this is The Ultimate Guide to starting your own property management business on Airbnb in this video I'm going to show you exactly how to build a successful co-hosting business from scratch even if you've never managed a property before I've used these exact strategies to build a six figure Property Management business and by the end of this video you'll have a complete blueprint to do the exact same but before we dive in here's something crazy 90% of people who try to start a co-hosting business make one Mass massive mistake that kills their chance of success before
they even get started I'll reveal what that mistake is in just a few minutes but first let's talk about what co-hosting actually is and why it might be the perfect business opportunity for you co-hosting is basically property management for Airbnb listings as a co-host you're responsible for managing someone else's property on their behalf now there's something really special about this business model and it's the reason I recommend it to anyone looking to get started in the short-term rental space see most people think that they need hundreds of thousands of dollars to get started with Airbnb
they think they need to buy properties furnish them take on all that risk but here's the thing with co-hosting you can start making money in the short-term rental space with virtually no upfront investment you're basically leveraging other people's properties to build your business and the best part property owners are desperate right now for good managers I talk to hosts every single day who are looking for someone reliable to manage their property they're willing to pay good money too typically between 20 to 30% of the monthly Revenue so if you're managing a property that makes $5,000
per month you could be earning between $1,000 and $1,500 from just one property now imagine scaling that to five or 10 or even 20 properties the potential here is insane but you've got to do it right so let's talk about the different types of co-hosting Arrangements that you might consider there are two main models first you've got full service management this is is where you handle everything gas communication cleaning coordination maintenance pricing the works then you've got partial management where you might only handle specific aspects like guest communication or listing optimization I always recommend starting
with full service management and I'll tell you why in just a sec but first if you're enjoying this content and want to learn more about building a successful Airbnb business make sure you hit the like button and subscribe to the channel okay so why full service management simple it gives you the most control and the highest earning potential see when you're handling everything you can charge premium rates typically 20 to 30% of the monthly Revenue plus you have complete control over the guest experience which means you can maintain higher standards and get better reviews this
leads to more bookings higher rates and ultimately more money for both you and the property owner now remember that massive mistake I mentioned earlier that kills 90% of co-hosting businesses when they're starting out it's trying to compete on price I see this all the time new co-hosts think that they need to charge super low rates to get their first few clients but here's what actually happens they end up with demanding owners who want premium services at budget prices these owners micromanage everything you do question every decision and ultimately they make your life miserable even worse
the low rates mean that you can't afford to provide good service which leads to bad reviews unhappy guests and a business that's impossible to scale so with that in mind let's get into the exact steps you need to take to launch your co-hosting business the right way here's the step-by-step launch plan first thing you need to do is do market research and there's a specific way to do this start by looking at your local market you want to find areas where there are lots of short-term rentals High occupancy rates strong average nightly rates and most
importantly individual Property Owners not a lot of big management companies these are the perfect conditions for a co-hosting business I'll show you exactly how to find this data in just a minute but first you need to understand what makes a good Target property owner the ideal client for your co-hosting business is going to be someone who owns 1 to three properties is too busy to manage them effectively values quality over cutting corners and has properties that generate at least $4,000 in monthly Revenue why these criteria because these owners have enough properties to make it worth
your while but not so many that they'll try to squeeze you on pricing plus they're usually professionals who understand the value of good management now here's where most people go wrong with their research they focus on the wrong numbers they look at things like average daily rates or total number of listings in an area but what you really need to know is how many ideal owners are in your Market what are their biggest challenges and pain points and how well are their listings optimized because these are the things that tell you if there's opportunity in
your Market if you see lots of poorly optimized listings with bad photos and low occupancy rates that's actually good news it means there are owners who need help and you can provide immediate value by improving their listings now if you want to step byep guide on how to do this research properly including the exact tools and metrics I use you'll find all that inside BMB tribe I'll leave a link in the description right down below once you've identified your Market it's time to set up your business properly this is super important you want to look
