Have you thought about renting out your place or a spare room on Airbnb? Is a lack of time or energy holding you back?
The one thing that nobody mentions about renting a place or a part of a place is the work that it takes to set everything up and to manage the property. As the idea of putting space up on Airbnb becomes more popular and tempting, it’s important to look at the various options that exist out there.
This is why we’re going to look at the idea of hiring a company to be responsible for managing your rental.
I wrote about making money through renting out your property or some of your space on Airbnb a few years back. Since then many friends have gotten involved in the process. A buddy showed me his app and he’s on track to make a ridiculous amount of money in August.
On the flip side, a few of my friends and readers are still skeptical about the entire process. They’re not sure if they should trust the app, they’re not sure if they have the time, or they just don’t know where to start. It’s a shame to see someone waste their space when they travel or that extra basement that never gets used.
This is why I wanted to cover the idea of outsourcing the entire process so that you get paid without any of the hassle. Let’s get started!
[Full disclosure: I was recently asked to stay in an Airbnb and to review the unit along with the entire process. This Airbnb unit is managed by Luckey (a company that’s actually owned by Airbnb). The company manages rentals for hosts through Airbnb. I met a gentleman who worked for a company that manages properties for Airbnb rentals.]
How did the experience go?
I came in contact with a gentleman who worked for the company. I had to book everything on my own. I then chose the night that was most convenient for me.
The process was straight forward. Once I paid for the booking, someone contacted me to obtain my arrival details. Then closer to the date, I was sent a message with all of the check-in details.
I was told exactly where to find the keys and how to proceed. The person managing the account through Luckey was easily accessible and answered the few questions that I had. Once I got inside the unit, they had a piece of paper with all of the important information (like the wifi password!).
The unit was beautiful and spacious. It was a loft not too far from where I live. A few pictures are included below to see how clean the place was.
Here’s a picture of the kitchen space…
The check-out was smooth. I dropped the keys back in the drop box and moved on with my day. I didn’t have to deal with anybody nor were there any issues. The unit had towels, fresh bed linen, and even a few cups of coffee for the morning. You can easily win me over with coffee.
What does a company like Luckey provide?
I wasn’t sure how to review Luckey and the services that they offer because I wasn’t 100% sure with what they did. So I looked into their business model and what they do.
According to their official homepage:
“Hosting guests will no longer require any effort. We’ll take care of everything for you, from start to finish. We help you host on Airbnb with a complete and simple solution designed for people who don’t have the time. The satisfaction of your guests is our top priority.”
They do all of the work for you.
What does this include?
- They create your listing on Airbnb.
- They take professional photos of your unit (this is key when it comes to promotion of a place).
- They provide bedding and bath linen sets.
- They handle the check-in and check-out process.
- They help your guests figured out how to get to the unit.
- 24/7 assistance for you and the guests. They answer those annoying questions that you really don’t want to deal with.
- The setup of the unit. They make sure that your place has important information for guests. They have the linen sheets and bed sheets setup.
You just hand over the keys and let Luckey do the work. They take care of everything for you (for a fee).
From my experience, the biggest hassle usually revolves around the screening of guests and then dealing with their issues. This process takes longer than one would think. You have to ask a lot of questions and get to know the guests before you approve them/before they arrive. Then the work begins once the person tries to check in. I remember waiting a few hours for a guest to arrive because their cab got lost in the city. I certainly could’ve been doing something else with my time.
You can even estimate your possible earnings. This could give you an idea of how much money you can make with your place.
How does the process work?
They take care of the listing and the screening. They ensure that your place is on Airbnb and they then work to bring in guests.
The reality is that most people aren’t that good at posting a listing or at managing the listing. It can be a hefty amount of work that’s required. You have to take the perfect photos and then ensure that you have the best possible guests for your place. You then have to ensure that your guests have an enjoyable experience so that they leave you a five star review. You don’t want any negative reviews under your listing.
It’s easy for a busy person to mess this up because you already have enough going on. You don’t have the time to be managing your listing (especially if you’re traveling).
Should you hire Luckey or any other company to manage your Airbnb rental?
I was a bit skeptical about even discussing such a company a few years back because I personally always like to do things on my own for the first time just to see how the process works.
With that being said, I understand that most people don’t have the luxury of time to dedicate to every new project. I also have come to learn that many homeowners are using their Airbnb income to fund their travels.
Some of these folks who use these companies are traveling around the world for work or just living life, while someone manages their rental property for them.
It all depends on how much time you have.
The company will charge a fee. This will cut into your profits. They take 20% of the income earned (taxes included). The guests cover the cleaning fee. You get to keep 80%. I personally feel that it’s a fair price considering that you don’t have to do anything.
By outsourcing the entire process, you create passive income for yourself. You use your property to bring you money while you live your life. As an investor you can eventually purchase a few properties that bringing in money. You can rest at night knowing that you have a team managing your place and working on bring in an income for you.
This is the business that I wish I had launched.
I won’t sugarcoat it. I really wish that I started a business like this a few years back. I discussed this business idea with a friend back in 2016. We just didn’t know where to start and we didn’t have the time (the most common barrier in the world).
I’m a huge fan of the sharing economy and the opportunities that it’s creating. A business like this goes to show that you can be a middle person for someone and bring in money for both parties.
If you’ve been looking to put your place up on Airbnb to bring in some extra cash, you can have someone else do all of the work for you. There’s no reason not to try and make some extra money with your unused space.