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Listing Breakdown! Canggu Villa Airbnb

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SUMMARY:

Watch my screen as I go over a property submitted by one of you! It’s a fantastic property in Bali. I go through the entire listing and provide my thoughts in real time. Grab a pencil and paper, take notes, and apply the tips to your listing!

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Today’s video is bringing back an old favorite: The Listing Breakdown.

I’ll take one of YOUR Airbnb listings and go through it. I provide my thoughts at every step of the way. 

This can be extremely valuable to hosts. If you’re a new host, sometimes you can look at other successful listings and wonder what you’re missing. Even if you’re an “old” host, sometimes those thoughts happen!

First, I talk about the headline. The headline is, of course, incredibly important. I give a major tip on how to structure your headline. Then I filter the headline I see and provide feedback.

Next, I go over the photos in great detail. I spend a lot of time here because photos are the other major part of getting bookings. In fact, I’d say photos are the most important part of your listing. 

We go photo-by-photo. I share a handful of tips on how to set up your Airbnb listing photos. I talk about why certain photos are better than others. And I share tips on how to order your photos. 

I share my thoughts on Airbnb Plus. 

And finally, we talk about the listing description. I share my tips for laying out a great description for the guest.

This video is a must-watch.

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I do get a lot of people reaching out to me talking about Airbnb arbitrage and I really want to set the record straight on a lot of these common misconceptions about Airbnb arbitrage, and genuinely share with people why I don’t think it’s a great model, why I think it sucks for a couple of reasons. 

The first reason Airbnb rental arbitrage sucks is cash flow. In order to grow, you have to keep taking your profits off the table. You cannot use them to support your own lifestyle business. If you’re making $3,000 a month, really, you’re making nothing because you have to wait two months, maybe even three, just to be able to save up enough out of that profit to then go and pay it into another listing to pay first month’s rent, last month’s rent security deposit and furniture to bring that new listing on board. Not only do you have to keep reinvesting your profits, but it takes a very long time to be able to actually make money from the business that you’re putting into your pocket and that you can live off of.

You also have these huge overhead costs. You’ve got $1,000s of dollars in rent looming over your head that if for whatever reason things start to slow down for you, you’re on the hook now so you eat last. I don’t like a business where you as the owner eat last. I like businesses where I as the owner eat first. With a rental arbitrage business, you’ve got to pay rent, you’ve got to pay those cleaners. You’ve got to pay everything else first and you get paid last. I don’t like that cash flow. 

The next is because of risk. Risk is huge in a rental arbitrage business. You’ve got a huge overhead and what happens if the city decides that they don’t want to be as friendly to short-term rentals anymore? You might think that’s never gonna happen to me, but it does. Now you’re on the hook for a year-long lease on these properties. And what happens if, by the same token, the property owner says, Hey, I don’t want to let you do short-term rental anymore. If your business were to get shut down in 30 days, or 60 days, you’d be up a certain creek without a paddle. That is a really bad place to be. 

The third reason that I do not like the rental arbitrage business is depreciation. I’ve heard other people talk about how you can build equity in this business. That is true, you can build equity, however, you’re constantly taking your cash and putting it into assets that are depreciating. If you’re comparing a rental contract on a property and comparing the value of the equity to the equity that you’d have if you actually bought a home and owned that property, it’s not even close to comparable. You also have to think about the fact that a huge amount of your cost on each property initially is going to be the furnishing of that property and furniture is a depreciating asset. 

There is an asterisk. There are a few scenarios when I actually do recommend that people use the rental arbitrage model. And that is when they find what I call unicorn properties. Unicorn properties are the properties that’ll produce a 2x 3x 4x return on your initial rent payment every month. That is about 1% of the properties available on the market. If you do find properties like that, that is a huge knock out of the park. 

Your cash flow is much greater. The depreciation is not as impactful because again, that property is so profitable that you can bear to spend some money on a depreciating asset. You’re not gonna be sinking 10s of 1000s of dollars into that every single month, you’re just going to be going and furnishing one property every few months. Now like I said, the only real way that I’ve found to actually come across these properties is you’re constantly looking at properties and saying no to 99% of them when it comes to rental arbitrage. 

