If you rent your home, you usually consider it a liability because you are shelling out to pay your rent monthly. Entrepreneur Chi Ta offers a way to turn your rented property into a profitable business. “If you have a property, whether owned or rented, you can list it on Airbnb. Your property can get bookings from travelers or tourists and earn a profit,” Chi said. He owns multiple properties currently listed on Airbnb and earns millions of dollars yearly.
Statistics show that there are four million hosts on Airbnb. Many people worldwide use Airbnb as a platform to make extra earnings and sometimes even turn it into a profitable business. Do you know how much Airbnb earns annually by renting its place to travelers or tourists? It’s a whopping $9,600 average annual earnings. Probably, it’s time for you to consider turning your rented property into an Airbnb.
Getting Into Airbnb
Chi lost nearly everything he possessed after his first business failed. He was doing well in selling reverse mortgages or government loan programs offered to people 65 years old and above. It assures them that their homes will not be foreclosed. “I made millions of dollars in revenue selling these government loan programs, but everything changed when the US Federal Housing Administration (FHA) revised the policy. They added a credit qualification, which disqualified up to 80% of his clients,” he said.
He tried to level up his marketing campaign to get back into business, but it did not work. “Everything I own is gone, and I must pay the rent for the place I lived in,” he said.
Chi decided to take some time off and spend several weeks with his parents. “I called my dad and mom and told them that I missed them and wanted to spend time with them,” he added.
While staying with his parents, Chi still regains his life through Airbnb. Chi put his rented home into his Airbnb venture without much thought. “I listed that rental property on Airbnb for two weeks. Honestly, I don’t know what I’m doing at that time. All I know is it could cover my rent,” he said.
Chi made the right move. In two weeks, his property made $2,500, which could nearly pay his rent and other utility bills for that period. He was elated because he earned a significant sum of money even though he knew nothing about the platform.
Chi found a new business venture, so dive into it to learn more about the platform. He tried to figure out how to finance the entire operation with no money. “I used credit cards to rent several properties and furnish them. At the end of the month, I make a lot of money,” he shared.
Next, Chi made a strategic move to scale his business. He rented two properties in San Francisco, generating $5,000 in monthly revenue in the first year. In the second year, monthly profit from those properties grew to about $10,000 per property. Then, Chi earned $2.9 million per property and generated total revenue of $6 million. In the next nine months, he ended up renting up to 30 homes and had forecast a yearly profit of $2.4 million.
Today, Chi buys properties worth $2 million to $5 million each. “My Airbnb income pays all the mortgages, and I make up to $10,000 a unit,” Chi said.
Understanding Airbnb
Chi said that it is essential to understand Airbnb. “It will allow you to figure out how much these properties are making before you even list them,” he said. He added that you should figure out what to make before you commit. “Then, the rest is being an incredible operator. You will research how to outcompete other hosts in your area,” he continued.
Chi discussed that understanding the business will help you run your business. Who are your competitors in the area? What do they offer, and what can you offer more? Chi had done many AB tests, so he knows what works and doesn’t.
Customer Experience
Chi said it is essential that you furnish your place before turning it into an Airbnb property. “It sounds plain and simple, but it means a lot to your customer. They will feel how they feel staying on your property. That’s why you should make them feel at home,” he said.
He added that they should not feel they are staying in someone else’s place. “Relocate your items. Remove family photos on the wall. Clear the drawers and dressers of any of your clothes,” he continued. However, Chi noted that your property should not look like an empty room. “You can hang artwork. You can put some decoration, or you could leave some books on the coffee table,” he said.
Want To Learn More
Chi can help you become successful in your Airbnb business. Through his learning sessions, he can share tips and tricks on running an Airbnb business. He can teach you how to earn from Airbnb. “I teach you how to find the landlords that would allow you to use their properties for Airbnb. How to find a profitable property and eliminate any risk?” he said.