Dr. Jerry, you got the whole world waiting.
Been ready for you to start the conversation.
No point of view, we've got the haters confused.
Leave it up to you to bring us all the good news.
Positive five lives and a sixth appeal too.
Dr. Andre Jerry, can I get an interview?
You, you, you, you, you, you, you, you, you, you.
Good evening, you are live with Dr. Andre.
Thank you for tuning in to our show tonight.
And for supporting the Artist First radio network.
We sincerely appreciate your listenership.
For my friends in Puerto Rico who are tuning in,
gracias por su apoyo siempre.
Y pito felicidades por tu vida nueva.
Okay, so for tonight's show,
we're gonna be discussing Airbnb
and how you can leverage your living space
to generate an additional stream of income
for your household.
Or add to your existing real estate portfolio.
But first, how has everyone been doing?
I hope everyone has been enjoying this very hot summer
that we've been having so far.
We have temperatures rising in record triple digits
across the U.S.
which has led to a lot of cases of heat exhaustion,
heat strokes and heat related deaths
which are on the rise already this summer.
So you guys be really careful out there, stay cool,
drink plenty of water and check in on your loved ones.
You know, especially if they're elderly
or sick and shut in due to illness.
I read an article recently on USA Today
about a man in Cincinnati who unfortunately died
in his home from heat exhaustion.
Isn't that terrible?
The article didn't really mention his age
but I'm guessing he was probably elderly,
maybe living alone, clearly didn't have air conditioning
and was just overcome by the heat.
And you know, according to studies,
most of these heat related deaths occur at home.
And I know we often take it for granted
but not everyone has air conditioning in their homes.
Or they do have it but can't really afford to run it
because they might be on a fixed income.
And you know how high utility bills can get during the summer
when we're running our AC and we're trying to keep our homes
cool or at least comfortable.
So when we read or hear about people who've died
in these heat waves we often think, or at least I do,
oh they must have been outside in this extreme heat
or outdoors exercising.
No, not necessarily.
The data has proven that it happens at home most times.
And remember a lot of people already have underlying
health issues going on.
It's difficult for even a healthy person
to cope with extreme heat.
I was out on the tennis court yesterday
with a friend of mine and the heat was just incredible.
And if we weren't on the shady side of the court,
I don't think we would have been able to stay out there
very long.
It was so hot.
So you can imagine if you're elderly or have
an underlying health issue like high blood pressure
or asthma or something, obesity, that extreme heat
is only going to exasperate those ailments.
So be sure to check in with your loved ones.
Ask them, hey, how are you coping in this heat?
Are you feeling OK?
Is your AC working pretty good?
Do you need me to call a repairman for you?
Do you have plenty of water?
Maybe drop them off a pack of bottled water or something,
or at least make the offer.
Little things like that can make people feel less alone.
And like someone cares about them.
And a lot of people feel like their pride is all they have left.
They don't really want to ask anybody for help
or be a bother to anyone.
So take a little time to check on that aunt or uncle who
gets on your nerves sometimes.
Yours may be the only call they get that day.
So aside from it being the hottest part of the year,
summer is also the start of vacation season for many of us,
which means there are going to be a lot of travel
over the next few months.
Some of you may have already traveled this year
and this summer.
But according to various sources,
Americans are expected to spend a significant amount
of money on travel this year.
And they're predicting that it's going to be the most expensive
summer for travelers yet.
A recent Nerd Wallet survey indicated
that Americans are expected to spend, on average,
about $3,600 on flights and hotels,
totaling over $400 billion.
That's how much is estimated to be spent just
by Americans alone on travel this year, over $400 billion.
That's a lot of money.
So the question I have, because I'm always
thinking about different ways on how to make money,
how much of that $400 billion can I redirect back to my pockets?
So we already know that a good portion of that money
is slated to be spent on hotels, right?
Well, did you know there's a growing large segment of travelers
who are now opting to stay in home rentals over hotels?
So yeah, this has been a growing trend over the years
for a number of reasons, because travelers, vacationers,
they're looking for more customized options
for their accommodations.
They want more amenities.
They want more space.
They want to be comfortable.
They want to be cramped into a hotel room during their stay.
They want a more personalized travel experience.
And they want a glimpse of what the local culture is like.
They don't want to stay in a tourist area.
For larger groups, staying in a home rental
can equate to more cost savings.
And even if you're a single traveler, in most cases,
you can get a home rental for cheaper
than you can get a hotel.
So with all of that in mind, I think
that presents an opportunity for enterprising individuals
to cash in on some of those travel dollars that
are going to be spent this year.
