The Secret to Making More Money with your Airbnb Business

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What's up guys, it's James here and today's video we're gonna talk about how to make more money the real secret, the secret sauce to making more money from your Airbnb management business. Now this is a topic I'm really excited to talk about. There is really one thing I've learned I can really boil it down to one thing that I've learned in particular, when it comes to growing and managing your Airbnb management business, that makes it incredibly profitable, way more profitable than most people's. And I'm going to share that with you in this video.

Now, before we dive into in full detail, as I remind you, there's a link in the description down below. Now that link in the description links you to a free training where we're actually going to go through things step by step by step, I'm going to be able to show you regardless of where you're starting from, even if you have absolutely no experience whatsoever, how you can actually get started managing other people's properties on Airbnb and earn a full time income doing it.

And I'm also going to show you how you can build that business in a way that it gives you real freedom and control over your time. And a lot of us start businesses because we want to get more freedom more control over our time, we want to spend more time with family, we want to have more financial freedom, we want to go and travel more. And we want to just have control over how we spend our time day to day. That's why I started a business. That's why a lot of people I work with start businesses. And I'm going to show you exactly how to do just that managing other people's properties on Airbnb, and the description in the in the free training that's linked in the description down below.

So I highly recommend that you check that out. I would love to help you to build this business, we're even going to give you some free tools to help you grow your business once you just sign up for the training. So just click the link in the description down below. Feel free to pause the video, you can come back to it later, click that link in the description down below. And check out that free training, it's sure to be packed with a ton of value for you.

Now, let's talk about the one secret that I can really boil it down to to earn more money, earn a way better profit margin earn way more income from the same size of business managing properties on Airbnb. And that secret is, drumroll please, to make sure you turn all of your costs into profit centers. Now, what do I mean by that? How does that actually work? And you might be thinking, well, James, that's crazy. How do I turn a cost into a profit center for my business? If ever if I could, if I could do that, then it would be incredible. Of course, you know, it seems like it might be impossible.

But the reality is with this business, it's actually quite easy to do. Now if you look at an Airbnb management business, you're gonna see that there are a couple of main cost centers in that business, the top one that comes to mind that I'm sure comes to mind, for a lot of people, if you have even a little bit of experience or familiarity with Airbnb is your cleaning, right? Every time a guest checks out, the property needs to be cleaned turned over into make it up for the next guests to be able to check in. Now, normally, that's just a cost. Normally, that is just something that costs your business money.

Now, of course, whenever we're managing other people's properties on Airbnb, we're going to collect a cleaning fee, in addition to our management fee, because the guest always pays that cleaning fee, and then that goes to be able to pay the cleaners. But the really great thing is you actually get to set that cleaning fee, you can set it at whatever you want.

Now, I don't recommend marking out tremendously, because then you're going to drive away guests because they're not going to be willing to pay the high cleaning rates. But what you can do is mark it up to the top price you possibly can, that's not going to impact your your your bookings. And what we've found is it typically this falls right in line with the professional cleaning rate for property of that size in your area, meaning whatever the typical property, property cleaning company professional cleaning company would charge, that is going to be the maximum that you can charge.

And if you charge less than that, it's really not going to positively impact your bookings. If you charge right up to that, then you're gonna get just as many bookings if you charge a little bit less, so make sure you charge right up to that. But then how do we actually turn that into a profit center, that's obviously offsetting the cost. But if we turn if we turn our profits, then that means we have to be actually making money on that. And so that's where scale comes into play. And it doesn't take a lot.

Once you have even three or four properties under management, you can then negotiate way better rates with your cleaning company that you're working with. As long as you're just willing to give them exclusivity over your properties. It represents a bigger and bigger chunk of their business as you grow yours, so you can negotiate better and better rates. And for that reason, we're typically earning anywhere from 10 to $20, sometimes in larger properties, even 30 or $40 on every single cleaning in straight profit. So that means that now every single time that a property is turning over, we're earning additional profit from those units because we're getting our management fee.

