STEP ONE: Finding Potential AirBnB Partners
It’s a question that comes up a lot: How do I meet someone who might want to let me design and host their space? And I understand why people would have this question. It seems daunting, right? And if I’m honest, I didn’t even know what I was looking for when I stumbled into my first real life partnership...I really did kind of stumble into it. But, In hindsight, I can see a clear path that led me to that connection and one that can lead you to the same results. So let’s unpack what that would look like.
This is really a THREE STEP PROCESS. So we’ll dig into STEP ONE in this post and the other two steps will have a post of their own. I hope this is helpful!
The Way Out West Casita. A super cute little studio space I got the to design and now host…and now OWN! To check out the AirBnB listing, click HERE.
Sometimes I feel like a broken record when I talk about the first step. But I’ve said it a hundred thousand times...what’s one more? You have to decide what you want. This is CRUCIAL. I didn’t do this...and it meant that I had no idea what to say when someone asked me what the cost would be for design services, when I would need to be paid for design services, what the hosting fees would be...and the list goes on.
Friend. I do not want this same experience for you. Do you know what the results were for me? I’m embarrassed to say this...but I’m going to because I think it will really drive my point home. I did my first three design jobs (and they were DOOZIES) for FREE. Yep, you read that right. I was NOT paid for the work I did to design those spaces. Never again. And I want to make sure you have all the tools you need to avoid it in your business. You deserve to be paid for ALL the work you do. You are a Designer, and you should be paid for your work as a Designer separately and intentionally. The pay for hosting is a whole other thing and should be viewed as such. Period.
Alright, I’ll step off of my soapbox now. Let’s get back to YOU deciding what you want! First, you have to get clear on the design services being SEPARATE from the hosting services. They are two separate things. You should be paid for each separately.
Now that you have that part down...let’s talk about the two big decisions you have to make as a DESIGNER about how you’ll be paid.
Decisions, Decisions…as the Designer
In my experience designing 20+ AirBnBs, you have two clear options:
First Option: Upfront Payment. This means that you and the homeowner/real estate investor agree on a set price for designing services and when those services are completed, you are paid in full when the design work is done. Simple and basic.
Second Option: Payment from the Profit of the AirBnB. This may be a better fit for some homeowners/real estate investors. They may not be able to cover the upfront cost of design services. If that’s the case, you can offer your services and make arrangements to be paid from the first 1-6 months (incrementally) of profit from the AirBnB. To be clear: You will be paid for your design services AND your hosting services from the profit. This is important..don’t host without being paid! Remember: The design and hosting are two very different things! (Have I said that enough times yet? Lol!)
Looking for a GREAT, SIMPLE checklist to make sure you’ve got everything you need for your AirBnB? I’d love to share mine with you! I’ve designed and host 20+ short term rentals…and I have my system down to a science! Get a jumpstart with a great list….you can get it for FREE at the link below!
The Hostess with the Mostest…two more decisions to make!
Now let’s talk about the two big decisions you’ll need to make as a HOST. How would you like to be compensated for your hosting services?
Option ONE: Lease Agreement - This is very similar to a rental agreement. You will sign official paperwork that states you will pay a certain monthly rental/lease amount for the property. This means that no matter what the profit looks like for a given month, you owe a SET amount. So, you’ll be responsible for covering that amount and any other expenses (internet, cleaning supplies, utilities, etc.) from the profit for the month. And you get whatever is left over...which may not be much. I, personally, do not like this option. I’ve done it before and ended up in the RED most months...which meant I was basically paying the homeowner to let me host their space and make their rental payment each month. No thank you. However, this may be a PERFECT fit in some markets...so I always want to mention it as a good option and let the reader decide for themselves.
Option TWO: Profit Split - My favorite option. Basically, you and the homeowner agree on a set split and each month, after expenses, you split the net profit from the AirBnB. In my market, I typically require a 70/30 split. The homeowner/real estate investor receives 70% of the net profit each month and I keep 30%. There are ways within the AirBnB platform to separate this out with each payout...or you could make the split at the end of the month. Either way, you and the homeowner/real estate investor are sharing the profit, which guarantees that you’ll have profit each month, and so will they. It’s a win-win! Can you see why this one is my favorite?
You’re on your way!
Let’s recap our FOUR questions:
Will you, as a Designer, be paid upfront for your designer services?
Will you, as a Designer, be open to incremental payments for your design services from the first few months of profit from the AirBnB?
Will you, as the Host, be compensated through a lease agreement?
Will you, as the Host, be compensated through a profit split?
Friend- Once you’ve got these four basic questions sorted out. you will have laid a SOLID foundation for your successful, profitable and FUN AirBnB business! I’m so excited for you!
Eager to dive into STEP TWO? Me too! Click here to read all about it!
Hey Friend!
Looking for more information about the first steps to building an AirBnB business? You’re in luck!
I’ve got a guide that outlines the first three steps to starting an AirBnB business AND a checklist of all the things you’ll need with hyperlinks to items I’ve personally used in 20 AirBnB spaces. And they’re both FREE!
Click below to get yours!
