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@thomass5169

Жыл бұрын

That new HVAC system should lower your power bill to the point that you will kick yourself for not installing a new system at the start. In fact, you likely lost return business because your customers were not as comfortable as they should have been. Would love to know what percentage of power savings you experienced after one year. Just make sure the system is well maintained by a competent company so future problems are caught in advance when possible. Keep it clean and you will be happy with the performance. Congratulations on the venture; no better way to learn than jumping right in.

@JT0007

Жыл бұрын

You said that your home gained value and therefore taxes were higher than expected. That’s literally not how California works. Property tax is always 1% of purchase price, meaning tax is fixed. Why are you making things up on your video? You sound like you have no clue what you’re talking about 🇺🇸

@alunmorgans

Жыл бұрын

Passive income = being a leech

@JT0007

Жыл бұрын

@@alunmorgans Nope. I make my tenants homes better than they were and work with them however they need, within reason. 🇺🇸

@thomass5169

Жыл бұрын

@@alunmorgans Have you lost your mind? How did you come to that conclusion?

I feel like airbnb used to be such an affordable and trendy way to stay places, but the reputation is definitely getting worse with everyone trying to make it their main source of income. Airbnb’s in general are getting so wildly overpriced, they expect the customer to basically clean the place and also pay a cleaning fee on top of giving the customer a chore list to do lol. Not saying Shelby does that, but I see it a lot! Where are hotels, which used to be the overpriced “worse” option, people are leaning towards again because they clean, there is housekeeping daily, breakfast often included, no additional cleaning fee, no expectation to do chores before you check out, room service etc. just something I’ve seen a lot of people talk about on TikTok and stuff

@chilicheesecakefilms

Жыл бұрын

The cleaning fee is wild in some places. I've seen the place be super cheap like $50/night but then the cleaning fee is like $120/day and I'm like..... wait a minute, cowboy

@tamwilfred

Жыл бұрын

The pademic might have something to do with it especially if people want a super clean and sanitized place. Labor costs have gone up, cleaning supplies prices have gone up, and maybe with the drop in bookings owners need to recoup some of the cost by increasing prices if they want to stay in business. Hotels have the advantage of economy of scale, a full time staff, and cheaper overhead cost. It cheaper to house 100 guests compared to homes that house a handful of guest every few days. Pricing on everything is all screwed up. I think once things normalize, hosts will realize they can't charge that much or that hosting Airbnb isn't that easy as they thought it was. Look at big companys like Zillow who exited buying homes and reselling them. They lost a lot of money when they realized they can't sell houses for prices that the market wasn't willing to pay.

@Callmebigwilly

Жыл бұрын

My buddies stayed at one in Vegas with a pool. If they wanted to use the hot tub the owner said there was a $50 charge per day.

@beverlyweber4122

Жыл бұрын

@@Callmebigwilly That's insane! Gee, I wonder why the greedy owner isn't making as much money?? "Honey, why won't anybody use our hot tub?" "Did you forget to fill it with sparking water from France and include the caviar?"

@itsnotCindy

Жыл бұрын

I think air Bnb's (can be) "worth" more though because at the end of the day you're getting a different experience. With a hotel you get a single room and a bed and bathroom. There isn't alot of room to "roam around" or relax in other areas. With an air bib you get an entire space with a kitchen and the ability to cook food and the privacy that comes along with it.

Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

@hunter-bourke21

11 ай бұрын

There is no greater freedom than handing back the key to a airbnb apartment knowing someone else has to maintain it. If you enjoy renovating and decorating then perhaps home ownership is for you. For me, property is another way we get tied down

@Believer292

11 ай бұрын

@@hunter-bourke21 I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

@edward.abraham

11 ай бұрын

@@Believer292 You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.

@james.atkins88

11 ай бұрын

@@edward.abraham Glad to have stumbled on this conversation. Please can you leave the info of your investment advisor here? I’m in dire need for one.

@edward.abraham

11 ай бұрын

@@james.atkins88"Julia Ann Finnicum, is my adviser and she is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

Airbnb's are absolutely wrecking the rental market. It's also way cheaper now to just get a hotel room again. I hope Airbnb changes its predatory ways soon. It's pretty hard to feel sorry for people losing money on Airbnb's when In some cities (like the one I live in) it's literally causing people to become homeless.

@chilicheesecakefilms

Жыл бұрын

Everywhere I travel to - even small places that have one or two hotels, airbnb prices are INSANE. I've found hotels with breakfast and a pool at a cheaper rate than airbnb backyard room at someone's beat up house. It's insane

@xcf1614

Жыл бұрын

This 100%!!!

@shannonparahi5600

Жыл бұрын

I feel like if it’s just a couple staying somewhere 100% staying in a hotel is cheaper but I also feel you don’t have the luxury of what a home has eg. Proper kitchen, extra living areas, etc. I think Airbnb is a great option and worth the price for families or a group of people due to the extra space, privacy and multiple bedrooms

@NSiFe

Жыл бұрын

Companies are buying houses lile crazy too... to rent it back to us. We will own nothing and be happy

@chisquared100

Жыл бұрын

AirBNB takes zero risk. You're stupid to be a part of it.