We're also getting the entire cleaning fee and only part of that cleaning fee is actually going to the cleaners because we were able to negotiate a better rate. With them now might not seem like a whole lot 10 $20 per cleaning. But that really adds up. If you think about an average property that maybe has 789 10 cleanings per month, and then you have 10 of those properties, you can see that now the numbers add up really, really quickly. And it can quickly you put in hundreds, if not 1000s of dollars back into your pocket every single month, just in your cleaning fees. And not to mention that that was formerly a cost center in your business, that now you're turning into not only breakeven, but actually profit additional profit for your business.

Now, the other area of the business that has a cost associated with it that a lot of people think of when they think of a cost center for property management business is of course maintenance, when you're doing maintenance on properties, that is going to be you paying your gopher or you paying a professional to go by and actually take care of whatever needs to be taken care of maintenance wise had the property.

Now, of course, again, that is when we're going to charge back out, we're going to build it out to the property owner because ultimately they're the maintenance on their property is their responsibility. But there's nothing to say that you can't mark up that because you as a managing company are actually facilitating it. So it stands to reason, it makes a lot of sense that you would charge an additional markup on that, because you are adding additional value by actually facilitating everything.

So whether that's your gopher, whether that's you that's facilitating the maintenance people going by, you want to make sure that you're marking that up so that now whenever a maintenance arise of the property, there's any needs for that, you're not going to be gouging your customers, you're gonna be charged them an arm and a leg. But you again just want to charge a reasonable rate that's above what you're paying. And then again, as you grow, you can negotiate better rates with your maintenance people because you're giving them more work and you're staying loyal to them.

And then again, that profit margin that that margin there just keeps on growing and growing and growing. And so now, every single time there's any maintenance needs at the property every single single time that you're adding that additional value, you're taking care of that you're earning additional income from it, it's no longer cost center is no longer breakeven, you're actually earning an additional profit margin from that.

Now, again, a lot of people think that the only area that they can really make profit in their management business is through their management fees. And though that is a great way to make your profit. And you certainly can do that, and even drive that up by driving up your property's performance. That's one of the great things about this business is that we really have control over what levers we pull to increase our own income and the income for our property owners.

Now, yeah, that is a really great profit center. But it's not the only one, you really want to look at your business from every different angle and see where you're leaving money on the table where you could potentially be earning more income. Now, by doing things this way, you can easily turn a property that generates $700 a month into a property that now drains $900 a month, $1,000 a month. And that additional margin you're getting on every single property is again, that means it's just more money making it easier for you to grow your business, you can have a business generating $10,000 a month without managing as many properties and taking on as much workload.

And other really great area to add a profit center in your business is and I highly recommend this one is in your onboarding and property setups by helping your property owner to maximize their property's performance long term. By setting it up with the proper furniture, the proper debt cores proper amenities, you can then charge them an additional fee for that setup service you're doing, make sure they have everything we talked about that in way more detail inside the free training linked below.

So I'd highly recommend that you check that out as well. But that's an area where you can easily every time you bring on a property earn an additional 500,000 even 2000 $3,000 in straight profit just for bringing on the property under management. Imagine that starting out at the very outset the very beginning from day one, you're already up several $1,000 on the property already earning additional additional income.

You know, for most people, if you think about buying or renting properties, you have to outlay a bunch of cash just to grow your business and get that additional income coming in. But for us, we have the advantage of not only do we not need to outlay any capital to grow this business, add more properties, but we can actually earn several $1,000 every single time we bring on a property earn several $1,000 right away every single time that we grow our business.

So you want to really use that to your advantage. It helps make it a lot more fun a lot more exciting to grow. It's going to help your property owners long term because their property is going to be better set up and optimized to earn way more money get tracked a better quality guests commanded a higher nightly rate. And then that also in turn helps you to earn more in management fees. It is a win win win everywhere you cut. It's a huge opportunity that a lot of people are missing out on in their b&b management companies.

So again, I highly recommend that you check out the free training link in the description. Down below to learn more about all this stuff in detail. It's a really comprehensive training where we're going to walk you through exactly how you can earn a full time income managing other people's properties on Airbnb, and then put the systems in place to be able to really automate and outsource your business.

So you get real freedom and control back over your time, your money, your location, how you want to spend your life day to day. So again, just check out the link in the description down below for that free training on how to earn a full time income managing other people's properties on Airbnb. And until next time, I'll see you in the next video.