All Forum Posts by: Sarah Kensinger

This could be a great opportunity but definitely have some guidelines for the partners. This could include black-out days they cannot book, and maybe a portal where they book stays so there's no discussion of who gets the property when. Get everything in writing, have clear expectations of who says what, and define roles for all involved! 

Runners are helpful for many different things that a cleaner would not like to make a special trip to a property for. This could include checking on pipes to make sure they haven't frozen in sub-zero temps, walking the property to make sure the cleaner is doing their job correctly, running a package over in-between guests, or running an item over to a guest that may have ended up not working after their arrival...like a coffee pot. Unless you want an "inspector" walking the property at every turnover, it's nice to have someone on hand to run over and do-little things for around $20 or so. Many hosts use family, friends, friends of friends, or even college students looking to make a little extra money as a STR runner.

A few key points...

First, serious hosts MUST have a direct booking site. If one is not in the foreseeable future, expect to be left in the dust, so to speak, when it comes to STR hosting/business.

You'll always get the majority of bookings from VRBO/Airbnb because people trust those sites, and book faster on there then a direct site. But a direct site is great to get guests to return and tell family and friends. 

If you have a direct site, you'll want to check into Autohost for guest screening, and Waivo or Safely for damage protection. And of course, your homeowners should already be through a company like Proper Insurance.

You cannot advertise a direct booking site in any way, shape, or form on Airbnb/VRBO unless you want to get banned from the OTA. So, it's best to go hard on the google my business, social media, some have done Facebook ads, and email/text marketing.

Due to fees the OTA's add on for the guests, you can actually raise your ADR a bit on a direct site and still come in cheaper. This tactic helps to offset processing fees and website costs.

When it comes to STR market you must be strong in marketing, especially for a direct booking site. If you can find someone to help you market properties or if it's something your good at, then lean into marketing strongly, no matter where your STR is listed! I can promise you won't regret it!

Hire a runner ;D

I too would highly suggest putting the wi-fi modem and router, in a place where guests cannot access it!

Quote from @Dena Beck:

Thank you @Sarah Kensinger. Once we get an offer in, I may reach out!

Sure! Best of luck as you shop and make offers!

Quote from @Leon Lee:

Quote from @Sarah Kensinger:

Quote from @Leon Lee:

Quote from @Sarah Kensinger:

It's very hard to find COC 15%+ unless you do creative financing, but like already mentioned it's still around if you look hard enough and have patience. I have underwritten so many properties in the last year, and very few had a decent COC return. That's when the investor needs to decide if appreciation is better than cashflow. Some just want to break even and get that appreciation, while others want cashflow. Size of the home doesn't necessarily mean better cashflow, like some assume. You would think that is the case, but more often than not a small property in the right area can be a power horse! If you do happen to find a larger more expensive property there are systems, process, and pricing strategies so you don't need to worry about people coming in and damaging the property.

For STR to be profitable marketing is the game, not lower prices, so make sure your PM has some great guest marketing if you decide to go the STR route.

Hi Sarah,

Loved the insights in your post, especially about marketing – that's an area I've been grappling with lately. Email campaigns are tricky since Airbnb keeps those addresses under wraps (looking at StayFi now). We've got a website through our channel manager, but direct bookings are still few and far between. Why do you think Airbnb and VRBO bookings still dominate, making up about 85% of bookings for many (although we get a good number of mid- to long-term guests through word-of-mouth for our listings)? It seems like guests prefer the security of those well-known platforms, which makes sense given how common online scams are these days. I'm diving into email campaigns now, but wow, they're a time sink! In your experience, what are the most cost-effective marketing strategies?

You're correct that the main reason people still use Airbnb/VRBO is the trust factor. And they know a company will back them up if something goes sideways. When it comes to direct bookings you need to advertise to past guests and utilize google business reviews. We have not tackled anything direct yet, but that is on our goal list for 2024! 

I would tread lightly with StayFi right now, I can't tell you how many hosts have had connection issues with them the last 6 months or so. StayFi is aware of it and working on whatever is the matter, but if you decide to go that route be aware you many have connection problems. I know some hosts ask for emails from guests as a way to "stay in contact" while they are at the property, but some people are not aware of laws etc. you need to follow when collecting such items on your own. 

As for cost, and to be honest more importantly time-effective marketing strategies, I would check out Go STR Marketing or Market My STR. You do need to pay a bit for the marketing but if you can get some repeat guests to build up your direct site, and save you a bunch of time, it's worth every dollar.

Hey Sarah,

Thanks a bunch for the info! About marketing, I've got a question for you. We're thinking of collecting guests' emails and phone numbers from Airbnb for marketing, but we want to be super cautious about it. Our plan is to include something like "Feel free to send your working email and phone number with us to our team so that we can better coordinate for any emergency during your stay" in our message asking for their estimated time of arrival. This way, we hope to gather contact info from both current and future guests. What do you think? Is there a risk of getting us banned from Airbnb for this? We've gone through Airbnb's privacy policy regarding off-platform communication, and it seems like it might be crossing a line. Curious to hear what you and others in the community think about this approach.