Here is some advice. I’m the slow months you should price your home agressive enough to compete with hotels and other Airbnb’s to the point you get the revenue closer to peak season. Although you may be worried about utilities, you are getting potential repeat customers if they enjoyed staying at your place. Furthermore, you can offer discounts for longer stays in your advertising. Just tell them to contact host. Make sure you ask those who stay with you for a positive review and give them 10% off next visit if they do. Furthermore, offer them 20% discount if they refer people and limit that 20% off to slow season. You have to step up your operational acumen as this house could make you far more dollars!

@X99Zero

Жыл бұрын

She or her management are doing a poor job at revenue management to react to monthly price and competitor movement and it’s costing them a lot of money. Mismanaged property.

@kandiali

Жыл бұрын

I was about to say the same thing. Price should have definitely been adjusted after 2 months of loss.

@IMMERSIVEVOICE

Жыл бұрын

This is poor financial management.

@bertrankin

Жыл бұрын

This

@saalank

5 ай бұрын

Her costs were simply too high to lower prices all that much. They got excited at the prospect of huge profit margins but hired out all the work. A property manager for their only single occupant/group property? Pest management for a single property? You can get those things when you scale up and get a bulk discount per property. There's no such thing as free money and easy money doesn't last long and quickly gets divided up as people start to crowd around fresh prospects. I turn a good profit on my airbnb because I do 100% of the work (managing the listing, cleaning, repairs, updates, etc) also I don't have any mortgages at the moment. It's definitely not passive but it fits me where I am now. Definitely plan on scaling up and doing long term rentals once I get enough properties. If she wants a passive income, long term is the only LONG term way (rental wise) or scaling up big time (which even that isn't working out as cities start to clamp down on short term rentals). Simply put, she didn't do enough market research and didnt fully run the numbers. For example, the electric bill history of a property is frequently available for the past year even if you weren't the owner back then.

As someone who is looking into purchasing a short term rental and can only find videos of owners talking about how much money they're earning, and not about the challenges they've faced in only breaking even or making a profit, thank you for your transparency!

@ShelbyChurch

Жыл бұрын

sure thing! I still think it can be worth it, but it would be VERY tough to make the numbers work with how interest rates are right now, and the possibility that many people could be cutting back on travel for the next couple years... it can still be a great business in the long term but I think it is important to have a savings in case there's a low season

@guysumpthin2974

Жыл бұрын

@@ShelbyChurch ❤️❤️❤️❤️❤️❤️❤️

@sandyrose2398

Жыл бұрын

Shelby has managers taking care of the bookings - and other people are handling the clean-ups, repairs, etc. You also need to pay them. This house is in a good location - since many of her future travellers will be from California. As she stated, they might not be travelling across the country due to very high plane fares. People still like to "get away" from their every-day lives. It is now risky to purchase a property and expect to make money - with the high property taxes/maintenance, the price of the home - and the times that the home will be vacant.

@lydiapatelll

Жыл бұрын

100% agree! Such useful perspective. We also started hosting not long ago and feel the market has slowly shifted.

@fortyozsteak

Жыл бұрын

Airbnb makes a ton of money. You need to know what you’re doing

Hate to say it but the truth is many folks simply don’t have the money right now to be splurging on things like this. If someone absolutely needs to stay somewhere they’ll opt for a small place at a fraction of the cost or crash at friends or families. It’s just the reality right now. Anyway great video as always Shelby. Seriously, it takes courage to talk about our failures and losses in life. We live in a world filled with highlight reels, filters and W’s. People forget to talk about where those wins came from and how much pain and loss were associated. These losses are incredibly important and it’s times like these that we learn and grow the most. Not to mention you get to share this wisdom with thousands of people to also learn. It’s great all around. Keep up the incredible work.

@amandab8433

Жыл бұрын

This is true. My husband and I are heading for a week in Monterey, and first looked at Airbnb thinking it'd be cheaper than hotels. It isn't. We were able to get a "Boutique" hotel (downtown) stay for $71 a night, as opposed to $150 for the cheapest Airbnb in the same area. Even including eating out it was by far cheaper just to stay at the hotel a two min walk from the area we were there for. We had thought of buying property here in the SF Bay Area for Airbnb rental, but the market here is already swamped with them.

@itsnotCindy

Жыл бұрын

I think air bib is moreso a luxury where people will go for vacations not because they need to just stay somewhere IMO

@andydrew3320

Жыл бұрын

@Liz bth what it’s supposed to be and what it has truly become are two totally different things

Tip for improving bookings (if this applies)… I have to say that as someone who has stayed in a lot of airbnbs, the ones that stand out and return to multiple times are the homes that are extremely well stocked and have a personal touch plus communication. AKA not run by a property management company and sterile. Upkeep of furniture, competitive pricing (not under priced, just “fair”) and exceptional cleaning is my other must. If the home feels homey, unique, and the owner or sometimes manager makes it feel like you are staying in their home that they love and care for. If it lacks of personal touches in communication and no extras provided, I often don’t stay at those places more than once. Hope that’s helpful.

A useful strategy for the low season could be to contact local businesses to see if they have any staff/contractors that need accommodation. You could get some longer term lets booked, 1/2/3 month durations at a heavily discounted rate, but enough to cover costs.

@MsVicky72

Жыл бұрын

Best advice so far!!!❤

@NatashaEstrada

Жыл бұрын

@@fajrdn I think he was probably thinking along the lines of nursing/engineering contractors and not construction.

@ShellysMillions

Жыл бұрын

I had to travel for work to San Diego and short term rentals saved my company when I needed to stay somewhere during Comic Con!