And don't misunderstand what I'm saying.
Overall, most travelers still prefer hotels.
But like I said, home rentals are becoming increasingly
popular with each year that passes.
So let's talk about home rentals.
What exactly are they?
OK, it's simple.
Basically, home rentals are when people rent out
their entire home or a section of their home
to travelers and vacationers.
That's it.
And most of us have heard of Verbo and Airbnb.
Well, those are the two top home rental platforms,
like by a long shot.
But for the purposes of tonight's discussion,
I'm going to focus on Airbnb specifically,
because that's a platform that I'm most familiar with,
and that's the one that I use for my business.
And so as you may recall, a few episodes back,
I talked about how when I returned from Saudi last year,
I briefly stayed with my friend and his girlfriend, who
operated Airbnb out of their home.
And that was a disaster, by the way,
and not the best decision on my part.
I'm not even going to get into it.
But if you want to know the details about what happened
with that, go back and replay episode 17.
And you can get a good laugh.
But anyway, I want to begin our discussion on Airbnb
by telling you the same thing that my friend told me.
You're leaving money on the table.
If you have extra rooms in your house that you're not using,
you're leaving money on the table.
Now, I'll be honest, it's not a fit for everybody.
If you're anti-social, if you're a germaphobe,
or if you have some level of OCD with cleanliness
or the placement of things, or if you're just not good with people
or we're sharing your space with others,
then I'll be honest, it's not going to work for you.
I wouldn't even waste your time with Airbnb.
But if you don't have any type of weird quirks
and you're fairly sociable and you have extra rooms
in your house or apartment, then yes, you could very well
be leaving money on the table.
So if you've been looking for a side hustle or ways
to supplement your income and you've
been thinking about starting your own Airbnb business,
but not exactly sure how to get started or afraid to get started,
or if you just need a good laugh tonight, then stick around
for the rest of the show.
So my friend, who I mentioned earlier,
he had been on me for years about starting an Airbnb business.
And as a real estate investor and entrepreneur,
I'm no stranger to operating a business.
But I think the reason why I procrastinated so long
on doing this is because of all the reasons I gave myself
as to why it wouldn't work.
I told myself that this particular city wouldn't
be a profitable city to do an Airbnb.
I kind of had the idea that it had to be in Atlanta or San
Francisco that a medium size or smaller town wouldn't do as well.
I told myself that finding a property manager for this type
of short-term rental would be too difficult.
What else did I say?
Yes, they might damage my property.
I'd have to hire a cleaning service.
And I just, I wasn't sure how I could make this work
if I'm overseas most of the year.
So I had generated all of these concerns in my mind.
And they were valid.
They were valid concerns.
But they were somewhat still rooted in fear a bit.
And it kept me from really taking a look at Airbnb
as another stream of income for my real estate investment
business.
And then there was also the timing aspect of it all.
Things happen in the season they're supposed to happen in.
But if I'm being all the way honest,
I was procrastinating because I was afraid.
I was afraid to try something different.
I had experience with long-term rentals
and with being a traditional landlord.
But short-term rentals were different.
It kind of scared me a little bit
because they're more fast-paced.
There'd be more quicker turnover than with traditional rentals
where you've got someone staying for on the low end six
months.
But you've got in traditional rentals,
you've got people staying for a year, two, three years.
So with short-term rentals, of course,
you have the potential for a higher profit
because of the high turnover.
But on the flip side, there's more effort involved with that.
And there's more stress, more work.
So I just wasn't ready.
I wasn't ready to get into short-term rentals just yet.
But sometimes life will give you a little push,
a little nudge that will make you to force you to make changes
even when you think you're not ready.
And that's what happened in my case.
So if you remember, just last year,
I was staying at my friend's house
in one of his Airbnb bedrooms.
Had his girlfriend not been such a witch
and made everyone's life a living hell,
I'd probably still be staying in his Airbnb
right now instead of operating my own Airbnb today.
Because I had planned to stay much longer.
But because the girlfriend was such a nightmare to live with,
I ended up getting a two-bedroom apartment, which
ended up being my first Airbnb property, rather.
Now, when I made the decision to move out and get an apartment,
I had every intention of using it for Airbnb.
I did.
That's why I opted for a two-bedroom apartment
instead of a one-bedroom or a studio.
I remember being very intentional about that
because I was already super pissed that I
had to change my plans.
Because I was supposed to stay with my friend for a year.
I was going to stay for a year, stack my money,
and buy another house around the fall of this year.
