Outfitting an Airbnb; economics vs. convenience

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Outfitting an Airbnb; economics vs. convenience

Pat JacksonPro Member
Rental Property Investor · Reno, NV · Member since 2017 · 284 posts · 137 votes

I'm considering partnering with someone to try and Airbnb.  I'm inspired to try running an Airbnb long distance.  https://www.biggerpockets.com/renewsblog/biggerpoc...

 This situation is appealing, as my partner would provide a newly remodeled 3 bed, 1 bath.  I would provide all the furnishings, (he already has the big appliances; washer, dryer, range, fridge), small appliances, linens, beds, couches, chairs, etc.  I would slowly manage more and more of the bookings, clients, etc as we built systems.  I get to learn about Airbnb from afar, he get's to see if it works locally.

Although I'd be keen to hear if BP members think this is a great or horrible idea, I'm more interested in how to most economically and conveniently stock an Airbnb.  I live in Reno, the house is in Missouri.  It's not unfeasible for me to travel to Missouri for a long weekend, hit up thrift stores, garage sales (though it's not really garage sale season), and craigslist to get used items.  However these items don't always come with receipts, one can't claim depreciation (at least I don't think I can), I can't maximize airline points buying items through airline portals 

https://www.biggerpockets.com/renewsblog/biggerpoc...

 I'd have to rent a truck of Toro, and buy an airline ticket.  

Combine these downfalls with my time, and I'm curious if I'm not better off pulling up various Airbnb checklists like this one https://bnbnomad.com/airbnb-kitchen-checklist/, and buying it all online between Black Friday and Cyber Monday.  They online sales events seem to all be about the same thing these days anyway.

I realize this second option will result in less cool stuff.  Nothing will really be chic, vintage, or otherwise awesome.  However I won't buy bottom of the barrel stuff, and I think (based mainly off my own airbnb stays where I just used the unit to sleep in) online purchase will suffice.  I'll end up spending more on the stuff, but factoring in travel and my time, will I really spend more?

Anyone have any experience in any of this?

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Julie McCoy
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
7y

Lots of us manage STRs long-distance.  I have four, the closest one is 200 miles away, the other three are 2000 miles away.  

You're overthinking this. Time is money. The faster you can get it listed, the faster you'll start making money. It's worth spending more money up front to get things done quickly. And it'll take you a lot longer than a long weekend to nicely furnish an STR off Craigslist and thrift stores.

Character pieces are great and I definitely recommend picking up some things that will help set your property apart and give it more appeal, but unless you want to spend a lot more time than it sounds like you do, that shouldn't be your focus.  Instead, find a local furniture store that carries some interesting things AND DELIVERS (e.g. not IKEA - you can look at vintage or secondhand furniture stores for some of the more interesting things, but check out the regular local furniture stores too).

The benefit of buying from a local furniture store, as well, is that you can build relationships so when you're in a situation like I was a couple of months ago where I had to replace a bed, you can do something like this: I called up my sales rep, told her what I needed, she texted me photos of the beds she had in stock, I picked one, paid for it over the phone, arranged delivery, got it delivered and assembled.  All from 2000 miles away.

I NEVER list a property without spending time at it first.  Others will do it sight unseen, so it's not to say mine is the only way, but I like knowing exactly what's in there, exactly what the condition of things are, figuring out all the quirks and answers to random questions guests may have.  I've spent anywhere from two weeks to 24 hours setting them up.  And the enduring lesson is: it always takes more time than you think.  So I've learned to be VERY organized when creating lists and knowing what my priorities are, and shopping at as few places as possible.  If I hadn't done that, I never would've been able to set up the one cabin in 24 hours.  

Bottom line: while write-offs and good prices are excellent things, don't lose the forest for the trees here.  Most important thing is to get it going ASAP, and if it costs you a few extra bucks along the way, just think about how much you're gaining by those extra nights being rented.  (also, so much of the things you'll want/need you want to buy new and I highly recommend taking advantage of the upcoming sales for your linens, kitchen supplies, etc.)

Good luck!

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    7y

    @Pat Jackson Podcast 229 strikes again.

    Man just look at the neighbors on AirBnB and see what they’re doing and copy it or do slightly better with slightly lower prices. I’d stay away from thrift stores. Hook the place up with nice stuff. 

    My concern is, what do you offer the property owner since you have no experience? Why wouldn’t they just put it with Evolve or find a co host that’s already a super host? Sounds like you’re not even familiar with the area and have never hosted so what do you bring to the table? How can you compete with the neighbors? 