professional right from day one you'll need a basic website sales collateral to show to prospective clients a business bank account professional contracts and speaking of contracts this is actually another place where people mess up quite often your management agreement needs to cover everything including exact Services provided payment terms cancellation policies damage policies and about 20 other things that most people forget I've seen so many co-hosts get burned because their contract had holes in it that's why we include our complete contract template inside a B&B tribe it's the exact same one that I've used to manage
hundreds of properties without any issues now next up is creating your service offering and this is where you can really set yourself apart now I'm going to share something that took me years to figure out the key to a successful service offering is not offering more services it's offering the right services and doing them extremely well here's what your core service offering should include guest communication for inquiries and guest support check-in and checkout management cleaning coordination basic maintenance coordination pricing optimization monthly reporting notice what's not on that list deep cleaning interior design professional photography coci
a Services why because these should be additional services that you can upsell later when it comes to pricing your services here's the formula I use for properties generating less than $5,000 per month charge 30% for properties generating between 5 and $10,000 a month charge 25% for properties over $10,000 a month you can go down as low as 20% but here's the trick never start with a rate below 20% trust me on this one I learned it the hard way if you start too low you'll never be able to raise your rates enough to make the
business profitable now let's talk about the fun part next getting your first clients and I'm going to tell you something that might surprise you the best place to find your first client isn't online I know I know everyone tells you to go on Facebook or join local real estate groups but here's what actually works first check to see if your target market requires perming for short-term rentals if it does find the city or County's public database that contains all the permit details you see where I'm heading you can actually search through all of this and
find the addresses of all your ideal clients then you can check public property records to find the owner's contact details then send them a letter yes an actual physical letter but here's the key your letter needs to do three things identify a specific problem with their listing explain how you can fix it and prove that you know what you're talking about for example something like dear property owner I noticed your beautiful property on Maple Street has an occupancy rate of 62% while similar properties in the area are achieving 85% I've analyzed your listing and identified
three specific changes that could increase your monthly Revenue by at least 20% I'd love to share these insights with you completely free of charge see what we did there we're not just offering our services and pitching we're demonstrating value UPF front now some of you are probably wondering well James how do I know their occupancy rate well that's where having the right tools comes in inside B&B tribe we show you tools that can tell you exactly what the occupancy rates are exactly what average nightly rates are total revenue estimates and a bunch of other crucial
data but even if you don't have access to these tools yet you can still look at their calendar and estimate their occupancy rate the point is you need to show property owners that you can help them not just work for them and by the way if you're in an area where this data isn't publicly accessible no stress you can also adopt a similar approach by simply scouring sites like VRBO and messaging hostes directly through the platform it's a little less reliable and there are some specific steps you need to follow but if done correctly this
can be highly effective as well now when you reach out to owners you'll likely hear some common objections you know I can manage it myself I already have a manager your rates are too high I'm not making enough to justify a manager here's how to handle each one when an owner says I can manage it myself here's what you say you absolutely can but the question isn't whether you can manage it yourself it's whether you should be managing it yourself let me show you what your time is actually worth then you can break down all
the hours they spend on things like answering guest messages probably 5 hours a week coordinating cleaners 3 hours a week handling maintenance 2 hours per week man pricing another 2 hours a week that right there is 12 hours per week at a minimum more or less so if they're a professional making even $50 per hour that's now $600 of their time every single week Meanwhile your management fee might only be $600 per month see how that shifts the conversation now how about when they say I already have a manager here's my favorite response great well
would you mind telling me what you love about their service I always like to learn from successful managers this does two things shows that you're professional and that you're confident and it also usually leads to them telling you what they don't like about their current manager for your rates are too high I always say I totally understand that concern but let me show you the math then I walk them through how I'll increase their revenue by optimizing their pricing typically 10 to 15% increase improving their occupancy another 10 to 20% getting better reviews which leads
to higher nightly rates the key here is showing them that you're not a cost you're an investment now once you've actually landed a client this next part is crucial this is where a lot of co-hosts drop the ball it's the property onboarding process you need a system for this if you just wing it you'll miss important details that'll come back to hurt you later on here's the exact process that I use first do a complete property evaluation take detailed photos of everything test all the appliances check all the locks and entry systems inspect for maintenance
