What it's really like to be an Airbnb host. I know you've heard the nightmares. People
come into your house partying, trashing everything and then leaving you a bad review to top it
all off. Yeah, I've heard all those stories and more. I actually have dozens of Airbnb properties
otherwise known as short term rentals. So I'm going to share with you the good, the
bad, the ugly and
everything in between. Viewer discretion is
advised. Let's go.
In this video, I'm going to share with you the scariest crap I've ever seen in any of
my Airbnb properties. I'm going to share with you the full story and tell you how you can
do better than I did. I'm going to show you some real pics of some of my properties and
some of the stuff that really has happened. And if you stay to the end, I have a huge
surprise for you. So I got started in Airbnb in a very inconvenient way. I literally was
a multimillionaire before I ever even decided to get into the business. Let me tell you
my story. I started investing in real estate in 2002, 2003. And I lost everything. I ended
up back in my parents basement in 2009 and I had to start over. I was bankrupt. I have
multiple foreclosures, I had no money, no job and I had bad credit, worst scenario ever.
And then I decided I wanted to get back into real estate. I started going to some free
seminars. Eventually I ended up getting a real estate coach and I got back on my feet.
I got out of my parents basement, and I turned myself around, I was even able to quit my
six figure job with real estate. I acquired over 40 rental properties and they covered
my salary so I was able to quit, but my rental properties, I was a landlord. I would rent my
properties out vacant unfurnished on a monthly basis. So people would rent properties for
me on annual leases, it would be a year lease or two year lease. And that's how I liked
it. I was making about three or $400 per month profit on every single property. And like
I said I had over 40 so I was able to make a good solid six figure salary from my properties.
Well, I started teaching other people how to fix and flip houses, how to do wholesaling.
And I came across an 18 year old student that changed my life. My student told me about
Airbnb. He told me we could rent properties. And we could make more on those rental apartments
than we could on those properties that I already had. I was not a believer, I was completely
skeptical. At the time, I was living in Dallas, Texas, and I said I had all my rental properties,
I had fixed and flip houses, I quit my job and I just was sitting on top of the world.
I was not convinced that this was a great business. But I was wrong. We got five properties
in the Orlando area and we rented five apartments, they were one bedroom apartments. And the
first month, we were making about 1000 to $1,500 per month per property. It was amazing.
I was immediately sold, I started to realize like, hey, wait a minute, I'm making three,
four or five times the profit on one property that I rent that I was making on properties
that I owned and was renting them out. Additionally, I was able to make more money not just from
renting them out, I was able to get great reviews from Airbnb and Airbnb was even sending
me money letting other people be a host, I could not believe how much more money there
was in being an Airbnb host than there wasn't just being a landlord. So I started turning
my long term rental properties, the ones that I had year and two year leases on, I waited
to those tenants moved out and then I started turning those bad boys into Airbnbs, too.
And that was just the beginning. Now, that's when things started to really change. I got
into the business and that converted a lot of my portfolio from long term rentals to
short term rentals and that's where the fun began. And that's where more money began.
But like they say Mo Money, Mo Problems. So let's get to that part. Before I get into
all of the bad things that happened, let me quickly explain to you rental arbitrage because
if you want to do this business, you have got to understand this concept. Rental arbitrage
is when you lease a property, you don't buy it, you literally lease the property and then
you make money off of a leased property. So in other words, you can rent apartments, rent,
houses, condos, things like that, and then rent them out to other people that is rental
arbitrage. Basically, meaning you make money off properties that you rent. This was a concept
that I had heard before and I had done before but I had never done it coupling it with Airbnb.
I had before got properties that I had lease purchased or that I had gotten where I was
leasing it and the owner did allow me to put the property and do other things with it.
But I had never coupled leasing a property paying, you know, just a small amount
each month and then rent it to someone else for more money, but even better, renting
it out on a nightly basis for way more money. But basically what I had to do in order to
really make this work with rental arbitrage is rent a property, fully furnish it, put
everything in it that one would need for a vacation rental like plates, cups, towels,
sheets, and small things like that. And then start making way more money than I ever could
just renting it out. So just to give you a comparison, if I was renting out a vacant
one bedroom apartment, or a house that I had, let's just say I have a house and it's a one
bedroom, maybe I was renting it out for $1,200. But the mortgage was 900, so I was only making
about $300 profit. Well, on the other hand, what if I rented apartment for $1,200 per
month from someone else, and then I rent it out for even just $100 per night, I keep it
rented for like 20 nights, bam, look at that. So like I said, you rent a property for $1,200
per month, you rent it out for $100 per night, even if it's rented just 20 nights, that's
$2,000. Your rent was 1200, bam, you have a profit of $800. Just like that. And again,
you rented the property so you didn't even have all of those initial upfront expenses.
