I already host a 2 bed apartment for owner. We are in the process of converting another 1 bed apart 640 sq.ft., into airbnb. Owner has asked if I can prepare apartment for him and what I would charge to do that. He will order and pay for all expenses
To furnish etc. I’m wondering what to charge him for the job
Calculate what activities you will need to cover and estimate how long it will take.
Estimate the rate you want to charge.
This will give you your estimate.
It’s good practice in business to learn how to put together proposals and estimates for clients @Laurie_Hayden_Lowery
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You could always track your time and charge a fair hourly rate. This might be a good option especially if it’s not clear exactly what the owner expects you do to.
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While that might work for the property manager, I wouldn’t agree to signing a blank cheque book as a host for setting up my listing - would you @Brian_R170
The way I’m reading it, @Laurie_Hayden_Lowery already works with this host on 2 listings and this will be a 3rd, so there’s already a relationship and hopefully a level of trust. Laurie has motivation to do right by the owner to continue hosting for the owner. Of course, the owner can always stop the process if the number of hours don’t add up.
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There certainly will be some trust @Brian_R170- but in terms of business however much I like and trust my providers, I would never agree for them to handle a costly project for me without them providing a proposal to outline work being done, costs and timescales.
I don’t think it’s possible for anyone on here to give you an actual cost (assuming that’s what you’re looking for) without any detail other than the size of the place.
I personally would propose an hourly job, assuming you have a good relationship. That way, if you say pick out a dining table that he doesnt like and have to return it you’re still getting paid for that time. Or, say something that you ordered arrives damaged, and you have to return it, you wouldn’t be losing money. I would detail out what you’re willing to do (in as much detail as possible) and either use that to estimate a project cost or come to an agreement with the owner in regards to an hourly rate.
Do you need to research furniture to his liking? Sizing? Do you need to fully stock a kitchen? Do you need to get and wash bedding? Decor? Setting up an AirBNB from scratch can be incredibly time consuming (I’ve done two houses now - both from blank slates), so if he insists on a flat fee project just make sure you’ve properly estimated how much time it will take, and allow for extra time for when/if things go wrong.
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I have furnished several Airbnb’s for a home owner and I ran into the same challenge you are facing. This is the best suggestion I have based on my experience: Look at the receipts (assuming you or the home owner has them) for the purchases that were made when setting up the first property. With the exception of the additional bedroom, you will most likely be purchasing a lot of the same items. Add up those expenses to present it to the owner as an approximate amount he can expect to spend to have the apartment furnished. Remember, this includes everything from silverware to mattress protectors ---- all of the things you needed for the first property. Also, take into consideration all of the things that you had to purchase after you listed the first property. If you’re like me, you’re learning as you go and there were somethings you didn’t know you would need until the guests informed you or complained. Let’s call this part of the estimate “Essentials”.
Next you’ll need to take a look at the receipts for the extra items you purchased. I’m referring to things like toiletries, cleaning supplies (for the guests), paper towels, air freshener, etc. Of course this will be an ongoing expense, but in order to for the owner to have realistic expectations this will need to be part of the estimate. Add up the cost of those items. We will call this section of the estimate the"Amenities".
Now for the hard part, how do you value your time and efforts? This is tricky. Personally, I don’t like the idea of charging by the hour because setting up a property is a creative project and it’s difficult to restrict the process to certain hours. Sometimes you wake up in the middle of the night to look at Pinterest or you get caught up decorating and lose track of time. It’s nearly impossible to track your hours if you really get into it and you aren’t clocking in and out so it doesn’t seem fair to either of you. I would suggest perhaps setting a daily or weekly amount that you are comfortable with. What do you think you would make if you were working a “regular” job? If you got paid monthly, how much would that paycheck be for that “regular” job? Take your monthly expenses into consideration and then add a little extra on top of that and divide it by 30 . That will give you an idea of how much you should charge daily and then the two of you can decide if you should get paid weekly, biweekly, or however. This approach may be the better one because you don’t have enough experience to really know exactly how long the project will take. When you are setting your daily rate make sure you remember that you will be responsible for paying your taxes and, depending on the arrangement, may also have to purchase your own supplies, meals and gas to and from the property.
Add up the essentials and the amenities to create an initial set-up budget. That should be separate from the fixed daily rate you set. Then the owner may want to establish a timeline based on the overall cost of the project. If the last place took 6 weeks to become Airbnb ready, he/ she may decide this one should be done in 4 weeks and then you will know exactly how much money you can expect to make by the end of the month instead of hoping you’ll make enough or having to deal with the awkwardness of presenting a bill and not knowing if it was more or less than the home owner was expecting to pay.
Hope this helps give you a little clarity and direction. Now go make that money!!!
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I would estimate the time you think it will take you and allocate an hourly rate you want to get charged.
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