VIDEO TRANSCRIPT:

What's up guys, it's James here and in today's video, we're going to go back to one of my famous listing breakdowns. If you're new to the channel, or you haven't seen one of my past listing breakdown videos, what we're going to be doing in the video today is I'm going to go on to an Airbnb listing from a viewer here on the channel who submitted their listing to me, and I'm going to take a look and share my feedback on I'm going to share my thoughts on every element of the listing and really break it down so that we can learn together What does really well on Airbnb, what doesn't do so well, the pros and cons. And hopefully you can learn from this to learn, you know, things that you can do to help your listing perform better on Airbnb in the future, whether you want to manage other people's properties on Airbnb, whether you want to invest in properties for Airbnb, whether you're already hosting. And by the way, we've got links in the description down below for all three of those different things. So whether you're someone that wants to earn a full time income, managing other people's properties on Airbnb, got a link in the description below for free training that's going to tell you exactly how to do that give you all kinds of great tools and resources to do it. If you want to start investing in properties for Airbnb, actually build long term wealth and amazing positive cash flow from actually buying properties for Airbnb and short term rental link down below in the description for a free training is going to walk you through exactly how to do that, and use some great tools to help you get started and go on the right path. And then last but not least, if you are already hosting on Airbnb, and you just want to improve your numbers, improve your performance and get more detailed insights on things that you can do to really just improve performance and decrease amount of time you spend managing your property. Then again, a link down below in the description for free training that we put together for that all those strings are completely free. All of them give you some really great resources, really great insights from my over seven years of experience with property management, hosting and investing on Airbnb. So without further ado, let's dive into it. And we're going to take a look at this listing hosted by Rene. So this was listed along, you know, submitted to me quite a while ago. So if any of you guys do have listings that you would like for me to review, just let me know in the comment section down below. Just post a link to your listing in the comment section, I'd happily review it. So this is a pretty cool listing. Right off the bat I this is my first time looking at it. This is an Airbnb plus listing so that for anyone that doesn't know me has gone through a much more extensive vetting process with Airbnb and a lot of the photography is likely by Airbnb. It's in congu, Indonesia, to really cool sweet Villa really highly rated. So let's start at the very top with this headline, cool villa with art and design, quiet area middle of tonglu. So that's a cool headline, that's pretty good. My recommendation for the headline is always that we do something that's going to really highlight the main attraction features of the listing for potential guests. So you know, what I'm going to assume here for the sake of this video, is that the people that are looking for this villa are going to be traveling who are looking for something really cool, really funky, cool design, they want something quiet, they want to be centrally located and Kangoo. And so this title, if that is true, is really great. Now, if people want you know, to be in a in a party area, and they want something you know different than, than this, they don't care about design, they don't care about art, and they're looking for a party spot. This is a terrible title. But if we assume that, hey, you know, people that are the avatar guests, your ideal guests that you're looking to attract does care about art and design, they want a place that's quiet and they want to be central and Kangoo, then this is great.
Next, let's look at the photos, we're going to spend some time on the photos here. And the first one we want to talk about is the cover photo. So this cover photo is the first one that people are going to see it's going to stand out, it's also going to be the one that's in charge of getting them to click through to the listing, right, because what they're going to see primarily when they are searching through listings, when they're looking on Airbnb, is they're going to see this headline and they're going to see this cover photo. So the cover photo and the headline are really really important and for that reason, they're what's going to get guests to actually click through to your listing. So it's important that the that the main cover photo be really stunning which I mean let's be honest, this is an amazing cover photo, super cool space. It's got this opening to the outdoors, really nice furniture, I love it I would choose the exact same photo of myself so I think that's great. And then we kind of go through here I'm just gonna go through the photos in order I know they've got a little bit different organization with Airbnb plus listings but I'm gonna go through these in order. This is great. It showcases the stunning part