@Manecazz

Жыл бұрын

I was about to state this exactly, I work at an Apartment service for about 8 years and you have to compete with the market around the area the property is.

@DerDudelino

Жыл бұрын

Personally I'd just use her fanbase - offer to hangout, if they book her AirbnB. She is pretty massive on social media - properly advertised, the place should be full at all times - with fans or KZreadrs who want to shoot something with her. Win-Win :D

Hi Shelby! As someone with a hospitality business degree, I really think you/your property manager need to consider the rate fluctuating more. You can definitely raise it in the peak season and should lower it and increase your bookings (at least by a little) during the off season. As someone who travels, I have been wanting to go to Palm Springs and actually looked at going in September. If it was that hot and $500 a night, there’s no way I would go. For a cheaper price it makes more sense.

@emilyromano4794

Жыл бұрын

Hopefully your property manager in evaluating the market for rates and increasing during events or high travel to the area. They should also be lowering to match other rates during the off season. It’s better to be getting SOME money than none at all and in hospitality as soon as someone doesn’t book that night, you can never make that money back. Just some tips!

@chesheekbs

Жыл бұрын

Agreed!! Even by 50-100 that would put her in a whole new search bracket.

@FransceneJK98

Жыл бұрын

So not fair but business wise it does make sense. 😢

@Neezabja

Жыл бұрын

Don't forget Pal Springs only permits a fixed number or rental contracts per year, lowering the prices considerably off season could not only be unprofitable because of higher summer utility bills but also reduces the quota for more profitable times of year.

@double_joseph327

Жыл бұрын

Probably using a bad property manager who is expensive lol

As someone who used to be in the hospitality industry it's quite common to overcharge during peak to make up for the profit loss you'll experience in the off months. Some hotels will even shut down completely or almost completely during peak off-season. If your revenue for August continues to not even pay for the basic cost of operation then maybe it could be an option to shut it down for a month especially if you pay your property manager, pool cleaners, etc. by booking rather than a monthly fee.

@sterlingmarshel6299

Жыл бұрын

property managers are on year contracts and the pool has to be maintained monthly - those costs would not be cut.

@jasonsmithers2448

Жыл бұрын

Terrible advice.

@factsdontlie4342

Жыл бұрын

Never close. Lower prices in slow season. Some income is better than none. Make sure you are financially prudent and have savings from the peak season to help during slow season. It just seems like a stupid idea to start a business in California, there is a reason business is fleeing that state.

I’m a successful AirBnB host and a Southern Californian. I went to Palm Springs one summer and it was 115 degrees. I was I intrigued as it felt like my skin was burning off my bones but damn… not exactly a place I would return for summer fun. My ABBs are in Santa Barbara and Rock almost all year but I don’t do automated. I’m hands on and available for every need of my guest. I wouldn’t say it’s passive income but I love it! 😊😊

3 notes about solar 1. The way Solar customers are being billed is expected to change in the near future (research NEM 3.0) so if you decide to wait on Solar, you might not get as good benefits as gettting Solar sooner and getting grandfathered on the current NEM 2.0 tariff 2. The solar tax credit increased to 30% 3. Solar panels do lose their efficiency when it’s really hot (it’s just a characteristic of inverters) and if it’s windy in Palm Springs the panels might get pretty dusty and lose their efficiency even more, so you might have an ongoing cost to clean the panels. I’d recommend talking to neighbors or others in that area to see what their actual output over time is just to make sure you cover your basis. Hope this helps !:)

This has probably been said a thousand times before but something that gets glossed over is at the end of the day the people that rent your house are still helping you pay the mortgage. So you aren’t technically sitting on as much of a loss as you think when you are gaining equity in the home.

@networth00

Жыл бұрын

You could say the same about a long term renter. Why not buy a house with a $2000/month note and rent it for $1800? Why not... because you'd be an idiot.

@simoncoco1

Жыл бұрын

Unless your property price is underwater, for example, you are paying a mortgage for a $1m house that can now only be sold for $400k.

@ebo5739

Жыл бұрын

Thats not really true. Take depreciation into account. Within 30 years you paid again for that house with your reinvests you must do. If you dont make it with your cash flow than its a bad invest. Also consider the total amount of invested capital.

@thatslumlordlife

Жыл бұрын

I have a few rentals and after you pay loan, taxes, insurance, rental fees, basic upkeep, lawncare, turnover costs ( loss rent, painting, flooring, damages) you don't make anything. Many turn into money pits. This is why more are wanting to do airbnb. If its not a large rental property many times it's not cashflowing well unless you rent it way high. Small properties such as a house or duplex have way to much maintance and repairs to keep up on.

Bad idea to turn off the AC when not occupied. Mold grows in 12-72 hours. You need to keep the humidity down. Once you get mold in your place, it will be a total loss.

Thank you for sharing your struggle with business. So many influencers say “take my masterclass” and make it seem like success is easy. There are twists and turns, but you’re certainly on the right path.

When she says she brought a house to renovate FOR Airbnb...I knew there wasn't a long term cash flow plan for all four seasons

@DoYouLikeToastToo

Жыл бұрын

Yea it seemed like a bad idea from the beginning. I also feel like by only having a whole house for rent you are missing out on a lot of the market. I think there are a lot of single travelers that need a lot less space.