And then eventually convert that property
into another rental property once I went back overseas.
But his girlfriend started really acting up.
And I ended up having to regroup and reassess my plan
and spend money up.
Didn't plan on spending to pay all the expenses that
come with leasing an apartment.
Application fees, a security deposit.
You got to pay the first couple of months rent, utilities,
moving expenses, just everything.
So yeah, I was pissed.
I was pissed.
And I was like, you know what?
If I have to spend money for an apartment,
then you better be damn sure I'm going
to find a way to make money with it.
And so I mean, that's how my Airbnb journey began.
It kind of began out of inconvenience and discomfort.
And I had a sheer determination, though,
to turn lemons into lemonade.
And just keeping it real, I really
shouldn't even been staying with my friend and his girlfriend
in the first place.
I shouldn't.
Not at 44 years old.
Because it would be one thing if I didn't have any place else
to go or was struggling financially.
But none of that was the case.
I had just came from overseas.
I had plenty of resources to do whatever or live wherever
I wanted.
But because I had become so spoiled from not having
to pay bills and living virtually expense-free overseas,
when I came back home, I opted for the path of least resistance.
And plus, I knew that my friend and I
that we would have a great time.
You know, I was comfortable staying in this place.
I stayed there before.
And I also think I was trying to relive or recreate
a moment in time that had come and gone.
So back when my friend and I were roommates,
we had a really great time.
We had the best time.
We had so much fun.
But that was nearly a decade ago.
Life for both of us is much different now.
He's older.
I'm older.
We're both in committed relationships now.
We both have a different mindset.
It's just different.
So sometimes, and I talked about this during my last episode
when we talked about the psychology of money.
Sometimes you have to pay attention
to the psychology behind your behavior
and the decisions that you make.
And for me, and I know I'm getting off the topic a bit here,
but for me, I know I can be very nostalgic.
Like, for example, if there was a particular time or area
in my life where I was very happy,
it's hard for me to let go of that.
Like, I will hold on to people and places and things
for way too long, even if they no longer serve me,
all in an effort to hold on to a moment in time that has passed.
And I'm just realizing on air, that's exactly what I did
when I moved into my friend's house last year.
When I knew I was coming back to the States,
I should have rented me a house or an apartment
until I was ready to buy another house.
Had I done that, I think I would have
avoided a lot of headaches.
But it's all good.
If you believe in God and trust in God,
He can take even our missteps and what the devil intended
to be a stumbling block.
And He can repurpose it and turn it
into a stepping stone for success in spite of ourselves
and what we got going on.
He can do it for His glory.
Yes, He can.
So that's sort of the backstory as to how
I got started with my Airbnb business.
I wasn't quite ready, but God frustrated my plans
and He forced me into a situation where I had to make a move.
So before you start an Airbnb business,
it's very important that you remember
that this is first and foremost a business.
It's a business.
Yes, you're going to be partnering with Airbnb.
You're using their platform.
You're using their marketing.
But you are the one that's going to be doing the heavy lifting.
You're going to have to make sure you have great communication
with your guests, make sure they have everything
that they need to have a comfortable visit.
You're going to be recommending places to eat, entertainment.
If they're unfamiliar with the area,
you're going to have to reinforce your house rules.
And you have to make sure they don't disturb other guests
and cause a disturbance to the community.
So there's a lot that goes into being a good host.
And there are a couple of ways you can approach hosting.
It just depends on what your circumstances are.
You can host a guest in the same house that you live in,
which is how I started out.
Or you can host remotely from an entirely different location,
which is how I run my business today.
Of course, if you're just starting out,
I would recommend in-house hosting
until you can gain your footing and gain some experience
being a host.
Now, I had a bit of an itch when I started out,
because I stayed at my friend's Airbnb a couple of times.
So I knew what was behind the curtain, so to speak,
and what was required of a host.
And by the way, that's a great way to get a feel for whether or not
this is something you actually want to do.
I would look into booking an Airbnb.
Doesn't have to be out of town.
It could be even locally in your own town.
Just to see for yourself what it's like to be a guest.
And then when you do that, make sure
you pay very close attention to the details of your visit.
And take note.
Take note of all the things that you'd
like to implement in your business,
or jot down things that you would improve upon.
This type of stuff will help you to understand your guests
better once you have them.
And it will help you to improve your skills as a host.
And when you have a guest, it's very much
like having your in-laws over for the first time.
When you have your first guest, you're
going to be very nervous.
It's just normal.
But it's just like having in-laws over.
