welcome back Airbnb family today we are
going to do slightly extended video on how to conduct free market research on
Airbnb so that way you don’t have to pay for air DNA this is the kind of thing
that you’ll need to know when picking up new properties how to vet your locations
and vet your territory to make sure that you you get in profitably and of course
this can help you with your competitive pricing strategies if you already have
property so what we’re going to do is we’re going to search through properties
and we’re going to look at our competition I’m gonna teach you a few
different ways to do this and what exactly it is that we’re looking for so
the first thing that I want to teach you how to do is how to find out what other
people are charging and this is not that difficult but it gets a little deeper
than you think so we’re gonna go to homes in Houston and we like to pull up
the map on the right the map is what we really want because this is how you
define your area in order to whittle down the total number of spaces you see
down here it shows that there’s over 300 rentals in this search parameter we’re
gonna want to get that down under 300 so we can start working with percentages
but currently we’re looking at prices so what we’re going to do is we are going
to try to find out how many people in your competitive area have a price point
so this is where I compete if we’re gonna actually scroll this a little bit
to the right here and this is my neighborhood so I have about 15
properties right here in the mix so what I’m going to do is now I’m gonna look
for dates in the future the reason why we look for dates in the future is
because a lot of people will drop their rates last-minute so if you’ve noticed
on the right here you’re gonna see that there’s one for eighty and one for 79
and one for 58 we’re going to set our dates for the future we’re going to
actually go more than a month ahead of time to increase the likelihood that
people will be available and we’re gonna some people don’t allow for single night
stay so we’re gonna do a two night search instant book on because that’s
the only thing that really actually matters and apply that
hey here’s one of my properties right there there you go that’s me that’s me
and that’s me so I’ve got three oh that’s me too well let me have this one
of my wish list so add your own properties to your wishlist guys because
it actually helps with your SEO and if somebody wants to see all of your
properties you just share with them your wish list makes it easy so home type
you’re gonna want an entire place if that’s how you roll and bang here we go
so instant book is on entire place what do we have for these two dates you’ll
see these are the search parameters but when you go and actually look for
filters based on price what we see here is we see this little graph this chart
now what we want to do is get in what you think to be your competitive range
and we’re also going to change how many apartments there are so but if you
notice that a bulk of this stuff it looks like it’s in between 55 and night
and 245 at night in price points so the next filters that we want to look for
are gonna be for whatever type of property you want to set up um if you’re
just looking to do a price competition so what we’re gonna look for is we’re
actually going to look for well obviously beds 1 plus and bathrooms 1
plus so the problem here is is that you cannot exclude two bedrooms from the
search so everything will pop up higher so now what you’re gonna have to do is
you’re gonna have to start looking at them to find out which ones are two beds
and which ones are 1 beds and you can see them right here and we’re clicking
on this one bed by accident so let’s go back so this one’s a one-bedroom this
one’s a two-bedroom so this two-bedroom for April 10 through 12 is 113 and night
right which i think is actually super super low this, well, actually these
are the total number of beds in the apartment so there we go
so this one has three beds this one’s mine I’m charging 160 and 196 a night as
my base rate I’d have to separate king-sized beds because it’s a
two-bedroom and I have one queen sized sleeper sofa so this is going to be a
one-bedroom with two beds this is going to be a two-bedroom here it looks like
and then this one’s going to be a one-bedroom so all these ones that have
a few amount of beds you can pretty much roll the dice and believe that there one
bedrooms this one though is a two-bedroom two-bath and it’s listed
there so this person is kind of screwing up because they can put a sleeper sofa
in the living room and market so what you see here is when you do a search for
these dates you’re going to notice that the cluster of prices here are going to
be what people charge so what you can do is if you want to isolate you want to
find out how many people are charging between 55 and 77 dollars a night you
scroll down and you see that there’s 8 rentals at that price point right
between 55 and 77 for those two nights and then you can take a look and what
they look like so this is the neighborhood that the cheaper ones are
in see over here below West gray this is more Montrose Museum Park this is more
Midtown actually I’ve got some property right here and I’ve got a lot of
property up here so now if you want to then look and see what other price
points people are at let’s go up to the 100 and go from that $77 price point
they may actually be spread this out a little bit there we go 78 to 106 how
many do we have in that nightly range and that’s when a lot of properties will
probably start popping up we’ve got 34 rentals at that range and then and I
think that’s actually a pretty workable range it’s actually small so what I
would do is I would then go to about 145 and 978 to 145 and this will be a good
focused amount with 78 rentals so you can see how many properties are in this
range and we’ve done it for two days here and so what we’ll do is just to
make sure see if there’s actually some people might already have some booking
so we’re gonna do is we’re gonna check another a couple days here and see what
pops up if it’s still 78 or not and it is 76 so the greater of the two is 78 so
we know that there’s at least 78 in this area so let’s go back here just for the
sake of it and then what I’m gonna teach you how to do now is how did determined
general demand on this okay so when you look at a property
say we look at this downtown one-bedroom you’re gonna want to look for a couple
key bits of information when you open these up so there’s gonna be notes that
Airbnb gives you they’re gonna tell you while this is loading guys I’m gonna
give you this information they’re gonna tell you that you know a certain number
other people are have you’d this property in the last 24 hours
we’re gonna say that this one’s very rarely occu.. like very rarely
available,.. stuff like that so like right here this homes on people’s minds Ben
viewedd 500 times in the past week but that is for any spread of dates so this one’s
getting over 500 views in a week that’s pretty good
good job mr. SEO guy so now if we actually go into dates and we want to
