Airbnb Just Became the Worst Investment Ever.. 

Gosh I’m dating myself here. Watch this video if you’d like to better understand the airbnb business model The 7 Parts Of An Airbnb Business ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-R8R4koPoXWI.html

Shilling airbnb arbitrage is what killed the game. Telling people it’s easy and over saturating the market is what killed the game

Sean is correct. And it’s very easy to beat your competition when you operate as a real business. Dive deep, learn the full operation, learn sales and venture off into direct bookings. It’s a process many “co-hosts” and hosts would not be willing to take on.

Palm Springs has capped the number of Airbnb licenses to small percentage of overall housing. As licenses expire, you join the waitlist, you do not get an automatic renewal and your license, if you have one is not transferrable with sale of the property which has caused the housing value to plummet.

At first I was going to criticize this video but I agree. This is an owner occupied business that when done right, has great leverage and can be operated on a high level without killing yourself like running a restaurant BUT if you’re hoping it’ll be a fully passive investment like normal rentals, you’d be wrong. Unlike you I own all of my Airbnb’s BUT they all would be fine rentals are just more profitable as Airbnb’s and I enjoy running them for extra revenue.

The first phase of easy money is over. Your property needs: - An aesthetic curb appeal - At least 1 unique cover pic that makes people stop scrolling - Several other statement pics that keeps them scrolling & click in - A description that gets them excited to book - Amenities or features that others DONT have and makes them want to pay to stay - A dynamic pricing strategy to maximize your revenue If you don’t do this you will likely fail at STRs.

I don’t plan on quitting my Airbnb/Vrbo. We purchased a small lake cottage in 2019 and have been running it as Airbnb/Vrbo, and although last year was a little slower than prior years, it is still highly profitable. Even with last year being slower the Cash on Cash return was 16%. When you add in property appreciation the return tops most anything available, at least anything that doesn’t have massive risk.

That sucks, I can't say that's happening to our vacation rental. I will gladly take on those clients from those whom may quit.

As a long time host, I can say interest and business has certainly dropped over the last couple years. I basically don't host any more. It's not because I don't like Airbnb as a concept, it's because the guests have been more and more entitled and difficult to make happy. I'll call it the "Karenfication" of the business. They simply make it that you don't want to do it anymore. That combined with young people lying to want to have crazy parties. No thank you...

You bring lots of value to your audience! Thanks.

If you're investing in actual vacation markets very few properties will work as an LTR but they should work very well for ab STR vs trying to STR in a non vacation matket.

One of first videos i saw and learnt from Sean was that it makes more sense to go the arbitrage way and simply put it made so much sense. I definitely realised and its basic logic that there's a limit to how many properties one can buy and then the strings that come attached with loans and mortgages. My good fortune is that I followed Sean. like he says in another video : the best way to start an Airbnb is just copy everything a competitor (whos doing well) has. Similarly if applied to this scenario, just listen to him and copy what Sean's doing. Today i have 15 properties on 10 years leases running today. Thanks

Hey Sean im stuck between two routes first one is building my credit to obtain a buisness credit card with 0% interest and cohost ( I don’t have any experience) or go in using my own capitol with arbitrage

I bought a spot to be an Airbnb that doubles as a vacation home. I didn’t need cash flow, just break even. That model fell apart. So now it’s just a vacation home. It is what it is… (ps I made money just no cash flow. Like Shelby)

I'm looking to purchase a brand new house. Build for personal use and also use as Airbnb. To offset the mortgage payment. Should I be looking into this at this time?

Shopping for Airbnb and found many have a cheap IKEA basic aesthetic and bare minimum furnishings that look like left overs from the last time you did a makeover of your own home furniture. Also the locations are ordinary or non distinct. The service fees are excessive relative to price of stay.

Thank you 😊

Everyone’s situation is different. You really need to do your due diligence, before you delve into Airbnb hosting. You should start with your own home and you will learn a lot. Then see if you want to delve into arbitrage. But you start slowly and learn. Shelby Church is a cautionary tale, but far from the only result. Some people are doing very well on Airbnb. Using Airbnb profits to invest in other things.

Interesting. In our Province they just banned STRs outside of your primary residence as of May 1st. We are actually turning our attached LTR (Tenant is leaving July 1st) to STR, which we have never run before. Lots of upfront costs and added insurance. Neighbours run Air BnB and it makes roughly 50% more on average than our LTR did. We also wish to run an actual BnB in the future so we are excited for the experience.

Well they announce they quit but then they make new videos and debunk it next video

I rarely comment, but as an owner I can't resist. We bought this property in 2019 at a great interest rate, because it had a guest house that we could make work for AirBnb. The price was low because the place needed so much work. It took us a year before it was ready, our first guest was July 2020! We were booked every weekend solid for 2 years. Now, it is slower. But ABB has paid for all the improvements in the guest house, and has generated cash flow and tax deductions for depreciation. We do not need the income, and can afford the mortgage payment even at 0 occupancy, so if we had to we could lower our prices to be fully booked. We do not because we do not want the low-end guests. I do watch and appreciate your insights!