You're going to go out of your way
to make sure that they're comfortable,
that they have an enjoyable stay,
make sure they have everything they need.
It's the same concept.
If you have kids in the house, like anyone under the age of 20,
I personally wouldn't do an Airbnb.
There are a lot of reasons I can give you as to why.
But just don't.
It's not worth the potential risk of anything going awry.
But if you have a spouse or other adults
that live in your home, then definitely make sure everyone
understands that we're now operating a business
inside the home, which means that everyone
will need to govern themselves accordingly
when they're guest present.
And so getting everyone on the same page
and getting everyone's buy-in from the onset
is going to be really important.
You also need to decide upfront whether you
want to run your Airbnb as a sole proprietor
or as a corporation.
Because when you're creating your host account with Airbnb,
that's one of the first questions
that they're going to ask you.
Because Airbnb is required by law
to report all earnings from your Airbnb to the IRS.
So you'll either be providing them
with your social security number or your company's employer
identification number.
For specific details on which option is more advantageous
for tax purposes, you'll definitely
want to consult with your tax advisor or accountant
about that.
Personally, I'm running my Airbnb under an LLC.
But you have to decide the best option
for your particular situation.
Now, like most people, I had a few misconceptions
about Airbnb that weren't exactly true.
This was way before even my friend started
his Airbnb business.
And back when we first started to see sort of a shift
in short-term rental markets, and Airbnb
was just starting to disrupt the hotel industry
and stuff like that, I didn't know that you could open up
an Airbnb in your home if you were living in your home.
I thought it had to be an unoccupied home.
I did not know that you could stay there with your guests.
And I know some of you are like Dr. Andre Duh.
That's the whole premise of the entire platform.
But look, I didn't know.
I didn't know what I didn't know.
And I also didn't know that you could just
list a space in your home.
Like, it doesn't have to be an entire bedroom or a bedroom
at all.
I'll give you an example.
You could take a walk-in closet and repurpose it
as a makeshift sleeping space with a little futon
or an air mattress, put a little lamp in there,
maybe a small TV, and list that on Airbnb.
And as long as it's priced accordingly,
it will get booked.
I know that seems like an extreme example,
but you really be surprised at what types of spaces
people list on Airbnb.
Just download the app on your phone,
and you'll see for yourself what type of listings are offered
right there in your own city and in what the daily rate is
for it.
And I promise you, you're going to be like,
they charged $50 a night for that?
I know I can offer something better than that.
And if somebody's Airbnb, I'll be honest with you,
they look a mess, and they get booked.
I mean, we talked about $50, $60 a night, $1,200,
up to $1,700 per month, which brings up another point.
Before you get into this, you need
to decide how often you want to have guests in your home.
That's another reason why I procrastinated so long on this,
because I didn't know that you could tailor
how long your guests could stay.
I mean, I knew you could block out certain dates
that you wouldn't be at home, like, for example,
if you're going to be out of town for a couple of days.
But I didn't know that you could fully customize your bookings
according to your preference in terms of how long or short
your guests stayed or what you preferred.
Because at first, I was like, I don't really
want people in and out of my house every two or three days,
because that's a lot of wear and tear on your property.
And it also attracts too much unnecessary attention,
especially if you live like in an apartment community.
I'll touch on that later on in the show.
But it wasn't until I actually got on the platform
and I started listing my space that I understood, oh, wait,
damn, you can really customize this thing
and set it to where guests have to stay a minimum of five
or six or seven nights or whatever.
So I thought about it.
And for my business model, I preferred long-term guests.
So I set my minimum stay at 30 days.
And I know some of you are probably thinking,
who is going to book an Airbnb for 30 days for that long?
A lot of people.
You'd be surprised.
I just started this in April.
And I've had a total of three guests so far.
One gentleman booked for 30 days.
He was having a house built in the area.
And he needed a room until he closed on his property.
The other two, who I'm still hosting,
they're both long-term guests.
They're staying for five months.
They're both graduate students here in town.
They're just in town temporarily until they
complete their internships.
So the point I'm trying to make here
is that there is a market for whatever
niche works best for your business model.
There are plenty of people who only need a place for two
or three days or maybe a week tops.
And that may work best for you.
But if you prefer longer stays and a steadier revenue stream,
then a minimum 30-night stay or 15-night stay
may be a better option for you.
But just keep in mind that it's fully customizable
and that there is a market for virtually any approach
that you want to take with your bookings.
But we're going to pause here.
And we're going to take a brief commercial break.
