Welcome back to another episode of Into The Airbnb, where we talk with Airbnb hosts about their short-term rental experience. Today's guest is the en DeAnne Davidson based in the Washington Coast, who has been a short term rental owner since 2007. Today, DeAnne will share with us about her experience in the last 15 years, some useful tips and the secrets to become a successful and respected Airbnb host. This episode is sponsored by Airbtics, the only one analytics dashboard for short-term rental investors and managers, where you can find precise Airbnb data such as occupancy rate, revenue, average daily rate, and so on. So, without further ado, let's get into it! Can you please tell us how did you get started on Airbnb or on short-term rentals?
It was on accident. We had a vacation home ourselves on the Washington Coast but went for a drive and found this beautiful property up on a cliff that had a 180 degree ocean view and we decided to purchase that and build two townhomes, a duplex style townhomes on it. And basically the only way we could afford it is to do short-term rental. What we plan to do is on one side and have the other place for ours, but it became so popular that we ended up renting both sides short-term rental and doing very well. We were one of the first short-term rentals in our area. So there was a high demand when we started 15 years ago in 2007. From there, we bought other ones, in the mountains and more on the ocean over time. So kind of got started on accident and I didn't discover Airbnb until about 2009, but they were fairly new back then as well. So we had already formulated all our rules and how to stay at our place before we got to Airbnb, but love Airbnb because they have the systems down as well. So that's kind of how we got started.
Oh my God, that's a great history and tell me before you discover Airbnb, how were you doing these short-term rentals? Like how was the distribution of the news that you're doing short-term rentals? Where did your guests came from and all of that?
Okay. Before Airbnb we did our own website. So we'd have a website to refer to and we did, believe this or not, we did little colour brochures that we passed out in the little travel companies around our state. Most of our people come from Washington. They travel you know, from Eastern Washington or you know, a couple hour drive to come to the beautiful beach clam dig, horseback ride, to do fun stuff. So we found that was a good way. Then online, we got the people that travelled to Washington from other states coming to us. So summertime we get the travellers from all over the United States and in the fall, winter and spring we get the locals.
I see, I see. So when you first discovered Airbnb and started to use their platform, did your revenue significantly increase with that?
Well, I would say it did help, in the beginning, it did help to give us another avenue to get people from, but it helped us more I guess in the later years, more as we stayed on and became you know, the good hosts that we are and now known. So in the beginning, it was a little different because we had already had established our website and everything, but I like a Airbnb because they do screen and they do verify owners and I do like the way that they do the reviews. You know each one can honestly review and that just makes me more comfortable when people come and stay.
Since you were one of the first people I guess who got to use Airbnb since you were already doing short-term rentals before, have you tried using other platforms similar, for example, VRBO? And what was your experience with them?
I did use VRBO and in the beginning VRBO was very good. My experience with them over the years is they got too big and they didn't have a lot of things in place like Airbnb. So I chose to not do VRBO anymore. I also do a website with a local Oregon and Washington. It's just beach houses, it's called Beachcombers NW and we do get people that directly want to come to the beaches in Washington and Oregon, through that website as well.
Okay, that's good to know. So let's fast forward to the present and I'll like to ask you, in the area you're hosting, how is the seasonality like?
The high season is summer, of course, because we have the perfect 75 to 80 degree days in the summer and we get a lot of travellers from out of state coming to see our beautiful Northwest. But we do have a strong winter season because people love to watch the storms come in. We have front row seats to the winter storms and they're fun to watch, but you're cosy in our comfy home while you watch them. So a lot of couples like to get away for a little romantic getaway. So we do have a strong, we call it offseason that's pretty steady, at least on weekends in the wintertime as well. Fall is a wonderful mid season time because the weather is kind of moderate, it's 65 degrees and lots of clam digging happening. So we're pretty much busy all year long with guests, they're just different types of guests during the seasons.
Okay, that's good. And in all this, like, throughout the year, what is your average occupancy rate like?
Okay, we're 100% in the summer months, we're 100% occupancy. I would say in the lower offseason months were probably maybe 60% occupancy during those times. But it's great because we get to enjoy it and we also get to work on our houses. That's the time to get to do, you know, maintain our homes and make sure that they're really good for the high season.
That's right. Okay, so also throughout the year, what is your pricing strategy?
Pricing strategy? Well, we've got our prices pretty well set, I have noticed the demand has increased. So we've kind of elevated our prices somewhat, but I kind of watched the competition to make sure, you know, we're kind of in the ballpark, we're not the highest, we're not the lowest, but we we want to have the best product out there. Most of our clients right now been 15 years, our repeat guests. So I have developed a little club called the Whale Tail Club that our repeat guests join that means they're good guests that have always left our home in good condition and they get little perks from us, you know, they get a little discount or they get a little surprise when they come. So they get to book way ahead, you know, the public. So I've offered these repeat longtime loyal guests, some benefits to stay with us. So we do keep full with that and then we fill in with some new guests in between.
That's so sweet! Can you tell me if you tried like, in the past or right now, a dynamic pricing tool or a pricing tool?
You know, I have not used any of the pricing tools. I kind of just watched the market. You know, kind of do a market analysis in our area and you can always tell you know, if your phone's ringing off the hook is probably too low. So, we've kind of found our niche with, you know, couples with the dogs seem to be our niche and the price point that they're willing to pay and in the outcome is usually good that you can't tell they've been a guest here, they leave our house so good. So, you know, that's all factored in. I don't just try to get anybody in here, we have a pretty specific clientele.
Well, that's good that you know about your target audience so you can get your track them and get to see how they behave. Right now that you're doing Airbnb, how do you get to sort out your guests? You won't like to bring anyone, that's what you told me, so do you run a background check on them or something?