@samanthabarron8481

Жыл бұрын

Yes, this is why people lost money. You can’t just do something like this on a wing and a prayer, you have to have a plan and if it doesn’t add up, you don’t do it. No emotions, all business.

@patrickstarrfish4526

Жыл бұрын

Shelby seems really personable, but clearly a bit of an airhead and not a businessperson. Absolutely insane video with multiple internal contradictions. in the 3:30-4:30 window, she complains she only rented out 2 bookings in June, the "nightly rate wasn't that high, it was $4 or 500 dollars" it wasn't that bad, it was kind of what I was expecting " are you kidding? one booking in July, renting $500 for night, for only $1500 . then at 3:50 she says we could lower our nightly rate but it would get eaten up by the AC? again, are you kidding?!? at 6:00 she says her "building manager" had left the AC on all month June and July and the electricity was $850 per month. Then in August and September it was turned off when the home wasn't being rented out. (duh), which resulted in a $300 drop in electric. So one additional night rented out at $300 would have covered the entire month's entire marginal additional electric. Not what Shelby made it out to be (it would be $2,500 if we had the place rented out every day!) The "property manager' is incompetent, and something Shelby should have done on her own. if you have to hire "pest control" instead of getting some ant traps from Home Depot, you really shouldnt' be in the business of If you are NOT a DIYer, and can't fix anything or maintain anything yourself, running an airBNB with a POOL and pricing yourself out of the market is insane, and will guarantee to lose money. what rate are you paying on your mortgage? when is your mortgage due for renewal? Good luck getting the same rate. Anyone who has no business sense and buys a home with a pool, trying to rent it out for $400-500 per night to large groups of people is an idiot, sorry. Was any consideration given to breaking the house into two sections, or renting out individual rooms rather than renting out the entire house all as one unit? I mean, what is the market for renting an entire $400-500 house with a pool? Surely there are 3-4 bedrooms in the home, and 2-3 bathrooms, and each bedroom could have been rented for $125-200 depending if they had their own bathroom or not. This is atrocious property management, and the property manager is incompetent (or just plain lazy). Pretty, but pretty stupid.

@colorbugoriginals4457

2 ай бұрын

Yes, they are exactly the problem. Find a nice thing, pump it for money and ruin it for everyone. She is the problem.

You could also consider installing solar collector pool heaters to help keep the pool water warm and reduce gas usage. They're basically nothing more than black pipes with pool water running through them.

Air bnb rates are getting out of hand. All the fees are making hotels seem cheaper.

@ShelbyChurch

Жыл бұрын

a hotel is cheaper, but can only sleep 2 people. Are 3 hotel rooms cheaper than 1 Airbnb, though? That's usually why I book an airbnb- I'm staying with a group. Otherwise I agree and prefer a hotel room if it's just me or one other person.

@lorenzograssi3637

Жыл бұрын

You also don't usually get a kitchen if you book a hotel

@MrDwalks

Жыл бұрын

I think the trick is to keep the fees low enough and the "Airbnb experience" with enough amenities that it becomes worth the added cost

@boyleheights9280

Жыл бұрын

Cleaning fee’s and rules making me go back to hotels 😮

@tabithathewholistic

Жыл бұрын

Absolutely!!

My eyes are bugging out at those utility bills. What!! Over here in New Hampshire, I work from home full time so I'm basically here 24/7. Electricity bill plus solar panel loan is usually $125/mo (includes car charging), water is about $25/mo, gas is $25/mo in summer and it can maybe get to $140/mo in winter when it's getting down to 0 degrees F. Also the mortgage stuff is so high! West coast stuff is crazy. East coast, bought my house 10 years ago, 1700 sqft, 2 car garage, 3 bedroom, mortgage, taxes, and insurance is under $2000 (45 mins outside Boston)

Some thing I’m suprised not to see on the expenses sheet; •Internet •Cable or Streaming Serviced •Landlord Insurance •STR Business License and/or TOT •Cleaning staff •Paper Supplies •Replacements (stained towels, worn textiles, etc)

You need Solar, and you need a solar water heater for your pool. Pool cleaning seems very high. Pest control should be quarterly and if you have an ant problem, they need to come more. Put all of your landscaping in drought tolertant plantings, with drip irrigiation. All of these items would be tax write offs.

Thanks for sharing!! Mine in West Hollywood has just barely broke even this year as well so I was wondering if that was normal. It’s fun but certainly hasn’t been the cash grab I initially thought it would be! The transparency is much appreciated!

Shelby, have you considered dropping Airbnb and doing your own booking and promoting? In one of your first "Checked-In" videos the owner did that and it seemed to be a very wise move. As long as you could figure out how to screen renters I think this would save you a ton of money.

I think a part of the reason bookings might be down is because people have realized how much better value hotels are vs Airbnb. For the same price (or cheaper) you get a way better experience at hotels.

@WooweeYT

Жыл бұрын

ABB used to be a good deal. It feels like prices have skyrocketed lately. I suspect it's because early on it was just people trying to recoup costs for vacation homes and such, now it's an entire industry. There's a lot more competition and everyone is trying to not only turn a profit but also pay off the property from the rentals. Like even Shelby here thinks the property is kinda failing. If she lost $3300 every year, in 30 years when she pays off the mortgage she'll have paid $100k for what's likely a $1mil property. Which is ridiculously good.

@icantwiththis

Жыл бұрын

I used air BNB 2 times and then I saw a thing on the news a creepy guy was putting a camera in the toilet and never again. I just realized it's actually dangerous no way. At hotels there's lots of people and security and background checks I'm not just going to some strangers house.