of the property this is just so cool with the art in the back. I already want to book this place so I love this photo and I love the decor as well. They've done a really great job of adding decor pieces beyond like above and beyond what you what you would expect in an Airbnb and that's what Airbnb plus plus listings do a great job of is they're not just the basic Bare Necessities they actually have character they have uniqueness and this is amazing. Like this is a place that I really want to go just for the sake of going to this property which is incredible. It's exactly what you want. Again, this furniture like this, you know incredible wood, here with the glass top and the lamps and the colors, everything about this is just amazing. I love it. You know this piece, specifically this photo. This is showcasing something that's very unimportant, right. So a lot of people shy away from photos like this, because like, who cares about the table. But this is such a great photo to include, because it's such an eye catching piece, it's so it sets the mood. Not all your photos should be about showing the space itself, it should also be about showing the mood helping guests to envision themselves there. And this photo does a great job of that. So don't shy away from photos like that, again, coming back to this photo. And now we're in the kitchen. So you know, big, stunning kitchen, that's awesome. It showcases like a bunch of different stuff. You've got the nice, you got all the cutlery there, you got all the plates. So you're just you know, you're it's clear that it's fully stocked, you've got a great big fridge there, you've got the charcoal barbecue. So again, just you know, answering a lot of potential questions guests would have, I would have captions on these photos. That's my one critique so far is that you really want to have a caption, especially on a photo like this, that really highlights eight there's a charcoal BBQ fully stocked kitchen, all those elements that you know, guests might potentially overlook in the photo and they just want to have confirmed, you know, what kind of coffee maker is that down there looks like maybe there's a coffeemaker there? Maybe not? I'm not sure. I wish that question was answered in a little bit more detail in the caption, there would be a perfect spot to do it. I also am I'm not clear. So far. The other thing is I would add some more shots that just kind of make it clear what the layout of the property is. Because from here to here, I have no idea how we got got here, I prefer to lay my listing photos out in a way that it's sort of a virtual tour through the property, I always like to showcase some stunning pieces up front. So I would like you know, let's jump forward a bit. And I would probably have something like the pool. Like if we just kind of come out of here. If I have something really awesome to showcase that I know guests are going to absolutely love. Like I'm assuming this place has a stunning backyard but takes so long to get to it if there Yeah, so this pool, it takes so long to get to this shot of the pool. But this is going to be such an important piece for why guests are going to want to book so you're counting on them getting so far into the photo. So I would have shots like these ones up at the beginning, I would have one of them up at the beginning like right after this photo, and then also have it in a natural progression throughout the photos. So I'd have it in both places, just so that it doesn't, you know, it pops out to me right off the bat. So that would be one thing I would also do is just showcase those kind of like high value amenities for guests right up front, and then have some more, have some more of a consumer trends transitionary I guess the right word for it shots, to to help people understand how they're transitioning through the space, how the space is actually laid out. But I mean, the photos themselves are stunning. They're really well done, the lighting is great. The staging is done very well also. So you'll notice here, these are some great shots here. Again, I wish there were captions on these photos. Just give me some of the details. What the heck is this thing? Is it an espresso maker is a water filter? I have no idea. Maybe it dispenses wine for all I know, I wish so yeah. Like all that stuff I wish was answered in captions. And then we just kind of jump over to a bedroom. I wish I knew where this bedroom was. Is it up a floor? Is it on the main floor? Question not answered. And then like, it's not even clear that this is a bedroom, you almost think this is a second living room. So it doesn't necessarily make it crystal clear that that's what it is, you know, we don't really have any, it's it's somewhat obvious that all those photos are tied together. But there's not one good shot of like the whole room. And I would love to have one wide angle shot of the entire room. So I could see the whole thing. But otherwise, I mean, these photos are great, the layout of the space is great. The furniture in here is amazing. I love it all it's so like so much light coming in here, this break great big thing over the bed is really cool. Again, like I think the place is really done well. This is incredible, like the artwork in here is awesome. I love this photo. And then again. So this is a great example of what I was talking about