clean and also get supplies to get it all set up and of course the furniture as well so once you do all that this will be their total initial investment and they come over here on the right and depending on the comps that you find you're going to want to put in the average daily rate and also the occupancy rate again go to section three the research and Analysis of the Airbnb Arbitrage roadmap video course and you want to get these numbers as accurate as possible and don't inflate these numbers you want to give the homeowner a realistic point of view of what their property can generate and then come in here and plug in all the expenses and the homeowner should have these numbers handy just to get a more accurate representation of what their expenses are going to be each month and if they have a mortgage you want to plug in their principal interest payment each month right here and then plug in your property management fees and for this example if you charge a 15% management fee you'd be getting just under $11,000 per month for managing these property and you can change this property management fee depending on what you and the client work out and remember your fee is based off the gross nightly rate this doesn't include the cleaning fees and it's not included in your payout and you want to mention that to the homeowner and speaking of cleaning fees you'll notice that the cleaning fee isn't included in the expenses here and that's because the guest pays for it and

30:13 so I just call it a wash and don't include that at all in the expenses and then you'll want to explain to them why or why not their property will do well so in this scenario this property will give them just over $1,200 a month in passive income at a 74% cash on cash return now most homeowners aren't savvy so you need to give them some context to this number and the cash on cash return is the amount of income that you get back based on the money that you put in so for example the stock market has a historical return of about 8% and most investors are happy with a 12% cash on cash return for their long-term rentals so their cash on cash return in this example is 74% for essentially doing nothing and this will be really appealing for them because these cash on cash returns blow anything else out of the water and you want to make sure that you get good at explain the benefits not just handing them the spreadsheet and then hope to have them figure it out and if you click on here on the 10-year projected numbers this will also show them exactly you know what they can expect from a cash flow perspective and if you want to get them an idea of what their appreciation also the equity position is going to be you want to make sure that you plug in the purchase price at what they bought it for and all these numbers here and all those numbers will plug into here because we don't have that here it's not going to pull in right now but this will also give them a good idea of all the returns that they're going to get so let's just do a quick example with these numbers plugged in and if they want to understand all this mortgage breakdown tax savings and Total return on investment then what they can do is plug in their purchase price originally that they had for this property so let's call it $400,000 let's

31:30 say they got it at a 5% interest rate and of course because the monthly principal and interest is going to pull in from here you want to take it out here out of the expenses so this number will update and then they can come in here and see what their total tax savings are their total Roi you know if they want to go all the way back to what they had actually put down for this property plus the furniture cost so once you get all these numbers walk them through in person or via Zoom as this will help them clearly see how their investment will perform all right let's talk about insurance the clients that you work with need to get short-term rental insurance if they decide to work with you and know their standard homeowners insurance policy and even a landlord insurance policy won't make the cut my preferred insurance broker is proper insurance so this is their site right here they have the best plans and coverage in the short-term rental space you can definitely shop around but from my experience they're the industry leader here it's also very important that the homeowner adds you as an additional insur and you want to make sure that you verify this this will protect you in case something happens and a guest tries to come after you this is all laid out in the co-hosting agreement that I'll be sharing in a later module but make sure that you enforce this with the homeowner it's also imper that you ask these questions to your insurance agent even if you're working with proper insurance and here are the questions that I like to ask first is if I have a paying short-term rental guess for a period of less than 30 days at a time and that guess happens to damage or steal my property do I have property coverage so you want to make sure that they say yes and if they give you a gray area answer then you want to make sure that you find coverage until they say yes and the second question is

32:47 if I have a paying short-term rental guas for a period of less than 30 days at a time and that guas happens to get injured on my property do I have liability coverage and again you want to make sure that they say yes because if they say anything other than that that then it probably means that you don't have the coverage now keep in mind that Airbnb and vrbl $1 million insurance does usually pay out but it's mainly to protect them you want to have this insurance policy as the main one and have that as a backup plan besides the owner is paying for it and if they ask about Airbnb or vrbo's coverage you'll want to explain to them that it's mainly to protect them in case something happens and there isn't a guarantee that they're going to pay out you can also have them speak to your insurance agent and they can answer any of those types of coverage questions as well and I'm going to attach proper insurance coverage that you can look over after this video all right so here are the tools you'll need to operate this business and I've created modules on a few of these in the main section of the Airbnb Arbitrage course where you can go back and watch those so let's talk about the first one which is hello sign hello sign is a e signature tool that you can use to get document signed this is especially important with your co-hosting agreement so the first three signatures are free per month and you likely won't need more than that at this point you can also pay for Adobe sign or doggy sign as well so it's really easy all you have to do is drag and drop so if you want to use this agreement here so once that's done uploading you can click next so let's say you want to send it to Preston you can add your their name and email here now I'm not going to fill this all out as I'll be going over the contract in depth later but you can just come in here and fill in the blanks and just make sure to add a spot where you can sign the document and make sure that they sign before you do so you can