When we come back, we're going to talk more in detail
about tips and best practices on getting your property set up
for success and things you can do to ensure
a positive experience for your guests.
And I'll also warn you of some common pitfalls to avoid.
And I'll share a funny story about something that happened
with one of my listings.
So stay tuned.
We'll be right back.
Hey, ladies.
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You're back live with Dr. Andre Gerry.
Hey, everyone.
Welcome back to live with Dr. Andre.
If you're just joining us, we've
been discussing Airbnb and how you can leverage your living
space to generate an additional stream of income
for your household or add to your existing real estate
portfolio.
So before the break, we were talking
about different ways you can customize your listing
according to your preferences.
And like I mentioned, for my bookings,
I have a minimum stay of 30 days for my guests.
That way, I know I'm booked for the entire month,
and I don't have to worry about having any days during the month
where I'm not booked.
Because remember, if you're not booked,
you're not making money.
So keep that in mind.
And you can also limit the number of additional guests
that people can bring.
For me, I don't allow guests to bring any additional people.
Some hosts don't care about that.
But for me, I prefer for my guests to come alone.
I also don't allow children.
So if a guest has children, then they'll just
have to book somewhere else, because I'm not
dealing with all of that.
But if you do allow additional guests,
then you do have the option to limit
how many additional guests are allowed.
And Airbnb allows you to charge a fee for each additional guest.
And you can set that fee.
And so there are just many other options
in terms of how you can customize your bookings.
I'm not going to go over all of them,
because there are just too many to name.
But just be aware that you do have options
as it relates to how you want to set up your Airbnb business.
You're not locked into some rigid construct that's
set by Airbnb that you're going to have to follow.
It's very host-centric, because hosts
are a critical component of how Airbnb makes money.
So now let's talk about apartments.
Can you have an Airbnb business in an apartment?
Yes, you absolutely can.
Now, does your lease allow you to run an Airbnb?
Probably not.
But like my mom always told me, there's a right way to do wrong.
So if you currently live in an apartment or a condo community
and you want to do this business, it can be done.
But you have to be very discreet.
It's probably not a good idea to go to the leasing office
and say, hey, I'm going to be running an Airbnb in my apartment,
and I want to make sure it's all right with you, God.
No, it's not all right.
It's definitely not.
And as a matter of fact, they will very quickly remind you
that it's likely in violation of your lease agreement
and that you could risk eviction if they find out
that you're subletting your apartment.
Because that's essentially what Airbnb is.
You're subletting a space in your home to a guest.
It doesn't matter if it's two days or for two months.
It's subletting.
And 90% of apartment communities simply will not allow that.
And to an extent, I can understand that.
Because I'm a landlord.
I certainly wouldn't want my tenants to sublet my house
to some other people I don't know.
I've never met.
I haven't been it.
So that subleasing provision in your lease
is intended to protect the property owner
from all sorts of liability.
And OK, so let me be very clear about something.
I'm not advocating for anyone to violate
any contractual agreement.
I'm simply sharing with you some experiences
that I've encountered in this business.
That's my disclaimer.
So again, for apartments, you have
to be very discreet about your business.
It's not the leasing office or your neighbor's concern
who's visiting your apartment.
As long as your guests are respectful
and they're not being a nuisance to the community,
no one should be bothering you.
No one should be questioning your guests.
As a matter of fact, for my Airbnb,
I tell all of my guests, look, direct all questions to me.
Nobody should be asking you anything.
But if they do, you direct them to me.
And as far as they are concerned,
you are a friend visiting from out of town.
It's nobody's business.
Definitely don't say anything about Airbnb.
You have to let your guests know when
you're in that type of situation.
It's just nobody's business.
This is about you getting your money.
But what I would suggest is that you
may want to look into limiting the amount of turnover
for your guests if you're going to operate this business
in an apartment community.
And that's why for my bookings, you
have to stay a minimum of 30 days,
because all of my listings are in apartments.
And I can't afford to have different people coming in
and out of the apartment every two and three days.
That's just going to attract way too much attention.
So you've got to be smart about this.
And then you've got maintenance driving around.
And maintenance is just always a trip wherever you go.
And I'm going to tell you something really.
Let me tell you something about maintenance people
at these apartments.
I'm just going to be real with you.
They're spies.
Let's just cut the BS.
They're spies.
They are the ones that go running back to the leasing
office and telling the property manager all of your business.
This one's got two dogs, and she's only supposed to have one.
And this one's selling drugs, I think.
And I think this one's running an Airbnb.
So be very leery of maintenance professionals.
I don't care how friendly they may seem that they are spies.
