AirBNB Business

[Annie M.]

Hello! Anyone here who rents out their condos/homes via AirBNB?

1. Any horror stories? Please share, and looking back, could you have avoided them?
2. Advice on pricing
3. General tips on running a profitable AirBNB business.

Thanks!!

[jmeangeL]

I'm on Airbnb. Started just this February.
So far, no horror stories to tell which is really great.

The pricing would depend on the market aka your competition and what especial something you can offer.  Initially, you would really price your unit at the lower side of the market to attract new bookings.

Afterwards, you'll start to jack it up little by little.  You'll come to a point where you'll see which price is the most appropriate.  Somewhere in between where you'll earn a little and have a steady number of bookings.

The best tip I can tell is to check the competition.  Lurk around on other people's listing, especially those within your vicinity.  Check what they offer and possibly offer the same or beyond.

Pinoy tourist are matiisin as long as sakto sa budget nila, but don't be cheap.

Keep the place very clean and use beyond better beddings and towels.

[eeyore91833]

I have our condo rented on a long term basis but considering this too. Looking forward to some tips on how to make this profitable

[mimiku]

I know this is a bit off topic but for those condo owners renting their properties, how is it? Ok naman po ba ang profit? Thanks!

[Annie M.]

@jmeangeL thanks for your input! I have more questions, if you don't mind:

1. Anong occupancy rate mo? How many days na-rerent yung unit every month?
2. Do you pay a cleaner to sanitize the unit after a guest leaves, or ikaw na gumagawa?
3. Did you install Wifi in the unit? How about cable TV? Are these considered 'standard' features na in AirBNB?
4. Would you say na mas profitable magpa-AirBNB kesa ipa-rent na lang yung unit mo to a long-term tenant? 

Thanks sis ha!

[jmeangeL]

@jmeangeL thanks for your input! I have more questions, if you don't mind:

1. Anong occupancy rate mo? How many days na-rerent yung unit every month?

I'm actually tracking this.  Started late February. Di umabot sa Feb 14, sayang. Here's what I have so far, in terms of nights booked.
Feb - 2
Mar - 18
Apr - 26
May - 16 (so far, the month is still young)

2. Do you pay a cleaner to sanitize the unit after a guest leaves, or ikaw na gumagawa?

I have an 8-5 job, so can't do and the condo is far from where I live, so I have an independent cleaning lady.  She does the cleaning, check in and check out.  Re-stock the unit when I request and bills me on how much was bought.  Laundry is separate.  We send the linens to a laundry shop.

3. Did you install Wifi in the unit? How about cable TV? Are these considered 'standard' features na in AirBNB?

We do have cable TV and WiFi at the unit, not because they are standard; but because normal hotels on our area provide those.  If you have them, Airbnb has a check list that you can tick and show case as part of your amenities.  But they are not needed to be able to list your property on Airbnb.

4. Would you say na mas profitable magpa-AirBNB kesa ipa-rent na lang yung unit mo to a long-term tenant? 

Most definitely.  I believe since my unit is at a tourist area then I should capitalize on that using Airbnb.  But if your unit is at BGC, Eastwood or other areas where BPO's are, then renting it as long-term would be better.  All in all it would depend on the target market that you want to capture.

Di naman kasi tayo tulad ng Singapore, Hong Kong, US, Japan, South Korea, where tourists would flock because the tourist area is right where the hassle and bustle of city life is.

[eeyore91833]

Just curious sissies, are your guests from abroad or mostly Filipinos?

[jmeangeL]

^---Mostly Pinoys, but I did get 4 bookings from abroad.
One from US with a Pinay wife visiting the Philippines.  Another is a French national and a German national, doing a hike on the area. And last is a Korean national who would be staying for almost a month in July to August.

[Annie M.]

Do you do any advertising outside of AirBNB?
How do you make your AirBNB listing stand out?

[tischarmedlife]

^You can share your listing's URL sa social media accounts mo sis.  Also, pag naka-on ang Instant Booking mo, naha-highlight ka sa search results. Tsaka lalo pag naging Superhost ka 

[jillai]

I'm in the initial planning stage of this too.

Question lang sisses, do we need to pay tax from the total income we get from this? Sorry ah, im clueless since wala ako sa Pinas now.

Thanks!

[jmeangeL]

^---It would be good to register this as a business.  But I for one, didn't bother.  Airbnb doesn't force you to do so, but they would advise that you follow all legal rules.

In my case, since I'm on mortgage, all revenue in the property goes to paying that mortgage and on improvements.