@sterlingmarshel6299

Жыл бұрын

@@WooweeYT over 30 years she would have paid well over 300k mortgage interest, 360k in property taxes (low end), plus maintenance, pluse the money the capital costs of putting money into the property, down payment, making up for losses, home insurance, etc. There will be some tax write-off along the way but when you sell you will pay gains and tax recapture taxes.. its a lot. Think of real estate as a piggy bank and not an investment - they will be lucky to breakeven if they are honest about the costs

@WooweeYT

Жыл бұрын

@@sterlingmarshel6299 Ya but she was already calculating all that and she only spent $2500 for the year out of her pocket. And that was with a $15k repair (that wasn't out of her pocket). She's not paying the mortgage and property taxes, the renters are. If she only gets a few more rentals next year (and/or doesn't have a huge repair), not only will the renters have paid the mortgage, taxes, maintenance, etc, but she'd actually be making a profit on top of that.

@NatashaEstrada

Жыл бұрын

Yeah especially in Palm Springs with all their resorts and local casinos that also have hotels etc. Coachella/Stagecoach would really be the only time of year where renting an AirBnB makes sense.

I like your attitude. You are totally right that over 5 years it will all be fine! The fact that you got to vacation there and were continuing to build equity, not just through your mortgage payments, but just because houses tend to appreciate, especially if you are maintaining them (like you are), makes it totally worth while.

@lossangeles

Жыл бұрын

Real estate is going down not up. It’s going to take a decade to turn around. Think: housing bubble 2.0 ☹️.

@mybrassmonkey

Жыл бұрын

@@lossangeles if you could accurately predict the future you’d be making millions lecturing around the world, not writing KZread comments.

@Rebecca.Robbins

Жыл бұрын

@@lossangeles okay, but Shelby didn’t buy at the height of the market and she isn’t planning on selling anytime soon. So, I stand by my statement.

@Rebecca.Robbins

Жыл бұрын

@@mybrassmonkey I wasn’t trying to predict the future, just stating that “typically” houses tend to appreciate. Historical data does back this up. Shelby didn’t buy at the peek of the market and she isn’t in any hurry to sell, so it’s reasonable to expect that her house is appreciating in value.

@SmashBrosBrawl

Жыл бұрын

Housing prices are going to drop by 50%, returning to pre-covid levels at a minimum. It's going to take about 20 years for RE prices to return to covid-level highs

Glad to see there’s a correction in the Airbnb market. I live in a tourist community and I’m sick and tired of having these homes all around me not knowing who they are and what kind of person they are. All the partying that goes on and then parking their vehicles on your side lot because they don’t have enough room at the house they’re staying at. We are having a hard time finding workers for this town because of the rent is so few and so high when you do find a place

@ren5397

Жыл бұрын

Yep, I live in the most popular beach town in Australia and the rental crisis is so bad there was a protest in town last week. The cost of long term rentals plays it's part but Airbnb means there is less competition in the long term rental market as well. Businesses can't find employees because the young people they hire can't find homes/afford to rent, we still have families who are homeless after the floods last year but can't leave the area because their businesses/extended families are here, and to top it off, a property manager friend of mine said this summer in our peak season 60% of the short term rentals are sitting empty, because everyone with money is going to Europe now they can travel again. It's a joke.

@jeanettemullins

Жыл бұрын

Yeah it's a huge issue where I live in the UK. Airbnbs have taken over properties in normal residental areas as well as the tourist areas and there's just nowhere for locals to live. You look at housing for long term rent in any town in the south west and there'll be about 2 to 3 properties available and so many have closed viewings because there's so many people looking for properties. It's having such a huge effect on local communities and places can't find employees let alone seasonal workers because there's nowhere for them to live.

@NatalieMarie917

2 ай бұрын

⁠​⁠@@jeanettemullinsI’m really thankful that my city places heavy restrictions on airbnbs (e.g., you’re only allowed to run an airbnb out of a home you actually live in, and you have to have a license to rent out rooms which they only give to about 200 people at a time).

Fingers crossed that you get more bookings soon! The house is so beautiful and you did an amazing job with the renovation & the process of turning it into an airbnb.

I feel bad for the people who missed out on this home for themselves and/or their family because you and others like you wanted passive income…NOT you

Shelby thank you for sharing your honest experience. I am running into the same results and need to make adjustment or possibly just go back to long term renting. I think your channel is one of the best because of your transparency!!

Thank you for being brave enough to tell us about your actual experience with AirBNB. You have a great attitude with this venture and I am sending positive vibes for your future success!

Use it as a rental which will help add homes to the rental market bringing down the rental costs in that area or just sell the house to a person who will actually live there because we’re living through an extreme housing crisis and making money isn’t everything…

I truly appreciate the honesty and I hope others do too. I bought an Airbnb in 2021 and the advice that my real estate mentor gave me is that there should always be another benefit, just like how you love to vacation there personally. If you bought a property where you already live in town or you did genuinely don’t want to go it’s not worth it you need to choose a place that would benefit you ad well! Thank you for making this video. It’s nice to see you. I watched your videos when you were just starting out and just recently came in contact with you again. You’re an incredible adult and putting out great content.😊

After 10+ years of owning many Airbnb’s with 80%-95% Occupancy, I’m experiencing record lows (40%-60% occupancy) too, maybe this is the new normal. Don’t lower prices, it will de-value your Airbnb, guest will think something is wrong with it! The solution is lower (or remove) your cleaning and booking fees, guest hate those and so by doing this guest think it’s a great deal by getting a super nice pricey home with no extra fees! It’s working with mine, even in Palm Springs!!

