Are people QUITTING Airbnb?

Hey, what’s up guys? It’s James here. As you can see, I’m in a new studio and in today’s video we’re going to be answering the question are people leaving and quitting Airbnb? By the way, for anyone that’s regular here on the channel, I will be updating the studio and updating some of the ways that we edit and kind of create these videos going forward to bring even higher quality content to you guys. So stay tuned for that in the upcoming videos. Now, today, I just want to jump right into it and talk about are people quitting Airbnb? And the short answer is, yes, people are currently quitting Airbnb leaving the platform altogether. And so I want to share with you exactly why that’s happening, so that you can decide what the best move is for you. You can figure out if you are on Airbnb currently, whether it’s managing other people’s properties, or investing in properties yourself, whether you should also be quitting Airbnb and leaving them behind, going to greener pastures. And if you’re interested in getting started, you’ll be able to tell whether now is a good time or not based on the advice and the insights I’m going to share in this video. So let’s get started. I already addressed that people are quitting Airbnb. So the natural next question is why? Why are people leaving platforms like Airbnb and other short term rental platforms like VRBO? Why are people taking their properties off of the short term rental inventory? The reason for that is pretty simple. But there’s some explaining to do to back it up. Ultimately, the reason people are taking their properties off of Airbnb and quitting is because they’re not making money or in a lot of cases, they’re losing money. But it goes a lot deeper than that. It’s not to say that no one can make money because there’s lots of people, myself included, who are making incredible returns, we’re having really great money right now on Airbnb. So the question is, why are these specific people not making money, and that typically comes down to a few different factors. But let’s kind of rewind the tape on the last couple of years and see what happened. So as I talked about, in another video on this channel, Airbnb and short term rentals tend to go through a sort of cycle like every other market does, where people start to get greedy. And when people are greedy, then prices start to go up because demand increases. And then people started to get fearful on the back of that, and that’s when prices tend to drop. And so what happened is that essentially, a couple of years ago, when the big pandemic hit, there were a few opportunities in the market that made people get really greedy. So what we saw was that a couple of years ago, you’ll see videos on this channel where I talk about these huge opportunities where certain markets started booming, because when international travel shut down, some of the domestic and kind of hyper local staycation type destination markets really, really boomed. And so a lot of US investors who are already in those areas who are already buying properties in those markets did really, really well. But because of that a lot of other people who weren’t in the market were new to the opportunity, they started to take notice they saw us sharing about how much money we’re making, they saw the opportunity there. And so naturally, more people started to get into those markets. And so at first, that means that more people are just buying really, really great investment opportunities, because the properties have done well historically, and just also happen to boom and do even better during the pandemic. But then what happened is a lot of more speculative investors, let’s call them we’ve reviewed a couple of them like Shelby church here on the channel started to get into the market as well. And what they were doing was a lot more similar to gambling than it was investing, they just weren’t doing proper due diligence, they weren’t planning for the worst case scenario, they were basically just assuming, and projecting that the gravy train was never going to stop the good times, were never going to end and overpaying for properties expecting the future returns to be just as incredible as they had been for these last 612 1824 months. And so what happened is that prices started to go up. Now it’s not just because of short term rental investors that wanted to get in these markets, we also saw a lot of people that were now able to work remotely migrating out of the downtown core areas and going out into more rural areas, because now suddenly, they could work from home and actually keep that job that they had before but do it from a couple hours outside of the city as opposed to having to live right downtown. So for a few different factors for a few different reasons. We saw the prices in these markets start to go up interest rates were still very low at that point. And so it was a buying frenzy. And then the challenging part is that a lot of short term rental investors started to buy properties without actually looking at the return on investment. They were trusting their realtors, they were trusting other people, they shouldn’t have been not doing their own due diligence and speculating that the property would make money. They just kind of assumed that there was no way the property wouldn’t make money and they bought on that false assumption. Now as you and I know, if you’re here on the channel, I assume that you’re a relatively astute investor. I know that I don’t appeal to the masses. I appeal to people that want to do their due diligence and want to invest the right way. And so as you and I know, if you go in and you buy a property And you’re overpaying for it in the heat of a buying market. And you now are paying too much for the property, assuming it’s going to do well, and basing that assumption off of the last six to 12 months not looking at historical data that can cause a recipe for disaster. So a lot of these people that bought properties over the last one to two years here, they might have done well for the first six to 12 months of ownership of the property. But then when things returned back to normal, they stopped doing well, they started losing money. And so for me, I bought a property about six, eight months ago was my last acquisition. And that property was one that took me a few months to find a few months where I went and placed offers on other properties and got outbid by other people in the market. The reality is there were good deals to be had. But you had to know what you were looking for it you had to do your due diligence, because it was easy to get caught up in a frenzy and overpay for a property. That’s what a lot of these investors did. So again, just a reminder that no matter what cycle of the market we’re in, there’s always going to be really great buying opportunities, you just have to be disciplined enough to not get taken by the bad opportunities. Because on the flip side, again, no matter what part of the market cycle we’re in, there’s always going to be bad deals out there as well. So you just need to know how to tell the difference between the two of them. That’s why we’ve got trainings like we have on this channel videos that we do on this channel is to help you differentiate between a good deal and a bad deal. