JONATHAN KLUNK, PRESIDENT OF KEY SOURCE PROPERTIES, JOINS US TO DISCUSS SHORT-TERM RENTALS (AIRBNB), WHICH ARE HUGE IN LOUISVILLE DURING KENTUCKY DERBY TIME.
- Jonathan got his start in short-term rentals by trying it out on his own, which caused him to realize how little others knew about the budding industry.
- He was interested to see if his property would get demand for Kentucky Derby, and was shocked at how quickly his property became booked.
- After requests from his friends to help them out with their Airbnbs, he decided to start a side business.
- The perfect Airbnb property?
- Jonathan says you should strive to make your property as unique and interesting as possible.
- Many people love staying in Airbnbs that remind them of hotels, so you should have all the same amenities somebody would ordinarily find in a hotel.
- Also, remember your guests are on vacation, so they don't necessarily want to stay in a house that reminds them of their own home - your property should be eclectic and unique to stand out in a crowded market!
- While you might think of Airbnb as somebody staying at your house on weekends, it is becoming more common for investors to purchase properties and use them exclusively for Airbnb/short-term rentals.
- Additionally, Jonathan has never run into a situation where a property was trashed, so if you're worried about somebody messing up your house that should not be a concern.
- It could also be a great idea to purchase a property in a city you like to visit and renting it out on Airbnb to cover your costs.
- While building his company, one of Jonathan's keys was starting it as a side business and being able to grow it while still keeping a full-time job.
- Jonathan also sees a growing market for corporate rentals - rentals that are greater than 30 days that are popular with business executives.
- There are also less regulatory hurdles if you operate your property this way - as it is not considered a "short-term" rental property.
- Some considerations if you're interested in owning a short-term rental property:
- State and city taxes (including transient/hotel taxes).
- Increase in property insurance.
- There is more competition today due to the popularity of Airbnb, so it is important to get in the game early to have more reviews for potential customers to view.
- In addition to Airbnb, there is a growing market for VRBO (Vacation Rental by Owner) as well as other alternatives for people looking to get into the short-term rental business.
- The biggest thing Jonathan has learned being an entrepreneur is how to be a great salesman.
- Jonathan's favorite thing about the Kentucky Derby is the excitement it brings to the City of Louisville.
- Key Source Properties is looking to expand in the Nasvhille, Lexington, and Frankfort markets in the next year as well as expanding into different services.
LAST CALL QUESTIONS AND ANSWERS:
- What's your definition of success?
- Have a nice retirement.
- Be happy with the trajectory of the business.
- What advice would you give to somebody who wants to be an entrepreneur?
- Whenever you thing the time is right you need to just do it.
- Nobody know for sure what will happen.
- What advice would you give to your 22 year old self?
- To be a sponge and learn about everything - read more.
- What advice would your 60-year-old self give you today?
- What's your favorite thing to drink?
- The best thing you have spent money on in the past 6 months:
- Investment plan for employees.
SHOUTOUTS:
Be sure to learn more about Jonathan and Key Source Properties by checking out the company's website, Facebook, and Instagram.
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