In many cases, I was able to rent apartments from apartment complexes, and they would give
me two months worth of free rent. Meaning I would make 2, 3, $4,000 before I ever had
to make a rental payment and the great thing about it is if you have good credit, and especially
if you have good business credit, you can put those apartments in your business's name,
and have a very small security deposit. In some cases, they may waive the security deposit.
But in most cases, the security deposit is only maybe $300 per unit. So we got five units,
and we only had to give them $1,500. They also gave us two months worth of free rent on
all of those five units. So we had made about $10,000 in profit before we ever had to make
a rental payment. That's the power of rental arbitrage. So let me get back to the good,
the bad and the ugly. So my first real Airbnb property was one of my own properties. It
was not a property that I owned. Like I said, I gave you that example. But those were joint
with me and that student, but I decided to rent out a property that I lived in, I literally
started to see all of the money that was being made on those properties in Orlando near Disney
World. And I was living in Dallas, Texas. So I was like wait, I need to move to Orlando
so I could get me some more of these short term rentals because baby, this Airbnb thing
is really doing well. But I had a house that I lived in in the suburbs, and I didn't want
to sell it. So what did I do? I put that bad boy on Airbnb. It was hard for me at first
because it was a house that I had lived in for a few years, my kids had lived there, they
had went to the school down the street. So it definitely had a different appeal and a
different sentimental value of putting it on Airbnb. But I am an entrepreneur and I
knew I needed to make money. So I took a lot of my personal items out of the property.
That's step one, you can't have your personal pictures everywhere. You don't want to have
your personal effects, you really have to take all of your personal items out of the
property. There cannot be any clothes in the drawers, there cannot be toothpaste and toothbrushes
under the bathroom sinks. There cannot be food in the cabinet, you literally have to
move out of the property. But again, since we were moving to Florida, not a big deal.
And the great thing about this property is I listed it in July of 2019 and the same
day that I listed it on Airbnb, it had a 30 day booking. I couldn't believe it, it was
motivation for me to hurry up and get out of the property because I knew that I was
going to be getting a 30 day booking and it was like four or $5,000 for 30 days. So the
amazing thing about Airbnb is when people check in that first day, you get all of the
money for the full booking. So as soon as the person checked in, I got like $6,000 for
their whole booking for that month, which paid my mortgage and helped me move to Florida.
Mo Money, Mo Money, Mo Money. All right, Mo Problems. Let me tell you about the problem
I had at that house. So now let's talk about the bad because like I said, being an Airbnb
host is not very difficult at all. But let me tell you what it's really like for a second.
Again, most of the time, you're just going to make money, people are going to check into
your property, and they're going to check out. There's not going to be any major issues.
There may be some things where people don't think the property was cleaned as well as
it should have been or they had maybe some trouble getting in. You might have little
issues like that when you first get started. And one of the reasons why you may have some
of these issues is because you have to work on getting your properties together, how well
should the property be cleaned. You may not know that in the beginning, you may think
clean is fine, but it needs to be hotel clean. It can't have any dirt, any spots anywhere.
It has to be very clean like a hotel, not just clean like you're having company over.
So that's one of the things that people don't know when they first get started. But that's
really what's going to be the major thing, but let me tell you what might happen because
this happened to me. So most people that do Airbnb, most people that host on Airbnb are
afraid that someone's going to have a party in their house. Well, yeah, it's a house,
a beautiful home that's perfect for family, perfect for bridal shower, perfect for a baby
shower or gender reveal party or family reunion. We get so many different types of guests coming
to our property and they do sometimes have get togethers. That's totally okay. I really
don't have an issue with it. One of the things that I did with my Airbnb is I put a camera
outside on the front, so I can see who's coming in. Additionally, the doorbell is also a camera.
So if people are entering the property, I'm able to see that, this is definitely not an
issue it used to be. But outside cameras and doorbell cameras are so inexpensive now,
you really just don't have those issues. But you could still have a party and that's what
happened at my house. Literally, I saw this on the camera, and I kind of let it go. Here
are some pictures of a party that was had at my house. Yeah, my house that I used to
live in my kids with. Yes, they had strippers, you will notice that there are used prophylactics
laying around, you may notice that there's some vomit and things like that. Well look
at what they did to this house. Not pretty at all. And the sad thing about it is I saw
them coming in, I just didn't want to discriminate or be a Karen, I thought let me just let these
people do what they do. I saw that there were more people coming into the house than were
on the reservation. So that's a red flag. And again, as a seasoned Airbnb host, I know
to stop that right away. But again, this was my first time kind of doing it on my own.
