4 Additional Income Streams to Leverage in your Airbnb Business
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Most people are only leveraging one single income stream in their Airbnb business. With the right business model, you can easily diversify and have multiple streams of income. The truth is, there’s likely a few thousand dollars per month in low-hanging fruit ready to be capitalized on.
Learn *exactly* how to build your Airbnb business, step by step.
The reality is, if you’ve chosen the wrong business model, it can be extremely difficult and complex to add on multiple streams of income. With the right business model however, there are likely 4 streams of income that you can easily take advantage of with minimal additional effort.
For someone doing rental arbitrage, these additional income streams are actually COSTS of doing business. With rental arbitrage, you actually need to pay these 4 expenses out of pocket, whereas with management fee model, you can turn them into income streams and earn an additional $500-$1,500 or MORE every single time you bring a new property on board under management.
The best part is, you can do this all while delivering a HUGE amount of additional value to your clients. We’re talking about earning additional income from your existing clients in a way that adds massive value.
That means that:
It requires minimal additional work because you don’t need any new clients.
Your clients will actually benefit from you offering these services.
So here’s a breakdown of the 4 additional income streams that you can create ON TOP of your monthly management fees in an Airbnb management business:
#1: Property Setup:
#2: Property Staging:
#3: Listing Photography:
#4: Listing Setup:
Each one of these services can also be outsourced, meaning that the delivery of the services requires next to no additional time or energy from the owner of the business. You can make a profit margin on the service, and your clients are still going to benefit massively.
#1: Having their property setup for them alleviates a whole lot of stress and removes a whole lot of work from a property owner’s to-do list. Now they can sit back and relax while your team sets up the property with all of the furniture, amenities and decorations that it needs.
#2: Having your cleaning team come in and do a deep-cleaning + initial staging of a property prior to photography means that you’ll be sure to impress your first guests and get some great reviews (huge plus for the property owner) AND having your listing staged for photography is ESSENTIAL. This will make the property more attractive to potential guests and put money into both yours and your client’s pockets long-term.
#3: Professional photography can literally improve the performance of a listing by up to 30%. It’s a complete no-brainer and needs to be done for every single property. You can add value to your clients by having a great photographer on-deck and the right systems in place so that they get all the perfect shots to make the listing shine.
#4: Setting up the listing or optimizing a current one for clients can save them a massive amount of time. When you bring your expertise to the table, you can also drastically improve the listing’s performance which will lead to once again, more money for both you and your clients.
All 4 of these additional income streams are easy to implement, add massive value to your clients, and will put money in your pocket both immediately and long-term. They’re complete no-brainers.
If you want to learn more about exactly how to build this type of business and implement these strategies, then check out this free training.
What's up everyone? My name is James and in today's video I want to talk about four income streams that almost every Airbnb manager every rental arbitrage out there for certain is completely just leaving on the table and missing out on.
So in this video we're going to dissect what each one of those is and how you can leverage those four different potential income streams in your Airbnb business to earn hundreds if not thousands of dollars in additional income every single month without any additional overhead on top of it without prospecting for any new clients and virtually doing almost no additional work for this additional income.
Now, I want to really make it clear out at the beginning of this, I'm not saying you can get these results without putting any work in what I am saying is you can do this without putting any additional work in if you are already growing your property management company because this is something these are sources of income that you can get from your Adit from your existing clients.
So There's very little additional work that needs to be done in order to generate this additional stream of income. And so in this video, we're gonna talk about what those four different streams of additional income are, how you can leverage them in your business. And we're also going to talk about the best model to be able to do this, how can you do this consistently, and operate your business in a way where you suddenly can earn hundreds, if not thousands of dollars every single time that you bring on any property
So that every time you bring on new property, it's not only costing you no money out of your own pocket to bring that property on, but that you can also profit instantly right when you sign an agreement, be in the green in the in the black, so to speak, and actually making money on that property before you've ever even taken a single booking. And bear in mind as well.
You're doing all of this in a way that it is a complete win win for the property owner. So I'm going to break all that down in today's video. So to start off with, let's talk about what these four different things income streams are number one is your listing setup expense. So this is going to be a listing setup fee for any, you know, getting the furniture for a property getting an additional decorations for a property.
The reality is that a traditional rental arbitrage model means that you're going to profit you're going to rent a property from a from a property owner, you're going to pay them first and last month's rent and you're going to pay for the furniture and setting it all up you know, getting all the furniture, all the decorations you need, that's going to come into your pocket. Most people that are using the manage the model don't charge additional for this they just set the property up for the property owner if it needs to be set up and they don't charge additional for this.
