You Eagerly Bought Your 1st Airbnb Property, Now What?

Strategies for Airbnb Success During an Economic Downturn.

Things were going well… You bought an income-generating property, turned it into an Airbnb rental, the bookings were coming in like clockwork and you put a check-mark beside you passive income goal. Then all of a sudden, the world is hit by a pandemic!… HELP!!!

What should you do now? Should you keep going, amidst economic uncertainty? Should you put aside sentiment and opt for the most financially practical option? …Better yet, what is the most practical option??!!

These are all questions many income property owners have asked themselves. As an experienced Realtor in Montego Bay, Jamaica’s Airbnb Capital, I am more than familiar with these concerns. In the points below, I will highlight strategies that will not only be of use during an economic downturn, but will be applicable for any Airbnb host or villa owner wanting to have an edge in an extremely competitive industry. 

Differentiation – With several vacation options for visitors, you will need to think seriously about how you can differentiate your offering from the competition. What can you do to give yourself an edge? As the founder of a local brokerage having to compete with big international real estate brands, I’d say I’ve learned a thing or two in this area. There is so much more that you can do besides simply discounting prices. Guess what, everyone else will already be doing that! What you need to do, is put yourself in the shoes of your guests. If you were in their shoes, what would you appreciate?

Here are a few ideas to consider:

1. 1. Special offers for longer stays and flexible cancellation policies – This will take some of the pressure off your guests when they are considering if, or where to book.

1. 1. Host-a-Hero – Special offers for medical professionals, frontline workers, civil citizens or seniors. Many of these people truly need a break and with a little encouragement, they could become loyal fans.

1. 1. Work remotely initiatives – Equip your holiday home with all the conveniences a traveling professional would require in a home office, i.e. the most reliable and speedy internet package available, a post-paid mobile smart phone with an international calling plan, a good printer/scanner with back-up ink cartridges, and complimentary paper and pens. (You can even brand these if you’d like!)

1. 1. Offering Complimentary Transportation and Tour Packages – Offer an all-expense paid trip to a popular tourist attraction. 

1. 1. Strictly Adhering to High Sanitization Standards – Ensure enhanced cleaning measures (Learn how to achieve Airbnb’s Enhanced Cleaning accreditation here). Help guests feel at ease with your sanitation standards by including hand sanitization stations, cleaning supplies, first aid kits and self check-in via keypad access, swipe card entry or lockboxes. 

1. 1. Reward referrals and repeat guests – Think of a creative way to show your appreciation.

1. 1. Insurance – Beef-up your insurance coverage for guests so they can see you are a responsible, caring host.

1. 1. Get Social – If you haven’t already created social media accounts for your vacation home, now is the time more than ever. Statistics show that besides word of mouth, people turn to social media primarily when exploring options for just about anything! Start connecting and sharing so prospective visitors can get a taste of the Jamaican lifestyle that awaits and begin to envision themselves in a home away from home.

Other Strategies…

Long Term Leasing – If you no longer wish to continue doing short-term vacation rentals, you may wish to consider finding a long-term tenant who would rent your place for a minimum of a year. This alternative would be less hands-on, but it would be best to utilize the services of a Realtor to ensure prospects are screened and to ensure you are informed of your responsibilities as a Landlord. Contact us for more information on the Leasing Process in Jamaica.

Selling – If neither or the two options above are right for you, it may be time to consider listing your investment property for sale. Find a Realtor who will guide you on the best ways to make your property stand-out in the sea of listings for sale. People are still looking to buy real estate in Jamaica. You need a Real Estate Agent with access to willing and able buyers. If there is any way that we can help you make the decision that is best for you, please do not hesitate to reach out.