Sorry it took me so long to watch, but thanks for the honesty! Truth is, There will be a point when there are too many Airbnb’s and not enough customers. I’m not saying this has already happened, but investors should be realistic. Also, have you looked into insulating the house better? It might be cheaper to insulate and save on electricity, rather than install a full solar system.

I LOVE this level of transparency 🙏🙏🙏 Thank you so much for sharing this because no one ever talks about this

I'll bet that you'll never really turn a profit on this property and covering the mortgage should be your highest goal. Also, get out of Cali and research places that have cheap utilities, property taxes, , cost of living, etc., and that are not strictly seasonal in use. Always use a home inspector and always focus on the condition of the roof and HVAC, which are always big ticket items that have very finite lifespans.

Even though there are fears of a recession, people are still spending money on travel. I think the problem is that Airbnb’s are falling out of favor for people when they’re priced similar to hotels and don’t provide the same level of customer service.

@barrettorth8413

Жыл бұрын

Fears of recession? We're already in a recession - soon to be worse than '08.

I really appreciate you making these less business-successful videos even though they’re a lot harder to motivate yourself to make. I find that I learn a lot more from failures than successes.

Thank you Shelby, for sharing and your transparency. It's always fun to share the wins and profits, but I'm really glad you did a deep dive into where things could have been better and what were the major expenses. I am an Airbnb host as well, and I definitely had to play around with pricing. I didn't expect in the fall I would have to lower my pricing up to 20 to 50%.

Thank you for being so honest. You usually hear about hosts making thousands and even millions and never hear about the negatives. You really don't know who to believe. In business, there are usually ups and downs and we need to hear more about both so we can know what to expect so that we can better prepare. So once again, thank you.

Please take in to consideration turning off your air conditioning completely during the summer is really hard on your electronics and any wood furniture in your home. We have a vacation home in Palm Springs and learned the hard way.

@camcam3087

Жыл бұрын

How is it hard on electronics? The moisture?

@implodingslowly

Жыл бұрын

Yeah this is asking for mold too.. yikes

@NormanF62

Жыл бұрын

I think Shelby should shut down the Palm Springs property in the slow-moving months of the year. Not worth to keep it open because the few bookings made are outstripped by the expense of keeping it open. It makes more sense to open it in in the months when full occupancy is a certainty and that’s a sound business decision. Anyway else, I guess you could keep an Airbnb running all year around in other regions but Palm Springs is such a hot place maybe its not where most people want to spend their summer.

@glk5960

Жыл бұрын

Yes, really tough on wood. I had wood floors and subfloors buckle due to humidity build up after turning off the AC. Maybe in the desert you can get away with with it. Maybe a dehumidifier would solve this issue at a significantly lower cost than AC.

@healthywealthywise

Жыл бұрын

Shelby, how do I find your property listing? I’ve mentioned before that I am there in PS every 5-6 weeks (from nearby Huntington Beach) and I had family there just 2 weeks ago and booked a property for 6 days through Vacation PS (about $3000) and I normally spend about $2k for 4-5 days for my stays. I’ve never don Air B&B. Hope to book your property sometime.

Hey Shelby. Just want to say I also recently started an Airbnb so I will definitely be signing up for your newsletter. If you could make more videos like this that would be great!

Thanks for keeping it real, I'm sure it will turn around for the best at the end of the day, the numbers will eventually be in your favor. Stay strong. I own a few properties in Chicago IL, Logan Square hood and plan to dab into the Airbnb space next year. Wish me luck!

Respect for posting this - appreciate your honesty. I too think you’ll be fine in years to come and most people would kill to have a place like that to relax with friends and family. Kudos to you.

Thanks for being so transparent and showing the ups and downs. Not everything is rainbows and butterflies. Hope you have better coming months!

I really appreciate your honesty. I’m from western Canada and I looked a flying down to Palm Springs and the flights were insanely expensive. The cost to security and airport improvement taxes were most than the flight itself. We used to be able to fly down for around $300 return and now it’s closer to $900.

new sub. love how transparent and authentic she is. a lot of ppl would appreciate this kind of information

Thank you so much for sharing this, many videos are not sharing all the bad behind the scenes which is really what people need since we see the same content all the time.

Loved the video! Would love to see another series about the whole solar panel selection, installation + operation process whenever you install those! That would be SUPER interesting to see what it’s like to pick them out as well as how they perform and save money!

@Neezabja

Жыл бұрын

Yes and give a brief explanation of how the technology works too!

Shelby, you two have grown so much in this experience. Everything you've laid out here is really detailed and smart. You're doing great, and I love your perspective on this being a great house to enjoy for your family and I firmly believe when you do decide to sell it you will come out on top.

@emmaodey1999

Жыл бұрын

Thanks for watching and showing love.!❤️ by leaving a comment let's talk in👆private✍️ Text📝 via telegram you're selected among my Christmas ongoing giveaway 🎁🎉!

Thank you for being transparent!! Go Seattle!!!