Sean, you look very sharp in this suit and man bun. Very gentlemanly 👍👍

I’m done after 8 years. Renting all mine out long term starting June 1st.

I'm a real estate investor and used airbnb to make higher cash flows, but it is definitely not the case anymore. My main issue was the cities not allowing it, leaving notices, having to pay hotel tax, and now too competitive. Short term airbnb is no longer worth it (for me), but 30 day rentals and more is still very profitable.

Does this just apply to USA what about it vacation destinations in Latin America?

I see people in my area with 10-15 properties and very little reviews. They invested in the property, the set up, the house keeping, management…. I can’t fathom how they have enough occupancy to make it worth it. My suburban area isn’t a destination for anything special. I have popular airbnbs in the city, which I keep fully booked but have to do so at reasonable rates. I have no idea how these other people survive.

Let me mention as a host that other expenses are certain cities, counties, jurisdictions clamping down on short term rentals with new/higher expenses like application fees, short term rental filing/taxes, etc. This has raised the cost of doing business for hosts and made them rethink the value of STRs. I was long term renting at a real good rate and after tenants were done I came back into STR on the property only to see the rising costs of doing business. Plus Airbnb has slowly taken a lot of power out of hosts' hands so that hosts can't run their Airbnb businesses as they see fit.

Having worked as a contracter for sonder, it was evident they would fail. Their leadership was hilarious. At first, it was great, but once they started to appease shareholders, they started to act silly. Air bnb is great for those who got in early, like anything else. This last wave of investors are the ones that got screwed. I have a $900 mortgage and my competitors have a $4,000 mortgage.

The best thing that could happen for Airbnb is for those that suck to get out.

I'm about to list several rooms as long term rentals on Airbnb. Maybe bad timing? LOL Been binge watching your videos. Thanks for all the info!

Broooo you single handedly killed airbnb by giving the game to everyone. "Knowledge is power " has a whole mew meaning. The knowledge you gave thinned airbnb host power by creating to much competition. If i were airbnb id pay you to stop making videos. Lol. So yeah call aorbnb and tell them that they owe you money... Tons of money!

I see what you're trying to say, that Airbnb is a business, not a passive investment. And I agree - mine are run like a business, and that's why I succeed. However, when you BUY your real estate, not arbitrage, it can be a GREAT investment due to the bonus depreciation you can take. I make back my down payments in year 1 by taking bonus depreciation against my active income. That is not something you can do with long term rentals.

Probably supported by Hotel chains. Because they are losing money. I have had a short term rental for 3 years and I am still killing the game.

Even if you intended to operate it as a business, there are much better business models available. Just managing housekeepers is challenging enough, with same-day turnovers, inventory, linens, guest requests, maintenance issues, not to mention the constant need for linens. The effort isn't worth the reward; it's too decentralized. You might as well run a hotel, a proven model.

I have two properties in two countries on Airbnb one with 93,7% average occupancy and it's incredible investment with great ROI.

All it takes is 15% vacancy and the prices drop 50% because everybody undercuts. It's the hype that killed the business model, for now. The market will find a balance.

Operating short-term rentals is more expensive and riskier than long-term rentals. Significant profits are more likely when you manage homes yourself and deliver consistent 5-star worthy homes and services. If you must hire a property manager, make sure they are local and have a proven track-record 4.95 or higher ranking. Otherwise, you are paying them 20% or more of the gross and they will have to drop your nightly rates because nobody "wants" to stay in 4.8 home with legitimate complaints and at a cost that is higher per night homes with 4.9 ratings and glowing reviews. Bad PMs with crappy reviews will just drop the nightly prices to raise occupancy if the product and services are perceived as not worth the asking price. If you hire a good PM, be prepared to follow their lead and pay whatever it takes to quickly remedy any repairs or defects that could negatively impact the guest experience and their review. When your unreasonably cheap, you make your PM and property look bad, that's a formula for failure, too.

Like all bubbles, only the best will survive. It's a business.

What in the AirBnB experience is painful or annoying? As a host. As a renter.

my airbnb is dead last year booked

Real Estate Holding Companies just passed the BAD Real Estate from their holding to ordinary people. People blindly bought with zero knowledge about LONG TERM CASHFLOW investments and capital gains, same as in every other industry where arbitrage and leverage are part of. Rince and repeat.