look at his availability check this out so right now it’s the beginning of
February he’s all booked out except for the second Wednesday the 23rd 24th
he’s got five days three five and then five available in March right so that’s
that person’s occupancy this person is fifty percent occupied in March and it’s
the that’s like their third of April I’m in third February now and he’s almost a
hundred percent occupied for those dates or arianna sorry it’s a female she is
occupied good job Ariana so what we can learn from this is that her price point
of ninety per night she is staying pretty well occupied a few months out
right there’s other things you want to consider too of course like what are our
reviews she’s actually got two reviews so this has got to be a new property
because she’s bucked up but has no reviews so in order to ensure that we
get a good actual grip for what this is like let’s look at this one right here
this uh Montrose one now what you can do is you can open up a Google Drive
spreadsheet and start taking notes what you’ll do is you can do is touch achieve
I’ll even do that for you just to give you kind of like the proper way to do
this because I think this is the most helpful for you so let’s say we go into
Google Drive which is free for any of you who have not used it and we’re gonna
open up a new spreadsheet so today’s date is February 3rd 2018 and we’re
gonna mark Titleist competitive analysis so we’ve got property number one and
what you can do is you just just copy the name here and you can even take the
link for it if you want to do that and keep that available and then you can go
occupants okay so we got price and that price is
ninety per night don’t mind me guys I don’t need to know how to type there we
go so we’re current reviews review count
two now what do we know about our occupancy percentage so you can do this
30 days and then next 30 days and then 60 to 90 days out and don’t mind me one more time for
my lack of ability to type so let’s mark her occupancy and they do this this is
pretty simple what we’re gonna do is we’re gonna go back and look at February
28th she’s got 25 out of 28 so you go into
here the 25 divided by 28 and actual let’s put the equal sign because 89
percent occupancy now let’s go down to the next month so there’s 31 days and
she’s got five ten 15 18 of let’s come two days and shake she has 3 4 5 6 7 8 9
10 11 12 13 14 13 sorry my bad okay so she’s got 13 out of 31 days and
so she is 41% occupied for 60 days out and here she’s got 1 2 3 4 5 days so
she’s got 5 days out of 34 62 9 days out so he goes 5 to 5 over 30 that’s her
occupancy here so now and then that was at the price of 90 so let’s just put a
little box here to help you understand that this is one person’s stuff now
montrose super host congratulations Lucille if you’re watching this you are
doing awesome so keep it up and now let’s look at her property and let’s
copy the link up top if we want to reference it later and then let’s go
into her price she’s 95 per night and she has 34 reviews and she’s crushing it
with all 5 stars so price is 95 per night and then of course her reviews are
34 and she is an average of 5 star which can matter on her occupancy and her SEO
so now let’s go back in and search for her availability
okay so she has three open dates for the month out of 28 so she’s got 25 out of
28 again so let’s copy this let’s put it down here and of course we’ve got our
occupancy percentage so she is 25 out of 28 also and then the next month she has
only six on booked days so she’s 25 out of 31 so she’s crushing it so she’s 80% occupied for next month
already and she has 1 2 3 4 5 6 7 8 booked days out of 30 for her 60 to 90
days out so she charges more but has more reviews in us and our 5 star and
she’s beating out obviously our friend from the previous profile so now what we
want to do is we want to keep going up in price point right so let’s take the
next one that’s up so this is marked as a 113 per night but that includes the
cleaning fee and that’s probably why you see that that price point that’s the
average price per night for our query so let’s go into another let’s look at this
one this is 122 per night for this high-rise so high-rises are great
they’re definitely more popular than regular mid rises and Houston’s
definitely shown that we can at least copy the link in the meantime these ones out okay
so hers is 89 and night with a big cleaning fee and this one’s been viewed
91 times in the past week and she’s got 36 reviews in there five-star so price
is 89 reviews she’s got 36 and they are
average of five star but everybody’s averages are near five-star it looks
like so that may not give us much room for comparison here so let’s copy her
title put it up top and we have hers so now let’s see what we can learn about
her occupancy percentage so her for eight for February she’s got five open
days out of twenty eight copy it here and go here so it equals five divided by
twenty eight and then we’ll do the same thing she’s got five open days which
means it’s the reverse she’s equals 23 out of 28 and then for the next month
she has booked seven eight nine ten eleven twelve fifteen eighteen twenty
three so she’s 23 out of 30 one here and then for April she’s got one two three
four five six bookings out of 30 so she’s like a twenty percent there so now
let’s take this one this one’s actually one of mine so we will load this up and
I will show you where we’re at as you see my tagline I like to be interactive
you’ll love it here I’ve always focused on high quality photos so I meant I
meant 92 Pern ight right so let me put mine here price equals 92 a night for
this one let’s see how many reviews we have on
this property so far this property has two reviews so far because it is kind of
new so reviews equals two now let’s look at my occupancy so this one I have one
night in February booked one night in February available so I’m at equals 27
out of 28 I’m winning for February congratulations and then here I have one
two three four five six seven eight nine out of my 31 but look at how solid that
is what I have is I have perfect availability which means I can have a
long term guestbook where other people can’t now this is one thing that I
actually talked about another video on pricing strategy so I’m pretty I’m 29%
occupied for March but I can have one booking just come in here and scoop the
whole thing so I’m completely available for April because of course the way I
price it is I make my single night stays really expensive and then I of course
start dropping for the longer you booked so this encourages long term stays and
what that does for me is I have all the February book actually look I’m at a
hundred a night when you look farther out so there we go I’m actually at a
hundred a night and I am outperforming people for for this period of time so
there we go so the side by side and for different properties and what their
occupancy percentages are so what you can discern from this is a few things
what have we learned what we’ve learned is that you coming into the month should
expect to be if you’re doing well all these properties rank high on Airbnb SEO
which means there’s some of the best properties that they have available
