Managing an Airbnb home usually takes time, and certain hosts are pressed for time. As a host you might require assistance at times, which is when the utilization of an Airbnb co-host tends to come in. Co-hosts assist Airbnb trading owners in looking after their condos as well as visitors.
They are a member of the family, neighbors, friends, or anyone recruited by the host to assist with the booking. Co-hosting is time-consuming because you must manage guest information exchange, oversee listings across various platforms, and handle the cleaning and upkeep team.
Steps to Write an AirBnB Co-host Business Plan
Executive Summary
Star Rental Management (SRM) is a vacation rental management and rental arbitrage company based in bar harbor, Maine.
The company will work with a team of skilled experts who have a background in the hospitality industry, to handle the day-to-day intricacies of Airbnb business rentals, including advertising, subletting, corporate finance, upkeep, as well as fee collection.
Our main goal would be to provide guests with a fostered experience that showcases Bar Harbor, Maine’s rich track and field heritage via hands-on exercises and luxuries that instill teaching, and also thrills for local history.
Company Profile
a. Our Services
June to August is the most ideal time to visit bar harbor. Maine has cool weather all year due to its geographical location at the northernmost spot in the United States. As a result, the best time in the year to visit the larger bar harbor region is when it becomes warm and sunniest.
Hotel chains and rental units in bar harbor offer convenient accommodations but are usually expensive during peak seasons. They lack the luxuries needed to enlighten guests about the surrounding region as well as its history. As a result, SRM provides the following services:
- Bookings are being confirmed
- Interacting with visitors
- Managing the check-in and check-out processes
- Inspections of real estate
- Coordinating repair and maintenance tasks
- Restocking essential items
- Writing reviews for visitors
- Showcase the rich track and field heritage of Bar Harbor, Maine.
b. Nature of the Business (Business Model)
Aside from being a rental management company in bar harbor, SRM intends to provide hands-on adventures for visitors searching for a distinctive stay by offering gate-analysis treadmills, engaging track as well as field history lessons, or enjoyable attractions.
We would therefore target vacationers seeking pleasant and reasonably priced Airbnb options close to bar harbor’s campgrounds and attractions. The company intends to target households with kids and folks who own pets. As part of its full-service offering, SRM will provide the highest quality interaction, client service, and facilities to all guests.
c. The Industry
The property management industry has been around for a long time; howbeit, vacation rental management, widely recognized as short-term rental management is the current craze rapidly spreading.
d. Mission Statement
SRM’s mission is to be much more than a cheap and pleasant place to stay. Our goal is to continually offer historical hands-on valuable lessons, as well as thrilling facilities and amusement to make our guests feel good and comfortable.
e. Vision Statement
SRM’s vision is to take advantage of the increasing trend for Airbnb services. As a result, we aim to provide lodging and other assistance that will be motivated by technology. We believe that this will propel us into the mainstream, where we will be capable of competing with defined vacation rental companies.
f. Tagline or Slogan
Star Rental Management – Your Trusted Vacation Ally
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
SRM will be formed and registered as a Limited Liability Company in the state of Maine. Phillip and Antonia Brown are the partners/management team. Both have a wide variety of skills and knowledge that will aid in the development of the business.
h. Organizational Structure
- Chief Executive Officer
- Digital Marketers
- Accountant
- Customer Care Executive/Help Desk Officer.
i. Ownership/Shareholder Structure and Board Members
Philip and Antonia Brown will own SRM mutually and inclusively. They will also collaboratively control and run SRM due to their extensive knowledge and expertise, but this will be the foundational team that would contribute to making it their work.
SWOT Analysis
a. Strength.
- Services are reasonably priced
- Innovative technologies
- A participatory setting
- Our team’s skills and expertise.
b. Weakness
- Bar harbor has a large number of competitors
- Our space’s age and the maturity of our neighborhood
- There are no other sources of income.
c. Opportunities
- Bar harbor is well-known for its breathtaking coastal beauty, numerous yachts, lobster boats, and panoramic views of the islands and ocean.