What I do is, I do the auto book on Airbnb and I've listed the criteria that I want and they have to have a referral from a prior guest, that's one of my criteria. We also narrowed our down when we used to sleep aid in each home, I've narrowed it down to four. So by having a smaller groups, we get the couples, the couples with the grandparents or the couples with two kids. We just get a smaller crowd and that's, you know, that helps us become more effective. But if they fit all the guidelines on the auto booking, then it's not an issue. But I do talk to them, message them before to make sure we're a good fit before they come. You know, I want to make sure we're a good fit. So I do have the conversation with them in the messaging format after they've booked, so we want to make sure. Anyway, that's kind of what I do.
That's a great strategy, to be honest. After you got started on Airbnb, did you find there to be more trouble guests than before? Or you didn't get to experience any of this yet?
When I first started on Airbnb, well, I was less experienced and so we were getting random, troubled guests. But for the most part, if you utilise the platform properly, you know, it's a trust in us and trust in the guest and if that doesn't happen, then you're not going to have a good guest. So that's why I go back to the conversation after they book or when they're asking to book if they don't qualify for some reason. They might ask to book and then I have many questions. I don't necessarily block someone or I don't necessarily not book someone if they haven't had any experience yet. But if I have the conversation and ask the appropriate questions and they fit then I will let them.
I see and do you still get some trouble guests sometimes in the present or not?
You know, I haven't had any trouble guess probably in the last five or six years. Yeah, no bad ones from Airbnb because I'm really sticking to it and sticking to what they lay out and following their guidelines on that. And they do let me reject if I'm uncomfortable I can reject that guests and not be penalised as as a host. So it's worked for me.
That's every host dream to get no trouble guests at all. Are there any tips you'd like to give out to Airbnb hosts so they can also get to know their target audience and to filter out the bad guests in Airbnb?
Yes. The best for new person, brand new do hosting I would suggest starting out with just even if you can sleep more people starting out with smaller groups, don't try to do a group of 10, you know, in your first year, until you get a feel for people because we are in the people business basically, it sure we offer nice homes and everything. But you have to understand people you have to like people to be in this business and you get a feel for when you have conversations to get a feel for the type of person that's going to be staying in your home. I think that's really important, when you've invested a lot of money in your real estate that you get good people in your home and you treat them good. So I would say that my best tip is to start with small groups, couples, couples and a child, you know, just to start with, until you get to know and till you get some good reviews on your belt and a good feel for it. Then my second tip is to always go and stay at your home, you know, every so often, for a couple nights and see what the guests are seeing because you'll see something different than just walking through a home or looking at the pictures of your home. When you actually live it, you go "oh, yeah, that's what the guests meant by their feedback", you know. So that would be a second tip I'd offer.
So that's a really good tip to get your own Airbnb experience, right? I've never heard about that before, but yeah, it's really good. In all your years doing short-term rentals and also Airbnb, what have been your top challenges? It can be anything guest related, money related, property related, you can let us know.
Okay, the top challenges I would say, for any Airbnb owner or vacation home owner and for myself at times is finding good team members to help you, the cleaners, the yard workers, the home repair people. When you're in a remote area where your resources are limited sometimes that is very, very hard. Trust me your cleaner is probably your most important asset that you have in this business. Without a clean home, your guests aren't going to return. So that would be my top challenges for that, for owning a vacation rental that you rent out.
Yeah, that's good to know your experience as well. Any other tips you'd like to share for Airbnb host any particular thing you learn or anything you'd like to share?
Boy, thought I covered everything. My biggest, I wouldn't do over 30 nights, you're getting into long-term rentals there and in Washington it's a whole different animal you have to evict if it's over 30 days, you have to go through formal eviction. So I wouldn't try to get in that over 30 days on a guest. That would be one tip and I wouldn't do one nights either. You don't get as good of guests for one night. Pop in pop out, that's like a motel person. We found that our sweet spot was three to four nights. Those were the perfect guests. You know, they kept the place clean, they were neat and tidy and they they got to relax those enough time to relax. So don't try to do those long-term. I know Airbnb pushes that a lot, but I think you're asking for more trouble when you get into that. It's a whole different game than the travelling public.
I see. So now that you're telling us this one tip, have you tried short-term rentals, sorry, long-term rentals before and that's where your knowledge come from?
I have done long-term rentals and they're a disaster, at least in Washington State because there's so many rules. There's so many rules that favour the tenants over the owner. So I got out of all my long-term rentals and change to short term and I love short term rentals.
I see, I can understand about it. What were things that you hated most about the short-term rentals, long-term rentals, sorry. Did they affect your revenue significantly? You told me that you have many troubles with that with the Washington State.
Yeah, Washington State law is different. It may be different in every state, I don't know. But in Washington state law, if it's over 30 days and they don't leave, then you have to file court case and have an index. So they can technically stay here a year without you being able to kick them out, if it's over 30 days. So that's just it's nonsense to even try to do something like that. Also, I have done like a 20 day summer stay and you do lose revenue when you do those long-terms because you can't charge the same rate when they're doing 20 days. We found the optimum was three, four or even a week is good and that way you keep a handle on what's going on inside your home, if it stays clean, you can keep it up. The long-term stays, there's a lot of hindrances with that.
Can I get to know an average? How will be like your monthly revenue or anual your revenue?
Our annual revenue, I mean, we just have two units now and like I said, we sat down on five. Two units, and each unit produces about 50 a year. So for the two units about 100,000 annual.
So that'd be it for today and thank you for your time. Thank you for sharing all these tips and all your experience with us, it has been great! Thanks for listening to into the Airbnb. We're looking for hosts and other people in the short term rental industry to interrupt if you have what we need and would like to share your experience in this podcast, please send us an email. All the info is at the end of the description.