they’ll always push them to the top and of course we’re only looking at 78 but
this is the top of the 78 here right so this is the best of the 78 so if you
want to look at the upper quartile all of these properties the first couple
days of February they’re all near ninety percent
by 80% occupied or better so try to come into your try to come in into your month
like 70 percent occupied or better would be outstanding if you can pull it off
and that means you’re doing really really well but also shows you is people
at these price points for one bedrooms somewhere between ninety and a hundred
and nine are achieving that amount of occupancy coming in so if you do the
math let’s say you have eighty nine dollars and 99 percent occupancy then
and there’s twenty eight days so you equal eighty nine dollars times
twenty eight and this is going to be an equation here but then we’re gonna
divide that or it working at a time that times that by 0.9 occupancy so your
expected revenue let me write revenue expectation here is twenty two forty two
if your average cost is eighty nine like this high-rise down here if she can
achieve ninety percent so that is that is kind of what revenue expectation you
can have so let’s see if we can find a more expensive unit and see what kind of
price points they have achieved let’s go up and see what kind of occupancy we get
in the upper percentile for a one-bedroom so there’s a same one again
that’s super freakin strange let’s see here this that’s a two-bedroom we don’t
want that one oh here’s another one of mine that’s priced a little bit more
expensive it’s so strange how it how it seems to want to price everything at
different price points based on what your search query is a wonderful if
Airbnb acts actually manipulates this specifically so let’s copy the link for
this one and this one’s actually the same floor plan as the last one that I
just showed you of mine I pick up three properties per building typically it
just makes it easier to manage so let’s put the link there and then let’s copy a
name so this one’s marked at a hundred and ten per night for for this space
right so we’ve got price 110 and then reviews see what kind of
reviews I have here so far we have nine five-star reviews yay maybe that way I
can become a super host one day if it mattered so let’s go play with the
occupancy percentages one more time and see what we’ve learned now this is the
most expensive one out of all the one bedrooms we’ve looked at right so it’s
125 for two nights here but of course you get this long stay discount like I
showed you before if you search at least two nights you get a discount which
brings it down to 110 and this is the this is actually more than I typically
want to collect anyway what I do is I take my single nights and make it more
expensive start to give discounts at two days and then as you booked longer you
get closer to the to the price point that I want this one’s been viewed 169
times in the past week what you’re gonna see is I have like no availability here
in February oh there we go actually I do have availability so I’ve got one two
three and see these three are gonna be hard to fill because they’re orphaned
right which is which is sad so have you actually got a drop of this price down
see how it’s eighty instead and see it’s eighty plus the cleaning fee I actually
have to drop the the rates down because of the fact that um that it’s orphaned
and that’s why the price has changed but um so what we have is we got one day 2 3
4 5 6 7 8 9 10 11 12 13 out of 28 available so that means I have 15
occupied out of 28 so I’m at 53 percent so so far being expensive hurts 1 2 3 4
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 I’ve got 10 booked days out of 31
here it goes 10 out of 31 and 32 percent occupied there and then the last look in
April and I’m 100% available in April so I think both of these this one i zero
percent occupied so now what you see is that 110 dollars this unit here has
achieved at that rate has achieved 53% occupancy
so let’s look at this let’s save revenue right so we’ve got a equals 110 times
the number of days 28 but we’re gonna make that an equation right like I did
before but times 0.53 that’s the revenue I’m gonna get for my 53 percent
occupancy now let’s say that for 30% of my occupancy I achieve $80 a night I
have to drop it past everybody down 80 so let’s say equals 80 dollars a night
times the 28 days but we’re only getting 30% occupancy so that’s 672 equals the
sum of these two together and that’s the expected revenue for that with this
pricing strategy as opposed to somebody up here who just does their flat 90 or
890 and achieves their 90 percent occupancy there so now here I’m at 83
percent occupancy so this is let’s put at 8 at 83 percent so let’s see what the
last 10% I have to go and get a drop it down to $50 so equals 50 dollars times
the number of days but I achieve 10 percent occupancy on that right is next
140 bucks so equals the sum of these two and this is if we get up to 93 percent
occupancy scaling down our prices with an actively managed pricing strategy and
we squeak ahead at 9 at 24 44 so you slightly outperform alternative
properties with this kind of alternative pricing strategy so this is what the
price points look for this more expensive one but I want to take you one
more time if I can find something slightly more expensive that’s a
1-bedroom let’s bring it up and see what we what we’re looking at yet an even
higher price point here this guy’s actually at one of my properties that
shut me down so this person is probably gonna get a non-renewal at
that’s what they did to me so I have this way that I can lease I’m gonna
teach you guys how to do it here so I’m working on the video series but
basically I’ve got the system in which that I lease and they can’t they can’t
tell me that I can’t because of the way that I structure it but this building
actually gave me non-renewals for my leases and went through great lengths to
find ways for me not to be able to reapply I should tell you that a full
story in a future video I’m still actually trying to digest everything so
that way I can kind of give you the rundown on how that works and what your
expectations could be I actually used to have the same exact unit two years ago
how crazy is that they knock one person out of Airbnb and the next person jumps
in and does the same it’s so great yeah this is a this was my exact apartment
actually this faced the same building here – how
wild is that so let’s go into his occupancy here and alright and a girl –
see what you got so he has 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
he’s got 15 open days which means that his equals he’s got 13 out of 28 booked
so he’s at 46% occupancy so let’s do this here and his price is 150 right and this is a
high-rise that actually looks pretty freakin good so you know what can you do
you should charge a premium now he’s got five book two days in March equals five
out of thirty so he’s twenty five percent occupancy a five out of thirty
once let me change that and then April he’s got nothing so so equals five out