- Airbnb and vacation rental management are becoming more popular
- More young couples are visiting bar harbor.
i. How Big is the Industry?
Property management produces $99.449 billion in revenue annually in the United States and is predicted to increase. In the subsequent year, the property management industry will generate $109.4 billion in revenue.
ii. Is the Industry Growing or Declining?
Even though the size of the market of the property management industry in the United States has expanded by 2.1% per year on the median, by 2017 and 2022, the market is anticipated to drop -2.7% in 2023.
iii. What are the Future Trends in the Industry?
Software as a Service (SaaS) and cloud computing integrated services have surpassed traditional service delivery methods. Organizations of all sizes can benefit from subscription-based SaaS applications. Enterprises utilize SaaS solutions to digitize processes and eliminate manual input, allowing them to operate smoothly.
By incorporating these solutions, enterprises could therefore reduce the sophistication as well as the expense of on-premises deployment. Aside from that, SaaS solutions enable users to view details from any position utilizing any internet-enabled device.
The SaaS model makes it easy to integrate multi-vendor systems into current programs. To encourage convenient and simple transactions, property managers could use a SaaS platform to merge their services with cutting-edge payment systems.
iv. Are There Existing Niches in the Industry?
Yes. They are the following;
- Airbnb Cleaning Service
- Airbnb Rental Arbitrage
- Airbnb Referral Program
- Co-host to an Airbnb host
- Vacation Rental Franchise
- Airbnb Affiliate
- Short-term Rental Property Manager.
v. Can You Sell a Franchise of your Business in the Future?
No. SRM has no intention of selling a franchise in the near future. As our client base expands, we would therefore begin to establish new routes, new storefronts of services, and items geared toward serving our clients.
SRM will not just sell its own offerings; rather, it will be an open platform that inspires and encourages others to be the alternatives our specialists advertise. We believe this will help demonstrate the credibility of the responses our experts offer.
d. Threats
- Other available rental spaces in bar harbor
- A few bed and breakfasts in the area
- There is one boutique hotel near downtown
- Numerous chain hotels with standard hotel facilities are available.
i. Who are the Major Competitors?
- Vacation and weekly rental: Acadia Getaway, Seaside Cottages – West Tremont, Oceansedge
- Hotels and Motels: Bar Harbor Manor, Island Place, Balance Rock Inn
- Bed and Breakfast: The Primrose, Yellow House, Balance Rock Inn
- Cottage and Camps: Woodland Park Cottages, Mount Desert Narrows Camping Resort.
ii. Is There a Franchise for Airbnb Co-host Businesses?
Yes, they include the following;
- Real Property Management: $90,000
- All County Property Management: $50,000
- Property Management Inc.: $75,000
- Keyrenter Property Management: $50,000
- Homesmiles: $50,000.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Airbnb Co-host Business?
Yes. Even though adhering to the rules could feel like a strain at times, it is important to operate a short-term rental property. Regions and localities are increasingly scrutinizing the vacation rental industry; however, it is sometimes difficult to keep up with the regulatory requirements and changes in the law.
Although the internet contains a great deal of information, web pages are not constantly updated. You should verify your observations with a city official who is acquainted with the laws regulating short-term rental properties.
Marketing Plan
a. Who is your target audience?
i. Age range
Median age: 45.4
ii. Level of Education
- No high school: 0.82%
- Some high schools: 25.63%
- Some colleges: 31.44%
- Associate degree: 3.73%
- Bachelor’s degree: 19.45%
- Graduate degree:18.94%.
iii. Income Level
- Median earning men: $47,976
- Median earning women: $36,892.
iv. Ethnicity
- White (Non-Hispanic): 79.7%
- Asian (Non-Hispanic): 10.4%
- Black or African American (Non-Hispanic): 7.07%
- White (Hispanic): 1.62%
- Two+ (Non-Hispanic): 1.02%.
v. Language
There are no language barriers or restrictions at SRM.
vi. Geographical Location
Maine has cool weather all year due to its geographical location at the northernmost spot in the United States. As a result, the time of year to visit the larger bar harbor region is when it becomes warm and sunniest.