The reality is is a very valuable service to the property owner and so this can be an additional stream of income anytime that you bring a new property on. Under the management fee model you can be charging your property owner for setup expenses, so charging them for the for the actual setup of the property and charging them obviously for the idea You're using to set it up with because this is going to allow them to generate additional income from the property.
And so that is going to be really beneficial to them. And it's going to be a value added service that you can obviously charge for it just like anything else that you would operate in your business. The second different stream of income is for your actual staging of the property. Now, this is a pretty nominal one time fee for someone to go in and do a deep cleaning and a staging of the property.
You can either do this yourself, or you can have your cleaning team if you work with a clean team or with cleaners to go in there and do this and you can obviously charge a markup on it. It's not a huge moneymaker by any means because it's not massive in a massive expensive time or mass expense you want to be putting onto your client, but you can actually make a little bit of money anywhere from 50 to 100 or $200.
Every single time that you bring on a property and additional margin for going in having a cleaner going into a deep cleaning of the property. Make sure it's ready start welcoming gas and staging it prior to photography, staging your property Doing things like tucking in all the tags fluffing the pillows, making sure everything looks just right. For the moment that photographer comes into the property is really important.
Again, that's going to be a huge value add because it's going to allow your property to get more bookings, which will be more money for your property owner. So it is something they're going to want to invest that money in. And so you should be charging additional money for the setup and staging. Again, traditional rental arbitrage is something that you are paying for out of pocket, and that you're not you're leaving money on the table when you do this.
And you're taking a risk by doing it by obviously putting your own cash into it upfront. So this is a second stream of income. Now the third stream of income is going to be photography. Photography is absolutely massive. This is something that I recommend charging top dollar for and you want to be paying top dollar to the best photographer you can find.
Now again, that means your photographer is going to make a good chunk of money on this, but it also means that you can make again a small amount of margin and when you're bringing on a property an extra 50 or 200 dollars on top of what you're already making to bring on that property, it's just money in the pocket.
So why not be earning just a little bit of additional money by marking up the photography expense, you'll take care of organizing the photographer giving the photographer all the proper guidelines and systems that they need so that you're still adding value to the equation here and you can ensure that your your property owner is going to get the best possible photos for the listing. And now you can add a little bit more money.
Now photography is probably the most important thing for optimizing listing. If your listing is underperforming good chances are by improving the photography, you would be able to drastically turn that situation around is a number one thing that we've seen time and time again to improve the performance the listing sometimes by up to 20 or 30%.
Now imagine what that looks like for your property owner. They're gonna invest 100 200, maybe $300 for a top tier photographer, and you know, a big a big major market into having a photographer come by and get some outstanding photos and Imagine that leads to attend a 20 or 30% improvement in their booking in their listings performance that's not uncommon, that's 10% is pretty average 30% we see all the time.
Now, that's going to mean an ROI for them in the very first month, it's certainly going to be a very worthwhile investment for them. That's a third stream of income that you can have coming in. Now, like I mentioned, those three things, and this next one are all just additional things that you can be charging your client for that you are delivering real value to them through doing, and that you're not putting in a bunch of extra work.
You're not prospecting for more clients, you're not going in reinventing a wheel, you're not doing this stuff yourself, you can outsource it and you're still making a decent margin on it, you still have this additional stream of income coming in and you're doing no extra work to generate those clients. You're just being able to squeeze more juice out of the orange and by the way, provide a bunch more value while you're doing that.
The last one is the listing setup, the listing setup is something that I see everyone, almost everyone across the board is not charging their property owners for this. Now the reality is, you're going to take time and use your expertise to go and set up a listing properly, that's going to likely take you two to four hours, sometimes even six or eight hours to do it properly.
To get that listing set up, get the prices all set in optimized, create the listing, description, headline, put all the photos in the right order, set all the settings properly integrated with the channel management, gentlemen, software, that's pretty process, all these different things. Now, I highly recommend charging for this for this service. Or at the very least, you can waive the fee for that charge as an additional bonus and incentive for someone to sign up with you and start working with you right away.
Now, this is a value added service no matter how you slice it going in and setting this up properly is a value added service. And from my perspective, the best way that I look at is that the 20% to 30% in management fees that charge to a property owner for managing their property is a management fee that covers our operating expenses and our offering offering profit.
That's our day to day the things that we do day to day like organizing cleaners, taking care of the guests communication, you keeping the listing optimized, but those additional those upfront investments that we're making are not factored into that 20 or 30%, that we're tracking programs. So naturally, we shouldn't be charging for those things upfront at the outset.
Now, again, this is something that adds value to your property owner because if you have it set up properly, and you take the time, you're getting compensated fairly for your time and you take that time to set up the right listing description, really dial in the headline, set the photos up, adjust the right order, really maximize the pricing strategy, get it all set up properly, that ultimately is going to lead to a bunch more bookings and a bunch more money for both you and the property owner.
