RedAwning Market Report Identifies Austin, Texas as One of the Most Profitable U.S. Cities for Short Term Rentals

Recently, Airbnb has updated how your listing photos are displayed to FPGs (future potential guests).

Essentially, they’ve highlighted the photo caption.

Here is where the photo display and photo caption used to look like:

 

And, here is the updated photo layout with caption.

 

A huge improvement.

 

Put The FPG In Your Airbnb

If you can get the guest to picture themselves in your Airbnb, then you’re more likely to get a reservation says behavioral psychology.

I remember I saw one Airbnb in Ho Chi Minh, Vietnam with a cute little lofted reading nook with a comfortable armchair and a short ladder leading up to it with an arched rooftop. I’m a big reader (and author) so I was thinking of the future with myself in this nook reading and relaxing in the afternoons.

A well taken photo will do most of the work here, but the photo captions are one aspect that you can optimize to further push you over the edge and above your competition.

Try this photo caption on your Airbnb listing photo of a living room or balcony: “Imagine yourself here relaxing with good conversation and a glass of wine..”

Explain Non-Obvious Or Hidden Features

This will be the most important point. Instead of adding four angle photos of a room plus some close-up photos, use the caption to explain things that are not essential, missing from the photo, or impossible to photograph. For example, do you have radiant floor heating in the bathroom? This would go in the caption. You might also want to call out what is behind that closed door in the photo. Does it lead to a private balcony? To a walk-in closet?

Check out these examples:

Highlight Your Most Positive Airbnb Reviews

While Airbnb shows the number of reviews and stars towards the very top of your Airbnb listing, the FPG has to scroll to the bottom for any more information. We know that FPGs start with the photos so why not make it easier for the FPG to know what your prior guests’ thought?

There are three ways to do this. First, take a screenshot of the star ratings and number of reviews:

 

Second, take a screenshot of the entire review and ideally one that you’ve responded to as a host.

I created a video on my YouTube account, Optimize Your Bnb, on how to highlight reviews in your Airbnb listing with a screenshot on your computer.

 

Third, copy/paste a portion of an existing review into a random photo. I’ve seen some hosts add the name of the review and even the date. I think this is unnecessary as long as you add quotation marks.

Highlight your reviews in your Airbnb photos. Here are three ways to do that.CLICK TO TWEET

 

Avoid Generic Comments

You do not need to add a caption to every photo. On average, one of every two photos should have a caption. Even though you can add a review quote to all photos, it’s overkill and defocuses the FPGs attention. If you have a standard one-bedroom apartment, you do not need to label the living room: living room.

Sell Your Airbnb

Pay attention! Most of you need to do a better job of this. Elevate your mindset to that of entrepreneur and you will automatically be one the best Airbnbs in your area as you’ll continually think about how to improve and stay ahead. In the example below, it’s obvious that it’s a backyard, but it’s not obvious that this is a highly unique amenity in San Francisco. Now the guest will notice that all of their other options lack a backyard.

The only thing better this photo can do is to be taken in the horizontal (not portrait/vertical) position.

Label The Areas Or Floors

While every photo does not need a caption, keep in mind that the FPG does not know the home as well as you. What might look obvious to you, maybe need explaining especially if there are multiple floors or multiple of the same room (2 bathrooms, 3 bedrooms, etc.). This is especially true of bedrooms which can sometimes look almost identical to a person unfamiliar with the property. Identifying what is the upper and lower floor is especially important for handicap, families, and elderly travelers.

What’s obvious to you is not to your FPG. Use the photo captions in Airbnb.CLICK TO TWEET

Bonus #1: Add A Neighborhood Photo or Local Tip

You should have at least ten photos minimum. For standard listings with only a few rooms, this will be difficult. Consider adding a neighborhood photo. I’m not talking about a generic neighborhood photo of a coffee shop or park. See above, sell your listing! If you’re going to add a photo, you might as well sell it a bit. See below for two great examples.

 

Under no circumstances add a neighborhood photo without explaining what it is. Imagine if you saw either of the above photos without a caption? It would make no sense yet this is a common practice of at least 75% of the Airbnb listings with neighborhood photos.

 

If you have a standard Airbnb, add a neighborhood photo to reach at least 10 photos.CLICK TO TWEET

  

Bonus #2: Add A Floor Plan Photo

I started using these custom hand-drawn Airbnb floor plans about a year ago. They set expectations phenomenally well. They also make a great cover photo for standard listings without anything to show off in the cover photo.

Add a floor plan photo to your Airbnb listing.CLICK TO TWEET

 

Conclusion

I want you to understand that your photo caption, along with everything else can be optimized. There is a best way to do things. While it will not likely get you a reservation by itself, it’s just another subtlety setting you apart in every way from your competition.

 

However, a photo caption is not always necessary. Remember our most important tenant: respect the guests’ attention at all times. When you do add a caption, keep it to as few words as possible.

Miami is among urban properties offering very small residences to those who seek an urban existence at lower cost.