And so I did. I let more people come into the house than I ever should have. And I saw scantily
clad women and alcohol and a few other things that really gave me some signs that I should
shut this down. But I decided not to and I paid the price. And I'll also share with you
a really big secret. The cleaning for this property cost me $1,000. Yeah, it cost me $1,000
to clean this property, I had to get the carpets professionally cleaned. Obviously, vacuum
was not going to get this mess up, all of the food that they had left out, they didn't leave
any of the credit cards. It was a mess. So what that did teach me some of the things
that I put into place so I don't have those issues. ever again. Like I said Mo Money, Mo
Problems, but at the same time, Mo Money Mo solutions. And that's what I do because I
make money off these properties, I was profitable. Yeah, it cost me $1,000 to get a clean, but
it was a profitable property. So I had the money to do it. So let's talk about how you
fix this. So you never have the headaches that I had. Whoa, are you loving this video,
please like this video, because I'm sharing with you the true story. I'm showing you pictures
and all of that. So I need you to smash that like button and subscribe to my channel, I
am going to a million subscribers and beyond. So I need your help, please subscribe, please
like this video and share with your friends. Because that helps the algorithm and helps
me help you keep bringing this content. Alright, so now that I've told you the big horror stories,
someone having a party and kind of trash in my place a little bit. Obviously, they didn't
destroy the property completely. They dirtied it. They dirty the beds in the carpets. But
it was all stuff that was able to be cleaned. And things that I can get replaced quickly
and then go on. Just think about it. Hotels have stuff like this all the time. It's a
business. I'm not saying this happens very often. Again, this has only happened one time
in nearly four years of me doing this. But you got to be prepared and you got to know
that this is a business and something could happen. So let me tell you what it's mostly
like as an Airbnb host. So mostly what you're going to be doing is getting the properties
cleaned in the beginning, I cleaned my own property. So when people would check out,
I would clean the properties myself. As soon as I got profitable, I hired a cleaning team.
Another thing that you're going to be doing all the time is messaging guests, it's so
important to make sure that you're messaging guests, making sure they can get into the
property good, making sure if they have any questions or if they need anything, you are
absolutely there. And again, you can do all of this stuff right from your phone and then
last but not least, it is a lot of shopping. Oh my gosh, I know I'm saying this really
easily. Like you just put the property together with some towels and some sports and some
sheets. But man, I'm literally going to show you how we shop and we put these properties
together. The good thing about my businesses now we put multiple properties together at
the same time so I may go into apartment complex, get five units get 10 units, and
I just shot for all of the units all at once and get them ready all at the same time. But
that's massive. That means I'm buying like 100 towels, 4 toasters, five this, seven of
those, 20 of these, you know it really gets to be a lot of shopping and again, as people
are coming into your properties, it's a lot of shopping. You have to refresh the towels
you have to go get new paper towels, more toilet tissue do things like that it's
a lot of shopping and putting things in storage. The big thing that I learned is you do not
want to put all of your supplies inside the property. Oh my gosh, if you put all of your
toilet tissue, for example, in a closet, guess what? They're gonna pack all that toilet tissue
up in their car and take it with them and then you have to go buy a whole bunch more.
So what you want to do is lock those things away, because you do a lot of shopping as
an Airbnb host, I feel like I'm always at Walmart or Target or Ollie's or somewhere,
somebody's all my team is always shopping for some of the smaller items, somebody may
mess up a plate, for example, we go to Dollar Tree, we buy 20 or 30 more, but again, that's
only 20 or 30 more dollars. And like I said, the person is paying hundreds of dollars per
night for our properties. So again, it all washes out and it's very, very profitable.
Even with all the shopping that I do. So I have created an entire course that teaches
you the full Airbnb short term rental business. It's called B and B Riches. Go to b like boy,
n like Nancy, b like boy. BNB riches, R i, C, H, E, S, bnbriches.com. Use the
code YouTube to save half off. I have created an entire course that breaks down the entire
business, just too much for me to share with you on YouTube. And it goes through every
single step. Step by step, you're able to ask questions and you even get free calls
with this course, we want to make sure that you really know this business inside and out,
that you have all the templates, all the messaging that you have to give two guests, all of the
supplies and how much you should be paying for things. All of that is inside the course
and teaches you everything about this business from beginning to end. And again, you can
learn this for less than $1,000. Go to bnb riches.com. Use the code YouTube to save
half because I want to make sure that you have all of the resources, all of the tools
and all of the knowledge that you need to be successful. This is Noelle, to your success.