Just toss it on Airbnb… we’ll be rich!
Ok, I’ll admit it, I am biased. We operate Charlotte’s fastest-growing property management firm, Everlong Residential, so of course, I am going to sing the praises of professional management. Why wouldn’t I…?
Just tossing something on Airbnb and watching the reservations roll in was a real thing. Was… Unfortunately, things aren’t the way they were in, “the good ole days”.
When we started in this industry 6 years ago, Charlotte had approximately 400 listings. That number has ballooned to 4000+.
But it’s not just volume that is your enemy…
Here is what you are competing with as a solo operator.
Firstly, teams like ours.
We have been in this space since nearly it’s inception. We are pros using pro tools. We understand the search algorithms for each listing channel, what titles, photos, and descriptions get the most click-through and in turn the most bookings. We use expensive pricing software to maximize every nickel of potential revenue and have tools at our disposal as “pro hosts” that regular users simply aren’t given access to.
This… and 100 other things… are what make us professionals in this space… just like your box of tools as an experienced real estate agent does buying and selling real estate.
Secondly, the uninformed newbie.
Here is where volume kills you, and it’s not just price wars.
You know that “low budget” agent you’re always competing with? The one that will just toss it in the MLS… often to the detriment of their clients…for a reduced fee or even a flat fee?
Yeah… that one.
You can see it coming as soon as your listing appointment asks about negotiating your commission… it’s not going to end well for this family… and you can try to explain, but you’ve been down this road before. Sigh….
You’ll see them at the Harris Teeter months later.. and they will tell you that you were right about “that other firm”… but that doesn’t help your wallet.
This cheap newbie “host” is also the death of your short term rental. They are going to list it well under market value, clean it themselves, and generally provide less than optimal customer service. Their listing will eventually die due to poor reviews. But not before you lose dozens of reservations.
Between professionals and newbies… the one-off listing doesn’t stand a chance. At least not in terms of long term profit maximization.
Could you do it yourself? Sure you could. Just like you could put a FSBO sign in the yard. In most cases, however, isn’t a real estate agent going to net you more on your listing? Sometimes to the point of even covering commissions? We operate on this same principle.
How? Stay tuned….
Rodric Lenhart is a 20 year veteran of the real estate, property management and construction industries and has been fortunate to be a part of many successful ventures throughout the Carolinas. Everlong manages dozens of furnished executive rentals throughout the Carolinas. Join us at ThinkEverlong.com or visit Rodric’s personal blog at ChasingLess.com