34:04 drag and drop where you want signatures you can also come here and put a text box if you want you know them to fill out certain things it's really intuitive drag and drop here so this is one of the reasons why I really like this tool so once that's all done click next and then you just create the document title and then you send it for Signature if you're collecting payments which I highly recommend you do you need to make sure that you're keeping track of income being paid to your clients so you can track taxes and Report those numbers so I use hello sign because you'll need to be sending out a W9 to your clients that you work with a W9 is an IRS tax form that your client will need to fill out to verify their name their address and also their tax ID number as they'll be receiving income the info taken from that W9 will be used to generate a $199 tax form which is required for income tax filing purposes so you can type in Google the W9 form and then you'll get this uh document here it's completely free and then once you download it go back here to hello sign and then you want to just drag and drop here and then wait for this to upload so once that's done uploading HCK next and again you just want to write in the person email address and then I typically will just pre-exist and I'll include this here so the main things they need to fill out is a name here and then they'll have to check if it's an LLC partnership and of course they want to make sure that they put in their Ein or their social security number if they're just going to be doing their own personal name and then come in here and then just do the sign in dates and again you can just drag in the signatures here and then also the text box depending on you know where they need to fill that out super easy click next and then make sure that

35:20 they signed this before you start working with them so QuickBooks I'm going to be going in depth on how I use this later in this course and of course price Labs I've already done video on this including guesty for hosts and also air DNA that you can go check out on the airb Arbitrage road map part of this course all right so let's walk through the key points of this co-hosting contract that you will need to have your client sign before moving forward this agreement has been vetted by a lawyer and has gone through refinements as well there are certain items you can remove or ADD but from my experience this has gone over really well so let's talk through the key points now so just to clarify the recipient is going to be the client and then the contractor is going to be you so you want to fill out their names and then your names here so the description of services here you will want to make sure that they understand that they will be responsible for Pur purchasing all the furniture the decor and also the supplies we typically offer that we'll coordinate with the interior designers to help stage and all that and I highly recommend you do this since you'll save a lot of headaches on Logistics and also designing the place and if they don't want to pay for an interior designer you can let them know you have recommended Furniture lists that are in this course that they can use but they'll be responsible for receiving and setting it all up so here you want to make sure that you choose the photographer because this is where the money is made and where most people like to skimp out so this right here just basically makes sure that you're responsible for the design and also creation of the listing now like I've mentioned earlier you want to be in control of managing the listings and don't want the client to have access to just one platform and you another you want to make sure that you're managing all the listings so for example you don't want your client to be in charge

36:37 of vbo and then you Airbnb it's really just going to muddy the waters and make it much harder for everyone and this just plays out that you're going to be managing the dynamic pricing and this just says that you're going to be working with the cleaners and also coordinating with them as they are the most important member of your team so post launch here these are all just the items that a property manager would be responsible for all these items will be need to be paid by the client but you will be the one coordinating it so this includes supplies maintenance Etc it doesn't say anywhere that you'll be available 24/7 to call and give them weekly updates now that doesn't mean that you should go radio silent on them you can still give them updates here and there especially at the end of the month is when you'll be checking in on them and giving them the financial reports and such but your time is incredibly valuable and you want to ensure that you treat your time like gold you can direct them to the contract if they ask about that and if they're abusing your time and constantly asking for updates you can just direct them to the contract and let them know that this isn't something that you agree to but you'd be happy to build them hourly if that's something they absolutely need I want to also reiterate that all payouts should be paid out to your account and from there you'll be taking the revenue percentage and any expenses that are accured during that month and then send the rest of the payouts to the client and I highly recommend you go this route because number one this is how traditional property managers work and number two it makes it much harder to track all the debits and credits and chasing the client down is never fun and causes more stress and headaches for you if this is a deal breaker for the client then you'll just want to move on to the next because this isn't a client that you'll want to work with so these are additional stipulations that lay out who's paying for what you also want to

