So you’re renting your room out on Airbnb–does that make you a rentrepreneur? Find out the six key qualities that make a successful rentrepreneur.
There are many investors in rental real estate but not all are rentrepreneurs. Rentrepreneurs are those who have turned short term rental opportunity into a full blown business, creating a repeatable and consistent system of sourcing and operating a entire portfolio of profitable short term rentals on sites like Airbnb.
Has a Multi-Unit Goal
The successful rentrepreneur NEVER settles for just 1 short term rental unit. They may start with one to learn and perfect their craft, but the goal is to always keep adding units until they achieve a portfolio that spits out cash flow like a broken slot machine. Are you an opportunistic renter just looking to make an extra buck? Or are you trying to build your own short term rental empire?
Full Time Effort
While the rentrepreneur may start off part time, the intention and goal is to make short term rentals a full time effort until they achieve their target portfolio size. Part time efforts will get you part time results. You can’t build a profitable multi-unit portfolio of short term rentals without putting some serious time and effort up front.
Builds Systems to Automate
From the very beginning, successful rentrepreneurs seek ways to build in automation into their short term rental business. Their time is very valuable so they’re willing to give up some of their unit profits in order to free up time to find more units.
The “Four Hour Hosts” tend to utilize SmartBNB for their automation needs–this is a Ferrari in the world of Airbnb automation for the price of a Corolla. For pricing automation, we recommend you check out Wheelhouse.
Rentrepreneurs don’t try to do everything themselves. They try to find others who can do it more efficiently and more economically than they could on their own. That means they will test out and find the best providers to outsource cleaning, maid services, and even check-in/check-outs. Does that mean they pay for 3rd party services and have to cut into their margins? Yes. But it also means they have more time to find another unit.
They focus on optimizing their hourly profit and NOT their per unit profits. Why? Because optimizing for unit profits mean far fewer total units they can manage on their own. It’s about maximizing the total profits they can achieve for the most time they can put into their business.
At the core of all successful rentrepreneurs is that they are just entrepreneurs with a well defined goal in a well defined space. They are resourceful, creative, and most of all, they have a lot of hustle.
What do you think makes a successful Airbnb Host? Share your thoughts below!