of thirty one and then he’s got nothing so as you see here
oh let’s even give let’s go look at the reviews and see how many views he’s
gotten to that’s possible he’s been viewed 279 times in the past week and
he’s got 32 reviews so and those are five-star as well so he’s got reviews of
32 so there’s not much different between these all these buildings aside from
maybe total review count because everybody’s got the same number of
reviews but you see that the occupancies will change so the more you’ve charged
the less occupancy we’re seeing in the near future which means that people are
actually booking the bottom right the lower the price the more that they’re
getting filled up so the highest occupancy percentages here that we’ll
see is actually mine at a hundred at a hundred dollars a night and then we’ve
got a 90% at 95 a night and then we’ve got a an eighty two percent at 89 a
night and we’ve got an eighty nine percent of you have the eighty nine
percent ninety five and another eighty percent and ninety or eighty nine
percent so we have to near 90 percent at 90 95 – a 96 percent at a hundred so it
looks like that at a hundred dollars a night in Houston
you could profitably run a one-bedroom without really much hullabaloo now I’m
at 53 percent with a hundred and ten dollar per night average and the guy who
has one hundred fifty dollars is at forty six percent for his and so this a
hundred and ten dollars and I were at thirty two percent for next month he’s
at 16 percent for next month so as as you go up you’re going to get less
bookings ahead of time which means you will have to drop your rates so now the
question is is he doing this so let’s go here and see what he’s pricing his
February look at that he forces a two day and here’s another thing he’s
actually requiring a two day or three day long stay but he’s actually not
changing his pricing strategy and I’ll see that as this prices are still 150
night so now the question is as we pay attention and see you know if these end
up getting booked or not I don’t know if you can actually go back here and see
actually no you cannot that’d be so cool so this won’t actually tell you what his
occupancy percentages was for the past but so these orphan days of his may may
not get scooped up cuz he’s requiring a two-day minimum and so what he makes for
this month actually let me let me just call it right now he has me let me just
back out here see if I can fix this so he’s got three nights available here
right and he’s got two nights available here than 1 2 3 4 5 6 7 8 so he’s got
his 46% right now the fact that he’s requiring a 2 day
minimum stay he’s going to have a hard time booking these two days at full rate
and he’s gonna have hard time booking these three days at full rate just
because it’s last-minute I know how much I have to drop my prices in order to
stay fully occupied he’ll probably pick up another booking
or two up here but the problem now is with his strategy he’s got $150 and nine
equals one let’s do the same equation 150 times the number of days times his
occupancy percentage which is right here so he’s got 1950 so now let’s say he
gets another five days times is 150 that’s that equals his sum and that is
his expected revenue at the higher price point so what we’ve got here is his
building charging all you guys can’t see that color that’s no fun let’s do
background color so what we have here is his pricing strategy even with three
more nights what is that he’s got 13 so this is at equals 16
divided by 28 at full rate 57 percent occupancy he’s clearing $2,700 because
he’s paid he’s charging that much more so then of course here comes the
argument of volume versus margin so what you’ll see is if you charge $150 a night
for a high-end high-rise single bedroom up top of yeska this is sky house in
Houston this is actually one of the original sky houses you charge 150 night
at 53 percent occupancy you’ll make 2700 now here’s the thing is he actively
managed this and would drop his prices any you know would instead drop his
prices to 80 for the last you know for the last um let’s say he wanted to get
an extra 20 percent occupancy that was that was wrong Tron’s point to he’d get
a night he’d squeeze an extra hot 448 bucks out of it and so he’d make you
know three hundred and seventeen what’s pretty wild about this guy’s is I’ve got
these small small apartments that are way cheaper than this one that he asked
here and I’m gonna show it to you um just so you can see what I mean and my
monthly incomes on it are just waved like way higher than he’s making on this
because he doesn’t actively manage his prices
so I mean here’s a lot of my listings here and we’ll go into this one right
here so this listing of mine is one of my older listings um it’s actually one
of my first and so the way that I’ve priced my unit I’ve actually done the
math for the last couple of months and I’ll make over three grand I make over
three grand a month on this little little one-bedroom and my rent is like
super cheap it’s wonderful so what we’ve done is we’ve looked at our competition
here right we we see that there’s we’ve got our spread of different one bedrooms
in the same neighborhood from lower prices up to higher prices and you’ll
see that your occupancy goes down of course the more you charge there’s that
influx of volume and marginal so as you notice my average nightly rate
118 and then my weekend rates are 130 but if somebody books multiple days they
start to get the discount so now this is my February so let’s look at these
payouts right so I don’t know yep this is 194 here plus 188 so that’s like 374
67 68 45 850 plus the 900 here that’s 1775 and we’re at two thousand and
ninety here so we’re two thousand and ninety with
one two three four five six seven eight nine ten days to go so at two thousand
ninety with ten days to go and he is going to break 2700 probably because of
his pricing strategy so 2090 with ten days to go in order for me to to match
his property right so it’s got ten days to go I need to get nine of those
properties and this doesn’t include cleaning fees none of these properties
at 80 bucks and I crack him right and so I’m actually going to my little little
Midtown you know nothing special value apartment
that’s just properly managed is going to perform as well as this more expensive
high-rise I’m in Midtown so that’s one argument for actively managing your
prices so but but bringing it back what we wanted to talk about of course at the
end of the day was how to check prices for your competitors and we just did
that now the next thing that you want to do for market research is to identify
what the supply and demand is based on amenities so we know that it’s a healthy
market at $100 right it’s even a healthy market up to 120 so what we’re gonna do
is we’re gonna go back in and we’re gonna take the comp here’s our
competition right these are the people that we want a box with 7901 36 and our
only filters currently are that we’re looking for
properties that have at least like one bed in one bath that’s it
not big filters how many properties do we have okay we’ve got 66 rentals and
we’re looking of course in April so let’s go and open up a new sheet now
