Coliving on Airbnb: Converting MTR Stays to LTR with Value Proposition

[Robert J. Rhodes]

Howdy, y'all.

I've been doing coliving for a few years now. I want to share what has been working for me and see if it connects with any of you.

Let me start by saying that most Airbnb hosts are competing on price. I did originally as well; until I slowly started mixing and matching amenities with pricing to create a value proposition. That is the lever that I use to compete with at this point. I am not the lowest price (I tried that, don't suggest it). I also tried going high, and while I did get some hits, it wasn't consistent. I eventually found an operating band that let me price both dynamically (by way of seasonality and event-driven demand) and let me price in line with room type (size and in-room amenities). 

But what I really want to share is that while the price is the front-facing positioning, where you truly unlock houseguest loyalty is via value. We have to remember that if we want to convert STRs to MTRs and MTRs to LTRs, most of us are offering the same or similar features: furnished room/home, with utilities included. Where I attempt to go one level deeper into the value proposition is by advertising what I do and do not offer by way of expectations. Anyone that chooses to stay with me is doing so in an informed manner. They know they are getting a structured environment with predictable standards. I am authentic and consistent with these prospective houseguests. And when I tell them that I offer fast Wi-fi, it is indeed fast. I pay extra for it, but it pays for itself in providing an environment where all seven persons can live stream or play countless hours on their PS5, all with no lag. 

When I say I offer a clean environment, I don't just mean their room at check-in, that is a given. I pay for a team to come in weekly to clean the shared spaces. Is it costly, of course it is, and this weekly cleaning doesn't extend to the houseguests' bedroom, but I do regularly clean the common areas. 

When I say that I observe quiet hours, I advertise the times as part of my pre-check-in disclosures. Each of those has to be true every single time. In coliving, inconsistency kills trust faster than price ever will.

We're competing against apartments, extended stays, and other Airbnb listings. The houseguest is comparing us to each of these. You can absolutely win them initially, but if you want to convert them into long-term staying guests, you have to create such a consistent guest experience that they come to the realization that they simply cannot easily find the same amount of safety, security, ease-of-use, and value from any other accommodation vehicle, at the same or similar price point. 

I have been fortunate enough to have guests start at one month, extend additional months, and ultimately extending for a year or more. That scenario has played out multiple times now. Some even become leases. 

In coliving, you are not just filling rooms. You are building a system that people choose to stay in because it works better than their alternatives. These and other pre-acceptance, mutual agreement expectations I have started formalizing into a playbook for my PMC so the system runs the same way every time.