before where this, you'll find this photo to this photo. And they've kept this as a constant that really stands out where you can see this headpiece or whatever that is, you can see it in this photo and this photo. So it's very clear that this is the exact same room and that it overlooks out onto the pool. So that's great. Whereas in here, you just don't really have a lot of overlap. The only overlap really is that TV that you can see there in both places, I would just do something a bit more to make sure it's very clear, that's the same space. Whereas in this bedroom, I think they did a fantastic job of that and then got a little workspace there, which is fantastic. That's going to add additional value for the guests. You got another photo there. That's great. Same thing here where you've got the cool headdress but a different color a different theme. That's awesome. And then this one yeah, you're carrying it through and you can see okay, so I don't know I assume this looks like it's a different bedroom. But I think this one opens up to the pool as well. So I would showcase that. So again, I think the photos are you could have like easily for listening this big. You could have 6070 photos even and a lot of people shy away from having too many photos. And I have just not found that to be true. I've not found that having more photos, as long as they're not, you know, very redundant photos, I haven't found that having too many photos becomes an issue and actually hurts listings performance. So I would, I would definitely have more than photos that they have here. Because this one, it's it, you know, it looks like it opens up to the pool, but it's not really highlighted, I would highlight that this one great photo. Yeah, I like this. Again, this one highlights that it opens up to the pool, you can really see it clearly. Here's a really cool bathroom, I again, have no idea where this is. So like just some transitionary photos would be great. So I can get a better feel for the space itself. And then this again, like I'm just not really clear on if this is the same bathroom or a different one. Because I don't know where that shower is. Yeah, I'm really lost here. I'm really unclear on I think this is a different bathroom. I'm almost certain this is a different bathroom because this has a single vanity and this is a double vanity. But yeah, that's super unclear. Again, now I'm kind of back to another bathroom. I think I'm back to the original bathroom now. But the Yeah, I think so. But now but just laid out differently. Yeah, that doesn't make a lot of sense. Because on one hand, the vanities on the left, but the toilet and towel rack in the bathtub are all the same. And then here, the toilets on the right. So I think that's a third bathroom. Maybe? Yeah, super unclear. And the captions don't answer any any questions so that I think it's bad. I think that's just like poorly done. The the way the photos are structured there where you've got a bunch of bathrooms, I think. But there's no clarity around the fact that it is multiple bathrooms. So yeah, I think that's the bathrooms. Overall, these photos are bad. Like, the photos are good. The photos themselves are good, but like the way they're structured just does not answer it leaves me with more questions than I started with. So I don't love that. Yeah, this photo is awesome. You know, I love that the table is set that the table is set with play settings, I would set these last two place settings, I don't know why they're not set, because like this is going to going to be attractive to a large group of people. And what I worry about now is that, like, you just don't have enough table settings for these other two, two spots. So I'm kind of concerned about that. Because I found that when I go to larger listings, that can often be a be an issue, or they just don't have enough play settings for everyone. So yeah, I would be concerned about that. And I would just I don't know why you wouldn't have the habit all filled up. And then otherwise everything's great. I love that you've got some nice fresh flowers for this. I wish it was a bigger bouquet. But otherwise, like, you know, it's great. This kind of day bed is cool, but I've no idea where the heck it is. So that's kind of sucks. I wish I knew where that was. This is a weird shot, I would take this out. It's just bad. Oh, I would showcase this space a bit better and differently. Because I don't know where it is. It looks like a cool spot to just kind of chill though. And then I don't know how this I yeah, I just I'm so confused about the layout of this property. Because there's so few photos that do a good job of actually like showing the layout. Overall, I think this place looks stunning. And I want to go here. But I think that the the photos really did not do a like there. Yeah, it's tough because I don't want to bash on it too hard, because like the photos are incredible. They're amazing. And like, obviously, you had a professional photographer come in here, I'm sure it was one of the ones that Airbnb gave you. But that's kind of my gripe with Airbnb photographers is that they don't do a great job honestly, like I just don't think they do as good of a job as they could. And I think that listing performance is going to suffer just based on the fact that like, there's so many questions that go on answered