@ivantejeda

Жыл бұрын

Hey Amir 👋 I’m thinking about making a video on this. Let me know if that’d be helpful. P.S. If you have any questions about starting & growing your Airbnb business lmk.

appreciated the honesty and perspective here!

Thanks for sharing your story with such transparency. This is incredibly helpful!

@ivantejeda

Жыл бұрын

Hey Mike 👋 I’m thinking about making a video on this. Let me know if that’d be helpful. P.S. If you have any questions about starting & growing your Airbnb business lmk.

Thank you so much for being so open with your finances this is really helpful!

I appreciate this so much!! Numbers and data can be a headache, especially when you’re the one who has to calculate them, but they’re so key. If you don’t know your numbers, you don’t really know how you’re doing.

Thanks for being transparent and doing all the calculations!

Thanks for showing the real situation that can occur with Airbnb’s. I sell real estate, have my own Airbnb and many clients that are searching for these types of properties. Having your video to share with them is really helpful! Thanks! ❤

@CaseyFerguson

Жыл бұрын

I'd look at AirBnB and rentals more as a long-term investment. Even if you break 'even' it's a win, you have an asset (land/house), a tax deduction (losses). Every bit of profit after that is a +1 overall. This is assuming it's an alternate income stream. Also solar is WAY more pricey than the estimates / websites want to make it out to be if you want a backup/battery reserve. Still a great choice, but not a 'no brainer.'

@networth00

Жыл бұрын

@@CaseyFerguson I used to think like that when I was a teenager. Nobody wants to go through all this trouble and invest lots of money to break even.

Great content Shelby and thanks for sharing your numbers! I live in a seasonal resort location at the beach over on the East Coast and its the same thing. Year round residents is about 7K and in the sumner we can have 250K + people in town vacationing at all times through the week. Short term rentals, hotels and businesses will experience super high volume in the peak season (summer for us) and super low volume in the winter. Most come out very profitable when looking at the entire year. You drive a good point to have a reserve for maintenance.....etc when they pop up. Be great to see another review of your full year of your AirBnB when 2022 is over. 🙌🏼

I don't know how you do it Shelby- every time there's a sponsor ad on a video I'm watching I'm always like "ok time to fast-forward" but with yours I'm like wait, I want to hear about this one though. Every time!

Thank you so much for posting the highs AND the lows. Too many investors only post the good.

There will be a tidal wave of selling, forfeitures, abandonments, and foreclosures when the escrow recalculation letters go out Q1 23. AirBNB will be bankrupt. There won't be any market for expensive rentals. You should really cut your losses now and get out of mortgage debt before that happens.

Love how transparent you are when it comes to how much you're spending on this whole project! Please keep it up in your next one too!

Thank you for being so transparent! The house is amazing! Hopefully solar panels will make a difference longer term.

My dad turned off the AC for his house in Phoenix when he left for three months. Came back and found the house just cracking everwhere. Leather couch was trashed. Can’t just let the house bake

The recap was my favorite part and we appreciate your transparency. You and your family are building a legacy.

I appreciate the transparency!

Thanks for the honesty and sharing this experience!

One thing I really appreciate about your channel is your honesty when things don't workout as you expected. I do think that over the long run your place is going to be profitable

Shelby I appreciate the honest video! One of my properties is in PS and after a couple years of Airbnb I went the alternative route and converted it to a long term rental. Less hassle, one consistent tenant, tenant pays utilities and you know what rent you get monthly😃

@austJW

Жыл бұрын

a lot less risk and hassle. Airbnb works only if you are earning 'super' profits above rental.

@peace5647

Жыл бұрын

One of the challenges that happened during 2020 and on was the Moratorium in NYS. Really turned off the prospective Landlord. I do not know about other states, but Airbnb seems like a better option.

I used to rent Airbnb’s exclusively but now hotels are more affordable for short term stays. Key is SHORT TERM STAYS! I find Airbnb very convenient for month to month rentals and always look at Airbnb first for these.

Great info. I love how you share all the info so we know what we would be getting into.

@ivantejeda

Жыл бұрын

🔥 I’m with you on this Danielle! This was a great video! P.S. If you have any questions about starting & growing your Airbnb business lmk.

As a content creator you and your sister were able to make money on your videos. Not something that the average person could count on, but if you figure that in, your way ahead of the game!!💞

@akastardust

Жыл бұрын

This is such an excellent point.

@SmashBrosBrawl

Жыл бұрын

KZread == big money

Great info. I just recently starting doing vacation rental with our lake cabin. We hadn't been able to use it as much as we would like so we decided to try the rental option so it would hopefully, at least pay for itself. I've watched several of your videos during the process of getting ours ready and really appreciate your transparency. Our listing went live 2 weeks ago and we have already had it rented 7 nights. Hopefully the trend continues.

@lowmanagain

Жыл бұрын

I have a lakefront home that I'm not at often. I'm getting ready to airbnb it also. 1:45 min. From Chicago

I loved how informational this video was. Really appreciated the transparency!

Excellent Video! Thank you for sharing, so that others can learn the true cost of rentals so that they make wise decisions. Heres a small tip, when replacing a water heater and getting a warrantee on it, never mention that your unit is a rental as the manufacturer will not honor it.

honestly, good. nothing against Shelby but not EVERYONE can just airbnb. we need longterm housing everywhere

Leaving the thermostat at 86 degrees seems pretty minimal. Damage can occur to the home if the AC does not run for extended amounts of time during hot weather.