Thanks again!

Sure anytime! I enjoy helping other hosts out on here and I've been pretty scarce since the new year, so this has been fun! Plus, it was a good day to catch me! 

As for the email list info...I thought of this video right away that Thanks for Visiting made a few months ago. It should help you figure out the right way to collect emails. Why do Airbnb hosts procrastinate in starting an email list?

Quote from @Leon Lee:

Quote from @Michael Baum:

Hey @Leon Lee, so on the things you need to pay for. Cleaning should be a pass through cost. Supplies you will need to get unless your cleaner brings them.

Maintenance might be on the high side. I don't think we are at 7% a month. We have a rigorous maintenance schedule on all hard systems to get repairs down to a minimum.

Plus you can self manage with the right cleaner and handy person on the team. 15% seems a little light to me. It will depend on the area and services offered.

Hey Michael,

Thanks for the update! Just to clarify, when I talk about the $3,500/month gross income, that total includes both nightly fees and the cleaning fee, so we've got to take out the 13% for cleaning. About the maintenance, could you give me an example with some specific numbers? I get that for a cabin bringing in $8K a month, spending $560 (7%) on maintenance might seem high. But for a single-family home near a metro area making $3.5K a month, $245 (which is 7%) on maintenance doesn't seem too excessive. After all, even a simple job like tightening a towel bar can start at $50, and handyman rates are at least $40/hour. I'm also factoring in a bit for capital expenses, i.e., HVACs and roofs as I am holding them long-term. This is why I'm curious if larger properties with higher income might be more profitable, both in terms of cash flow and CoC, especially since many expenses don't really change proportionally with the property size. But it seems Sarah said not necessary.

Yes, for example, there is a STR in one of Ohio's vacation markets that is less then 1000 sq feet. Projected revenue is nearly 6 figures! It all depends on where you look and gathering the patience of Job. 

Quote from @Leon Lee:

Quote from @Sarah Kensinger:

It's very hard to find COC 15%+ unless you do creative financing, but like already mentioned it's still around if you look hard enough and have patience. I have underwritten so many properties in the last year, and very few had a decent COC return. That's when the investor needs to decide if appreciation is better than cashflow. Some just want to break even and get that appreciation, while others want cashflow. Size of the home doesn't necessarily mean better cashflow, like some assume. You would think that is the case, but more often than not a small property in the right area can be a power horse! If you do happen to find a larger more expensive property there are systems, process, and pricing strategies so you don't need to worry about people coming in and damaging the property.

For STR to be profitable marketing is the game, not lower prices, so make sure your PM has some great guest marketing if you decide to go the STR route.

Hi Sarah,

Loved the insights in your post, especially about marketing – that's an area I've been grappling with lately. Email campaigns are tricky since Airbnb keeps those addresses under wraps (looking at StayFi now). We've got a website through our channel manager, but direct bookings are still few and far between. Why do you think Airbnb and VRBO bookings still dominate, making up about 85% of bookings for many (although we get a good number of mid- to long-term guests through word-of-mouth for our listings)? It seems like guests prefer the security of those well-known platforms, which makes sense given how common online scams are these days. I'm diving into email campaigns now, but wow, they're a time sink! In your experience, what are the most cost-effective marketing strategies?

You're correct that the main reason people still use Airbnb/VRBO is the trust factor. And they know a company will back them up if something goes sideways. When it comes to direct bookings you need to advertise to past guests and utilize google business reviews. We have not tackled anything direct yet, but that is on our goal list for 2024! 

I would tread lightly with StayFi right now, I can't tell you how many hosts have had connection issues with them the last 6 months or so. StayFi is aware of it and working on whatever is the matter, but if you decide to go that route be aware you many have connection problems. I know some hosts ask for emails from guests as a way to "stay in contact" while they are at the property, but some people are not aware of laws etc. you need to follow when collecting such items on your own. 

As for cost, and to be honest more importantly time-effective marketing strategies, I would check out Go STR Marketing or Market My STR. You do need to pay a bit for the marketing but if you can get some repeat guests to build up your direct site, and save you a bunch of time, it's worth every dollar.

Quote from @Jacob Lockard:

@Sarah Kensinger Thank you for sending this link along. I will definitely be attending.

Anytime! If you talk with Kyle or Allie Fugatt, tell them I said hello...they are the masterminds behind getting STR hosts/investors together in Atlanta.

You were already given great ideas! I would also say design, little details, and great host communication! If you need a designer that could either do remote work or travel to the area, reach out and I can give you a list.