And unless you have a good relationship
with the property manager and maybe have an agreement where
you slide him or her a cut under the table,
be discreet as possible.
Keep your business your business.
Set your minimum stay for your guests to at least seven
to 10 days to avoid any issues.
I would recommend 30, but seven to 10 days
is the least.
That way you don't have people coming in and out, in and out.
And let me tell you something else, too.
You've got to watch out for some of these guests, too.
Because somebody will get you messed up with these apartments.
I'm going to tell you a really quick story about what happened
to me.
I booked this guy, and he was supposed
to stay for like 30, 60 days somewhere around there.
It was a long-term stay.
But I should have known from his picture
that he was a little weirdo and just a moron.
But the way Airbnb is set up, they
won't let you see the picture until after the person has
booked with you.
Because that's their mechanism that they put in place
to limit discrimination.
Because a lot of people are like, I
want to rent to any agent.
I want to rent to any blacks.
And so a lot of people were getting discriminated against.
They couldn't get bookings.
Because people were discriminating
based on race and all types of other stuff and gender.
So they put that as a mechanism to prevent you
from trying to say.
So I couldn't see this guy's picture
until after he had confirmed his bookings.
And but once I saw his picture, I was like,
he looks like a fucking weirdo.
And he just did.
He just looked stupid.
Some people just look stupid.
And I was just like, but I was trying to be nice.
I was trying to be fair.
And I just hoped for the best.
But I had an inkling that something was off with him.
But I ignored it, trying to be nice.
And so fast forward a couple of weeks later,
is the day he's supposed to arrive.
You can communicate with him via the app.
All your communication with the guest is via the app.
And Airbnb is monitoring all of this.
So there are some safeguards there with that.
It's the day he's supposed to move in.
He's supposed to come between 1 and 2 o'clock that day.
It was a Saturday.
And I'm making sure the place is clean.
Everything set up is getting 1 o'clock, 1.30.
It's getting 2 o'clock.
So I'm texting him through the app.
And I'm like, hey, where are you?
Are you still coming?
Or do you need directions?
I already gave him directions.
But just trying to make sure he had everything he needs.
Crickets, not hearing anything.
And so I kind of go out the door, kind of walk around,
see if I see anybody that looks lost or whatever.
And this is a whole different story.
But I have another car that I was having some work done to.
So it wasn't running.
I saw where there's a sticker on my car.
And I went over to the sticker.
And I'm seeing something about they're
going to tow the car.
It's in the offerable.
You got three days.
So I go over to the leasing office to basically cuss them out.
Because you don't put stickers on my car.
I was pissed about that.
So I get to the leasing office.
And there's a line of people waiting
to speak to the property manager or the leasing agent
or what have you.
And so I could tell it was going to be a moment.
But I had my phone on me in case the little moron called
or whatever.
And I just sat down because I was like,
this is going to be a minute.
And I was looking at the guy who was next in line
to talk to the property manager.
And I said, he looks familiar.
And I was like, wait a minute.
I know that's not the guy that's supposed to be running from me.
So I went back to the Airbnb platform.
And I looked at his picture.
I said, that is him looking like a fucking weirdo.
But he was standing right next to the leasing agent.
And so I couldn't.
And then he had like an older gentleman with him,
like maybe his dad or he was a young guy, like maybe 23 or 22.
And he had an older gentleman with him.
I think it was his dad or his grandpa.
And they were waiting to speak to the leasing agent.
And so they were in such close proximity to her,
I couldn't go over there and be like, hey, are you my guest
or whatever?
Because this is on the down low.
And so I just sat and I watched.
And eventually the person got up and he talked to the guy.
The guy talked to the leasing agent.
He was like, hey, I'm looking for apartment such and such,
such and such.
And I just was like, shit.
I was like, what the fuck is he doing?
I was just like, what is he doing?
And she was like, whose apartment is this?
The lady was like, whose apartment is this again?
Yeah, I'm supposed to be staying for a month.
And I just wanted to know where it is.
And I was just like, you fucking idiot.
And then so of course, the leasing agent, she was like,
well, I'm not sure whose apartment this is.
But actually, they're not supposed to be doing this.
And that whole song and dance.
And it just went down here from there.
And so I was like, fuck, I'm just fucked.
And so I was like, this is such a moron.
If he didn't know where to go, I gave him directions.
He could have contacted me through the app.
He just blew up my whole operation.
And so I just quietly walked out of the leasing office.
And you know I was pissed.
And so by that time, I caught the tail end
of the conversation between he and the leasing agent.