It’s no surprise big city life is increasingly favored by everyone from Millennials to empty-nesting Baby Boomers. That’s helping make micro residential units increasingly popular options in cities from Seattle and Denver to Chicago, New York City and Miami. These efficiently-sized and designed residences appeal to newly-minted college graduates “traveling light” who want to live in urban cores. They also lure a smaller cohort of older couples seeking a pied-a-terre near downtown eateries, museums and nightlife.

A study by the Urban Land Institute Multifamily Housing Council found the majority of micro-unit dwellers are professionals 30 or younger, with most of these under the age of 27. Micro units are more popular with males than females. Residents are most often first-time renters who haven’t acquired loads of furnishings and clothing and don’t need as much living space and/or closets. Micro-unit residents often see their bitsy abodes as launch pads for their new careers, as well as for lives spent out in bistros and other gathering spots rather than home. Most transition within two years to larger units.

The Urban Land Institute study learned the definition of micro unit differs depending on the city in which they’re found. For instance, in New York City a micro unit might measure 300 square feet, but in Dallas 500 square feet. Efficiency is perhaps the best descriptive word for the units. They often feature flexible furniture systems, moveable kitchen islands, built-in storage, gadget walls and high ceilings. The buildings in which the smaller units exist are often notable for a wide array of services and amenities.

Location is key

The three key factors in any residential choice are location, location, location, and nowhere is that truer than with micro units. Virtually all respondents in the Urban Land Institute study termed location the key priority in their leasing Lilliputian lodgings. Those settings tend to be near work and/or public transit, exceptionally pedestrian-friendly, and in authentically urban and highly desirable or trendy enclaves.

A case in point is The RIDE at RiNo in Denver. There, the 393-square-foot Marquette and 369-square-foot Keystone both limbo in under a tidy 400 square feet. But the renters in these and other very small apartments are able to step outside into an ultra-popular enclave steps from light rail, employment hubs, craft breweries and nightlife.

Of course, price is a big determinant in attracting renters to micro units. Monthly rental rates 20% to 30% lower than conventional apartments can mean living in a coveted downtown district close to everything, as opposed to a backwater. It can also translate into the freedom of living alone as opposed to the challenges of life with a roommate.

In Miami, the development called X Miami invites renters to participate in the Rent-by-Bedroom program, in which each garners a private bedroom and bathroom starting in the $1,300s. The units start at 400 square feet and feature floor-to-ceiling windows, expansive balconies, built-in closets, Nest thermostats and Alexa smart controls.

Hedging bets

Developers face a mixed bag in creating buildings with micro units. Such residences are more costly to develop and operate. But premiums per square foot more than compensate. To hedge their bets, some developers cleverly designed micro units to allow adjacent units to be combined into larger studio or one-bedroom apartments.

The micro-unit concept is also available in condominium versions. For instance, YOTELPAD Miami’s miniature residences, created by YOTEL, begin at 417 square feet, at prices starting in the $300,000s. That attainable price point is providing opportunity to investors who’ve long hoped to get into the booming business of South Florida short-term rentals, and has enabled the developer of YOTELPAD to outsell other projects in its area.

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“I don’t show up on page one of Airbnb search!”

I hear this daily. Unfortunately, it’s almost always a waste of time and energy.

Airbnb search is not static like Google. Any two people who search ‘women’s shoes’ in Google are going to get the same results. But, any two users who search or an Airbnb in ‘Williamsburg, New York City’ on Airbnb can and do see vastly different search results.

Don’t believe me? Search ‘Smartbnb review’ on Google and tell me who comes up second or third? It’s going to be my website. No matter where you are in the world, you are going to see me within the top few positions on Google.

This is true because on a traditional search engine like Google, you will target specific keywords to rank high for (ie ‘accommodations in Williamsburg, New York City’). On Airbnb, you are trying to target the FPG, not the keyword. (There are ways to target the FPG which are out of scope for this article. Should I write an article on this topic? Tell me in the comments).

Google creates its search results based by using a robot to ‘crawl’ all internet web pages to render some of those web pages which it doesn’t control as search results.

On the other hand, Airbnb controls almost all of the content on their website and can see directly into the end users account (viewed listings, reviews received and given, prices paid, searches, etc.).

Another big difference between Airbnb and Google is that Google does not face a limit of results. Any piece of information can be viewed an unlimited number of times while Airbnb can show a listing only until it’s booked.

In fact, a better search engine comparison would be to eBay circa the 1990s and early 2000s. Unfortunately, they’re no longer relevant in 2019.

While it’s true that some listings tend to consistently show up towards the top of Airbnb search and others consistently show up towards the bottom, knowing the exact search position doesn’t exist except on a search-by-search basis and depending on dates and filters selected.

A much better indicator of listing health is your calendar’s occupancy rate.

What Is Static Search?

Think of websites. Most websites are static, meaning all users see the same information (excluding language translations).

A static search means that all users see the same results as in the above example search of ‘smartbnb review’.

For the search of ‘women’s heels’, everyone is going to see the same results on Google. These are static search results.

This works well when the user (not the platform) knows best what they are searching for. The ‘women’s heels’ searcher may want black heels with white laces and red soles in size 7, but searching this specifically would actually exclude many relevant results. Instead, the user searches something generic and quickly identifies their preferred choice among the results.

