Determine how much an STR will make using the ENEMY method

[Luke Carl]

YOUR ENEMY: To be found on AirBnB with the following qualifications... 

1. MUST be Stelf-Managed. If they're using a PM they are NOT competition. In order to make sure.... click on their picture and open up their profile. If they're managing 47 properties... They are not self managing and they do not qualify as an Enemy. NOTE! Many PMs will use a profile picture from a happy couple to make it look like the property is self managed. 

2. Must be close to your property.
Will depend on the market. Could be anything from one block to 100 miles. 

3. Must have a LOT of reviews. 
100+ reviews is ideal. Thats how you know they're good at their job and they've been around for a while. 

4. Must have same square feet and sleeping capacity. 
Number of bedrooms is not as important as sleeping capacity 

There is no exception to Rule #1
If necessary, you can make exceptions to rules 2 through 4. 

Find your Enemy, (2 Enemies would be ideal but not necessary).... go to their listing as if you are a guest... Click around and find out what they're charging. Spend some time obsessing and you can pretty quickly estimate how much money you can make if you manage the property properly. 

Your Enemy can also be used for: 
Price Per Night
Housekeeping Fee 
Minimum night stay
Extra fee per guest over X number of guests 
Pet friendly?
House Rules 
Etc.

The moral of the story is... Find someone who is very good at what you want to be doing, and learn from them. 

This is the STR version of seeing what similar properties rent for on ZIllow.

[Cp Rahaim]

Luke

I watched the video read posts above.  My question is how to project avg daily rate and occupancy for the entire year.  On the video you went forward a few months and you estimated 310 nights of occupancy at a rate of, I think $140ish.  But how do you project annual occupancy with a few month sample especially if the market has seasonal fluctuations?  Same with rate?  Rates and occupancy could be twice as high or low i various seasons, I’m guessing.

Thanks

[Chris Loyd]

@Luke Carl - Love the post!  I know this post is a bit delayed, but I just now found it.  What are your thoughts on amenities?  I see @John Underwood mentioned amenities, but I have also heard Avery say on a podcast not to get too caught up in updating/upgrading.  I am looking at a beach front home in gulf shores 6bed/6.5bath (No Pool).  When I look in the very immediate area of homes on the beach (5/9 have a pool).  Are items like this significant issues that will limit your potential?  Should you consider updating something like this or pass and find another property?

Thanks for any advice... FYI we are utilizing Short Term Shop in the process, so far the team has been great!

[Alexis Carter]

@Luke Carl - This is a great post! Any advice if the competition in the area all have well under 100 reviews?

[Luke Carl]

Originally posted by @Alexis Carter:

@Luke Carl - This is a great post! Any advice if the competition in the area all have well under 100 reviews?

Yeah buy in a different market LOL 

[Rob Leonard]

Quote from @Luke Carl :

YOUR ENEMY: To be found on AirBnB with the following qualifications... 

1. MUST be Stelf-Managed. If they're using a PM they are NOT competition. In order to make sure.... click on their picture and open up their profile. If they're managing 47 properties... They are not self managing and they do not qualify as an Enemy. NOTE! Many PMs will use a profile picture from a happy couple to make it look like the property is self managed. 

2. Must be close to your property.
Will depend on the market. Could be anything from one block to 100 miles. 

3. Must have a LOT of reviews. 
100+ reviews is ideal. Thats how you know they're good at their job and they've been around for a while. 

4. Must have same square feet and sleeping capacity. 
Number of bedrooms is not as important as sleeping capacity 

There is no exception to Rule #1
If necessary, you can make exceptions to rules 2 through 4. 

Find your Enemy, (2 Enemies would be ideal but not necessary).... go to their listing as if you are a guest... Click around and find out what they're charging. Spend some time obsessing and you can pretty quickly estimate how much money you can make if you manage the property properly. 

Your Enemy can also be used for: 
Price Per Night
Housekeeping Fee 
Minimum night stay
Extra fee per guest over X number of guests 
Pet friendly?
House Rules 
Etc.

The moral of the story is... Find someone who is very good at what you want to be doing, and learn from them. 

This is the STR version of seeing what similar properties rent for on ZIllow.

Any suggestions on getting the occupancy rate? Manually youd look at each month but do you have another suggestion?

[Rob Leonard]

Quote from @Luke Carl:

I made a video on this topic. Please check it out! The Enemy Method

hell yea brother - this vid answered my previous question. I just underestimate how much manual work successful people do, this illustrated that perfectly, thanks for sharing the process!