Owning and managing an Airbnb property can be expensive and risky. Are you wanting to dabble in the short-term rental business without all the risk? Co-hosting may be the opportunity for you! You can co-host another owner’s property with little to no investment and it offers a great ROI for your time.
Cohosting is different from arbitrage, which is where you rent a property under a long-term contract, then list it as a short-term rental on Airbnb. With this method, you would need to have the first and last month’s rent as well as furnish the property yourself. This could cost anywhere from 5 to 30 thousand dollars depending on the property.
However, with cohosting, you’re able to manage other people’s properties that are already furnished and set up for guests. This way you can gain immediate profitability, and avoid the stress of having to pay the bills. Often you can earn just as much profit from co-hosting as you can from arbitrage with a lot less risk.
What is Co-Hosting?
Co-hosting is managing some or all of the day-to-day procedures of a short-term rental property. It is typically done in exchange for a percentage of the revenue. Depending on the area and services offered, co-hosts can charge anywhere from 10-50%. As a co-host, you to decide which services you will offer.
For example, some operations co-hosts can assist with include:
- Managing reservations through Airbnb or other short-term rental platforms
- Pricing optimization
- Guest communications
- Checking in guests when they arrive, either in person or virtually
- Managing the calendar
- Home organization and supplies
Why Is Co-hosting Needed?
Most owners don’t know how to truly optimize the potential of their Airbnb. The process can be time-consuming to learn and as a result, they often leave money on the table.
Owners who are not experienced in managing an Airbnb can typically make more money by working with the right professional who is trained to offer co-hosting services. For many owners, co-hosting is the way to go!
How Do You Get Jobs as a Co-Host?
It is best to choose a niche or particular city. For example, beach houses, mountain chalets, or Blue Ridge, Georgia. By getting to know the ins and outs of your niche, you will provide a lot of value to a small group of people. This will result in you becoming the “expert” in that area, and you will be highly sought out by property owners if you prove your value.
To find property owners, you need to look where they already hang out. Many vacation towns will have property owner Facebook groups. You can also use e-mail marketing and various social media platforms to reach out to potential clients.
What Is the Initial Process Like as a Co-host?
Once you’ve found a property owner in need of your services, set up an initial meeting. During the meeting, get to know the owner, the property, and some of the problems they are currently having with managing their rental property. This will ensure you can actually add value to their business.
Once you’ve established what areas need improvement or what tasks the owner needs to be relieved of, make your offer! If your offer is accepted, make sure to have a co-hosting contract ready or they may change their mind before you get it in writing! Once the contract has been signed, you are on your way to managing your first property as a co-host!
How Do You Co-Host on Airbnb?
Becoming a co-host is simple, but not easy. Co-hosts need to acquire the right training and experience to optimize the properties they will be hosting.
Having a mentor who has been a successful co-host is often the best way to go. If you don’t know anyone who has gotten into co-hosting, Facebook groups geared at short-term rental owners have plenty of people with experience frequenting their posts.
You can be a co-host in your city or another city. Being a local can be useful, and some owners are specifically looking for them, but it isn’t always necessary. Especially if you will only be managing the property on the Airbnb platform.
Co-hosting is a simple and less risky way to get started in the short term rental business. Once you have co-hosted a few properties, you can invest that income into purchasing your own Airbnb. Once you have your property up and running, you will already have the skills necessary to maximize your profits!