3 rules for making money on Airbnb, from a short-term-rental owner who built a business by optimizing revenue
Rule No. 3: Don't try to appeal to everyone. Mike Savage has built a successful business around understanding what works with short-term rentals.
Mike Savage, a real estate investor from South Carolina and cofounder of SynergyStays, highlights three key strategies for maximizing revenue from short-term rentals. First, he emphasizes the importance of the median booking window - the average length of time guests book a property in advance. By understanding this metric, owners can adjust rates accordingly, holding them higher for dates well in advance and lowering them closer to the booking date.
Second, Savage recommends focusing on weekday bookings rather than just weekend stays, as the demand for these dates is often less predictable. To optimize weekday occupancy, owners should identify nights that aren't generating revenue and make it easier for travelers to book them, such as by offering higher rates for shorter stays or more flexible cancellation policies.
Finally, Savage advises against trying to appeal to every possible type of guest. Instead, he suggests identifying a specific target audience for each property, such as families with young children, remote workers, or pet owners, and tailoring the listing to meet those guests' unique needs. By focusing on a distinct guest profile, owners can create a more appealing listing that commands higher prices and receives better reviews.
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