Are Airbnbs Constant Party Houses

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What's up guys? It's James here. And in today's video, I'm going to ask answer a question that I've been getting asked for the last five years. And it's is our Airbnbs constant party houses. Are they just filled with parties? No. And a lot of people, they don't even ask that they go, Well, I heard that, you know this, this property got completely ruined from Airbnb. Yes. You know, aren't they just total party houses, everyone seems to have this concern. I started having this concern comp with customers of mine when I was managing properties on Airbnb and started out growing that business. And I have it now and I'm coaching people, I have it now hosts I work with investors I work with when I'm investing, everyone wants to know everyone seems to think that Airbnb is or just total party house that they're constantly getting trashed. So I want to shed some light onto this common misconception. Before I do that, I do want to remind you, there's a link in the description down below to check out our free training on how to invest in short term rental property. So I would highly recommend that there's also a link in the description for how to earn a full time income, managing other people's properties on Airbnb. So I'd highly recommend checking that out as well. If you want to actually start buying properties on Airbnb, you've got some money saved up, you want invested into a short term rental property, then check out the first training I mentioned. That's what we're going to walk through, it's a brand new training, we walk through the three critical components that you need, in order to invest successfully in short term rentals. Now, if you're just getting started, you don't have money saved up and you want to get started without putting any money in, you want to manage other people's properties on Airbnb, another Training link in description down below as well. And that's a train where we walk through every single step of the process, how I was able to go from zero to over $100,000, in my first 12 months managing properties on Airbnb for other people. That's how I got started with Airbnb. So if you want to check that training out, check it out, it's linked in description down below, it's completely free both trainings are, we're also going to give you some really cool free tools to help you get started when you're in the training. So I'd highly recommend checking both of those out. Now, that being said, let's talk about answering this question. You know, our Airbnb is just constant party houses? And the answer is yes, your house is going to get trashed. Don't put it on Airbnb, obviously not obviously, that's just a joke. No Airbnbs are not party houses. And your house is not going to get trashed, if you put on Airbnb, if you know what to do. In 99.9% of all cases, if you implement the right strategies, you're not going to have these issues, where hosts run into issues when they don't have the right strategies in place. And I'll talk about exactly what I mean by that in very practical terms here in this video. So here's a good example of someone that I went. I remember years and years ago, when I was just getting started managing other people's properties on Airbnb, I went and met with this prospective client. And she had just listed the property herself on Airbnb and was a property in Toronto. And there was a multi million dollar properties right by the beaches in Toronto, which is really cool spot. And it was a beautiful brand new property, beautifully renovated. And it just had absolutely like the highest end furnishings and decor that you can imagine everything was beautiful in this place. And we're walking into the place and be like, Wow, this property is stunning. I'm so excited to manage this property. It's going to do so so well. And I remember starting to talk to her and we were getting an idea of her and, you know, getting an idea of all everything she had done so far. And she showed us the listing and said, Okay, this looks pretty good. Everything looks good. And I asked her, you know, he said, Well, do you have any bookings yet? And she goes, Yeah, I've got I've got all in but you know, I wanted to actually talk to you about this, because I'm only getting one night bookings. And I said, Oh, my goodness. So they might have I'm going why would you ever allow one night bookings on a place like this? So I looked at her calendar, sure enough, was filled up with one night booking after one night booking after one night booking after one night booking her whole next two weeks, the whole rest of the month was filled up with just one night bookings No, literally not a single booking for longer than one night. Now, even if this was a normal property that wasn't going to get completely trashed, because these were all people trying to throw parties, that would be a nightmare. Imagine how many of your cleaners go by there every single day of the entire month, let alone the fact that now this is a property that she's got. She's allowing one night bookings on and she's got the property. You know, I come to find out it's underpriced is drastically under price. She doesn't have a security deposit on the property. She doesn't have any house rules on the property at all. So this is basically just a party house at this point. Like it's being marketed as far as anyone else is concerned, as a party house. She wasn't aware of that. But you know, obviously, that's the mistake that she made. And as we're walking out of the property, went to a coffee shop to finish up the meeting because she goes I have guests checking in. I want to make sure that we're out of here before they get here. And as we're walking out of the property, the guests pull up. Now who do you think it is, but you know, a bunch of teenagers pull up in a jeep and the first thing they start unloading they back into the driveway and they actually hit some of her stonework on the driveway when they're pulling in so they damaged some of the stonework right off the bat. And then the first thing they do is they pop open the back of the Jeep and they start unloading to force from the
