The BEST time to get started on Airbnb

What’s up guys, in today’s video, I want to talk to you about how to identify the best time to get started on Airbnb, whether you’re managing properties, whether you’re investing in properties, I want to walk you through and show you kind of a bird’s eye view on the market cycle that repeats itself over and over and over again, as it relates to Airbnb and short term rentals. So that you as an investor or property manager, whatever it might be, can determine the best possible time to get started. And so the supply and demand the kind of the kind of cycle that we go through with Airbnb, it repeats itself over and over again. And once you’ve been looking at it for a number of years, it becomes really obvious exactly what’s going on. It’s very similar to a lot of other markets out there. So let’s break it down.

What happens with Airbnb is it’s an opportunity for people to make money. And so it’s really similar to if you look at other areas, like for example, the stock market, or like cryptocurrency, when people are making a lot of money, and there’s a lot of hype around people making money, a whole bunch of people start to flood in. And so what happens is that when there’s a big opportunity to make money, and people are doing really well with it, then a whole bunch of people flood the market and start putting their properties on Airbnb. Now the impact of that is that for the people that are really dialed in, they have the right systems, you know, they work with someone like me to learn the right tools and processes to actually dominate no matter what the competition is doing, there’s not really a big impact. But for the 75% of people on Airbnb, that are really just kind of going with the flow doing the best they can don’t really have dialed in strategies, what happens when a whole bunch of new competition enters the market is that now suddenly, the returns get lower. And we see this right across the board. If we look at the actual data, when the competition grows, when the amount of people that are now hosting on Airbnb grows, the people that are top performers in the market don’t really get heavily impacted. The reason for this is that they have really good pricing strategy, really great photos, really great listing. And so naturally, the demand that there is for properties in that market is gonna get gobbled up first and foremost by those top performers. But what happens is, when you’re in this cluster of average performers, then all the new people coming in are very real competition to you. There’s all kinds of other people that have comparable listings to you that have pricing strategies that are similar to yours, everything else, there’s nothing that really sets you apart from them. So what happens is now instead of there being let’s say, five people in the market, just for example, sake that are fighting for the for the the, you know, demand that there is for properties in that area, now, there’s 10, or there’s 20 properties in that area. And so naturally, everyone’s going to lose out a bit and people are going to make less money. Now what happens when people make make less money when the average hosts on Airbnb or short term rental platforms start making less money is that people start leaving those platforms. And then naturally, when people leave those platforms, they go and list their properties on long term rentals or do something else with it. Because they came in, they entered the market, they didn’t get the numbers that they were looking for. And so now they’re going to exit, and then not just take some time, this whole process kind of this whole cycle repeats itself. Because what happens when people exit the market is now the people that did stay there, especially the top performers have even more demand for themselves, because there’s not as much competition. And so the numbers are really good. And that’s kind of the at the point of the market that we’re entering. Right now.

We saw that the numbers are really good about two years ago, in certain markets, when when the pandemic hit, there were certain markets that just absolutely exploded with demand a lot of these staycation type destinations. And so we saw over time, that the demand was really good, there was all kinds of incredible returns, those of us who were in the market, especially those of us who had our strategies dialed and absolutely cleaned up. And then because people on the outside saw that we were doing really well. And the numbers were incredible, a whole bunch of new people entered the market. And that started happening maybe about six to 12 months ago. And as those new people entered the market, they started to get okay numbers, but the more of them that entered the market, the more of them were in that kind of average cluster performers. And so the competition got greater. And now suddenly, they’re not making their numbers. Compare that as well. Like if you if you look at that, and you see it that also happened as interest rates were going up. So now a lot of the people that own these properties are paying more so the bar they need to hit in order to break even and be making the returns that they want has gotten even higher. So now there’s a whole bunch of people that are leaving Airbnb and leaving short term rental platforms, because they just weren’t able to perform very well. And the bar was rising for how well they had to perform to make ends meet. Now a lot of those people are going to be forced to sell their properties, maybe they’re going to try to rent them long term and just take a loss, whatever they might do with their properties. That’s what they’re gonna do. But what that means is that now for those of us that are still in the market that have had the really great strategies to be able to perform throughout that storm and kind of weather that storm and come out unscathed. Now you can kind of look at and go okay, great. Now we’re getting a whole bunch more demand, now we’re starting to see bookings pick up, I can tell you that for my properties, we’re starting to now get, we’ve made it through the slow season, still, we’re profitable through the slow season. And now we’re getting really big bookings coming in for the high season. And we can see the writing on the wall that this next six to 12 months here is going to be really good, because there’s a lot of fear in the market right now. So people are exiting, and then what’s going to happen is that whole cycle will repeat itself over again, it may take some time. But over time, as we get really, really great returns over the next year or two here, people are going to see that more people are going to enter. And so the question then becomes, number one, when should you enter the market?

