Prospect knowledge Flashcards
Who are our 3 main client avatars?
Property investors, Co-Hosts, Rental Arbitrage
What is a long-term rental?
Where the property is rented out on a 6 or 12 month basis for a set weekly or monthly fee
What is a short-term rental?
A property let out for under 30 nights at a time (generally 2-3 night minimum stays)
Why would someone want to switch from a LTR to a STR?
Generate more revenue, thus greater returns and have the property professionally cleaned multiple times per week
What are property investors biggest challenges?
Generating predictable revenue. Getting booked during the low season. Turning a profit.
What are the main goals of a property investor
To generate more top-line revenue, to create a healthy profit which they can then use as capital to expand their portfolio
What are 3 biggest challenges co-hosts face?
- Maximizing their client revenue, in turn, their own revenue. 2. Growing their portfolio. 3. Retaining their clients
What are the main challenges for the rental arbitrage model?
Predictable revenue, generating a profit and sourcing rentals that will provide them with a good ROI
How can we help property investors scale their portfolio
- By helping them generate more top line revenue, which in turn will increase profitability. Then using those retained earnings (profit) as capital to expand. 2. Be able to source high revenue generating properties by looking at market data.
What are the draw-backs of the rent-to-rent model.
High risk. As they scale, the risk profile increases. One down month could send them under.
What is the co-hosting model?
Where you manage Airbnb properties on behalf of the owners.
How much do end-to-end co-hosts charge?
20% to 30%
Do co-hosts take commission on booking revenue or total revenue including cleaning fees?
Ideally you want to be charging the commission rate on total revenue including cleaning fees.
How can we help co-hosts maximize their clients revenue?
Through implementing the EO Framework.
How can we help co-hosts grow their portfolio?
By getting their clients exceptional results. Building a product so great it grows through word of mouth. By being able to use the earnings reports to show neighboring listings how much money they could generate for them.
How can we help co-hosts retain their clientele?
By catering to the 2 things property investors care about. 1) Generating more money. 2) Looking after the property
What are the 3 things property investors care about when they hire a co-host?
1) Generating more money. 2) Knowing that the property is looked after. 3) Buying back their time.
How does the rental arbitrage model works?
You rent out a property on the LTR market then put it on the STR market in hopes to turn a profit.
When do you recommend scaling your rental arbitrage portfolio?
When you can generate predictable profits regardless of seasonality.
What are rental arbitrage operators trying to achieve?
Financial independence through a large portfolio of listings.
What’s the biggest hindrance to growing your rental arbitrage portfolio?
Lack of profitability.
Where do all STR operators generally start?
By listing on Airbnb and setting their prices based on what their neighbors are doing or using Airbnb smart pricing.
What is remote Airbnb management or co-hosting, and specifically, what services do they offer?
They automate the cleaning tasks, calendar syncs, guest messaging, use dynamic pricing and use VA’s to respond to guests.
Why would someone use a remote co-host?
Because they don’t know that you can automate the vast majority of what they do - outside of the VA responding to guests.
How much would a remote co-host/ airbnb management company charge?
~10%