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb ease and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb ease. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties, there’s actually another free training linked in the description down below as well, that will be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, it’ll definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. So there were just a lot of bad deals out there and a lot of people buying them because the market was greedy. And so naturally, this is now people exiting short term rental because of that greed because now it’s time to pay the piper, it’s time for them to actually have those mortgage payments to pay and they just can’t do it. So we’re seeing a lot of people transition over to long term rentals hoping to make it work or just outright selling the property because they realised the property can’t cashflow. Now, what does that mean for you and I, it means that if you were one of the investors that made a mistake, and you’ve just now found this channel, and you realise that you’re in over your head, probably going to invest to cut your losses and sell because for a lot of these people, if they hold on to the property, it’s just going to delay the inevitable you can’t hold on to the property forever and keep on paying out of pocket to carry this property. And so for a lot of people selling or figuring out some kind of a backup plan is the best option for them. Now, if you’ve been following this channel for a while here, you’re not in a bad position now is a really, really great opportunity to buy. Because a lot of these people that are selling properties right now and getting out of the market, they’re doing so out of a place of desperation, they’re selling for a lot lower than they probably need to be because they just are in a rush, they want to sell it quickly. So they can repay their debts and move on. There’s a lot of people licking their wounds, there’s a lot of people exiting. And so that means a big opportunity for us to get really great deals. So we’re seeing a lot of great deals in the market right now. And the other really big benefit is that we have sites like err DNA, where we can grab all the data and see what actually is going to make a property a really great return. And so we can actually look and see back before COVID During COVID After we can see exactly how these properties are performing. And so we can make a really good educated financial decision, having done our due diligence to make sure we’re buying a property that’s going to do really well over the next couple of years. And that in a worst case scenario is still going to cashflow at least at neutral, that’s always the bar that I set for properties that I invest in, and I believe you should do the same as well. So depending on where you’re at right now,

there’s a lot of opportunity. If you had if you are one of those people that made a mistake early on, then tough to say it but you know, you just have to kind of cut your losses and carry on. If you are someone that’s been doing this the right way since the start now is a really good opportunity. I’m seeing a whole lot more deals in the market right now than I was 612 18 months ago. So there’s lots of opportunities out there and lots of sellers that are really motivated to offload their properties. Now, if you’re managing other people’s properties, this is a really, really great opportunity for you as well. because for a lot of people that got into putting their place on short term rental, they just got started, they kind of jumped on the bandwagon, they don’t know the first thing about what it takes to actually optimise the performance of a property. So that’s kind of the other piece at play here, as well as that a lot of people just assumed it was going to be easy. And so for a lot of those people, they’re going to either need to get training and really educate themselves so that they can actually make the most of this property and make sure their properties do perform well. Or they’re going to need to hire a professional management company, so that that management company can take the burden off of them, they don’t have to do all the actual heavy lifting the legwork, and can actually generate better returns. So if you’re a property manager, you’re managing for other people, there’s a lot of opportunity here as well. There’s also a lot of opportunity for other people coming into the market. Because you know, the one thing that you want to look at is not just are people leaving, but are people actually growing and actually bring their properties newly onto sites like Airbnb? And the answer is a resounding yes. Overall, there’s tonnes of people now just jumping on to Airbnb still, and tonnes of really sophisticated astute investors who are now buying properties that actually do make a lot of financial sense. And they’re bringing them on to short term rental, but they’re also people leaving because that’s just a natural effect on Airbnb is that as a marketplace, there’s always going to be new people coming in new people leaving that are just out of the race now. And so there’s just a lot of opportunity if you’re positioned the right way, no matter what cycle the market we’re at. So it’s really important to just follow along with channels like this one so that you can know exactly what’s going on. And so you can stay informed, stay educated. The best way to time the market is to educate yourself it’s not about getting in or out at the right time. It’s about having the right education the right knowledge, the right tools right skill set, so that you can excel no matter what cycle we’re in. So hopefully this video was interesting to you and insightful hopefully it kind of shed some light on what’s going on and why people are leaving Airbnb as they absolutely are. You have any thoughts for me leaving in the comment section down below. If you liked this video, give it a thumbs up if you like my new setup, give this video a thumbs up as well. And if you want to stay up to date with the two new videos, we post every single week on the channel, make sure you hit this subscribe button so you can stay up to date with that as well. All that being said, thanks so much for watching, and I’ll see you in the next video.