Interview w/ Adam Dailey: Investing in Short-Term Rentals

In this episode, Bill talks to Adam Dailey, an entrepreneur and AirBNB investor/host. In addition to his love of entrepreneurship and AirBNB, Adam owns a beer marketing company. Listen as Adam shares his strategies for becoming a successful Airbnb host, identifying properties with true earning potential, and side-stepping those cumbersome HOA fees.

(SIDE NOTE: The audio quality is not the best but please bare with it because it is WELL worth it!)

Time Stamped Show Notes:

  • 00:09 – Bill introduces Adam Dailey
  • 00:10 – Bill and Adam met at Entrepreneur’s Organization
  • 00:20 – Adam’s background is in marketing and he now runs a beer marketing company
  • 00:30 – Adam has three properties available on AirBnb
  • 01:25 – Adam started with his place in Austin, which he rents out for South by Southwest
    • 01:40 – Adam bought and found everything he needed for the house in Home Depot
    • 02:30 – Adam’s place is good for 5-7 people
  • 02:45 – There are guests who won’t clean the place after their stay
  • 03:20 – Rent Like A Champion
  • 03:58 – Adam doesn’t use a management company
    • 04:10 – Adam wants to manage the place on his own
    • 04:20 – Adam’s son was born in one of the houses so it has a sentimental value to him
  • 05:18 – Adam’s stand regarding HOA fees
    • 05:24 – None of Adam’s properties have HOA
    • 06:00 – “There’s a way around it and as a business model, there’s a lot of people doing that”
  • 06:27 – Adam’s recommendation on people finding properties
    • 07:05 – Adam likes the downtown properties because of the businesses coming during the week
    • 07:35 – Guests would normally limit themselves between beaches and downtown
  • 08:08 – “Don’t look at the city. Look at the neighborhood and know your niche”
  • 09:10 – Ideal price per unit is $500 per night
    • 09:20 – “If you have a higher starting price, you get a higher level person as a guest”
  • 10:15 – Bill talking about Pablo who has a motel and turned it into Airbnb
  • 10:40 – When you have a hotel turned into an Airbnb, it is easier to run and control everything
  • 11:23 – Adam has a system for smaller scale properties that automates everything
  • 11:38 – Reviews are important
    • 11:56 – Adam has a welcome basket for the guests
  • 12:37 – What the host is getting will depend on how big the transaction is
    • 12:44 – In San Diego, the guest is going to pay an extra 10% of the hotel tax
  • 13:29 – Adam charges the guests whatever he charges the cleaning people
  • 13:57 – Adam will only stay in San Diego for now
  • 14:33 – Short-term rental is a good business model
  • 14:40 – Short-term and long-term rental properties rates can be seen at Revestor
  • 15:48 – “Research and be a sniper”

3 Key Points:

  1. Don’t look at the city. Look at the neighborhood and know your niche.
  2. If you have a higher starting price, you get a higher level person as guests—eliminates potential problems before they start.
  3. Research and be a sniper.

Resources Mentioned:

  • Rent Like A Champion – One episode on SharkTank that is similar with Airbnb
  • Revestor – Bill’s website where you can find short-term and long-term rental rate of properties

Credits

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