And she was like, well, the only thing I can tell you
is that you should contact Airbnb
and let them know that it's an illegal property and da, da,
da, da.
And I was like, this is just going to be a mess.
So I knew what was coming.
So I went ahead and contacted Airbnb.
I told them if this particular guest needs to cancel their
booking, make sure they get a 100% refund.
Because if a person changed their mind for whatever reason
after they decided to book with you, they're not really
entitled to a refund unless the host says give them a partial
refund or give them no refund or give them an entire refund.
And so just because of the nature of what was going on,
I knew this was on the download.
I wasn't really technically supposed to be doing this
in an apartment community.
I just said, give the freak his full refund.
I don't want any problems.
And so I just knew that I was going
to get either an email or a call from the leasing agent
or the property manager saying, hey,
this is a violation of your lease and XYZ.
I never got the call.
No one ever contacted me.
But it was a really, really close call.
And so you just have to be careful.
The moral of that story is you really
have to be discreet when you're running an Airbnb business
in an apartment community.
Keep people out of your business.
Don't trust maintenance.
And if you get a feeling or a sense
about a prospective guest, don't book them.
Trust your gut.
Because something told me that this was a fucking idiot.
But I was trying to be nice and trying to be fair.
Forget that.
Go with your gut.
And I promise you, you avoid a lot of problems.
And I'll say this.
If you're going to run an Airbnb out of a house that you own,
you're not going to have to worry about this type of stuff.
You're not going to have any of these types of problems.
None of that.
If anything, you might have to deal with some minor issues
with a guest.
That can be easily resolved between the two of you.
But overall, it's gravy when you own your own home.
Now, if this is a business that you want to do,
you know you want to do it, but your home is not quite
set up for Airbnb right now.
Maybe you have kids at home, or you've
got a bunch of people living with you already,
but you still notice you want to do this.
Especially if you live in a metropolitan city.
What you can do is lease an apartment specifically
to use for Airbnb.
Don't fuck with these gated communities
and these fancy new apartments that's
on this BS because they're new and bougie and all of that.
Instead, look for older, well-established apartments
that aren't gated.
A lot of these older apartments have been completely
renovated on the inside because they're
trying to compete with all these other new, hot apartments that
are springing up everywhere.
And so a lot of these apartments, because they're older
and perhaps in less desirable parts of town, not the ghetto,
but you know what I mean.
The rent is very reasonable in these apartments.
And if you come in dressing and acting professional,
they're probably not going to run a credit check.
They may run you through a tenant search
just to make sure you don't have any prior evictions
or anything like that.
But if you come in correct, you can typically avoid
a hard credit pool.
I hate those.
So when you come, come with your documents
that you know that you're going to need.
Bring your ID, your last three to four checkstuffs.
If you have a work badge, I like to come in wearing my work
badge.
They're probably going to ask you why you're
looking for an apartment.
Have your story together.
Do not mention anything about Airbnb.
You can tell them you're getting divorced
and need to get an apartment that you recently relocated
to the area and you're looking for an apartment close to work.
Whatever story makes sense for your particular situation,
let them know that you work from home a few days out the week
and you prefer a more quiet, peaceful section
of the community where there's not a lot of kids
and foot traffic.
They'll probably say something like,
I have a perfect unit for you.
They're going to take you to see it.
When you view it, I want you to put your business hat on.
And imagine how your guests would like this unit.
Think about how you decorate it, whatever.
When you go back to the leasing office
and he or she asks you when you'd like to move in,
ask them when is the earliest date available.
Start from there.
And if you're sold on the apartment,
then let them know that you like to move for it
with the application today.
Because the key is to go ahead and to secure the apartment,
the first suitable apartment that you can find.
And these older apartment communities,
they're not on that same BS that these newer apartments are on.
They're just trying too hard, these new apartments.
And they're so bougie.
So they're just on guard.
I just won't even mess with them.
These older communities, they're trying to get the units occupied.
Because if the units aren't occupied,
then they're losing money by the day.
So they're very motivated to do business with you.
And they don't really care if you're
operating a business Airbnb otherwise.
As long as you're not bringing any drama to the community
and you're paying your rent on time every month,
that's all they care about.
So I'm telling you right now, there's
a lot of money to be made with Airbnb.
So I would urge you to get on it now while the getting is good.
Because what I'm seeing is that a lot of these local municipalities
and jurisdictions, they're starting
to place heavy restrictions on Airbnb's and companies like Airbnb's.
Because they're looking to limit the number of Airbnb's
that are in certain areas.