Static search like Google works best when the user knows best what they want

The user knows exactly what they want.

However, static search results start to become less useful is when the user is not exactly sure what they want. We run into the paradox of choice.

Enter dynamic search.

What Is Dynamic Search?

Let’s say you want to go to Kiev, Ukraine (where I’m writing this blog post at the moment). However, unlike our search for ‘women’s heel’s, the user has never been to Kiev, Ukraine. They do now know where they want to stay, what the average prices are, etc.

In this case, the search engine (Airbnb) knows better than the user what they want. And this improves with more information the search engine has about the user.

This is dynamic search.

Airbnb uses a dynamic search based largely on artificial intelligence. Any two users will see different results. The results can be slightly different or vastly different. A single mid-week business traveler in Chicago is going to see different results than a family of six for a weekend vacation in Chicago.

Airbnb uses dynamic search based largely on AI, any two users can see vastly different search results.

The best listings will always appear towards the top of search results. However, as most markets have hundreds of tops listings (sometimes thousands), it’s Airbnbs job to deliver the user the most relevant listings so they can make a quick decision and are more likely to click that ‘Make a Reservation’ button.

Why Does Airbnb Use Dynamic Search?

It’s about delivering the user the best experience.

Unlike Google, Airbnb can track the user’s behavior with 100% accuracy from the initial search to post-reservation review.

Airbnb knows if you usually travel by yourself. They know what your typical price range is. They even know if you seem to prefer balconies or backyards.

Artificial intelligence at Airbnb knows whether you prefer balconies or backyards without using filters.

It goes further. Based on photo recognition technology, Airbnb even knows if you prefer a bohemian or minimalist design.

Based on your prior behavior on the platform, Airbnb can start to deliver highly curated and relevant results for each user.

They do this for two reasons.

First, it earns the company more money. If the Airbnb user sees their dream home and they can book it for their upcoming vacation, do you think they’ll book it or the generic hotel?

Dynamic search earns the company more money by increasing the odds that you will make a reservation because they are only showing you listings on the first page that you probably will like.

Second, it increases the user experience. Remember the last time you went to purchase toothpaste? There are a million choices and it’s hard to understand which is best for you. You can think of this as static search (all shoppers are shown the same toothpaste options). On top of that, if you’ve ever been to a foreign country, buying these common amenities is even more difficult (think of our example trip to Kiev, Ukraine)! In fact, I once purchased what looked to be normal butter, but it was actually butter infused with chocolate. You end up purchasing randomly either by price or name-brand.

But what if your personal expert was there to hand you the best option(s)? This is dynamic.

Dynamic search increases the user experience by making the decision-making process quicker and helping identify a good fit for the guest better than the guest can do for themselves.

Airbnb dynamic search eliminates the paradox of choice dilemma.

When I search for an Airbnb, I’m often presented over 300 possibilities even after I’ve selected dates, price, and a very specific neighborhood on the map.

If Airbnb can delivery me a listing that they know with a high degree of accuracy that I’ll give a 5-star review to upon check-out, I’ll be more likely to make a reservation in the future and I’ll be more likely to tell my friends about Airbnb when the topic undoubtedly comes up.

How To Track Your Airbnb Search Rank

In a truly dynamic search environment, it’s not reasonably possible to track your Airbnb search rank because of the number of possible search results based on filters.

If we look simply at the date search filter, you would have to see a result for each day, plus each two-day period, plus each three-day period, etc. based on your maximum limit. Even if you knew this for a particular date, your search rank will change based on any upcoming reservation, modifications, and cancellations to existing reservations. And that’s ignoring any future listings that will go live. Keep in mind, all new listings get a search rank boost.

In a static search environment like Google, your website’s search rank is virtually known in the short term. But on Airbnb, a new and professional listing can go in 30 minutes and rank on page #1.

However, there are tools that attempt to track your search rank. They provide valuable information, especially to property manager’s who need concrete numbers to present to their property owners.

It’s a piece of the puzzle. Knowing your rank or not really makes no difference. Regardless of knowing this information, you should still be trying to be the best host you can be, trying to offer the guest the best experience you can, and try to continually improve for those 5-star reviews. By doing this, your rank takes care of itself.

However, if any of the below tools gives you a bonus insight into your hosting which can further increase your success then I’m for it.

The three tools in no particular order, are…

Smartbnb is a message automation service that I highly recommend and provides a Market Report. This is a basic report emailed to you daily with your rankings over the next 60 days for differing number of nights. As I am a big fan of Smartbnb, I have used this report and it’s included with any paid subscription.

Your Porter is a property management system and provides an Airbnb Rankings Report. You can sign up for one report without being a paid user and receive a weekly email. If you’re a paid user, you can receive unlimited reports. The report is slightly more robust than Smartbnb showing more metrics. I have used this service.

 

RankBreeze is software that continually monitors your Airbnb search rank kind of like search engine optimization for a website. I have not used this service, however, I have talked with the founder who is an Airbnb host and has experience on ranking websites in search engines.

 

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