Learning from the Experts: Short term property manager

In our new series, we chat with a variety of experts and gain some insight into their industry.

Interview with Coleman Washbrook of Raising Standards -- Part 2

In Part 1, Coleman Washbrook, owner of Raising Standards based out of Edmonton, Alberta, discussed how and why he started managing Airbnb properties. In Part 2, he’ll give us some tips on how to uniquely furnish your Airbnb rental to maximize your revenue. Don’t be nervous, unique furnishings doesn’t mean a Star Wars themed bedroom!

What are some basic, must have items or features an Airbnb should have?

For the very, very basics, you want it to be so that someone can bring their clothes and groceries and live in your place for seven days. 

What features make a property a successful Airbnb?

Always LOCATION. Location is number one. Next thing is amenities, like cable tv, high speed internet, a hot tub. Those are things that people really like. But more importantly is the quality of the management and cleaning. If you can consistently provide high quality management and a noticeably clean space for people, those things go a really long way.

How big of a role does furniture and decor play in a short-term rental property’s success?

It plays a huge role. Furniture and decor are literally the foundation of a short term rental. It’s not THE most important, I would say that photos are the most important and furniture and decor are what are IN the photo so it’s the foundation of it.

If you have furniture that shows function and flow and catches people’s eye and they can envision themselves having a good time and a good experience, that’s what you’re trying to deliver. Most people couldn’t tell you what are the great things about the furniture and decor, it’s a visceral response. It’s emotional. It’s critical.

designer living room

Is there a direct correlation between how uniquely furnished a property is and its revenue? 

There completely is. An easy way to explain it is this: there are typically 3 types of guests that you’re going to attract depending on the furniture and the quality of your property.

If you’ve got a great condo downtown but it’s sparsely decorated, you’re going to attract the person who just needs a place to sleep so they’re looking at the lowest rate. They don’t care about the experience, they don’t care if the kitchen is completely empty, they just need a place to sleep so they’re not going to spend anything over and above that.

Then there’s the next person who wants the comfort. They want to be able to go there and at least have the same quality of stay as what they would have at home, so they would want cable tv, good furniture, a comfortable bed, those kinds of things. 

Then there is the person who is willing to pay a premium, and that would be for a place that has furniture that’s better than what they have at home, or a tv that’s better than what they have at home. They want thought out and strategically placed decor to provide and create an experience. Most people don’t have that within their home so when they are going out or travelling and willing to spend their hard earned dollars, you’ve got a much bigger opportunity by providing an experience vs saving on what you spend on the furniture on the front end. 

You’ve got a better opportunity to double your income by spending on furniture on the front end. I’ve seen a complete correlation consistently across all our properties. 

How much does it cost to furnish an Airbnb? What is an average budget for furnishing a property?

Budget depends on the place but is typically $10,000-$15,000.

What is an approximate return on investment on unique vs. standard, Ikea-type furnishing?

Something that’s properly furnished and staged and presentable can easily double your return on investment.

What’s your current process to furnish a property? 

I have 3 different levels of furnishing a property. 

If someone wants a premium, luxury, high-end experience for their guests or if they want to maximize their return on revenue, I typically connect those people with a designer I work with. He then works with them to furnish their property.

Other people want mid-range furnishings and don’t have a huge budget to work with, I have someone who helps me select decor items, then I do the shopping for kitchen stuff and linens because those are the things I can do as a non-decorator.

Then there’s the person who has no budget, and they’re getting me and my decisions. I think I can do an ok job but I’m definitely not the best person for it.

So there’s no service right now that does it all?

No.

{There is now!]

What are some common mistakes owners make when it comes to furniture and decor?

The biggest mistake owners make is looking at furnishing from a price perspective instead of an experience perspective. They should think of furnishing it as being equal to or better than the hotel down the street. That’s the biggest mistake.

As Canadians, we have such a deep sense of being able to do things ourselves but the reality is most people can’t do furniture really well, you can go on Airbnb and quickly see it. There’s 20% of the listings that look really well put together, everything else is a mish-mash of old furniture put together just to have the items in the space.
Why do you think owners are hesitant to create a uniquely furnished property?

Most homeowners think: how much am I going to put into it and what’s my return on investment. They always want to drive down their investment because they think it’s going to provide the same amount of returns, which is completely incorrect.

Something that’s properly furnished and staged and presentable can easily double your return on investment. But oftentimes when I sit down with homeowners and look at what their competitors are generating for revenue, they take that number and they hold it as concrete and then try to reduce their input of furniture investment as much as possible. 

I understand their thinking - they want to maximize their return - but as soon as a guest looks at the furniture in the photos, they can tell it’s the same Ikea furniture, it puts off future potential guests and diminishes their return on investment so much.

So it’s a mistake not to uniquely furnish because it doesn’t draw as many potential guests to their property listing? 

Yes, exactly.


In Part 3 of our interview with Coleman, we’ll get his thoughts on the future of short-term rentals post-Covid.

Coleman Washbrook manages 35 listings in the Edmonton area and can be contacted via email (coleman@raisingstandards.co) or Facebook (@RaisingStandardsAB). ​