If I put that on a balance sheet, negative pa ako.  So, I don't bother with it.  Maybe if I start to have at least 3 properties and would really like to brand myself, then yes.

That's the time I would register it as a business and bother with all that taxes.

[Annie M.]

Thank you sa mga input nyo!

My situation is that I own the unit outright, so technically everything it will make from AirBNB will be profit.

My goal is to earn 20% a year of the money I paid for the condo, so parang my money is earning 20% annually. Kung ipapa-rent ko kasi sya sa isang long-term tenant, parang at the going rental rates in the area, I will only make 10% a year. Kaya I am considering AirBNBb because of the potential to earn more. Pero shempre alam ko din na mas madaming work with AirBNB; in fact, I might have to do the cleaning myself because I don't have a maid or know any cleaning lady.

So in short, di pa ako nakaka-decide. Hoping na madami pang mag-share ng experiences nila dito.


 

[jillai]

I second that, thanks for the reply sis, very helpful
My income I hope would also go towards paying some bit of the mortgage.

Sis jmeangeL, since na mention mo na meron ka normal daily job, may I ask how you handle the bookings, e.g. kung dadating yung guests mo during your office hours?

[Annie M.]

^oo nga sis, who will meet your guests when they arrive? do you just leave the keys sa reception?

naisip ko din baka dapat palitan ko yung door knob ng numeric lock na lang so guests can let themselves in.

[jmeangeL]

I second that, thanks for the reply sis, very helpful
My income I hope would also go towards paying some bit of the mortgage.

Sis jmeangeL, since na mention mo na meron ka normal daily job, may I ask how you handle the bookings, e.g. kung dadating yung guests mo during your office hours?

Airbnb has push notification, so I get all alerts to my phone.  Text and email.  This way, I know when to check the app for any inquiries.  Bawal mawalan ng battery or signal, since I've configured my listing to accept same-day bookings as late as 7pm.

I have a property manager, aka cleaning lady, on site.  But I also bought a keyless door lock, where guest arriving late at night can just input a PIN sent to them in advance. Hindi ko pa lang napapa-install.   

The cleaning lady is an independent contractor, which I only pay per guest arrival.  She does the check in and check out; plus cleaning of the entire unit.  As for the laundry, she sends it to a laundry shop who does free pick up and delivery in the building.

Her husband works as a maintenance of the building; which is plus for me since hubby is an OFW.  He doubles as my handyman, whenever I need something fixed or installed in the unit. 

Tanong-tanong kayo sa guard ng condo nyo mga sis, for sure may ituturo silang cleaning lady.  Their job is lucrative.  My cleaning lady charges 350 per service; and has 7 units that she handles.  Do the math.   

Inisip ko nga magtayo ng laundry shop dun sa area.  Magkakakilala ang mga cleaning ladies.  Dun pa lang, panalo na.

[LilaFowler]

Have you had any issues with guests who throw parties in the unit?

My cousin rents out the master suite (bedroom + tb with balcony) of their house. But only when they are home. Pag walang tao, they don't post it on AirBnB kasi they are worried the guests will have big parties. She said it's a very good business, when she does advertise the room, she is usually booked out for most weekends for 2 months.

[jillai]

sis jmeangeL, thanks again for the inputs, ang galing! Will check around for the cleaning lady option in the building itself kasi mas convenient yun. Ang naisip ko pa lang kasi eh yung mga pwede i-book online pero mas ok nga kung meron na mismo sa building.

In the meantime, I will need my sister to help me out with the check in and check out pero yun nga, eventually, sana may mahanap nga din kami na pwede mag-handle nun on site.

[jmeangeL]

Have you had any issues with guests who throw parties in the unit?

My cousin rents out the master suite (bedroom + tb with balcony) of their house. But only when they are home. Pag walang tao, they don't post it on AirBnB kasi they are worried the guests will have big parties. She said it's a very good business, when she does advertise the room, she is usually booked out for most weekends for 2 months.

So far wala naman.  Maybe because the unit is really small.  It's only a 1BR condo.  25sqm lang.
No place for people to party.  Also, the guard of the building checks how many person is going to stay in the room vs the authorization letter that us owners provide.

I think, yung party-party ay sa ibang bansa lang nangyayari.

Ang apprehension ko before putting my unit on Airbnb is getting the place looted!

So far, wala naman ganun problem.  Tiwala lang din.  And the building security is strict with moving appliances out of the premises.

[margasyjuco]

Really valuable inputs! I'm following this thread!

Sis jmeangeL, if you don't mind, where is your unit located? You mentioned it's in a tourist area Thanks!