So you’ve been hosting on Airbnb for a while now, and you’re loving it. Maybe you’re thinking about expanding your business to include an additional property, but you don’t have a ton of capital lying around. Is there any way to scale your Airbnb venture with a modest investment of, say, $10,000 or less? The answer is heck yes, and today’s guest shares how he is re-leasing rental properties via Airbnb, incorporating short-term rentals into his real estate business.
With the help of a mentor, Eric Moeller started investing in real estate at the tender age of 18. Eric has a wealth of experience in house flipping, apartment buildings and real estate development, and he worked from the traditional landlord model until he sold his company in 2015. As Eric traveled the US that year – making use of Airbnb as a guest – he began to realize the investment potential of hosting. After looking at the numbers, he determined that he could double his ROI by pursuing short- rather than long-term rentals, and he developed a strategy for pitching a re-lease model to rental property landlords.
In 2016, Eric moved to San Diego and originated the startup Homtel Tonight, an Airbnb management, leasing and investment company. He is a Superhost with listings in San Diego and Rosarito, Mexico, as well as the architect of the upcoming Airbnb Mastery Summit. Listen in as he discusses his process for selecting units for Airbnb, his approach to determining your niche avatar, and the unique amenities he offers guests. Learn the fundamentals of the re-leasing model as well as Eric’s approach to finding willing landlords. If you’re looking to grow your Airbnb business via rental properties, this interview is a must-listen!
Topics Covered
Eric’s advice around selecting units for Airbnb
•Choose carefully based on demand, city support of Airbnb
•Doesn’t have to be in backyard
•Utilize tools like AirDNA and Rent Responsibly
•If re-leasing, approach landlords with pitch
•Analyze the numbers (with 70% occupancy, should generate 2X amount of rent)
The characteristics Eric is looking for in a potential Airbnb property
•2BR apartments, standalone single-family houses best in San Diego market
•Location near attractions or airport
•Most unique spaces, potential to create unique experience
Eric’s approach to determining your target guest
•Become guest yourself, note design and amenities
•Research properties in area on Airbnb
•Focus on niche to attract a single avatar (i.e.: beach life, business community)
Eric’s recommendations around designing your Airbnb
•Hire local interior designer
•Buy artwork, etc. from local shops
•Decorate around theme for better booking results
•Budget $5,000—$7,000 for furniture, painting
•Buy furniture second hand or shop at IKEA
The amenities Eric offers guests
•All basics (e.g.: paper goods, towels, fully stocked kitchen)
•Wi-Fi connection and Smart TVs
•Guests can request additional kitchen implements
•Beach properties include surf boards, skateboards and beach chairs
•Luxury rentals offer car service from airport, link to his cars on Turo
•Business properties offer custom workstation
The differences between re-leasing vs. buying property for Airbnb
•More options to change physical structure if buying
•Focus on staging and paint in re-leasing situation
•Same systems, tools for property management
•Update landlord monthly in re-lease (upcoming dates booked, checklist)
How Eric obtains leads for willing landlords
•Online marketing targets real estate investors
•Craigslist (team calls every homeowner who fits model)
•Networking with landlords, investors
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