Thriving on Airbnb: Daniel Rusteen and Miguel Alexander Centeno

Webinar Summary: Thriving on Airbnb

Below, we’ll summarize the key takeaways from their discussion, providing valuable insights for Airbnb hosts looking to enhance their listings.

The Importance of High-Quality Photos

One of the most crucial aspects of an Airbnb listing is its photos. Daniel Rusteen emphasized that the quality and layout of photos can significantly impact bookings. He shared that while professional photos can be beneficial, they aren’t always necessary. The staging of the property is actually more important than the camera used. For those who struggle with staging, Daniel recommends hiring an interior designer or following his detailed guides on YouTube.

How Many Photos Should You Include?

The number of photos in your listing is also a key consideration. Daniel suggested a range based on the size and luxury level of the property:

• 10-15 photos for a studio or one-bedroom property.
• 15-20 photos for a two or three-bedroom property.
• Up to 30 photos for a luxury property with multiple bedrooms and amenities.

Including too many photos, especially of similar-looking spaces, can overwhelm potential guests. Focus on variety and quality rather than quantity.

The Role of Staging in Photography

Staging plays a crucial role in how your property is perceived online. Daniel shared a personal experience where he found that staging was more important than the photographer’s skills. When staging, consider the flow of the space and remove clutter that may look busy in photos but fine in person. He mentioned how moving a table out of the living room made the space look more inviting in photos, despite it looking fine in person.

Increasing Your Airbnb Search Rank

Understanding how Airbnb’s search algorithm works can help you improve your listing’s visibility. Unlike Google, where ranking builds over time, Airbnb’s search results are highly personalized and can vary significantly between users. As such, paying for tools that claim to track your search rank may not provide accurate insights.

Instead of focusing solely on views or search rank, Daniel advises hosts to focus on their occupancy rate. A high occupancy rate is a clear indicator that your listing is performing well. Additionally, one effective hack to improve your search rank is to encourage guests to add your listing to their wishlist, which Airbnb has confirmed can positively influence your ranking.

Handling Guest Reviews

Guest reviews are a critical component of your Airbnb success. Daniel stressed the importance of communication throughout the guest’s stay. He recommended a nine-message template that guides guests through their stay, ensuring they feel informed and supported. By managing expectations and providing timely information, you can help secure five-star reviews.

When it comes to responding to reviews, Daniel suggests a measured approach. Not every review requires a response, but when you do respond, aim for a tone that is understanding rather than defensive. Address any issues raised, and use the opportunity to demonstrate your commitment to providing a great experience for all guests.

The Value of Live Check-Ins

One unique strategy Daniel shared is the value of live check-ins. By greeting guests in person, you create a personal connection that can lead to better reviews. Live check-ins also give you the opportunity to address any immediate concerns and ensure the property meets the guest’s expectations. While this may not be feasible for all hosts, especially those managing properties remotely, it’s an approach worth considering for those who can implement it.

Final Thoughts

This webinar provided valuable insights for Airbnb hosts looking to optimize their listings and improve their property management strategies. From the importance of high-quality photos and staging to understanding how Airbnb’s search algorithm works, these tips can help you attract more guests and increase your revenue. For a deeper dive into these topics, be sure to check out Daniel Rusteen’s latest book, “Profitable Properties,” and follow his ongoing content for more expert advice.

Q&A Session Transcript

Lucy Orozco: Can you tell us about online Airbnb listings? What is the importance of the cover photo? Could you give us some tips?

Daniel Rusteen: My goal for this talk is to explore how you can optimize your listings to increase your income. The better you are as a host, the more you can potentially earn. In fact, improving from a good to a great host can double your income. That’s not an exaggeration. Personally, I quadrupled my income from my previous property manager’s performance to what I’m making now, though I consider my experience somewhat exceptional.

I want to share two types of tips with you. The first type will be high-impact strategies—things that will significantly boost your performance. The second type will be less obvious tips that might not make as big of a difference individually but can still be valuable, especially since fewer people are implementing these optimizations. For example, a small change that might increase your business by 5% could be significant if others aren’t utilizing it.