So naturally, that's a win win as well. Now, all of these things can total anywhere from depending on the amount you're spending on furniture, that'd be obviously really big. variable, everything else outside of that, you know, from the staging to the, to the typography to the listing setup that can total about $1,000 of additional expenses that you can be that you can have for your property owner when they're getting their property set up.
Now, that's all well over $1,000 additional value that they're getting from that process, because bear in mind that they're going to get an ROI on not in just a couple of months time. And now you can suddenly be making a couple hundred dollars of additional income on every single property that you bring on board before you get listed. So now you're in the green before you ever get a property listed.
I know there's likely to be some difference in opinions on this video, some people are going to think that you don't want to be tracking your progress that much. Some people are going to think you should be charging even more than that. And the reality is that I really fundamentally believe in working with clients who value the work that we put into something.
So in my in my point of view, if I'm going to work with a client, I need them to value the work that I'm doing and have it be fair how it be when when I always want to be a mutually beneficial relationship. And that goes both ways. I'm never going to gouge a client and charge them some exceptionally high rate for a service that isn't adding value to them and try to take advantage of them that way.
And on the same token, if I'm doing something and I'm taking my time on creating value for them, I expect to be fairly compensated for that. So these, like I said, are four different ways that you can generate additional income every single time that you bring on new property. Now, this is going to equate to, you know, hundreds, like I said, if not maybe about $1,000 of additional margin every single time you bring on a property, it's gonna allow you to scale that much quicker, it's gonna allow you to do that much better of a job.
And quite frankly, it's going to help you to self select the proper owners that you want to work with, because the people that aren't willing to pay for what is valuable and actually, you know, pay top dollar for top dollar service probably aren't the clients that you want to work with in the first place. Now, the last thing I want to touch on is the best model to be able to use any Your Business overall to really capture this and really capitalize on it.
Now with rental arbitrage, the challenge is that you are paying a fixed monthly rent, and it's up to you to furnish the property. So if you want to incorporate these things into your property management model, with rental arbitrage, it's gonna be really, really tough to do that the best model to incorporate these into something called a management fee model, if you've checked out other videos on this channel, you'll be very, very familiar with exactly what that is.
It's where you charge a percentage of the overall revenue to the client in exchange for your management services. So typically, like I said, That's anywhere from 20 to 30% of the overall revenue for a property. And this means that you're not paying money out of pocket for rent for furniture, you're able to make money, like we just talked about all through this video whenever you bring any property on board.
So that's a huge advantage over the rental arbitrage model because you're actually making money we bring on new properties. You can scale your business at whatever rate you're able to, you know, you're not limited by having not enough cash on hand to scale the way you want. differential arbitrage, and you have way less risk way less overhead every single month.
And so it's a lot more flexible business model. And it's very easy to put the systems in place to, you know, automate all the day to day operations in the business and how things run a streamlined fashion. Now, if you're interested in learning more about the specifics of this model, really diving into all of it, then check out the link in the description below that I love for you guys for free training.
It's about a two hour long training, we're really going to go into detail. So make sure you set the time aside register for that training, guys, it's completely free. And it's where I basically break down the step by step, every single thing that I've done to be able to rapidly scale my business managing properties on Airbnb. And we work with at this point, just over 400 clients all over the world.
So all using these strategies, they work, they're bulletproof. But the problem is that you actually have to implement them, right like anything. Like I said, there's no silver bullet, there's no something for nothing. There's no magic pill here. So if you're interested in actually doing the work, you're interested in checking this out and learning more about it. Then I highly recommend that you check out the link in the description down below.
If you're a host who is just starting out and you want to improve your hosting and learn how to perform at a really high level then I'll leave another link in description to a free training that I also put together for Airbnb hosts who want to improve the performance of their listing overall. So if this has been helpful, please do take the time to take a quick second and just click the thumbs up button on this video just give it a like there.
It really does help me out a whole bunch with the YouTube algorithm. So I'd really appreciate if you would just click the like button there and give me a like on the video if you found this valuable. If you want more Airbnb related content, and more content about how to scale your Airbnb business, and all the different stuff that's going on in the world of Airbnb, then consider subscribing to the channel because we post new videos every twice every single week all focused around Airbnb magic properties on Airbnb.
And again, anything that's in this video that you have questions though, please do just leave a question in the comment section there. I'd love to answer those in the comments or just in an upcoming video. Hear. So hopefully you've gotten this gotten a lot out of this video and hopefully you could use it to make some more money in your business over the next couple months, a couple years. So I look forward to seeing you next video and until then