let’s see what kind of funnel week we can create by bullying bullying out
certain filters so this is what’s really gonna start to bend your brain guys so
let’s go in and let’s just check to see how many our business travel ready and go down this brings it down to 18
right so of 66 let’s write this of 66 18 our business travel ready right and that
is it that’s a huge huge change right which basically all these properties are
the ones that are business travel ready and if you look you’re probably gonna
see a decent amount of mine this one’s mine
with the heart there this one with the heart is mine off obviously that one’s
mine that’s three I’ve got four I’ve got four on the first page of the 18 that
that our business travel ready so now let’s also take a look at something else
let’s remove business travel ready let’s look at ones that have a gym of the 66
what do we have we have 29 that have a gym right so of 66 29 have a gym that’s
a pretty big drop too but this shows that in this neighborhood there are a
lot of apartments a lot of people doing in apartment buildings now let’s check
to see how many people have a pool and I’m gonna tell you the hot tub is a big
one like nobody has a hot tub so if you put in hot tub and you’d only you’re
gonna be one of the only ones so only 19 have a pool so 19 have a pool now let’s
race to the hot tub one go back here more filters see who has a hot tub – congratulations if you have a hot tub
you are a rich person in Houston so get a hot tub but they do seem like a
liability so I wouldn’t blame you if you don’t want one so next let’s look at
other filters if we can here amenities own type guests okay how many can have
eight adults actually let’s say six adults for the price range that we’re in five right so now what we have is we’ve
got this two-bedroom we’ve got this one one that pulled it off and we’ve got a
couple other small ones so you have five of them that can host six so five
apartments that can host six all right so this brings us to another point
because one bedrooms aren’t going to be the only thing that you look for right
so what you go through here now and the one thing I was gonna try to show you by
the way is I was actually checking to see if I could find a king-sized bed
search here but I’m sure all of you are looking at the same thing that I’m
looking at and I don’t see a section where it shows king sized beds so if you
want your king sized bed to show up there while your king-size bed – to help
you of course get more bookings I do recommend putting in your title so now
let’s look at how many properties let’s clear this and apply that clear we’re
wiping the price now because now let’s check this out actually let’s okay so
let’s apply searching for eight let’s remove some filters here because we
don’t want to get too specific if there are too many here okay you have property
type okay let’s we’re fine so now what is the price spread of this the ones
that can occupy eight we’ve got 136 pardon me guys
okay price looks like we’ve got ones that go as high as 584 and ones that go
as low as 140 that is the spread for eight that can occupy eight so this is
one of mine and I’ve got it at 206 and night 233
night is not mine I actually just had a meeting with this
guy he’s way cool and he’s charging 162 per night he raised his prices good job
my man this townhome is 3 338 now actually let’s look at the occupancy for
this one that’s 338 so this is the one thing that I think Airbnb is really
strong with is groups so you either try to get into a property at a low rate and
be able to occupy business travelers and couples and stuff like that at a
competitive price or you diversify or differentiate and do what hotels cannot
do which is host groups so let’s look at this guy’s occupancy percentage here
okay so he’s got 5 6 7 8 9 10 11 12 he’s got 12 on booked nights and he can host
ten guests see that 10 guests this guy can host 10 and its price is 250 a night
and his occupancy for this 30 days is 16 out of 28 so he’s at 57% so we go then
and take a look at the next 30 days and he’s got five okay so why with good job
1 2 3 4 5 6 7 8 9 10 11 he’s got 11 dates open so he’s at 20 out
of 31 it was 20 out of 31 so he’s doing better next month so next 30 days now
you want to know why March fun facts for you those of you
don’t know Houston actually that’s a Bay isn’t that or were we looking at March
okay so now let me see May is a serious
conventions like OTC and some oil conventions it’s otherwise just the lead
time on big bookings it looks like he actually has a big booking from the 23rd
until the 20th so that is something that I guess we really can’t speak about so
let’s go back here my bad we go 5 6 7 8 9 10 11 12 yeah so we did
that one right now March he’s only actually got two days booked
in March likes that’s gotta hurt so he’s equal to out of 31 so he’s at
six percent occupancy so he’s not performing really well at his price
point right but he can occupy ten so let’s let’s actually do this search at
ten folks right bang okay here we go so now here’s mine and let me show you this
one so this one can occupy ten this is a two-bedroom I put queen-size beds in
each room and alright actually put two queen-size beds in each room and then
I’ve got to pull out sleeper sofa so that’s what allows me to occupy ten in
this one space and my average night is at 3:02 here if you go for the discount
so so occupy 10 price is 300 – let me try
to clean this up for you guys because I’m not actually gonna give you the link
for this so you can actually look at this later but let’s look in mine so
I’ve got nothing in April I’ve got 1 2 3 4 5 6 7 8
dates booked in March so let’s go next 30 days I’m at 8 equals 8 out of 31 so
I’m at 25 percent occupied in March and I’m 100% locked up in February so and
the reason why I’m at a hundred percent is I have of course I’ve managed my
pricing strategy to force longer-term stays so let me let me show you that the
conundrum here is see I’ve got this these three-day bookings here on these
weekends they are actually going to cost me my ability to get a longer stay so
now I’ve got actually drop my rates for these middle ones here so and then look
at this add an extra night and safe extend your stay at April 12th for only 151 so what it’s basically saying is you
get a three-day discount and it drops to 252 wow that’s insane look at Airbnb is
totally gaming you guys be careful so but what this shows you is that
occupying ten people let’s go down how many how many can occupy ten we’re
actually down to nine apartments right we’re occupying eight let’s switch to
occupying eight apply is 20 so so if you can occupy let’s do
let’s do 4 6 8 10 12 so we’ve got let’s go persons so we don’t get confused and
then the listings so we have is that 10 there are 10 listings but at 8 there are
20 and then occupying 6 persons there are 43 and then let’s look at occupying
4 persons there are 81 you see it’s kinda actually there it’s a cutting in
half so there should be 4 or 5 spaces that occupy 12 let’s see if the trend
keeps up so let’s go to 12 there are three only three places so right now
