23 Aug What is Passive Airbnb? How to Set the Right Expectations
I expected too much out of me in the beginning. I thought I would be building on average of 2 units per quarter and 6 units total in 12 months. But the reality was more like 1 unit per every 3 months. I underestimated the workload to get 1 unit ready to go live.
I fell victim to the above-average bias! That’s okay because the majority of us all do. So, after about 3 months into this business, I had to self-adjust and slow my roll to a speed that did not stress me out.
The reality turned out to be very different from my expectations.
In this post, I will help you set the right expectations and give you a list of questions to ask yourself as a guideline.
- What kind of business do you hope to run?
- How much time do you have to invest in this business?
- How much capital do you have at your disposal?
Here are my answers.
What kind of business do you hope to run?
I knew that I wanted to run a passive income business that is not dependent on a location. So I made a short list on a very high-level.
- Not tied down to a location or chained to a desk
- the flexibility to work remotely and the freedom to travel when I want
- work fewer hours and stress less
How much time do you have to invest in this business?
When I started this business, I was just transitioning out from a consulting gig for a drone company. I knew that I didn’t want to go back to a full-time corporate job. So right then, I decided to focus on this full-time. I probably worked about 15-25 hours a week in this business. It took me about 6 weeks to get everything up and ready on Airbnb for my first unit.
How much capital do you have at your disposal?
I started with $5,000 dollars in cash. The cash was only used to cover the 1st-month rent and security deposit. I also had another $5,000 in reserve just in case anything came up. For the rest of the expenses, I used my best friend – American Express.
As you can see, I started with $10,000 dollars and that is literally 1/10th of the costs of buying a rental investment property. If you are cash-strapped, try to save for the 1st-month rent and security deposit.
Last Parting Words
Setting up and managing expectations is super important. It gives you a clear direction, so you can go back to this whenever you feel lost or distracted.
I run my business like a lifestyle business. I reinvest some of my income back into acquiring new units. You can run your business however you want, but if you want to succeed, then you definitely need to define a goal.
My goal was to reach an average net of $10,000 per month and work less than 10 hours a week. I have since achieved that goal.
In fact, I actually work around 7 hours a week. I spend an hour each day running this business and sometimes less. It was not like this when I first started because it took me a while to start learning how to run it more efficiently. I expect the same from you.
Answer the questions that I have listed above and define a goal. The goal has to be in number because that is the easiest way to quantify.
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