Failure to launch on Airbnb

[Kevin Hill]

So my wife and I purchased a camp on a canal. We bought it with the intent to rent as an airbnb. We created our LLC, did some renovations and fully furnished it. We have used it with my parents as a fishing camp for about a year now and never listed it. We watch videos on what you need and do's and don'ts but never list it. I watch youtube videos that say list it and learn as you go while my wife watches nothing but the horror stories, what can go wrong, and how a negative review can ruin your airbnb. While she has caught a lot of things we needed and has made several lists that we are completing it doesn't seem like the list will ever end. I guess the question is should we list and learn as we go or is a negative review something we should worry about.

[Zachary Inman]

Hey Kevin,

It can be scary to start a new source of income! I think it would be a good idea to have some friends and family stay at your short-term rental and give you honest feedback so you can correct issues before listing it :)

[Bruce Woodruff]

Yes, good idea to have an experienced STRer to stay at your place and give you some advice. But also, your wife needs to get over the paralysis/analysis trap. A fear based approach will get you nowhere....

[Kevin Hill]

We have actually thought of that and have had some request from a few family members to do so. We have also stayed at 3 different Airbnbs to help our understanding of a good and bad experience. Hopefully this is the year. Thanks for the advice.

[Steven Wang]

Having been in the short-term rental industry for a while now and currently running an STR business, I can tell you right now that all of the items you had listed as potential issues and horror stories are novice traps that are easily addressable once you understand how Airbnb (as a company, and other OTAs) operates and how to leverage tools/strategies that proactively filters out most bad guests.

As with any business and industry, you are always learning and will always lose from time to time. You will never be an expert and understand the intricacies without actually doing it yourself and execute. Analysis paralysis is real, and to be honest with you, most "gurus" on YouTube tend to only provide content and punch lines that will attract views, not necessarily the nitty gritty boring details that you will need to run your daily operations effectively. This kind of knowledge that will make or break your business only comes with doing and constantly improving on every aspect of your business as you go.

Hope this helps!

[Eric Garcia]

Here's what I did when I purchased my STR. I read the Short-Term Rental, Long-Term Wealth book and heard the audiobook 2.5 times. Made a shopping list and a To-Do list. I listed the home on Airbnb and blocked off a few weeks to get everything done then worked my butt off right up until 1 hour before the first guest checked in. The STR is a 7-hour drive, by the way. And it took me two road trips. I never finished the lists and I have been adding even more items since. Two guests down, two 5 star ratings. It'll never be perfect but if you're thoughtful and put your guests first, they'll notice.

[Jimmy Woodard]

@Kevin Hill let's go through a list of worst-case scenarios:

• You get a bad review: A 1-star review will not kill your business (take it from me). You'll have bumps in the road from time to time, but as long as you put your best effort into creating a 5-star experience for your guests then your reviews will be good/great on average
• A guest ruins your property or breaks something: This is why you get STR insurance from companies like Proper or CBIZ so they can cover any losses after you pay your deductible. Heck, even Airbnb and VRBO have host insurance to help cover damages (but don't just rely on the platforms)
•  A guest refuses to leave the property (this has actually happened to me): Call the cops. Leave it in their capable hands.

There are certainly more but the point is this: if you put together a list of what could go wrong and prepare for it in advance, you and your wife will be just fine. Get out there and try it! Not trying at all is worse than failing any day of the week. Good luck! 

[Matt I.]

Quote from @Jimmy Woodard:

@Kevin Hill let's go through a list of worst-case scenarios:

• You get a bad review: A 1-star review will not kill your business (take it from me). You'll have bumps in the road from time to time, but as long as you put your best effort into creating a 5-star experience for your guests then your reviews will be good/great on average
• A guest ruins your property or breaks something: This is why you get STR insurance from companies like Proper or CBIZ so they can cover any losses after you pay your deductible. Heck, even Airbnb and VRBO have host insurance to help cover damages (but don't just rely on the platforms)
•  A guest refuses to leave the property (this has actually happened to me): Call the cops. Leave it in their capable hands.

There are certainly more but the point is this: if you put together a list of what could go wrong and prepare for it in advance, you and your wife will be just fine. Get out there and try it! Not trying at all is worse than failing any day of the week. Good luck! 

Jimmy can you elaborate on the 'a 1 star review will not kill your business'? I feel like all I read about is quite the opposite. I get the impression that a 1 star review is the STR kiss of death, business suicide, etc etc. Do you have a personal account on this? I just opened my first STR so I'm just curious, thanks!!

[Mark Cruse]

Quote from @Matt I.:

Quote from @Jimmy Woodard:

@Kevin Hill let's go through a list of worst-case scenarios:

• You get a bad review: A 1-star review will not kill your business (take it from me). You'll have bumps in the road from time to time, but as long as you put your best effort into creating a 5-star experience for your guests then your reviews will be good/great on average
• A guest ruins your property or breaks something: This is why you get STR insurance from companies like Proper or CBIZ so they can cover any losses after you pay your deductible. Heck, even Airbnb and VRBO have host insurance to help cover damages (but don't just rely on the platforms)
•  A guest refuses to leave the property (this has actually happened to me): Call the cops. Leave it in their capable hands.

There are certainly more but the point is this: if you put together a list of what could go wrong and prepare for it in advance, you and your wife will be just fine. Get out there and try it! Not trying at all is worse than failing any day of the week. Good luck! 

Jimmy can you elaborate on the 'a 1 star review will not kill your business'? I feel like all I read about is quite the opposite. I get the impression that a 1 star review is the STR kiss of death, business suicide, etc etc. Do you have a personal account on this? I just opened my first STR so I'm just curious, thanks!!

 Maybe in the beginning a 1 star can tank you, but over time, if you have an average very close 5 on a 5 star system you will be fine. If you provide a good service those good reviews will come. No matter what, eventually you are going to get bad reviews NO matter what you do. Some people will find something to complain about but if things are done right it will be fine. I have a timeshare and have been in plenty of upscale lodges and resorts. I think of my most pleasurable experiences. Iḿ very familiar with Wyndham and I make sure at the very least my units have what they do. Worked out so far with the help of an excellent property manager. Good luck. Just jump in and do it! 

[Bruce Woodruff]

I'll let Jimmy answer as well, but he may mean that unless you have a dump and nothing but 1 star reviews, one or two bad reviews will not sink your ship. Simple math: if you have a total of 5 reviews and you then get a 1 star review, it will take you to 4.3. Not too bad....

If you have (10) 5 star reviews (which you will have if you're good at this, which you will be), and then get a 1 star review, then the math is even better at 4.6.

You will eventually have 100 reviews - let's say (10) 4 and (90) 5 star reviews with an overall rating of 4.9. At that point, a single 1 star review will result in an 4.86 number. Pretty damn good right?

Most newbies don't realize that the host has more review power....why? Because we hosts have numerous reviews and the guests typically have just a few. If we hit them with a 1 star review when they only have 3 other reviews, no one will ever host them again.....