activity. Now this was a really bad sign. And I sat down with her at that coffee shop and urged her to please cancel all of these bookings. And she ended up this first guest, this first group of guys that booked the place that were getting in there, they ended up having a party, they totally trashed the place, it was a ton of damage. And all that to say that, hey, this was a really big mistake, but it was one 100% avoidable. Now, in her case, Airbnb did cover the damages. So that's nice. But at the end of the day, that's still not a great outcome. Because the idea is you really want to eliminate parties eliminate these kind of issues. And then you also want to have contingencies in place as a backup. So for example, airing these liability insurance, collect the security, deposit your own home insurance policy, for example, so that you can cover yourself, but first and foremost, you want to eliminate the issue. So let's look at things she could have done to eliminate those issues. And that I recommend doing that I personally do in order to eliminate parties 99.9% of the time. Now, it's not to say it's 100% foolproof, obviously, things can still happen. And that's why we've got those contingencies in place. But most most, most of all the issues you're going to have can be completely avoided and eliminated. If you take these few simple steps number one, and you have more than a studio or one bedroom apartment, there's no reason to be allowing one night stays, you should really be setting a minimum night stay of two nights or longer depending on how big your property is. Really, the only types of properties that I recommend having a one night stay allowed on would be a really urban condo, that's like a one bedroom or a studio apartment, even then I would be cautious about it. So number one is allowing not allowing one night stays. And the thing I always tell people about not allowing one night stays is that 99% of your issues are going to come from one night stays. That's not to say that one night stays are going to cause issues 99% of time. It is to say though, that the majority of your issues are going to come from those one night stays. So if we do eliminate those one night stays, we then end up eliminating the majority of all issues. Because the thing to remember is the people that are looking to book a place for a party, they're not trying to stick around, they're afterwards they're trying to get in and get out, they want to book it for one night. So when they go on Airbnb or other platforms, they're searching for a place for one certain one specific night. And if you have your minimum night stay set at two nights or longer than their property is not even going to show up in their search result is not even going to be one of the options they're considering. And that's what you want, you don't even want to be seen to those people that are trying to book the place for a party. So having a midnight state of two nights at the very least. And for larger, bigger properties, nicer properties, even going to three, four or five, or I've seen even seven nights minimum stays. So that's one tip right off the bat that could have saved this particular host a whole lot of headache and damages. Now, number two is screening your guests, you want to make sure if you have instant book turned on, which I generally always recommend because it does help you tremendously with performance, you want to really utilize the fact that Airbnb is gonna let you cancel three bookings per year without any penalty at all, as long as you have a good valid reason for not being comfortable with that guest. That means that we can check out the guest pass reviews, we can check out their Adrian check of the ages of the other people in the group the size of the group, we can verify the names of the people we can verify the reason they're traveling you and the more suspicious a group looks, the more questions you want to ask, the more detail you want to get in order to vet that group of people. So for example, if I have someone booking the property locally, a lot of the time that's a little bit suspicious if you're used to getting people from out of town or from international. And it's not to say that it's a red flag that we're going to, we're going to cancel out booking. But that's one thing that makes their booking more suspicious. So let's go ahead and ask them, Hey, why are you booking this property? I see that you're from Toronto, or you're from the same city that I'm in, why are you booking this property? And then if they say, Well, you know, I want to go somewhere else, because we're throwing a big birthday party for my friend, and we just want to have a different place. That means they don't want to clean up the mess they're about to make that is a red flag, you know, they don't want to party at their own place. Because they are going to make a big mess. That's a red flag, no go. Whereas if the person says, Oh, we're renovating our kitchen for a couple of days, and the contractor said we need to be out of the house because we're not gonna have a same rock on the Sto. So we just need somewhere to stay while we're renovate while we're the rent main renovation, our kitchen is happening. Okay, that checks out that makes a lot of sense. You know, if we have a bunch of people that have negative reviews, no go we don't want to be having people come in that other hosts have spoken poorly about, we have people coming in that have a large group of young people, really young people, that's also a pretty big red flag to me, young people tend to be the ones throwing parties. If there's not any children there and there's not going to be any adult supervision, then that's where we start to get concerned. I like it. You know, a good sign to me is if someone is saying, Oh, well, we've got some toddlers coming or some young children because I know they're not gonna be turning up with their kids there. And also if they say, Okay, well, you know, there's some aunts and uncles and parents, whatever, that can be a better sign as well because again, there's going to be some supervision.