    Have you looked in to local local legislation? Is it even legal? How much money will the property gross? Is it even worth your time regardless of being a noob? How do you find that out..... Study your neighbors calendars. How booked are they and how much are they charging per night. Don’t bother with airdna it’s way too inaccurate just run your own numbers. 

    Good luck. 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    3Reply
  • Pat JacksonPro Member
    OP
    Rental Property Investor · Reno, NV · Member since 2017 · 284 posts · 137 votes
    7y
    Originally posted by @Luke Carl:

    @Pat Jackson Podcast 229 strikes again.

    Sounds like you’re not even familiar with the area and have never hosted so what do you bring to the table?

    Grit and gumption!

    Neither of us have any experience managing airbnb rentals.  This market has ~10,000 residents and ~5,000 undergraduates.  Not many airbnb units, so sort of uncharted waters.

    Is the juice worth the squeeze?  I hope to find out.

    0Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    Lots of us manage STRs long-distance.  I have four, the closest one is 200 miles away, the other three are 2000 miles away.  

    You're overthinking this. Time is money. The faster you can get it listed, the faster you'll start making money. It's worth spending more money up front to get things done quickly. And it'll take you a lot longer than a long weekend to nicely furnish an STR off Craigslist and thrift stores.

    Character pieces are great and I definitely recommend picking up some things that will help set your property apart and give it more appeal, but unless you want to spend a lot more time than it sounds like you do, that shouldn't be your focus.  Instead, find a local furniture store that carries some interesting things AND DELIVERS (e.g. not IKEA - you can look at vintage or secondhand furniture stores for some of the more interesting things, but check out the regular local furniture stores too).

    The benefit of buying from a local furniture store, as well, is that you can build relationships so when you're in a situation like I was a couple of months ago where I had to replace a bed, you can do something like this: I called up my sales rep, told her what I needed, she texted me photos of the beds she had in stock, I picked one, paid for it over the phone, arranged delivery, got it delivered and assembled.  All from 2000 miles away.

    I NEVER list a property without spending time at it first.  Others will do it sight unseen, so it's not to say mine is the only way, but I like knowing exactly what's in there, exactly what the condition of things are, figuring out all the quirks and answers to random questions guests may have.  I've spent anywhere from two weeks to 24 hours setting them up.  And the enduring lesson is: it always takes more time than you think.  So I've learned to be VERY organized when creating lists and knowing what my priorities are, and shopping at as few places as possible.  If I hadn't done that, I never would've been able to set up the one cabin in 24 hours.  

    Bottom line: while write-offs and good prices are excellent things, don't lose the forest for the trees here.  Most important thing is to get it going ASAP, and if it costs you a few extra bucks along the way, just think about how much you're gaining by those extra nights being rented.  (also, so much of the things you'll want/need you want to buy new and I highly recommend taking advantage of the upcoming sales for your linens, kitchen supplies, etc.)

    Good luck!

    6Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Pat Jackson:
    Originally posted by @Luke Carl:

    @Pat Jackson Podcast 229 strikes again.

    Sounds like you’re not even familiar with the area and have never hosted so what do you bring to the table?

    Grit and gumption!

    Neither of us have any experience managing airbnb rentals.  This market has ~10,000 residents and ~5,000 undergraduates.  Not many airbnb units, so sort of uncharted waters.

    Is the juice worth the squeeze?  I hope to find out.

     Ah, so it's not in Branson?  Then what @Luke Carl said.  Do some serious research before you spend any money and figure out what your target market is.  Who will visit this place and why?  Figure out what will most appeal to those people.  And if there's enough people to be worth bothering with.

    0Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    7y

    @Pat Jackson is there a demand for the kind of housing you are offering in the market that it is located?  There is minimal tourism in my town of 9500.  But there is one large industry here (petrochemical refinery) that employs temporary travelling workers on a continuous basis.  I rent my STRs to welders, pipe fitters, electricians, inspectors etc year round.  Average stay is about a month.  Shortest stay is one week.  Longest stay was 80 weeks.

    0Reply
  • Pat JacksonPro Member
    OP
    Rental Property Investor · Reno, NV · Member since 2017 · 284 posts · 137 votes
    7y
    Originally posted by @Paul Sandhu:

    @Pat Jackson is there a demand for the kind of housing you are offering in the market that it is located?  

     I believe so, I may be about to find out!

    0Reply
  • Sid Payne
    Longmont, CO · Member since 2018 · 105 posts · 79 votes
    7y

    It sounds like you've done virtually no research and have virtually no plan.
    Good luck with that.

    Is this place free or something? I know your partner is going to supply it but are they getting it for free or something?