Love the transparency!

Thanks for being honest Shelby! It’s so important to understand the reality, not only this situation but with all things in general. I’m sure that bookings will pickup in the winter seasons! Wishing you the best 🤙🏽

Thank you!!! For being brave, truthful, and honest on the expenses when it comes to running Air BNBs . The market is saturated with Air BNBs. As of right now, we’re breaking even.

@networth00

Жыл бұрын

It's time to sell before other list theirs also.

Thanks for the transparent video as I've considered doing an Airbnb to be able to have a property when visiting family and making money during the rest of the year. I think you are spot on, the beginnings of a recession and inflation are hurting people. I'm curious about how your Airbnb will do next spring so please give us an update, because inflation tends to stick around and this recession will probably digging it's heels in by then. I hope that spring does bring you plenty of guests nonetheless. Great video Shelby!

@ivantejeda

Жыл бұрын

🔥 I’m with you on this @Malc4dead! This was a great video! P.S. If you have any questions about starting & growing your Airbnb business lmk.

I appreciate honesty.

Hey Shelby, been watching your channel for years. I finally have enough courage to take the leap of. faith and started a business. thank you for your ongoing transparency and I hope life, universe, God or whatever it is you bestow your faith on, continue to bless you and open more doors for you.

It takes a lot to come out and being honest about your investments. Thank you for doing so. This is priceless. Others just yell how they return their cash in one year. Just unrealistic.

Love you, Shelby. I have the feeling there are going to be a lot of stories like yours over the next few months. I just bought my first short term rental home in St. Augustine, Fl recently, and I'm not feeling too good about it at this point. For one thing, there have been so many additional STR properties added to the mix this year, that that fact alone would cause occupancy rates to decline, not counting the negative effects of the current economy.

like always, I like your transparency. Thanks a lot

Airbnb has destroyed the rental housing market in Hilton Head, Portland, ME pretty much everywhere they're prevalent. Then they over charge for their properties and ask guests to clean while charging cleaning fees. Not to mention many are located in the suburbs, who wants to pay high end hotel prices to drive into the city you're visiting.

you must drop your prices. its better to make some money rather than no money at all. with the AC you can connect it to your phone so when people leave you can turn it off from your phone to help keep the cost down

This is an awesome video.. it’s not all highs in real estate and it’s a huge investment so learning these things prior to ventures is critical… props to you for having the confidence to talk about your lows too!

@ivantejeda

Жыл бұрын

🔥 I’m with you on this Ben! This was a great video! P.S. If you have any questions about starting & growing your Airbnb business lmk.

Thank you for the honest perspective 🙏

Thanks for the video and great for people who are thinking about doing an AirBnB. I think your design choices were great and it's a beautiful house. I think you're right that the economy right now means the summer is going to be a particularly bad one and things over 5 years will probably be better. I also think you're paying a premium for all the services you have and having professionals do all the work. I'm guessing if you lived nearby and did more of your repairs and preventative maintenance as a DYI, you could save a ton and that would improve your bottom line.

I loved watching the Airbnb transformation, it turned out great! I hope things turn around for you & Monica on this investment.

I'm a Realtor so watching this it was obvious your Realtor and your mortgage lender did not properly prepare you for the uptick in property taxes. The extra bill you received was a supplemental tax bill, this bill is triggered when the person that sold their home was paying on a purchase price that is lower than your purchase price - in CA it's 1% of the purchase price and then goes up depending on the rate of inflation but is capped at 2%/yr. What I always let clients know is #1, they will get a supplemental bill and #2 I have the lender calculate the new tax bill rate so that the mortgage starts off with that amount so it's not a big surprise later on. The other thing is that Palm Springs has incredibly high temps during the summer so rates should reflect that, I think $500/night was way to high for summer months, I'm a CA girl born and raised so I can take summer temps but honestly the Palm Springs summer temps are on another level. Lastly, the solar panels there are three ways to go #1 get a power purchase agreement from a solar company - they put the panels on and then sell you the power generated from them at a lower rate than the power company, #2 a solar lease - you lease the panels and then pay the lease payment and then some of the electric cost or #3 buy the panels outright. The plus of the power purchase or the lease options is that the solar companies need to update the panels regularly and they do that at no cost to you, but if you buy panels then you will need to pay the cost to update and they need to be updated and maintained regularly in order to keep up electricity production. Also I would suggest getting a smart thermostat such as nest or something similar that you can actually track and run from an app.

Thanks for posting all the numbers. It's very eye-opening.

Good for you stepping up with the reality. The house is awesome. Properties take a while to "season". You will do well with this.....

Love your honesty. Good luck for the coming months.

People are also no longer interested in booking airbnbs - the company is in a lot of trouble, airline costs are higher because people ARE travelling, American reported that 80 percent of their first class cabins get booked. If you do a deep dive with Airbnb on the internet, people are done. Probably not the time now to start a new one

@tabithathewholistic

Жыл бұрын

Yep!!

@josephaugello1527

Жыл бұрын

People like going to big cities or the beach now since everything costs alot

@mfranc1971

Жыл бұрын

There are more platforms other than Airbnb. Also Airbnb made more this year than previous year so they're fine. The STR platform isn't going anywhere.

make it cheaper in the low season as most of your cost is fix cost. You need more customer in the low season. Reduce your mortage cost. Keep in mind that you might to renovate the house after some years.

Great information, thanks for being transparent.