Hello Sean, I found you during my research time here. I would like to ask whether it still makes sense to buy an apartment (with my own money) and rent it out on the Airbnb platform? The thing is: I would buy it in another country where I lived years ago. I know how things are there and that you could earn a lot more there. I also know a few people there who could help me build a network of all the helpers I need. If it involves cleaning, repairs or other emergencies, I would have to stay there for a few months to "teach" it the way I imagine. Then I come back there just to check and renew things sometimes, and the rest with video calls and my management tools. I will earn this money by selling the old apartment in a small village for which I did not receive adequate rent and I hope to earn more with this new idea. I am ready to make any effort necessary because I love everything related to it. I love interior design, I'm a photographer, I always get compliments on my own apartment and I love making people happy. I've done Airbnb years ago, just for two months, and I know what kind of work goes into it. But if you say that doesn't make sense anymore, what could I do instead with that money? Or do you think it would still be possible, of course with gaining a lot of knowledge etc. Thank you very much! Ps: I am seeing this as a second job, not as a passive-non-work-included-income...

We own and manage hands-on our own BnB (4) casitas in Mexico. We live on property. It's a grind, a job. In 2024, we are again profitable.

I really wanted to start your Airbnb course. I'm eager to begin, have the capital, time to invest, ready to learn. I set up a phone call with your team. Andrew is most definitely not doing a successful job selling your course or mentorship. I'm bummed because I have gleaned a lot from your free content. Still want to do the mentorship, but I went from a 10/10 excitement to a 1/10. Considering other mentors and experts on STR.

I just SOLD my ABNB stock. Since its IPO it really has done nothing. I felt lucky to dump it at $170 a share.

My Airbnb is only successful because I do 100% of everything (well my parents help me clean sometimes). Profits are all mine.

airbnb will never pay you damages and will leave you dealing with scammy guests

Good luck, Airbnb is being called the worst investment of 2024 and the worst way to get into real estate.

Sean, you never disappoint! So happy to call you my mentor! Thanks for the GOLD! Keep shining bother. Grateful for you! 🙏🏾

yeah, yeah, yeah, sounds like people will finally be able to afford a home.

wow. dude has 150 AIRBNBs wow

As a host I feel several things are wrong. 1.Airbnbs have got way to expensive. 2. Host demand some crazy things from their guest. Don’t make guest clean when they paid a 200 dollar cleaning fee. No one wants to clean while on vacation customer service is key !

What a bad advice to pay cheap to the cleaners.

Glad I sold all, of my 37 properties on july 2022 which was the peak of the market and laugh so hard looking at others have been losing money for the last almost 2 years😂

Most hosts got lazy, and became divas, and are partially to blame. People put nothing into their homes and are furious when they don’t print money. In the old days airbnb was always the answer. Now I think it’s only sometimes the answer. Definitely agree that self fun is best in theory if you don’t suck. But as long as I’ve hosted I’ve seen people saying airbnb is over and it’s not. The game market and world just change

I watched the Shelby Church videos on her AirBnb's and she was making lots of bad decisions with her STR.

This company is fully negligent

So don't be an investor be an entrepreneur with Airbnb, right?

Hey!! Don't run me out of business! I'm a new and highly invested Property Manager specializing in STR's and I'm a million percent passionate about hospitality and doing things above and beyond for my guests. I want to do right by my clients, please keep in mind there are those who truly love the hospitality side of things but at this point do not have the capital to start their own. Love your videos but please keep us PM small business owners in mind

Its a bit ironic that the hosts leaving Airbnb due to lack of profitability will help improve profitability for the host that remain.

I was expecting “it’s not worth it being an Airbnb host when someone can stay in your property for 30 days and claim squatters rights and take your home using the government.”

Died in the uk 🇬🇧 years ago. Only those selling air bnb courses left.

A+ Hand gestures

Real estate is a great investment. And short term renting your real estate is still a great holding strategy. The title of this video alone doesn’t even make sense. Airbnb isn’t an investment unless you’re buying their stock.

Fake news - lol - Robuilt isn't quitting Airbnb. He's still going strong and adding properties, if it makes sense for the cashflow...Like any good investor is doing. What he is focusing on is optimizing the properties he has for greater cashflow and to stand out in a market that is seeing struggles for less spectacular properties. So, he is still all in on STR's and helping his students make good investment decisions.

I miss the glory days 🥹

The cream always flow to the top. Get rid of these investor hosts that taint good hosts.

cohosts be like......

Was it EVER a good investment? AirBnB's have ALWAYS been a bad investment.

Not even a minute in and this video has dumped out a pile of misinformation. *files under clickbait.

FAKE NEWS!! You should of course do your math and research. The problem with this channel is that Sean doesn’t understand the tax benefits of owning your property. You save so much money on taxes by being the owner. I haven’t done the math to be fair but in my opinion you come out ahead owning vs renting. BTW Rob is still buying properties he is just building or “buying” by creative finance. Don’t spread lies!

Clickbait and smearing the competition...

FKURAIRBNB

good quit...lol

"i bought a 775k house to rent on air bnb..."