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John Elerick
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Launched our First STR!

John Elerick
Posted Jun 2 2022, 13:48

Hi BP Family,

This is our first post on the BP forum and we figure this is the best time to go for it.

My wife and I launched our first Airbnb in our Northglenn house May 1st. It's a separate entrance basement suite with 2 beds/1 bath. We're very happy with the turnover so far but this brand new for us and would love to learn more from some veterans (you guys!) We're going to list a couple things below we're interested in learning more about.

1. Airbnb Cleaning... We're currently cleaning ourselves but would love to change this. We feel our cleaning price is on par with other local Airbnb's but the cleaner quotes we're seeing are almost double what we charge. Is this common?

2. Cohosting... We manage this property ourselves but we also love camping. What do hosts do when they still want to manage their property but also like a couple days off?

3. CPA... This is our first house and rental income. We've usually just used TurboTax in the past but we want to learn as much as we can about what we can write off and how much to put aside for taxes.

4. Maintenance Tech... We usually take care of most of the repairs but we'd like to have someone on call in case we're not around to fix something.

These are the main topics we've been discussing but we're sure there is plenty more we want to know. If you have some free time and would like us to buy you a drink we'd love to chat.

Thanks,

John & Hannah

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Michael Baum
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Michael Baum
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  • Olympia, WA
Replied Jun 2 2022, 14:15

@John Elerick, welcome to the club!

Regarding cleaning. I pay more than I charge. We are way out of town so travel time is a factor as well as fuel. How much are you charging?

You can automate most things about guest management. You can get an electronic lock that you can change the codes remotely (Schlage Encode or the like) and have your cleaner available to handle issues once you find them.

I would chat with a CPA. We decided to use a CPA and they have saved us money on taxes each year. Much more than the fee they charge. Seeing as you are renting part of your house, things get more sticky so I would check.

It should be fairly easy to find a maintenance person. Just use Facebook Marketplace, Angi etc and you should find someone you can rely on.

Welcome to the forum!

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Bruce Woodruff
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Bruce Woodruff
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Replied Jun 2 2022, 14:36

Congrats on your new venture!

1) Why not keep cleaning? It's an extra revenue stream for you since you live right there. A little place like that should take both of you about 3/4 hr? Pocket that money and also gives you a chance you visually inspect everything regualrly. A cleaning service will not  do this well. If you charge $70 for cleaning and have 40 guest stays a years, that's $2800 in your pocket!

2) I would again just keep it to yourself. We block off days when we are going out of town so that no one is leaving/arriving on a day we are gone. Easy.

3) I use WAVE to keep track of expenses, it's free and online. You could also use  Quickbooks or similar, same thing. They import your bank transactions into the program and even categorize most of them for you. You just need to go in there once a month and double-check.

4) Once you get this rolling and do your maintenance up front, it will be a rare occurrence to have problems. When you do just call the appropriate service.....heater NW, call your HVAC Contr. Bad switch or outlet, call your electrician. Etc.

Keep doing as much as possible yourselves, it's really not that time consuming and kind of fun, and keeps you in control with more $$ in your pocket. That's why you started this right? To make money. Don't give it away needlessly....

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Ryan Williams
  • Real Estate Broker
  • Denver
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Ryan Williams
  • Real Estate Broker
  • Denver
Replied Jun 2 2022, 16:05

Hi @John Elerick! Love what you and your wife are doing! My wife and I are doing the same thing in Denver and it's going really well so far.  

1. I had a very similar start with our airbnb by cleaning it myself, and wanting to find a cleaner quickly after a few weeks of doing that! lol.  Initial quotes were higher than cleaning fees in my area just like you mentioned, but I networked with other airbnb hosts in my area and found a cleaner they were already using and she had a better rate than commercial cleaners and others on site like turnoverbnb. Good rates and good cleaners are out there, you just have to look hard! 

2. Like the others have mentioned, automating and having a good cleaner, can solve a lot of the issues and allow you to be essentially hands off barring an emergency. You can have a friend act as a cohost when you're gone and hopefully they would only have to do something in an emergency, or you could hire a manger to look over things and handle communications on your behalf while you are gone. 

3. Definitely talk with a CPA, they will help you out a ton, and there is a lot you can write off with STR's

4. Having a good handyman on call that can do most things is a big advantage.  I know my handyman pretty well, he can do almost anything, and I trust him.  When issues come up I just coordinate with the guest in necessary, make a code for him from my phone, and he goes in and fixes the issue. 

I hope this is helpful!

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Rosalie Borja
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Rosalie Borja
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  • Denver, CO
Replied Jun 3 2022, 09:31

Just to add to the previous posts, I use an online service called Dazzling Cleaning and it's kind of like an Angi's list or Uber but just for cleaners who are looking for clients. There is a membership option that I have and it's like $40/month but the cleaners charge way lower per hour to do the actual clean than others I have used commercially. I have found a couple of cleaners on there that I ended up using directly because they were so good and reliable. I actually decided I can just cancel the monthly membership for now and use her regularly but always have Dazzling Clean as an option if I need more cleaners. Good luck! 