    0Reply
  • Pat JacksonPro Member
    OP
    Rental Property Investor · Reno, NV · Member since 2017 · 284 posts · 137 votes
    7y
    Originally posted by @Sid Payne:

    It sounds like you've done virtually no research and have virtually no plan.
    Good luck with that.

    Is this place free or something? I know your partner is going to supply it but are they getting it for free or something?

    Originally posted by @Pat Jackson:

    Thank you Sid

    0Reply
  • Wendy Schultz
    Property Manager · Wisconsin and Florida · Member since 2017 · 346 posts · 227 votes
    7y

    I echo the sentiments of others. Short term rentals don't work in every market so do your research to see what will draw people to it. Also, if you're going to have to price it low and turn it a lot, it's not worth the work involved. 

    0Reply
  • Jarrah Strobach
    Investor · Branson, MO · Member since 2013 · 7 posts · 10 votes
    7y

    I live in Missouri and I’m going to guess your house is in Branson mo?? Am I right? :) (if not then ignore the following paragraph)

    There are/or will be changes to nightly rental houses in Branson in the next few months. Not widely known, but will be soon. There are also some really big investors (nightly rentals only) in the area. Not necessarily a bad thing, but they know the market very well. 

    Branson is tourism based and 2-3 months of the year is dead/no visitors. 

    C of O the main college provides housing for families visiting. So don’t count on as many family visitors. Most families won’t be able to afford Airbnb houses when visiting students.

    Several Missouri towns are tightening what they will allow. 

    Springfield mo has some huge changes coming.

    Please do a lot of research. Just be careful.  Come visit the area. There’s always money to be made in most RE adventures so all the best.

    Hope this helps. 

    0Reply
  • Jarrah Strobach
    Investor · Branson, MO · Member since 2013 · 7 posts · 10 votes
    7y

    Properly outfitting a 3 bedroom will cost $10k give or take  but like most people have mentioned is going to be more money=less time or < money=more time 

    There will be a lot of time just organizing what goes where, hiring movers, fixing any last minute paint scrapes etc. 

    If after all that you can still make good money, go for it. If the figures make sense.  

    0Reply
  • Marvin Herman
    Property Manager · Arvada, CO · Member since 2017 · 14 posts · 5 votes
    7y

    I live in Colorado but have STR's in Branson Mo. On my first one I wanted to be cost effective and outfit the property with local items from antique, local craftsmen and thrift stores. I VERY quickly realized that I could spend weeks trying to find the right items. Frontier has a direct flight from Denver to Branson that is economical (around $120 round trip) and I could easily get a 2 bedroom dressed out in a weekend or a week...right? Wrong if you are anything like me. Once I get in to a project, especially where I'm being judged by way of reviews, I want to make sure everything is perfect for potential guests.

    Now, I will shop a few stores that I know offer great furnishings, décor and are budget friendly. I set it all up for delivery and spend that weekend or two getting everything in place and making sure it's perfect.  Reeves furniture in Harrison Arkansas (Great furniture and very strong in décor), FFO (nice for tables and headboards and mattresses), factory return outlet in Ozark (Large selection of very well priced furniture, week in décor). 

    Don't overlook online shopping! My wife saves us so much time getting all kitchen items, some art, bedding, linens, bathroom items, window treatments and the hundred other things I don't have time to mention online and having them drop shipped. Costco, Walmart, Kohls, Bed bath and beyond, target, Amazon as well as everyone else will ship it right to the front door. 

    With all that said, in my opinion, it simply takes too much time to try and be over-economical at this stage! Set your budget with delivery from local and online stores, spend your time making sure everything is in place and your guests have no reason to complain.

    A Couple other notes of concern would be licensing and local management. Run your STR(s) like a business! In any business there are the costs associated with conducting business. Make sure to check with your City, County and State licensing requirements. The county and City have limitations on what can be a nightly rental in most areas of Missouri from my understanding. The requirements for such have gone through a lot of change and have become more stringent. If you can't follow the rules, then it simply isn't a good investment! It may generate revenue for a short time but you will get caught considering the emphasis on regulations for these type of properties.

    Last of note is local management or oversight. Simply put, there needs to be someone who is readily available at any given time of the day and night to tend to guests needs. Sure Evolve will do the bookings for a good price, sure your partner can take care of maintenance issues, answer questions on how to work the TV remote while he/she is around and not on vacation themselves. Having as many safety nets at the cleaning, maintenance and daily function of the property level is of the absolute most importance. Your success is much more dependent on the guests experience than it is on driving traffic. Something to keep in mind. 

    Best of luck to your success!!

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