issues through out the property document all the amenities and then create what I call a property bable this is going to include all the access codes Wi-Fi passwords emergency contacts vendor list house rules special instructions everything so this becomes your go-to resource for everything about the property but here's where it gets interesting you also need to do a complete listing audit review all the photos on the Airbnb listing check the description verify the amenities look at the pricing history analyze your guest reviews because here's the thing most owners don't even realize how much money they're
leaving on the table with poorly optimized listings now once you've got all this information it's time to optimize and either take over or relaunch the listing which direction you go will depend on just how badly the listing has been performing in the past if you're going to take over the existing listing then you'll want to be sure you optimize it fully right out of the gate let me show you exactly how to relaunch a listing for Maximum Impact in case you go that route the goal here is to get a bunch of bookings right away
which builds momentum on airbnb's algorithm here's my exact process first you've got the listing title this needs to hit three main points first the main attraction or unique feature next the best amenity and three the target guest type so an example of this would be 5 minutes to downtown luxury condo with pool perfect for business next you're going to completely rewrite the description following this format start with an attention grab and opening then a quick highlight then room byro breakdowns keep bullet points for this not long paragraphs you also want to highlight the location benefits
but here's the secret that most people miss you need to rewrite everything in your target guest language if you're targeting business Travelers talk about the workspace and the fast Wi-Fi if you're targeting families highlight the kid-friendly features for the photos here's what most people get wrong they just dump all the photos in random order instead do this first five photos should be your best amenities then a logical walk through of the space include some lifestyle shots that help guests imagine their stay and then end with location shots now for pricing strategy during launch here's what
works best start with rates about 15 to 20% below market for the first two weeks this does two things it gets you immediate bookings and helps you get your first few reviews quickly but here's the key tell the owners that you're doing this strategically explain that it's a temporary strategy to build momentum not a long-term pricing approach once you've got the listing set up it's time to talk about day-to-day operations this is where your systems will make or break your business you need three Key Systems to be successful first your guest Communication System I recommend
using automations and an AI tool for this it'll save you hours every single day set up templates for booking confirmation checking instructions Midstate checkups check out reminders and review requests AI tools like bestie AI can handle almost all the rest second your cleaning management system here's what I found works best use a cleaning checklist with photos of each room have a backup cleaning team on Deck ready to go set up automatic scheduling and do random quality checks third your maintenance system create a network of reliable vendors for things like Plumbing electrical HVAC General repairs and
Lawn Care Pro tip always have at least two vendors for each service now this might seem like a lot to manage but here's the good news inside bmbb tribe we we've got templates and automation tools for all of this stuff we've literally got everything you need to set up your systems automate your Communications manage your teams track your Performance Plus you'll get access to our community of successful hosts and co-hosts who can share their experiences and answer all of your questions as you go if you want to check it out just click the link in
the description down below now let's talk about how to optimize your properties performance this is where you're really going to earn your management fee by maximizing the property's revenue let me show you the exact process I use to increase Revenue by 20 to 30% on almost every property I take over first up is occupancy optimization most hosts just focus on getting a high nightly rate but that's actually the wrong approach instead focus on your rev pan your Revenue per available night here's what I mean let's say you've got two scenarios 10 nights booked at $300
per night or 15 nights booked at $250 per night the first scenario gets you3 ,000 the second gets you $3,750 lower nightly rate but more total revenue this is why you need a proper pricing strategy and here's exactly how to do it first map out your Market Seasons High season shoulder season low season any special events throughout the year then set your base rates for each season but here's where it gets really interesting you need to adjust these rates based on the day of the week local events that are happening your booking window the average
length of stay now most hosts try to do this manually but that's actually a recipe for disaster you need Dynamic pricing software that can make these adjustments automatically and the tool I use for this is a tool called price Labs I'll have another video coming out soon that breaks down exactly how to use price laabs and why I prefer it over other tools so if you want to check that out then be sure to subscribe but if you want to get your hands on that right away we've actually got a full detailed training on all
