Remote Airbnb Host Automates Rental Process

This transcript was generated from the episode audio and may contain minor errors.

[Music]

Welcome to episode 1506 of "Side Hustle School 1506 Days." I've been bringing you these episodes. So glad you're here. This one is going out on the 14th of February. Guess what day that is? I believe that is Valentine's Day.

So happy Valentine's Day, happy Independence Day, or just a regular day, you know, whatever it is for you. In fact, one year for Valentine's Day, I made a chart of some past relationships. It has an X axis and a Y axis. Like there's the X and there's the Y, you know, like what was going on with that? All right, let's get to the heart of the matter.

In today's story, an Australian living in the Caribbean uses software to manage Airbnb property rentals from 10,000 miles away. This was pretty creative. We've talked about Airbnb rentals a few different times in different ways, but this guy's like, you know what? I want to manage properties and I don't want to be anywhere near them. So how can I do that?

How can I set that up? I'm going to talk a little bit about the process of the process, if that makes sense. I've got some analysis at the end of the episode. We're going to talk through some of the software and also about that workflow that's required to make it happen. So story is called remote Airbnb host automates rental process.

Now story's coming to you on this day, known as Valentine's Day, Independence Day, whatever you'd like to think of it as. Hey, all good with me. Story's coming up in just 30 seconds. [Music]

Josh Trazinski didn't set out to manage Airbnb properties, but he stumbled onto a lucrative side hustle almost by accident. Seven years ago, while he was living in Australia, Josh started renting out a one bedroom apartment on Airbnb so that he could travel on the weekends.

The plan was to have the income cover his travel costs, allowing him to explore for free. It worked, and Josh quickly saw the opportunity to generate higher revenue by using software. For instance, he found a program that actively monitors the demand and supply for short term rentals in his area. It predicts peaks and troughs in demand and allows him to set fancy pricing rules that the Airbnb website can't do on its own. If he has a three day gap between two rentals, for example, it automatically decreases the price of that gap to fill it.

Josh then found a different program to automate communications with guests to ensure they have all the information they need. It also includes scripted responses to common questions. Before long, he was hooked and began renting out his place all the time. If a lodger booked during the week, he'd sleep over at his parents or friends' houses. Sometimes he'd even rent a cheap hotel room and still come out ahead financially.

After the first year, his one bedroom apartment was generating enough income to make it one of the top five earners in his suburb. The only properties earning more were big houses with tennis courts and spa level baths. Josh's apartment had none of those amenities, just a smart pricing algorithm that measured demand and made sure he wasn't leaving money on the table. He started renting out his parents' second home the next year, but he wasn't planning to manage properties for other people until his first customer found him in 2015. This was an Aussie couple he met while traveling through Vietnam.

After he lent them his log in for a streaming service, don't tell Netflix, they followed up a few months later and asked if he could help with something else. He quickly turned both their properties into the highest earners in their area. And that turned into a cycle of referrals to others wanting the same thing. Now, Josh manages five-star Airbnb's all over Australia, all the while living in the Caribbean. Thanks to his automation, he only has to apply himself for an hour here and there because he has other people on the ground taking care of the physical tasks.

Where did they come from? Well, he had a theory that there were lots of retired people who have decades of cleaning experience and nothing to do with their time. So he hired a network of retirees all over Australia to manage property cleaning, report problems, and help him solve any issues that arise. Startup costs were, well, they were about $75 a month on the software. That's it.

Josh has a structured process to help clients prepare their property for rental. It includes providing access without someone physically meeting at the property, creating a home manual, and all the other details that aren't that complicated but might feel overwhelming to the average person. He also coordinates cleaners and handymen, but doesn't charge a markup on those services. Instead, he charges a flat 15% on each booking, and that now equates to a few thousand dollars per month in profit. Thanks to that income, Josh paid off the mortgage on his apartment in 2018 and continues to rent it out.

He's also made a few upgrades so he can increase the rental value and enjoy the tax write-off. No tennis courts, though, at least not yet. While the money is nice, Josh says the best part of the experience is being able to tell the story of how he can earn his clients more money from 10,000 miles away using the power of technology. The key to success has been creating systems to manage each step of the process. He's always taking note of opportunities to improve and dedicating himself to ensuring the client leaves a five-star review.

And that's not to say it's always been smooth sailing. When you're dealing with a high volume of guests, some unexpected issues are almost inevitable. For example, one guest flooded the bathroom and ruined the carpet. While it was a tough situation, Josh and his team were able to solve it for the client and not lose revenue thanks to insurance. With his Airbnb rentals running smoothly, Josh has turned his attention to a new venture, growing a marketing agency that can also be managed from anywhere.

[Music]

Let's talk about something here. Well, first of all, congratulations to Josh. I love the whole idea of managing something from 10,000 miles away. Josh says, making money is about offering value, support, and assistance. If you do that, you'll be solving issues for people that they can't wait to pay you for.

Now, I love that. Let's talk about the automation and the software. Something I wondered about as I worked on this story was, what is the software? We went back to Josh and asked him for the names of the specific tools he uses. We're gonna link that up in the show notes page.

So if you wanna do this yourself or you're just curious, you can go and see exactly how that works. And my comment is, you know, as amazing as automation can be in technology, be aware that in this situation, you still have to set up that software, you still have to create the process, and managing property rentals, even with all the technology, it still is a people-centric business. So some folks really like that. Some folks are like, I don't really wanna talk to people all the time. So if you don't wanna talk with people at all, this might not be a great business for you because you still have to recruit those cleaners.

You still have to talk with at least some of the guests. Maybe eventually it becomes, you know, where you're completely removed from it. But to get it going, it is a customer-focused business in which interaction is required. Some interruption might be required when there are problems, at least in the beginning. So just be aware.

It's always good to think, you know, where is my skillset? Where's the perfect match between the opportunity that's out there, 'cause there are so many different opportunities, and what I would be most proficient in. Like, what do I wanna do? What am I good at? What's the opportunity?

Where's that overlap? I think that's what you always wanna be thinking. So I will leave you with that today. Take it as you will. Inspiration is good, but inspiration with action is so much better.

Those aforementioned show notes, they are at sidehustleschool.com/15061506. Thank you so much for joining me today. I hope you will subscribe wherever you get your podcasts and come back. New episode coming up every single day. My name is Chris Guillebeau.

This is "Side Hustle School." [Music]

From the Onward Project.