Hosting Report #1: Inside a small short term rental unit in Buffalo, NY
Thinking of hosting? Here's our experience with one unit in a historic neighborhood
Short Term Rental vs. Long Term Tenant
If you're thinking about jumping into the short term rental fray, hopefully this article can give you some useful informaition. In June of 2016 I was in a similar position with this unit.
The unit is really just one large room, located in an historic building in Buffalo, NY. The guest is renting the entire space, nothing shared. The space does not have a kitchen. For a period of time I rented the space as an office for $250 per month.
Because this unit does not have a full kitchen, it's really not suitable for long term rental. There is a small sink, microwave, and apartment sized fridge which are fine for short term guests not looking to cook. We're clear to describe this in the description of the listing.
It's own entrancePerhaps the single greatest attribute contributing to the success of this unit is that is has it's own exterior entrance. For a guest looking for a quick easy stay, this greatly adds to the units appeal. The guest feels safe, and they have their privacy. It's also helpful if they are travelling with a dog.
We had rented the room as an office for $250 per month. The room is small, much smaller than the typical apartment, aproximately 250 square feet.
Furnishings
The room is pretty simple. We have added a small air conditioning unit, and large screen tv. We do offer basic cable, and wifi service that is fairly fast and reliable.
Location, Location, Location
I'm aware that many hosts hate the 'Location' rating. I'm not one of them. We're located just north of the downtown core in a neighborhood named Allentown, just a block from the new University of Buffalo Medical School. There are lots of bars and good restaurants within walking distance.
Around holidays, and in the summer, we've learned that we are also well positioned as a 'half way' point between Boston and Chicago. Families that are travelling (maybe with a pet) that decide to split the trip in two days book are place as an overnight spot.
We are also about 25 minutes from Niagara Falls. During the summer, travellers looking for a two or three day stay that includes one day in Niagara Falls find our location convenient.
Where have Guests Come From?
Reviews
(You can see reviews by zooming in on the map above, and clicking on a marker. We use the services of MyGuestMap for the map.)
We've had 418 reviews
With 573 total stays, we've found about 73% of guests will leave a review. When we started, we unquestionably focused on getting good reviews. We did extra things, like picking up, or dropping people off at the airport. I suspect that the percentage of reviews we recieve now are lower. When things are busy, we don't always review every guest. Reviewing a guest early, after a good stay (at least perceived by us) is likely to lead to more reviews.
| Number of Stars | Number of Reviews |
|---|---|
| 1 | 0 |
| 2 | 2 |
| 3 | 4 |
| 4 | 39 |
| 5 | 373 |
Occupancy
The image below is for December 2019. This is a slower month for us, but this particular unit did pretty well. On the 18th and the 23rd, where you see the diagonal line, the room was booked either directly with us, or through another platform. Being booked 27 of the 31 nights would be an 87% occupancy. Because it is a slower period, we are discounting this room to keep it full.
Higher demand nights, we will book further in advance. During slow times, it's not unusual to book just a couple nights in advance, or even the same day.
Financial Performance
We've had this unit online since June of 2016. Had we been able to find a commercial tenant, our gross revenue during the 42 month period would have been $10,500. During that time period as a short term rental, we've grossed $70,000.
The commercial tenant would have paid $250 per month, vs. the average per month of $1650 for short term rental. Obviously, more costs and work in doing the short term rental, but overall, think these numbers justify the decision.
Interacting with Guests
I've managed to keep Super Host status for the 4 years I've hosted. To be honest, the space is not great. I will readily admit that we have probably had some not so happy guests that didn't leave us a review.
I will go into detail about each of the following, but below are the important keys to hosting:
- Keep the Focus on the Guest, and why they are in town
- Keep things simple, as few rules as possible
- Don't ask them to perform any tasks, put it in the cleaning fee
- I've had over 2000 groups in six units in this building. I've never openly disagreed with a guest, even when they're wrong. Learn to bite your tongue.
I am normally on the property everyday, and will come into contact with guests during their stay. I try to keep in mind why they are in town. Is it a wedding? or work? Maybe there in for a Bills or Sabres game, or a concert. You want to be able to ask them something that shows you're interested, but also fills a void where they might ask you about something about the room. You also want to be able to offer local suggestions that tie in with why they are there. Things with the room should be so simple that they don't need to be explained.
Messaging
When a guest books, I reply with this, hopefully within a few minutes of their booking:
Hey Joseph,
Thanks for booking the apartment! We can talk about the details of your arrival as the date gets closer. If you have questions before then, please let me know.
Thanks,
Marshall
I may change the first word 'Hey' to whatever the guest used. If they say "Hello", I will say "Hello" back.
I do not look into the guests history on the site. I don't care if they have 0 reviews, or 100. It's a small space, and is somewhat indestructible. My feeling is that if I'm in business, and you want to be a customer, sounds good to me.