vii. Lifestyle
The majority of Airbnb users are visitors on vacation or on leisure adventures. These are short weekend getaways designed to relieve work-related stress. SRM’s principal core audience will be leisure tourists. Clients of Airbnb are usually affluent and well-educated.
b. Advertising and Promotion Strategies
- Start with a high-quality website
- Make use of social media
- Make use of content marketing
- Advertise near public transportation hubs
- Organize interesting events
- Strategically distribute perks
- Make a marketing timeline.
i. Traditional Marketing Strategies
- A competent team of qualified workers capable of providing a complete spectrum of services (housekeeping, advice on local attractions, fully stocked kitchen, family and pet accommodations).
- Vacation homes and amenities for families and pets (swimming pools, dog park nearby, Wi-Fi, household essentials).
ii. Digital Marketing Strategies
- Website/SEO marketing
- Print advertising
- Ads
- Phone prospecting
- Professional associations and networking
- Public relations.
iii. Social Media Marketing Plan
LinkedIn, YouTube, Twitter, Facebook, and Instagram will all remain actively used social media platforms for the firm. The social media objective will be to increase the database of customers via low-cost user engagement.
c. Pricing Strategy
SRM’s pricing strategy will be reasonable and competitive; as such clients will feel they are getting excellent quality when they choose the enterprise for their vacation.
Marketing Plan
a. Channels
- Airbnb Website
- Alternative Rental Websites
- Travel Oregon site
- Zillow
b. Inventory Strategy
ResNexus is simple cloud-based property management software that would provide us with a solitary login that will enable us to operate our property efficiently and proficiently.
We also have a variety of built-in features that are consistently up to date with ResNexus, like a mobile-friendly website, ADA-compliant booking engine, PMS, channel manager, contactless check-in, automatic email and text marketing, dynamic pricing, reputation management, payments, etc.
Aside from that, our availability is shared with our website, booking engine, and channel manager via the ResNexus PMS. Every one of these tools works together to ensure that our costs and stock levels are consistent onsite, on the website, as well as on the OTAs.
c. Payment Options for Customers
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer.
d. Return Policy, Incentives, and Guarantees
Guests could cancel their reservation a maximum of five days before their arrival. They will obtain a complete refund, and the landlord would not charge them for the reservation. In the event of a late cancellation, guests would be billed for one night and would be reimbursed 50% of the leftover nights.
If somehow the guest cancels the reservation after arriving at the lodging, they would be billed for the length of time stayed, one extra night, and they will be reimbursed 50% of the rest of the nights not used.
e. Customer Support Strategy
At SRM, we acknowledge that our long-term performance is dependent on our capacity to construct a client community. As a result, we plan to release a newsletter, create photo boards, and hold regular events to help all know one another, and as well benefit from the knowledge of the team.
Operational Plan
The following is the SRM operations plan;
- Philip Brown will act as the company’s CEO. He will be in charge of all employee and client interactions. Philip has ended up spending the last year hiring the following employees:
- Antonia Brown- Office manager, in charge of; visitor files, and payable accounts.
- Emmanuelle Christy – The accountant will be in charge of the firm’s financial reporting, tax bills, and monthly income statements.
- Timothy Sampson – Marketing director, in charge of all advertising processes
- Paddington Dane – Maintenance director, in charge of all property maintenance and housekeeping.
a. What Happens During a Typical Day at an AirBnB Co-host Business?
Here are some of the Airbnb co-host duties:
- Control the listing
- The calendar and pricing have been updated
- Take care of reservations
- Message the visitors
- Prepare the space for visitors
- Welcome visitors in person
- Assist visitors during their stay
- Make reviews
- Get assistance from Airbnb
- Cleaning and maintenance should be coordinated
- Restock on necessary supplies.
b. Production Process
There are no production processes at SRM.
c. Service Procedure
We are a company with lots of benefits over our competitors. This primarily pertains to business experience. We’ve participated in a number of these kinds of operations.