And number two, what do you need to do to make sure that you’re going to perform no matter what’s going on this cycle, because the cycle is going to repeat itself, it’s predictable, we know it’s going to happen. So if you want to invest in or manage property successfully on Airbnb, then you need to know how to weather that cycle and perform and get great results, whether it’s in a winter season or summer season. So first off, when should you enter the market? Well, it really depends. If you’re entering the market as an amateur, and you’re not going to be investing into skill sets into tools and strategies to reform, then you’re really not going to be able to enter the market at any point and how it’d be successful long term. Sure, if you enter the market in a period, like right now, when people are leaving, and the competition is smaller, then you’re gonna have a better chance of succeeding in the short term, but long term, you’re just gonna get wiped out when the market cycle continues on as it always does. So really, the answer to that question is that there’s never so much a bad time or a good time to get into the market, it really just depends on the skills that you have when you enter the market. So if you’re entering the market with the right skill, set the right training the right coaches, in order to optimize your pricing strategy, optimize your listing, make sure you get the right amenities, make sure that you’re buying the right property if you are investing, and that you actually analyze the property to get a really great deal. If you do all that foundation work, then there’s really never a bad time to enter the market. Because if you enter the market during a time, like right now, there’s just going to be swathes of opportunity for you to pick up a whole bunch of bookings and perform really well. But that’s not to say that you shouldn’t enter the market when things are really hot, and everything’s going crazy.

Because I’ve bought properties during that hot season, like I purchased properties. When things were going crazy, there’s tons of demand, everyone was jumping into the market. And I’ve seen people that got started the exact same time that I did, and they didn’t have the experience, they didn’t have the skill set, and they’ve had to sell their properties. And myself, I bought properties, I was patient bought the right ones, and did everything I knew I needed to do in order to perform really well. And those properties have continued to perform really well. So really, the best thing that you can do as an Airbnb investor or property manager is to make sure that you’re in the top 10 to 20% of the market. As long as you do that, then no matter what’s going on with the bottom 70 80% of the market, you’re still going to have food on your table, there’s still gonna be bookings for you to grab, and you’re still going to be able to make great returns. So as long as you have the skills and the tools and the strategies in order to be able to get yourself there. And it really doesn’t matter what’s going on in the rest of the market. So from my perspective, really the things that contribute to that are going to be having a really great listing having a really great property itself and having really great pricing strategy. Now I know that seems really basic and really simple, but so many people overlook it. So many people go and spend all their money or miss allocate their budget. And so they end up spending all their money buying a property, and they don’t have budget to actually furnish it and design it in a really, really attractive way. So just adding the right amenities to a property can make a really, really big difference and decorating it properly. So it stands out from the competition, that’s number one. Number two is you really need to make sure that listing is dialed in. So if you have a property that you know, is a really great property, you need to make sure that you have really great photos, a really great listing title, really great listing description to highlight all the benefits of that property so that people are going to book it.

And then the last piece is that pricing strategy, just making sure that your prices are set to where you’re gonna get bookings and you’re gonna get them without leaving money on the table and missing out on opportunity. So and we’ve got free trainings that are linked in the description down below if you want to check out how you can actually do that some of the tactical tools and strategies to be able to do that let me know your thoughts in the comment section down below. If you liked this video, make sure you give it a thumbs up hit that like button it really does help me out in growing this channel and helping more people with Airbnb investing and property management. That’s all for today. So let me know your thoughts. Give me a like on the video. Hit subscribe if you’re new here if you haven’t subscribed yet, and I’ll see you in the next video.