that already live over in B&B tribe next up is review optimization here's something crazy properties with an average rating above 4.8 Stars can charge up to 25% more than properties with 4.5 Stars so how do you get those high ratings consistently it all comes down to setting the right expectations here's how to do that number one overc communicate before checkin number two provide detailed house instructions for any questions that a guest might have number three address any issues immediately right when they come up number four send checkout reminders that let guests know exactly what to
do but there's one secret weapon that almost no host use it's the miday message here's where you need to send hey guest name just checking in to make sure everything is perfect with your stay is there anything you need this does three things number one it shows you care about their experience number two it catches any issues before they become bigger problems and number three it almost always prevents bad views now let's talk about listing optimization next your listing needs to be updated at least once per quarter here's your optimization checklist number one update your
photos based on the season second refresh the amenities list based on guest feedback and anything you need to add number three update the location highlights number four modify your pricing strategies and then number five it's also important to regularly scan through your reviews to see where you can improve as a host reviews are often a gold mine of opportunities for you to improve either the listing the property or your processes but the real secret to optimization is data analysis you need to track your average listing views your number of first page search Impressions your inquiry
to booking ratio because all this data tells you exactly what to fix and what's working well the tool that I use for this is called intell host it tracks everything so you can accurately measure and improve your performance over time now speaking of improvements next let's talk about how to make even more money with your co-hosting business see once you've got your basic Management Services dialed in you can start offering premium services that dramatically increase your profits here's what's working really well right now property setup Services because most property owners have no idea how to
properly set up a short-term rental you can charge between $1,500 and $3,000 for a complete setup package that includes full property optimization professional photography coordination interior design consultation welcome book creation and Supply source ing the best part you can Outsource most of this work while keeping a healthy profit margin for yourself another gold mine is maintenance coordination here's the thing properties always need maintenance instead of just coordinating it create a maintenance package with quarterly deep cleans annual HVAC servicing regular Pest Control preventative maintenance checks and you can charge a flat monthly or quarterly fee plus
an upcharge on any work done now all these services are great but here's where it gets really interesting in let's talk about scaling your business this is where most co-hosts hit a wall they get about five properties and suddenly feel overwhelmed with everything but I'm going to show you exactly how to scale to 20 or 30 properties without losing your mind the secret to scaling is systems and automation first you need to build your team in this exact order start with your cleaning team next is going to be your maintenance team then your virtual assistant
for guest communication this person can then later become your portfolio manager each of these rules should pay for themselves through increased efficiency but here's the key you need systems for everything inside B&B tribe we've got complete standard operating procedures for team training quality control Financial tracking performance monitoring plus we show you exactly how to use these automation tools to handle guest communication team scheduling financial reporting performance tracking everything you need now as you scale something magical happens you start getting economies of scale your costs per property go down while your Revenue per property stays the
same or increases this is when co-hosting becomes really profitable but there is one more thing that you need to know about scaling you need to stay focused on your target market don't try to Branch out and be everything to everyone pick your Niche and become the go-to manager for that type of property so maybe it's luxury homes or downtown condos or family vacation rentals or corporate housing whatever you choose become the expert in that Niche now I know I've covered a lot in this video and if you're feeling a bit overwhelmed that's totally normal remember
I've been doing this for years and I've made all the mistakes so you don't have to and again that is exactly why I create a B&B tribe inside you'll get complete templates for everything we covered in this video plus step-by-step training videos access to your community successful host weekly Community calls with me personally and over $4,000 in discounts and V perks plus you'll join an amazing community of hosts and co-hosts who are all building successful businesses just like you if you want to FastTrack your co-hosting business and avoid all the costy mistakes that most you'll
make click the link in the description down below and join B&B tribe it's just $49 per month and you can cancel anytime the templates alone will save you hundreds of hours and thousands of dollars in trial and error don't forget to hit that like button and subscribe for more Airbnb business tips if you have any questions questions drop them in the comment section down below thanks for watching this video and I'll see you in the next one