there’s only three places at this price point that can occupy 12 people or more
and look one is for 30 one’s for 14 and the lowball is 233 that’s outstanding
so there’s only three places and this one if you just looked to strike gold
ladies and gentlemen if you can occupy twelve people in Houston there’s only
three listings and two of your competitors are charging 400 plus per
night right that’s gotta count for something
so let’s um let’s actually look at the at the the middle a little the middle
marker guy here let’s see how I’m occupied he is they can this person can
host 15 guests with a total of 4 beds I wonder how many couches he’s trying to
put people on is this all air mattresses because that’s actually a little bit that would be so bad if everybody’s
sleeping on air mattresses let’s see what it says so three reviews and comments faces one
couch and two floor mattresses so bedroom one has got a queen bed and one
couch that is just how do you fit 15 people there yeah see so what what this
person’s done is misrepresented their property they cannot really host a true
15 guests so they have no bookings at this price point so what I would do is I
would actually drop this one off because there’s one competitor now that possibly
can host this is a to bed 2.5 bath with five beds claiming to host 12 and he’s
got 115 reviews this means this guy’s getting action he’s getting booked
that’s cool okay so you wanna stay two nights cost you a thousand bucks
and in February he’s got one two three four five six seven eight nine 10 11 12
13 13 open days so this guy so he’s occupying he can occupy see how many
says he can occupy total 12 okay so he’s claiming 12 and his price is like four
hundred and thirty if we’re if we were right correct a 375 now
so his price is 375 a knight and his occupancy this 30 days is was 15 out of
28 if that was whoops equals 15 out of 28 let’s see if that was actually right
so three four five six seven eight nine 12 13 14 15 16 next year that’s 16 no
that’s 15 no game 15 hour 28 then in March he’s got 1 2 3 4 5 6 7 8 9
10 he’s got 10 out of 31 in in March so equals 10 out of 31 in March so what do
we know about this guy let’s actually link him in here too
because he deserves a shout-out for being the ballsy one to get the get the
big listing um go big or go home so what we know now is this guy at his
price point is achieving this level of revenue so let’s do our let’s do our
revenue again we’ve got he equals his 375 times the number of days but also
times his occupancy percentage and he’s got fifty six hundred dollars that he’s
made so far on his on his two-bedroom right so what he has is he’s got a big
two-bedroom somewhere and he’s definitely utilized the space he’s doing
the see this middle photo he’s definitely doing what we do which is the
two sides two queen-size beds actually that looks like a queen and a
full or queen and a twin I mean he’s making it work so what we now know is
that there’s only one person operating a twelve occupancy home for over 400
dollars a night and look at all of those reviews he’s he’s just he’s killing the
game so if you wanted to if you wanted to know what property to get in Houston
you would actually go bigger so let’s actually clear this I’m gonna
show you one last thing as far as this goes
let’s move it to 16 16 persons how many regardless of price there’s one place
that can handle 16 persons in this neighborhood and they’re charging almost
two grand a night and there you are Tyler what’s up my man
so it can host exactly 16 guests it has exactly 3 bedrooms 6 beds just big
property and let’s see what he’s getting this could be I mean this looks like the
biggest in ever look at that pool that’s cool with the Swan in there so his rate
is 1700 a night so occupies he so you know occupy 16 people and his price is
1700 he’s getting some action 1 2 3 4 5 6 7
he’s got 7 booked nights and let’s see if he changes his price points so he
requires a 3 day minimum stay and so it’s $5,800 for 3 nights
so that’s one thing that he’s doing which I would not do is required that
that short of a stay are that long of a stay but that’s his this his that’s his
prerogative so this so this 30 days he has 7 dates and the next he’s got 4 and
he’s got 8 so February he’s at equals 7 out of 28 and then March he’s at 8 out
of 28 and if we look at his revenue do the same thing you’re gonna see equals
his price which you can click on that if you want to do it like this times the
number of dates in the month and then times his occupancy he’s making eleven
thousand and nine hundred dollars for the month of February on his seven
nights alone so err DNA actually has confirmed this that three bedrooms
the average three bedrooms and four bedrooms crack about ten to twelve
thousand dollars a month now we are able to figure this out without actually
having to pay for an air DNA so to review what we’ve gone over is by
using search queries and filters we can filter by a total number of guests to
see how many people are around and obviously at 16 there’s only one
competitor so if you come in with a with a property that can host 16 people like
especially here somewhere in Midtown you you’d be the only person who can pull it
off and you would be changing the game so that is a gap in the Houston market
we’ve also looked at filters based on pools and gyms you’ve noticed that pools
and gyms will cut down the number of available properties by a third like put
down to 30% you can see the price spread here but there’s only one property and
it’s up there so you know but this will give you that chart to let you know
where it kind of gives you a heat map of prices you can use that you can also do
things based on home type obviously if we did an entire place that’s not going
to change anything in this in this case but I would actually put that when you
do your own searches so you can find out what the what the what the pack is doing
what majority of people are pricing their properties at you can then look at
their photos and see what quality their places are you can see what they have
what they don’t have you can then see what occupancy percentages they’re
holding so you can find out that Oh at a hundred and fifty dollars a night this
lower occupancy is kind of what this person is achieving but this person is
also achieving twenty seven hundred dollars per month and his rent at that
property is twenty three hundred or twenty four hundred dollars per month
and I would know because I used to take it so this guy unfortunately is only
gonna break even if he doesn’t actively manage his prices but the one that I put
these down here where I’m gonna achieve like 27 or 28 hundred dollars a month my
rent is thirteen hundred and change so I’ve got my property for about a
thousand less and because I actively managed my prices I’m making the same
revenue as this guy so with that said guys this is how you just just grind
through your neighborhood to look at your competitors and find out what
everybody else is up to and that way you can make smart decisions based on the
facts if you have any questions about this video leave it in the comments as
per usual thank you for watching Airbnb automated and I will see you next time

