This is the definitive place to discuss everything that makes life on & off campus so unique in Central Virginia.

Moderators: jcmanson, Sly Fox, BuryYourDuke

By Dalegarz1
Posts
#653953
We are starting a new Airbnb in Lynchburg at the beginning of August. Since this is our first time doing this, we could use some advice. For instance, since Airbnb provides insurance should we still form an LLC? I would appreciate anyone with experience reaching out (PM) to me. Thank you!
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By prototype
Registration Days Posts
#653955
I don't know much about AirBNB, but I do know that you should always form an LLC....

Good luck!!
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By Sly Fox
Registration Days Posts
#653956
I'm happy to share here with everyone. We have run an AirBnB for about four years. Honestly the platform has slowed down this year as opposed to prior years due to TikTok skewering it on the daily.

We recommend using an LLC. The insurance that AirBnB provides is limited and exceptionally difficult to collect. They make you jump through endless hoops. The LLC is primarily for protecting against legal action. Damage to property is going to happen. Hopefully it is limited. We have been blessed with very limited damage in our four years ... one broken window ... one broken bed and some minor things.

We strongly recommend a 2-night minimum. Yeah, you will lose some bookings but the turnarounds are a pain in the neck. If you use a management company with maid service the profit margins get VERY thin. We do it all ourselves but we are just 10-12 minutes away from our property. It is a long way from Jersey. If you stlll have a kid on campus. it is better to pay them to do the turnarounds than go to a mgt company.

Don't over-decorate the place. It makes the property seem smaller. Keep everything simple. It also helps you to recognize when something has been taken.

We have used the standard Schlage remote lock that nearly every AirBnB uses without any issues other than needing to change out the 9-volt once every 3-4 months. It is much better than most of the competing products. I have tried several on our townhouse where my kids stay at A&M. Wish we would have just stuck with our usual Schlage.

Speaking of which, make a checklist of items in the property and verify when you clean the place. If things go missing (i.e. towels, pots and pans) then you can file a claim if you like. I generally don't bother.

The most frustrating thing about running an AirBnB is that unless the folks staying at your place let you know something is wrong, you don't discover it until they complain in their reviews. So constant communication through the app is the key to success.

Make sure you are rapid in responding to any messaging or inquiries. AirBnB measures the response time as part of their algorhythm and pushes you up or down in the suggestions accordingly.

We have an automatic notice that goes out to guests on check-out day listing what needs to be done before exiting. I typically tailor the welcome email the morning of arrival day based on what they have shared in their prior messages. I then include the front entry code and directions to nearby supplies.

The margins on our place have covered the cost of getting my son through three years of college and my daughter through her freshman year. I can't emphasize what a wise investment these can be if managed properly.
Dalegarz1, Baybird liked this
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By Purple Haize
Registration Days Posts
#653959
prototype wrote: June 1st, 2023, 9:23 am I don't know much about AirBNB, but I do know that you should always form an LLC....

Good luck!!
This. If you do nothing else do this
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By prototype
Registration Days Posts
#653960
Purple Haize wrote: June 1st, 2023, 10:08 am
prototype wrote: June 1st, 2023, 9:23 am I don't know much about AirBNB, but I do know that you should always form an LLC....

Good luck!!
This. If you do nothing else do this
And you know if Haize is agreeing with me - this has to be 100% right. It's been 25 years since we found something we agreed upon;)
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By Veritas
Posts
#653965
In addition to what's been noted above, a few additional thoughts on LLCs, as I manage about a dozen of them operating in various states: (1) do not commingle personal and business assets and (2) follow the corporate formalities, such as reducing meetings to minutes. Without these two basic elements, a litigant may successfully "pierce the veil" of the entity, which means that the LLC = you for liability purposes.

* Every state is different, YMMV, not offered as specific legal advice, etc.
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By Sly Fox
Registration Days Posts
#653967
We have Series LLCs here in Texas. Not many states have them these days. We are careful to not intermingle between our multiple businesses. And you have to remember to pay yourself or that veil is easily pierced as well.
By ALUmnus
Registration Days Posts
#653973
I love threads like this.
I recently stayed in a couple AirBnB's overseas, and one of them stressed how important it was for me to leave a 5 star rating or it would basically kill her listing. The other one had a very complicated entry procedure (5 keys!), so he had a video that showed how to get in the place. Very nice touch.
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By Sly Fox
Registration Days Posts
#653977
All it takes is one knucklehead every year giving you 1 star for some ridiculous reason to kill your Superhost status. :banghead

Thankfully the latest review setup has led to less of those experiences for us.

Wow, actually begging for 5-star reviews is definitely weaksauce. Bad things happen during stays. Hosts recognize it will impact scoring. Thankfully I have never been so desperate as to beg.

Much like most of us all give 5 stars on Uber rides unless it is disastrous, I hope most of you don't bang on AirBnB/Vrbo hosts because a lightbulb goes out.
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