All Forum Posts by: James R.

Hello Kyle. I thought about turning on IB, after all of the positive comments here, BUT like always, one has to consider the market and the kind of guests that it attracts. We are in New Orleans, the Las Vegas of the South, so IB is very risky for us and the City has very strict rules about parties. Neighbors can have legitimate complaints or they can make up stuff out of jealousy or for political reasons to cause you headaches. We have seen this from multiple STR owners (residentially zoned) who have had to sell and their STR sits on the market for months, maybe years, because investors don't want it and potential homeowners can't afford it.

Yes, we noticed a drop in Airbnb bookings when we also started listing our place on VRBO and synched our calendars.  Never underestimate the power of the platform algorithm.  

Yesterday we changed our stay requirement to 1 night and today our "Property Views" shot up 125.  Setting a one night stay increases visibility and we can always decline a guest request.  A one night stay currently starts at $475/night for four persons.  

Our property in is New Orleans and even one party could make our neighbors angry enough to call the City and report us, resulting in a hefty fine.  We have a commercial license, not residential.  

Our normal rate per night is $475.  The house is open and very large.  This attracts people wanting to book "gatherings" and will have up to 10 people sleep wherever they find a spot, if we don't intervene.  We charge and additional $75/night for every guest after four persons.  When we bought the place, we immediately changed the direction of the property and have been targeting our marketing towards families.  We are normally at 75% occupancy and at $475 - $700/night. Families want safety and a big house, so they are willing to pay top dollar.  Quality over quantity.  

Hello Y'all.  We get a lot of requests from guests wanting to book off platform.  We didn't want to mess around with a rental agreement and a deposit etc., because it is short term, 30 days or less.  Plus, you have to verify that they are who they say they are.

Have you had a lot of success letting guests book off platform and if you use a rental agreement, would you be willing to share the template?  Thanks in advance for your responses.  

On a similar note, it seems like so many STR hosts, posting on this forum, do Instant Book and are otherwise very lenient with who they allow to rent their property and "never have any issues". We're amazed and wonder how you are so lucky, because the few times that we have trusted guests to do something like "bring a 25 pound dog" it ends up being an 80 pound mixed breed dog that barks all of the time.

Well, I'm the odd man out here.  We have never done IB on Airbnb or VRBO.  Even with vetting guests, they still sometimes break the rules and bring large dogs or have parties.  Any requests that we get, we respond in 30 minutes or less, either way.  If we decline, we want the guest to know right away as well.  

Since IB has gotten so many positive remarks here, I may reconsider it, since it is weighted very high by the algorithm.  If I can set requirements prior to a guest Instant Booking, then maybe I will reconsider.  Otherwise, because a guest has to write and request, I know that we have dodged MANY bullets by not allowing IB.  

With IB off, we are still at 75% occupancy, so I guess there is room for 25% improvement.  

I originally set up my RE LLC through ZenBusiness. ZenBusiness adds reporting requirements every year. I received the following email below from them. The rule went into effect January 1, 2024.

Have any of your also received this reporting requirement for your LLCs? It appears the fee is for each LLC, so if you have multiple RE LLCs, you have to report each one and pay the fee. There's also an annual fee of $50. I have attached the hyperlink to the website.

"This is a final reminder to save $50 on filing your Beneficial Ownership Information report for XYZ, LLC. This filing is a legal mandate by the U.S. Treasury's Financial Crimes Enforcement Network.

Until August 31, 2024, you’ll only pay $99 upfront instead of $149. Get it off your to-do list today before our discount ends.

Ensure compliance today to avoid the potential $500 per day penalty for late filing".

https://www.fincen.gov/boi/small-business-resources

DO NOT click on the link provided in the email.  

I also wanted to add that the algorithm knows how long people stay on your listing and even if they scroll through all of your photos.  For example, if someone clicks on your listing to take a look, that is huge for the algorithm.  If they click back out in less than a minute, then the algorithm knows that too.  When I started a new listing, I asked all of my friends and family to "heart" it, scroll through all of the photos and stay on the listing for at least 15 minutes reading it or whatever.  I actually got some great feedback from them too, because they were seeing the listing as a potential guest.  I was able to take their feedback and make my listing more accurate.  My 2 cents.  

@Jenny Milu Start reading online about the function of the Airbnb algorithm.  

Understanding how it works will make a huge difference in how you get found by potential guests when they search for a place to stay.  

For example:  Reviews are weighted the most by the algorithm.  But tiny things like visiting your own listing daily and making changes to it, tells the algorithm, "This host is an active host."  Unlike hosts who "Set it and forget it."  If you do this the algorithm will forget your listing.  

Also, "heart" your own listing and tell your friends and family to do it.  This tells the algorithm that people like your listing and it will move you up in the ranking.  

For new listings, allow a one night booking, but do not do Instant Book.  Using IB will put your listing higher in the rankings, but you risk getting unsavory guests.  A "one night allowed" booking will put you almost as high as IB, but you can then decline any one night booking that you do not feel comfortable with.  The goal is for your listing to get seen by potential guests.

There are tons of little things like this that you can do on a daily basis to actively manage the algorithm.  Hope this helps.  

Location is by far number one.  We paid more for a commercial property (less hassle from the City in regard to getting a permit) and our theme is quintessential French.  We have French touches throughout the house.  The area is a Historic District and very walkable, which tourists love. The architecture of the house has been maintained with hardwood floors throughout, floor to ceiling windows and 14 foot ceilings (although a pain when accessing anything like lighting).  It gives a WOW! factor.  Our favorite response from guests is "OMG!  The house is amazing!"  We also focus on being very family friendly with books and Mardi Gras giveaways throughout the house for the kids.  

Probably the most creative thing that we have done is made friends with an artist who has a studio in the French Quarter.  We agreed for him to rotate some of his art in and out of our house, up to 20 pieces at a time with his business cards.  Some of our guests buy the art displayed in the house and he ships it to their home.  

Guests really love our historic home and the art inside.  Consistent 5 star rave reviews confirm this.  

@Annie Balagot  You're smart for looking at the calendars of surrounding properties.
1)  On Airbnb, go to Insights, Conversion, Views.  Look at this DAILY.  This will tell you how many people are looking at your property.  If views are high and you are not converting those views into bookings, then you have a problem, but the problem could just be low demand in your area or it could be an easy fix like shuffling your photos.  Add the pool as your showcase photo.

2)  Click on your Calendar, go to Pricing and select two days, then click on Show Unbooked Properties.  That will show you on a map, where the other unbooked properties are and what they are charging.  Click on them to see if they are better appointed than your listing.  Check their calendars to see if they are booked.  Make a habit of doing this DAILY.  Even in a low demand market, people are booking and you want these people to book your place.  Charging $257 a night for a house that sleeps 14 people is less than $20 per head !!!  That's how we calculate our bottom price.  It cannot go below $75 per person or we lose money.  Hope that this helps.