Opinions expressed by entrepreneurial contributors are their own.
In 2017, I purchased a single-family home and listed it Airbnb as one Short term rentals. A few years and additional units later, this venture grew into a full-time business that now earns me around $150,000 per month. I can say that my ride was good.
But the journey to this success was not easy. There were so many things I wish I had done differently, especially when I was just starting out. And while some say they’re part of the whole experience, I still wouldn’t recommend them to anyone.
And that’s why I want to share the things I wished for when I was new to the Airbnb industry. How did these lessons impact me? Business, and if you are starting out on your own, this will be helpful for you as well. Below are three things I wish I knew as a first-time Airbnb host:
Related: 10 pieces of financial advice I wish I knew in my 20s
1. An “employee mentality” won’t get you much in business
Now, I have nothing against me employees. They are wonderful because they are the foundation of our workforce. I started as an employee myself, and I have a staff that helps me in my business as well.
However, if you want to build a thriving Airbnb business, you don’t need the mentality of most employees. Let me explain.
When I started my Airbnb business in 2017, my wife and I operated our unit, and we had no trouble doing so. Our profits were more than enough to cover our mortgage for the first three years.
However, the struggle started when we decided to do all the cleaning ourselves. At that time, we didn’t think it was necessary to ask for help because we could always do the cleaning ourselves. Also, we thought it was better not to pay anyone and keep the profits to ourselves. But we couldn’t be more wrong.
As the days and months passed, we realized that we should have done things differently. We spent so much time cleaning our Airbnb that it was draining. Sometimes we were tired from appointments, and we still couldn’t rest because we had to clean our unit.
It was only then that we realized that the business had become another 9-to-5 job for us, and that we were working with an employee mentality. We wanted things to be done right and make more money, so we thought we should do everything ourselves.
But this Employee mentality We didn’t get away, and neither will it for you. The Airbnb business requires effort, and if you’re not careful, it can take your time away from the most important things you should be focusing on. Instead, I recommend that you find people who can make things easier for you.
Don’t hesitate to use some of your profits to get help because, in the long run, it will benefit you more. It will free up your time, and when you have more time, you will have the opportunity to focus on growing the business. You can even launch a new Airbnb if you want!
Related: How to start an Airbnb business without owning property
2. Delegation is the key to time freedom
This is in the same context as the first lesson I mentioned, but it is so important that it bears repeating.
You see, the Airbnb business has three primary operations: Cleaning, maintenance And Communication. Now for your business to thrive, you have to take care of these three areas equally. But this will be extremely difficult, especially if you have more than one unit and you are doing all the operations alone.
People will check in and out of your Airbnb, so Cleaning and maintenance Needs regular care. The problem when you’re doing those things yourself is that you’re trading time for money. This is what you need Representative Automate those tasks and tasks to make your work easier.
You can hire people to do the cleaning and maintenance for you, create an automated cleaning and maintenance calendar that they will follow, and you’re good to go. You can also get a virtual assistant to help you on the communication side.
This is how million-dollar entrepreneurs run their businesses: By Build a team And one system, leasing, delegating and automating all operations. And I wish I had known this sooner.
3. Collecting 1099 forms will reduce your taxes
This IRS 1099 form Have a collection of tax forms that you have your subcontractors mark so that you can take what you pay them as a tax deduction. This applies to the people you hire to clean, maintain and manage your communications. As long as you pay them $600 or more in the same calendar year, you must collect a 1099 form from them.
This is something I wish I had known when I was starting out. I didn’t know I needed to collect a 1099 form, so I ended up paying for money I didn’t keep.
Now to be honest, nobody told me about it at the time, so I didn’t know. But now that you have an idea, be sure to implement it to protect your profits so that you don’t end up losing.
Related: 8 Ways to Save Money on Business Taxes
conclusion
Making mistakes as an entrepreneur is quite normal, especially if you are new. However, there is no rule that says you should make mistakes for the sake of experience.
Instead, you can learn from people who have already gone through similar struggles and learn from their backgrounds. After all, success leaves clues. By learning from the experience of others who have overcome similar struggles, you gain valuable insights and avoid unnecessary pitfalls.
So take advantage of the wealth of knowledge available to you, and start building the business of your dreams today.
—————————————————-