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74 thoughts on “Forget AirDNA | You Need This Free Market Research Webinar | Airbnb Host Growth Hacking 2018”

  1. Hey Sean, great stuff. I've been watching your channel for a couple months now … excited to dive into this business model.

  2. I am a traveling Rope Access Technician. For the past year I have considered starting up a Airbnb project. Thank you for sharing your knowledge and showing me that it is possible to achieve even with a crazy nomadic lifestyle such as mine. ๐Ÿป

  3. thanks for another great Vid! in your opinion, what is a good average profit margin for a rental unit. If i am currently grossing $3000 after airbnb fees @ 80%+ ocupancy, on a rental unit costing me 1.8k + 300( Broadband and electricity/water)= 2.1k is this a good margin? what should be looking for in terms of profit margin?

  4. Thanks for the video. There must be a way to automate all of this work with simple macros and such? Maybe you can hire a programmer to create something simple that auto extracts the data in each of those calendars and auto writes to a spreadsheet.

  5. I noticed that your listing shows a long term stay discount but the booking is for only two nights. I haven't been able to find how to set a discount except in a weekly or monthly setting. I must be missing a setting somewhere. Can you help?

  6. what is your actual initial investment on one property, are they already furnished or do you purchase the furniture. What is the actual cost of the lease and how do I determine is a location is actually viable?

  7. What was the catalyst that got you started with Airbnb?
    Did you start out renting your own place or did you launch with multiple listings immediately?