37:53 make sure that you add in here that you have the right to purchase smaller items up to a certain amount in this case it's $100 without the owner's approval the reason behind this is there are a lot of smaller items that need to be purchased in this business and you don't want to be sitting for sometimes days for the owner to get back to you and make sure you're saving receipts and tracking them through QuickBooks it makes it super easy where you take a picture and you can upload them into QuickBooks pretty seamlessly and the rest of the stuff is pretty Common Sense payment for services this is where you'll need to figure out the Comfort level of the client and what they will agree on if this is your first client it might be worth taking a smaller commission to prove your worth and then get testimonials which will help immensely in getting more clients down the line then you can up the percentage after a certain amount of months additional fees this is to protect you and also goes back to the clients that don't respect your time and want constant updates you want to be firm with them that you'll be charging for Unnecessary hours thrown at you so the duration of services here this will vary from person to person I like to do a minimum of 6 months that they have to work with you and this is to ensure that you can get everything ramped up especially if you're in more of a seasonal Market where you might be signing this contract at the slowest months ideally I would try and do a year so you get a fair shot but this will be up to you and the client this section here is where the client might have some issues it basically states that you have the right to cancel a contract before the end of the 12 months but they don't if they raise a stink about this just let them know that the reason you do this is because you don't charge a setup fee you need to be given enough time to actually earn back the amount of time and effort that youve put into setting this up for them if they want the right to terminate earlier you can just let

39:10 them know that you can add that you'll be charging $1,000 setup fee or something along those lines this usually gets them to say okay that's fine you know it's really funny how that works everything else on here is just legal jargon that is necessary so you can read through this if you want but overall that's a gist of this agreement and at the bottom here is a signature page and you want to make sure that they sign it before you do okay that's really important so in this module I'm going to walk you through step by step exactly how to set up each client's listing on Airbnb so there are three ways to approach this I'm going to tell you the pros and cons of each so the first way is to put all the listings on your account and then adding owners as a co-host now this will give them access to see the activity on the listing and also send them messages and so on basically everything that an admin can do except for they won't have access to the resolution center or the financials the biggest con here is that your other clients are now exposed to one or more clients that want to try and take control of their own listings and I'm going to tell you why this can affect everyone's listings including your own if you have any so let's say an owner comes in and decides knowingly or unknowingly that they're going to cancel all upcoming bookings or start messaging guests without your permission this can get rid of your superhost status almost immediately and this will affect every other client's listings as well the pros are it's easier to manage and you're getting all the reviews to your account which will help boost your other listings I only recommend this route if the owner doesn't care about being added as a co-host and this is the preferred way in my opinion but let's talk about the next two the second way is to add yourself as a co-host on the owner's account the biggest cons to this method is it can get really complicated and messy to manage you also need to get the

40:27 credentials for the owner's main account in order to get access to the resolution center and the financials another con is that if you're listed as a co-host the reviews you receive won't count towards you becoming a superhost the only Pro for this model is that your other clients are protected from one owner that might go crazy and destroy your superhost status now let's talk about the third and final option the hybrid model so with this method when you onboard a new client you'll want to create a brand new Gmail address to create a brand new Airbnb listing regardless if they already have a listing or not and if you haven't already you should have one main Gmail account dedicated for your co-hosting business and as you onboard new clients create a new Gmail account for each client and then for those emails you receive to your main Gmail account I'm going to leave a link below on instructions on how to forward your emails you want to do this so you aren't constantly checking several different accounts and it will all forward to the same one email and by the way you will want to make sure that you have created an Airbnb account with your main Gmail account and from there use your main Gmail account and add yourself as a co-host now with this model I highly recommend you don't add your owners as a co-host because same thing applies in the first method they can still come in and mess up their own listing and kill your superhost status ever with this method it'll only be their own they'll be sabotaging but you still want to make sure that only you have access the cons for this is that it takes a bit longer on the initial setup and you won't be getting reviews counted towards your account the pros are you can use this as a selling point to your owners when you first start working with them and you can say that if they decide not to work with you anymore that all the reviews