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Ben Einspahr
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  • Denver, CO
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Ben Einspahr
  • House Hacking Specialist
  • Denver, CO
Replied Jun 5 2022, 05:53

@John Elerick, Big congrats launching your airbnb!

1.When you look at the additional $50' ish you can make by doing the cleaning yourself, I personally do not think the "juice is worth the squeeze". After my wife and I did our own cleaning for a month or so, she put a hard stop to it and we found a great cleaner that we have used for 3+years. For STR's, your cleaner can make or break your business. Take care of them

You have a couple different options.

A. Cheapest option- Have your cleaner manage the cleaning and turnover. They will give you the dirty laundry and you will inventory it, wash it, and fold yourself. (I have become a master at folding fitted sheets) 

B. Have the cleaner manage the cleaning, turnover and laundry. Essentially they will either wash the laundry for you if you have laundry in the unit or they will take it home , inventory, wash, and fold it for you.

For each one of our Airbnb's we have a minimum of 2 full sets of turnover supplies (linens, towels, etc). 2 sets for MTR, 3 sets for STR.

2. To add to what others have recommended, to make this work you will need:

A. Auto messaging- effective auto-messaging can eliminate 90% of your communication.

B. Cleaner and additional turnover supplies (if you do not have a washer in unit)

C. Like clockwork, the minute you go out of town, something breaks. For this I have used task rabbit. 

3. Yes, you should find yourself an investor friendly CPA that can help you maximize your returns while still doing everything by the book. I will send you mine via messenger.

4. Task Rabbit

Thanks!

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Rosalie Borja
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Rosalie Borja
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Replied Jun 6 2022, 08:36
Quote from @Ben Einspahr:

@John Elerick, Big congrats launching your airbnb!

1.When you look at the additional $50' ish you can make by doing the cleaning yourself, I personally do not think the "juice is worth the squeeze". After my wife and I did our own cleaning for a month or so, she put a hard stop to it and we found a great cleaner that we have used for 3+years. For STR's, your cleaner can make or break your business. Take care of them

You have a couple different options.

A. Cheapest option- Have your cleaner manage the cleaning and turnover. They will give you the dirty laundry and you will inventory it, wash it, and fold yourself. (I have become a master at folding fitted sheets) 

B. Have the cleaner manage the cleaning, turnover and laundry. Essentially they will either wash the laundry for you if you have laundry in the unit or they will take it home , inventory, wash, and fold it for you.

For each one of our Airbnb's we have a minimum of 2 full sets of turnover supplies (linens, towels, etc). 2 sets for MTR, 3 sets for STR.

2. To add to what others have recommended, to make this work you will need:

A. Auto messaging- effective auto-messaging can eliminate 90% of your communication.

B. Cleaner and additional turnover supplies (if you do not have a washer in unit)

C. Like clockwork, the minute you go out of town, something breaks. For this I have used task rabbit. 

3. Yes, you should find yourself an investor friendly CPA that can help you maximize your returns while still doing everything by the book. I will send you mine via messenger.

4. Task Rabbit

Thanks!

This is fantastic knowledge for all of us who also aspire to get into our first STR, @Ben Einspahr!

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Scott Sherin
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Scott Sherin
  • Investor
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Replied Jul 7 2022, 19:29

1. Airbnb Cleaning... We're currently cleaning ourselves but would love to change this. We feel our cleaning price is on par with other local Airbnb's but the cleaner quotes we're seeing are almost double what we charge. Is this common?

I'd continue to interview cleaners. It is unusual to pay a cleaner more than what you charge to guests (in fact, often times its the opposite). I pay my cleaners $150 and my guests $180, the $30 difference helps me pay for things like toiletries, coffees, firewood, etc

2. Cohosting... We manage this property ourselves but we also love camping. What do hosts do when they still want to manage their property but also like a couple days off?

I'd find somebody you trust who can be the point of contact. I also own & manage, would be more than happy to chat about being your occasional weekend coverage! 

3. CPA... This is our first house and rental income. We've usually just used TurboTax in the past but we want to learn as much as we can about what we can write off and how much to put aside for taxes.

Investing in a good CPA pays for itself. There are also a few books about real estate tax strategy, the one I bought pertains specifically to Airbnb.

4. Maintenance Tech... We usually take care of most of the repairs but we'd like to have someone on call in case we're not around to fix something.

Speak with a few local handymen! I like finding these people through area-specific Facebook groups. Since I am remote to my property, all requests are delegated to one of my team members who can head to the property to handle it.

Hope this helps! Best of luck :) 

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Kevin Escobar
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Kevin Escobar
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Replied Sep 24 2022, 08:57

I have had the most success networking in local FB groups in finding cleaners for my properties.