  8. I am really curious on whether airbnb host is able to block out the date in airbnb calendar on purpose. Let's say future dates.

  9. would you rather get the largest property (8100 SF) in an area with no large property comps but several smaller and medium comps at 70% occupancy or a medium/large size property (6000 SF) in an area that has a few comps the same size that have 70%+ occupancy? Because it sounds like sometimes it is good to get the largest one. Or would it be better to get about the same size but put more beds? Sounds like some of those guys are gona get shut down though due to noise violation, parking violation, etc.

  10. I think I'm going to rent an abandoned prison and put in on AirBnB. "Hey I can host 165 people! Only 3000$ a night." ๐Ÿ˜‚

  11. I learn a lot of my BNB business from other hosts. I recently visited an Airbnb in Sonoma and got so many ideas on how to make my BNB better! I just wish I could have asked her about her bookkeeping but that would've been weird. I love staying at other properties…it's a good way to gauge success and opportunities. Glad I found this channel!

  12. Can you really assume that the property is rented just because the dates don't seem to be available? Owners can block dates for personal use, not necessarily renting it. It's bias

  13. Sean: What percentage of condo / apartment buildings are not allowing Airbnb? Also assuming many buildings at this point are now limiting the number of Airbnbs they have as this may be something that other tenants are against?

  14. Awesome video, Sean! I have been looking at Air dna but they charge per market? It gets expensive if you are analyzing a bunch of markets to decide where to go. Thank you for this ๐Ÿ™‚

  15. Sean you are the quintessential American! You started from NOTHING, and through knowledge, courage and action now you have EVERYTHING!

  16. What if the host was away last month? Would it be possible to think that it was booked, but it was closed for reservations?

  17. Nice video you have! Is it convenient to set a starting price low in a suitable listing for gaining good reviews?

  18. There is a lot of things you can kmow with airdna for less than a day of rent. I don't think you understood the tool. Yes you can do some research the way you are doing. But you are missing a lot

  19. This is great information to do this n your own. I really enjoying your videos and have been learning a lot. Do you have a recommendation on reading list on this topic?

  20. Sean in a word you are …AMAZING!!!
    While anyone else would be selling it and becoming wealthy by that alone you give it all away for free .
    Simply because you care for other people
    You are worth your weight in Gold
    Best to you !!

  21. YOU are AWESOME!!!! ๐Ÿ˜‹ ๐Ÿ˜Ž ๐Ÿ˜The Super Hero of STR!!!! ๐Ÿคด The BARON of Arbitrage ๐Ÿ‘๐Ÿ‘๐Ÿ‘ Seems like a lot of really NICE properties in TX…Why did you choose Houston? And where do you have properties in FL? Is Orlando a GREAT location? Do you have properties their and are they do well? Thanks

  22. Sean – This video is definitely a winner. Thanks for breaking down the pricing strategy you use. I will check this against the AirDNA data (tried it for one month).

  23. Funny, you thought your filters were 1 bedroom, 1 bath but they were actually 1 bed, 1 bedroom, 0 bathrooms. I think you were just thinking too fast for the video.

  24. Holy Moly, this video was a GREAT FIND! I'm new to the investment rental business and I am looking for a second and I feel like I struck gold with this guy's videos!! Subscribed!!

  25. Thoughts while watching :
    Wow I actually learned this type of data analysis in school… Just not how it was applicable….
    You can totally write a web scraper for this….
    The bigger the better hmmm?….
    Blue ocean strategy applies…
    Thank you Sean

  26. Hello! Love your channel and what you are doing to help everyone. <3 I don't know if you have picked up any single family homes yet, but I am looking for that kind of information. I'm in a medium sized town in Mo, no high rises and few apartment buildings. Thank you, again!

  27. Great content Airbnb Automated and I'm amazed that you're giving it for FREE ๐Ÿ™‚ I have a question: So you're business is in the USA right? But… are all these rules applying to Europe? If not… (someone) can recommend some online courses that applies for Europe? (I am from Romania)

  28. I was doing the identification and I am shocked and terrified. I saw that the average is really low. And many just have their place booked only in these 30 days, the rest is totally free. Is this telling me do not invest here?

  29. How do you know that the first 3 days of the month have been booked? You recorded this video on the 3rd of february so those 3 days appear as not bookable since they belong to the past and you cant book them. It would be better if you counted the days starting from the 4th of the month and divided by 25 this would be more accurate.

  30. in bc to register an llc you need an office adress. should i put my home adress or should i rent an office just to have an office for all this. is it legal to use my home adress?

  31. One bedrooms are very rare in my location. Majority are 3 bedrooms. Do larger units do as well? With 3 bedrooms is the entire house rented or what percentage of the time do you have to break it up and book individual bedrooms..?

  32. Sean this was awesome!!!
    I live in South Florida and your market analysts although great , presents some challenges when I am trying to apply it to my area ( Fort Lauderdale) .
    The daily rates in January- March are much different in comparison with daily rates in letโ€™s say July – August!
    South Florida winter rates are much higher then spring – summer .
    Any suggestions how to go about that ?
    Thank you soo much !!!
    โค๏ธโค๏ธโค๏ธ

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