And they're doing stuff like imposing hefty fees and taxes
on operators and hosts.
Because what's happening is that a lot of savvy investors,
they're snatching up properties that's for sale, like left and right.
And they're converting them into Airbnb's,
especially in metropolitan cities like Atlanta, Charlotte, Miami,
destination cities like San Francisco, New York,
and regular home buyers that are looking to buy a home,
they're struggling trying to find a home to purchase.
Because all of the inventory is virtually
being bought up by real estate investors and speculators.
And in some cities like Honolulu, for example,
you have neighborhoods or entire communities
where 70% to 80% or more of the homes are Airbnb properties.
And it's driving the local community crazy.
Because imagine you're living in what was once a tranquil community.
And it's now being overrun by a large tourist population.
Imagine how frustrating that would be for homeowners and locals.
So many local lawmakers are starting to tackle this head on.
So it's only a matter of time before platforms like Airbnb
will be so heavily regulated that it's just not
going to be as profitable as it once was.
So get out here and make this money while you can.
I'll tell you some other things to look at if you want to do this.
Because I feel victim to this.
Don't try to grow too fast.
I would focus on perfecting your existing listing
until you have it down to a science.
Me, I got excited.
Because once I've listed my room, oh, let me tell you this.
This is how small you can start.
Of course, I told you I had the two-bedroom, right?
So I'm living in one bedroom.
So I'm like, OK, for this guest bedroom, I'm going to list it.
When I listed it, the only thing that was in that room,
and I'm not exaggerating, was an air mattress, a lamp,
and it was on the floor, a candle, three books, and a teddy bear.
And that's what I listed.
I put the pictures up.
It was booked in less than 24 hours.
Less than 24 hours.
I thought, no one's going to book this.
I don't even have a real bed in there yet.
People do not care.
The young man that booked that room, he's still in there now.
Now, I have upgraded his bed to a real bed.
But it was a few months before I did that.
But it doesn't take much to get started.
Start with the little that you have.
You'd be surprised at how quick people will snatch this up.
Because that particular guest shared with me
before he booked my place, he was staying at a motel.
And he said, I just didn't feel safe at that motel.
And so he was so glad to see a room like mine that
was nice, clean, modern, for basically the same rate
that he was paying at a crappy motel.
So you can start with very little.
It doesn't have to be perfect.
Just get out there and just start.
And in terms of your pricing, you'll get the pricing right.
The market would tell you if the price is too high or whatever.
If you see where you're listing, it's
been sitting for seven, eight, nine days.
OK, it lets you know you need to bring that price down
a little bit.
And I see where we're running out of time.
But I want to mention this too.
Just get out there and do it.
With the pricing, I love that Airbnb
has this option now that's called Smart Pricing.
And what that does is that it surveys all the AirBnBs
in a particular geographic area.
And it will, depending on the size of the space, one bedroom,
two bedroom, an entire apartment, whatever,
it'll automatically set your price in a range
so that you're not pricing it too low, pricing it too high.
It gives you a good gauge.
And I'll tell you this, your first listing
is going to be a little lower than what you want.
But the thing is to get out there, get that first booking.
Be really great to that guest.
Make sure you're taking care of.
Make sure they give you a five-star review.
And make sure that you're deserving of a five-star review.
Once you get your first five-star review
and got your first booking out of the way,
everything is going to start clicking in place.
You're going to be like, OK, I got this.
Just don't grow too fast.
I went out and got another apartment.
Once I start to make money, it can easily get overwhelmed.
Go overwhelming.
So just pace yourself and don't try to grow too fast.
All right, guys, listen.
I want to go over so much more.
That's pretty much all the time we have for tonight's episode.
But I really appreciate you tuning in.
I might talk about this some more in a future episode,
because there's a lot that I wanted to get to.
But I appreciate you tuning in and spending time with me
this hour.
And I hope I've enlightened you about Airbnb
or perhaps opening your mind to the possibility
of using the platform to generate
an additional stream of income.
Or maybe I'll scared you from getting involved with Airbnb.
I don't know.
But either way, I hope you learned something.
And I hope you enjoyed tonight's broadcast.
I want you to join me for our next episode, which
is going to air Wednesday, July 24th at 8 PM Eastern.
We're going to be discussing a new trend that's
happening in the workplace called quiet quitting.
I don't know if you heard of that.
Be sure to join us next month so you
can learn more about this topic.
Until then, have a safe and happy Fourth of July holiday.
Enjoy your friends and family.
And have a great night, everybody.
Take care.
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