The “Airbnb Mother-in-Law” Strategy Explained

You’ve probably heard of the mother-in-law apartment, a small suite on the same lot as a single-family home, where an in-law (or other family member) can live while maintaining their own privacy and independence. But what if you want to list an in-law property on Airbnb? Is it wise to list two units on the same lot as short-term rentals (STR)? Or is there a better way?Kyle Stanley is an avid real estate investor and experienced STR host. He is also the host of the Fearless Flipping Podcast, a show dedicated to helping listeners learn to flip houses and earn passive income with real estate. After buying a property with a secondary unit onsite, Kyle created the mother-in-law model to earn money on Airbnb and provide a unique opportunity for his long-term tenants.On this episode of Get Paid for Your Pad, Kyle joins me to explain how he came up with the mother-in-law model, discussing how it can be a win-win-win for long-term tenants, Airbnb guests and property owners alike. He describes how to find willing onsite managers for mother-in-law units and the challenges of relying on an individual rather than a business. Listen in for Kyle’s insight around the current real estate market and learn whether the mother-in-law strategy makes sense for your STR business!Topics CoveredHow Kyle got into the STR spaceUnexpected expenses with first house in ScottsdaleFriend introduced to idea of renting room on AirbnbHow Kyle expanded his STR businessMoved back to California for dad’s health in 2016Airbnb guests generally in town for business or familyDiscovered income potential of renting whole houseIncreased portfolio to five listings in FresnoHow Kyle came upon the mother-in-law modelNervous about listing two houses on one lot on AirbnbIdea to make one long-term rental with reduced rentServe as onsite manager/cleaner of Airbnb propertyThe advantages of Kyle’s mother-in-law strategyWin-win-win for tenant, STR guest and ownerIncreased profits from $1500 to $2500/monthFinding a tenant who is willing to serve as onsite managerStay-at-home moms + individuals looking for low rentConsider fair wage laws, track time and offer bonusesHow guests respond to having an onsite managerMake clear on listing to attract right peopleGuests inclined to break rules unlikely to bookThe challenges of using the mother-in-law strategyRelying on person vs. businessBackup plan in place for emergencies, tripsKyle’s tips for replicating the mother-in-law modelChoose onsite managers you trust 100%Ensure that model makes financial senseKyle’s insight around the current real estate marketLikely 12-18 months away from downturnAll-in on special terms and arbitrage modelHow to approach a property manager about AirbnbUse FORM sales formula to make friends firstExplain how differ from other tenants (pros + realities)One of every nine will say YESKyle’s best advice for GPFYP listenersAccess likeminded people and informationDo research to expand mindseConnect with KyleFearless FlippingSponsorHostfully 2019 ReportTo subscribe to the podcast, please use the links belowClick Here to Subscribe via iTunesClick here to Subscribe via Stitcher (Android users)If you like the show, please consider leaving the show a review in iTunesor Stitcher. A couple minutes of your time can help the show immensely! Thanks! Hosted on Acast. See acast.com/privacy for more information.