I’m looking to manage an Airbnb and I’m not quite sure what to charge. My friend wanted to give me 50% of his profit but I originally was thinking 30% of rental.
I have out much work into getting it setup and didn’t bill for all of my time. I guess money is tight right now.
The house is a mess, it was a foreclosure and hasn’t been brought up to standard and is partly under construction. It still needs vacuuming ceiling to floor, (cobwebs) and it has a rodent smell coming from the walls in certain areas. I wanted to hire someone to eradicate but owner wants to air out and spray eucalyptus oil. I don’t think that’s going to work. Anyhow, I’m having a hard time with getting it all setup since there is so much work to do. Not sure what to charge for the setup time? $20/hr? Flat rate? Plus the owner was willing to pay a landscaper to do yard work but didn’t want to pay me to clean and detail the inside of the home. Just looking for some advice on this. The owner is giving me a room in the house for free which I would assume could rent for $650 a month. He wants me to be there to housesit because he will be out of town most all of the time. So our original agreement was free room, and then get paid to get everything setup but now it’s feeling a little squirmy since money is tight. And now since money is tight, I had to leave town to put my energy into other work just to make an income. Advice? Should I go forward with this or ???
Advice? Look for a better business partner! The way you’ve written your post makes me think that you already know that this is a crappy deal.
A free rent that’s worth US$ 650,00 and 50% of the profit? That doesn’t sound all that bad.
@FlowersRNice Where are you more are less located? Will you be able to have a daytime job, or will you totally depend on the AirBnB income?
If he wants you to set it up for free, maybe you can ask for an advance on the AirBnB income. He is paying for all the materials, furniture, etc. ?
It’s in Southern Oregon area. Utilities are paid for but I don’t have other work. I had to travel for work so I’m not using the room at the moment. No furniture but he said he has some to contribute but it hasn’t made its way to the house. I haven’t seen it yet and since money is tight, he doesn’t want to spend money to setup, he expects me to wait for the income to start flowing in. I can’t do that. There is so much work to do to get it ready. It’s a pretty much empty 3,000 sq ft home. The presentation is horrible but he is thinking of lowering rates to make more attractive and as money comes in, putting some money in to upgrade property and home. Part of the house is under construction. He also has a trailer for Airbnb rental but not sure that where this trailer is located if it’s legal in the community to do Airbnb. He wants to do it anyway and if it’s not okay, apologize later. I’m uncomfortable with that but not sure if my uncomfortably is warranted or if I should go ahead with that one as well, take the risk and hope for the best. ? At this point, the point of free room was for house sitting, and so he feels comfortable when he comes to visit once a month to stay in the house. The deal to begin with was free room, $20/hr for setup and work and he agreed to meet me at a minimum of $1500/month income but now is saying money is tight and needs to bring in money for me to get paid. That is not what I agreed to originally so trying to seek advice for what is standard also considering the condition of the home. I’m moving forward with helping to list them for now because I want to follow through for my own conscience.
“That is not what I agreed to originally so trying to seek advice for what is standard…”
What difference is it to know what the “standard” charge is, when:
- he’s not paying you anything until he “brings in money”; and
- he doesn’t pay attention to your advice and recommendations.
Can you not foresee the writing on the wall? I see the word s-h-a-f-t-e-d.
I’m enjoying these straightforward answers. I think my problem is letting others walk all over me. Thanks for the bluntness!
You’re right, I was pretty blunt so thanks for taking it with good humor! You sound like a very nice person and I know someone like you. She does and does for others and is so often taken advantage of and doesn’t get paid. I hate that she gets victimized. She, herself, is trustworthy and trusts people on their word…and then gets shafted.
Get out your coconuts and run away! Next he’ll be trying to borrow money from you. Or tell him this ain’t working, you’ll continue to housesit rent free and, whenever he can give you money, you’ll spend it on set up, however long it takes to get ready.
And when the money starts coming in, it will be - I am getting money for the way it is - why do I need to spend anything to improve or upgrade. RUN AWAY VERY FAST!
NOPE NOPE NOPE NOPE NOPE.
This sounds horrible.
I agree with everyone else. Walk away! If he is refusing to pay you for the work you’ve already done, who knows if he’ll pay you in the future. He doesn’t sound like he has what it takes to be a short-term rental owner or landlord. Even in Southern Oregon, $650 seems high for a room in a rat-infested house that is under construction. You could rent a room in a rat-infested dump in Portland or Seattle for $650.
Not sure where this house is but if he expects you to live in one of the rooms you already reduce your chance of making money because it is not an ‘entire house’ rental. Also, anyone who doesn’t want to spend money to make the listing look nice to begin with is not worth renting for. It will be so little money that you will never recoup or put away enough money to upgrade furnishings or do necessary repairs. Most homeowners who hire management have no idea what they’re getting themselves into. If they have the right attitude, it will be fine. But if they have very ridged expectations it is not worth it for you to change them.
When the share is from the ‘profit’ - you need to be pretty clear what this definition is and agreed in advance.
Some people will try an deduct a whole bunch of imaginative costs before the profit amount is realized.
It seems your friend is making it up as he goes along rather than having a thought out strategy and plan.
Best if that is devised before you are up to your neck in it
Yes, this is something I am still needing to learn. I should have asked these questions and got clarity before ever miloving in. Now I will have to make a decision and if that decision is to move out, how tiring it will be to move again.
Yes, it will be tiring to move house again, and probably so disappointing to have your initial hopes dashed. But I’m glad you’ve reached such a positive decision; this man is a scumbag, not a friend, who is/was trying to take advantage of your good nature and perhaps your current vulnerability? I hope you are going to put this (and him) behind you, and go forward with a really positive outlook, using the the insight you’ve gained and chose friends who give as well as take!