41:43 will transfer over to them and of course the other clients are protected as well so all in all out of the three I've listed here I recommend going with one or three but lean more towards one if the owner simply doesn't care about being added as a co-host bookkeeping is one of the things that I personally dread the most but it's incredibly important to keep on top of your books in any business this will show you how your property is doing and you can get an idea of exactly what's coming in and out of your business especially in this co-hosting model as you'll need to send the correct amount to your clients each month I personally like using QuickBooks online because it makes it super easy and a lot of the things can be automated it's about 50 bucks per month per business but it's honestly well worth the price I'm going to walk you through how I use it in order to generate reports each month for clients so first and foremost I would have your client set up an account on QuickBooks online and they can add you as an accountant this is so you can access the account and reconcile trans actions and they'll also be able to view what's coming in what's going out so in order to do that you just come up here manage users and then just come up here and add user here now obviously you can hire the bookkeeping out eventually as you scale but to start it's really not as hard as you might think for your client they're going to have to spend $50 a month for this software and that'll just be another expense line item moving forward and I also highly recommend you get QuickBooks Online for your side of the business as this is going to make invoicing your clients and keeping track of your expenses and revenue much easier and you're going to also thank yourself come tax season what you'll need to do is set aside a few hours out of the month in order to reconcile all your receipts expenses and income but again QuickBooks helps automate a lot of that

43:00 work so first go to business overview and go to bank accounts over here and then connect to the accounts that your client wants to use this is super easy they can do this themselves what you have to do is come here connect accounts all they have to do is search their bank account and connect it and they can also connect a credit card if that's how they want to make purchases okay once that's done let me walk you through how to send an invoice from your company to your client so that you can add that as an expense on your client's QuickBooks now since you're collecting all the payments yourself you can just deduct your commission fee from the total revenue and leave it in your account account assuming you're using the same account but you still want to make sure that you invoice the client so they can track on their side and on your side for tax purposes in order to create an invoice I like to use canva to create it now I'm sure there's some way to do it in QuickBooks but I just like to use canva just because it's easy so I'm just logged in here to my account and again this is free as well so you want to just come in here and just type in a receipt invoice template and then it'll just populate all these different options here for you so you just want to make it super simple okay so once you pick a template let's say you made $1,000 for your cut for the month so you'll want an invoice to your client so let's just say that there's company name and short-term rental LLC and then since you'll be paying yourself you can just add a text in here that says paid so from here we'll go back to QuickBooks and for the client and then upload this into their portal so what you're going to want to do is come back here to bookkeeping and I have the invoice here that I'm going to upload now so once that's done uploading you want to click on review here so you want to come over here and categorize it as a receipt and from here I would put this under cash and then

44:17 category here you can just put commission fees which is down here at the bottom right here so once that $1,000 enters your account in QuickBooks it should automatically categorize as Revenue so you should be good on your end so from here save and next and then this should be created as an expense here so let's talk about how to generate a profit and a loss report for the client this is the only report that I typically share with the clients unless they ask otherwise it should give them everything they need in order to see how the property did for that particular month so what you're going to want to do here is go back to business overview then click on profit and loss here for the dates here let's do July of 2022 and I like to set it to cash accounting method the difference between cash bases and cruel bases comes down to timing if you record revenue and expenses when you pay or receive money then you'll use cash bases if you do it when you get a bill or an invoice then it's AC cruel so run the report and then as you come down here you should see the commission and fees here that's $1,000 for your payment so from here just download it email it or whatever you need to do to send it over to your client it's really as simple as that you can also generate income reports through guesty so this is just one of my guesty accounts first you want to go to menu and then you scroll down here to income reports and then come over here to create income report and then you can choose which property you want to create it for then you'll want to choose the payout model here so what this means is that you're going to get paid by all the channels and then you take your cut and then pay the rest to the client and again as I've said already,000 times I highly recommend you go this route and then I choose net payout with cleaning fee meaning that you collect the cleaning fee and then you pay the cleaners directly and then

45:33 here depending on your percentage split you can just drag this bar here so let's say your split was 20% so you choose 80% here and then hit continue and then put your income report name here and then confirm then it shows you a breakdown of your earnings so you want to scroll to the bottom here and then you can choose preview payout statement so from here let's say you paid for certain things out of pocket for that month make sure you keep track of all that in a spreadsheet or in QuickBooks and then you can add that here for more accurate reporting so if you pay for let's say some new towels and sheets that cost you $100 so you can put towels and sheets and you want to make sure that you put negative 100 here to indicate that the client gets $100 less since you paid for that so then you want to add the client so you'll need to get their name and email then click this to generate the payout statement and this will just show you breakdown of exactly how much money they made there so you can generate this payout statement and then you can send this along with a p&l from QuickBooks