This has allowed us to structure our company in a somewhat fashion where the customer is the primary focus. As a result, we have earned the confidence and appreciation of the majority of our clients. This has resulted in repeat business and testimonials from happy clients.
d. The Supply Chain
Our supply chain will be centered on the SRM value proposition:
- Apartments that cater to both families and business travelers
- Lodging properties located in the city’s commercial hub
- Providing clients with exceptional service.
e. Sources of Income
SRM’s revenue generators are the vacation home rental fees that they usually charge patrons for their Airbnb rentals, and service charges for extra features as well as add-ons. Every one of SRM’s units will cost a median of $150 per night. This rate will change based on the season, rising during peak times and falling during slow periods.
Financial Plan
a. Amount Needed to Start your Airbnb Co-host Business?
With a minimum of $80,000, you can establish an Airbnb co-hosting service. The funds will go toward the purchase of an office block. Additional money will be used for coverage, and advertising, as well as three months of operating costs, including staff payroll.
b. What are the Costs Involved?
- The purchase price for the property: $600,000
- Refurbishments, wiping down, outfitting, and supplies: $90,000
- Operating costs expenses for three months (payroll, software, and utilities): $90,000
- Marketing expenses total $10,000
- Working capital: $10,000.
c. Do You Need to Build a Facility?
SRM intends to carry out business operations from a leased premium office space in the city center of bar harbor. To plan, oversee, and welcome our clients, we will make initial investments in an office, a website, and management software. As the company grows, additional space will be added.
d. What are the Ongoing Expenses for Running an AirBnB Co-host Business?
- Training, development, uniforms, etc.
- Occupancy costs
- Rent
- Repairs and maintenance
- Utilities
- Waste and recycling
- Payment processing.
e. What is the Average Salary of your Staff?
- Chief Executive Officer: $0
- Office Manager: $0
- Maintenance Director: $32,490
- Digital Marketers (Marketing and Sales Executive): $31,950
- Accountant: $34,700
- Customer Care Executive/Help Desk Officer: $21,310.
f. How Do You Get Funding to Start an Airbnb Co-host Business?
Philip and Antonia Brown will establish, oversee, and bankroll SRM. They will not seek external funding, but will rather generate seed money to make them full ownership of the company.
Financial Projection
a. How Much Should You Charge for your Service?
SRM will differ depending on season and occupancy ratios, as well as using a computerized yield management system, but Airbnb’s cost will continue to be in the mid-range.
b. Marking Forecast?
- First Fiscal Year: $420,000
- Second Fiscal Year: $790,000
- Third Fiscal Year: $1.332 million.
c. Estimated Profit You Would Make in a Year?
- First Fiscal Year: $189,000 (45% of revenue generated)
- Second Fiscal Year: $186,000 (60% of revenue generated)
- Third Fiscal Year: $732,900 (55% of revenue generated).
d. Profit Margin of an Airbnb Co-host Business Service
Profit margins in this sector usually fluctuate, because enterprises in the business sector are mainly concerned with sustaining their space and growing their society. So at the end of every month, there are several factors and fixed expenditures for an operation. Even as the company grows, it will face associated costs and considerations that will reduce the potential profit.
Growth Plan
a. How do you intend to grow and expand?
SRM has no intentions of selling a franchise in the near future. As our audience grows, we will begin to expand and grow a new marketplace of services and goods that cater to tourists.
b. Where do you intend to expand to and why? (Geographical locations)
- Across Maine
This is because Maine is among the best locations in the United States to view the Northern lights. This display is effectively in cloudless skies far from the city lights. Maine is ideally positioned to have many excellent viewing locations for the Northern lights. Sugarloaf mountain and the Aroostook National Wildlife Refuge are excellent spots in Maine to observe the Northern lights.
10. Exit Plan
We at SRM are convinced that acquisitions and mergers will benefit our company. We believe that acquisitions and mergers will give rise to the active market, encouraging and incentivizing others to adopt the alternatives our experts suggest and sell, because we will not advertise our services.