here. So right off the bat, I would add descriptions and then I would also get another get a photographer to come back in and get some of those more trans transition shots, and then get some some of the better shots like I mentioned in some of those other other areas, but like, you know, overall in the big picture, you're still sitting at an eight out of 10 I just think that there there is room for improvement. But certainly it's not like these are anywhere near bad photos. They're fantastic photos. It just there's so much I wish that this property was better because the property itself is so spectacular that I just wish the photos did it justice a little bit better, if that makes sense. Let's look now at okay, so eight guests, four bedrooms, four beds, four baths. Okay, cool. Four bedrooms, four beds, four baths. Interesting. Okay, cool. Yeah, I would I would look to maybe restructure that I don't know who your ideal guest is. But maybe it is like larger just groups of friends but it I found it to be a good idea to have like at least one or two bedrooms with with two single beds so there is the option for families but maybe you don't want families there. That's totally reasonable. Fair enough. So yeah, I also would have expected this property just one other note that this property could sleep a lot more than eight people just with the the sheer size of it. So I would consider adding additional accommodation asleep a larger group of people so you could have larger groups of friends but again, if that's a personal choice you've made not to allow those people that many people into the property then fair enough dine Alfresco with the roof overhead and a huge open air living space filled with color art and lush greenery means no problem, a philosophy that comes to life in this dream home, where the outdoors and indoors blend together in pure harmony, creating memorable holidays is what we do. Yeah, I like that. That's good. Like it paints a good picture. I like it. So the photos cool. Yeah, so this is great. Like you've got great captions here. Why on earth did those captions not end up in in the photos?
Fill should be in the photo so that all this detail is there in the photos. And then yeah, I just don't love the way that Airbnb plus listings are laid out frankly, with like the details just being harder to find, if you can, I don't know with Airbnb plus, if you can add a more detailed description that kind of has a list of amenities like this just makes it this I don't love because it's not really structured properly. I'm like it's not organized and nice, easy to understand. And like kind of navigate way I want to be able to look at each room in the house and then decide like, because if I have a question, how do I get the answer that question? So for example, you know, is there a coffeemaker at the property? Well, I basically like it would just be a lot easier if instead of having to come in here and I look and I read each one of them for kitchen, maybe that means coffee maker. Okay, here's the one says coffee maker. Great. I found it. As opposed to it'd be nice if I could just if I could just pull up a list that says kitchen as as a header and not so I recommend doing in your description. It's just have it have a general amenities header that are the kind of most desirable amenities and then have it broken down into rooms. And then have each room have like the the list of amenities that it has. So if I could just go kitchen, coffeemaker, what brand is it blah, blah, boom, then I can just find the information I want more easily, which is great. So otherwise, everything looks really good. Yeah, I mean, the reviews are fantastic. Yeah, nothing else to really report on here. Checking after two that's nice checkout after 11 is great. Yeah, I think that's fantastic. The only thing is pricing, which really you know, I can't tell without knowing the area you know how optimize the pricing is, but I'm going to after this video is done I'm going to check out the pricing and see if I can book myself a stay potentially. So yeah, love the listing looks super cool. There's a few areas for improvement. So I hope you guys got value from me going through this. This is a fantastic listing to do it on because there's you know, just so so much that's done right on this listing, frankly that I think yeah, did a very fantastic job. Hopefully you guys learned a lot again, check out the links in the description down below for free trainings on everything that you could possibly need around Airbnb and short term rentals. Whether you want to earn a full time income managing properties on Airbnb, you want to invest in properties for Airbnb, or you want to just improve your hosting on Airbnb. We've got free trainings for all those and more down in the description down below. So check that out. If you like this video, if you got value from it, make sure to give it a thumbs up make sure to hit that like button give me a like on the video it helps me out tremendously. If you want to stay up to date with all the latest on this channel. Then make sure you press that subscribe button so you can stay up to date with the two new videos that we post every single week on this channel on Tuesdays and Thursdays. Again, thank you so much for watching, and I'll see you in the next video.

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