When it comes to photos, one critical aspect to focus on is the photo layout. Many people overlook this detail. It’s essential to prioritize the arrangement of your photos. Ideally, you should use no more than 20 photos, or 30 if you have a particularly luxurious listing. Avoid cluttering your listing with too many images.

Miguel Alexander: So if you have 20 photos, are you telling me that you should be at the luxury level of Airbnb?

Daniel Rusteen: For 30 photos, that’s generally the upper limit. No listing should have more than 30 photos.

Miguel Alexander: Got it. So, is 20 photos the lower end of that higher range?

Daniel Rusteen: If you have a studio or one-bedroom, you should have 10 to 15 photos. For a two- or three-bedroom, around 15 photos is appropriate. For a three- or four-bedroom, aim for about 20 photos. If you have a larger luxury home with multiple features like a pool, you might go up to the 30-photo range.

Jacob Burris: My question is on the opposite end. For example, if you have a single-family home with four bedrooms and two bathrooms but only five photos, are you hurting your listing?

Daniel Rusteen: Yes, that’s an extreme example. If you don’t need to show every space or room, you can focus on the most appealing ones. If all four bedrooms look similar, showing two of them might be sufficient. The same goes for bathrooms.

Jacob Burris: Is it necessary to hire a professional to take the photos?

Daniel Rusteen: That’s a good question. The short answer is no, but with a caveat. If you have a relatively recent phone, you can take good photos yourself. Paying for a professional is fine and has its benefits. However, the most critical aspect of photos is the staging, not just the quality of the image. Often, professional photographers focus on the photo quality rather than the staging.

Professional photographers will use high-resolution equipment, but Airbnb often compresses photos anyway. If your photos are of poor quality, even professional ones won’t stand out. The key is staging. If you struggle with interior design and staging, it’s worth hiring a professional interior designer. For those who can’t stage the home effectively, paying for a professional photographer is a good option.

When a photographer is working in your home, make sure to supervise them and review the photos to ensure they align with your vision. Different photographers have varied styles and may focus on elements that aren’t as important to you. For instance, a photographer might emphasize intricate hand railings or other details that may not be as significant to your listing’s appeal.

Jacob Burris: Piggybacking off that, are there any applications you would recommend for quick edits? Or can you achieve good results using just the built-in camera application on a decent phone?

Daniel Rusteen: In my first book, Optimize Your BNB, I have a chapter dedicated to this. I provide recommendations for specific apps and the adjustments you should make within them.

Miguel Alexander: When setting up a place, do you prefer to take the photos yourself now that you know what to look for, rather than paying someone and then filtering out what’s important? What’s your approach if you’re setting up an Airbnb?

Daniel Rusteen: When I purchased the Belmonte penthouse in Colombia, I initially hired five professional photographers and a videographer to get the best possible photos. This experience changed my perspective. I had previously been one of those influencers and Airbnb experts advocating for professional photos. However, managing my own Airbnb was a different experience. I discovered that even though I hired multiple professionals, none of them fully satisfied my expectations. I was even teaching some of the photographers how to take better photos.

For example, I hired an Airbnb photographer who initially said it would take 45 minutes. He ended up being there for three hours. Despite my attempts to be respectful and offer him the option to leave if needed, he chose to stay longer because he was learning from me. He wasn’t just learning about photography techniques but also about the importance of angles and staging. As a result, I ended up taking about 50% of the photos for the Belmonte penthouse with my phone, primarily because of my control over the staging.

That’s the thing I want to get across. It’s the staging. It’s moving things around. How you look at something is very different from a photo. 

For example, in the living room, if you go to that listing, if you go to the living room, there is a table in the middle, and it looks great in person. But on the photo, I was like, it looks busy, and you don’t want it to look busy, so I just removed that, and it looked way better,

Miguel Alexander: I think that’s a good segue into increasing search rank. What do you think about that?

Daniel Rusteen: I view it differently. Unlike Google, you can’t know your exact search rank on Airbnb. This often surprises people because Airbnb’s search rank changes drastically with every guest and is highly personalized. So, avoid paying for tools that claim to measure your search rank—they only provide approximations.

Miguel Alexander: Could you explain more?

Daniel Rusteen: Sure. Let’s compare it to Google, which is more familiar to many. On Google, you can’t just create a website and immediately rank on the first page for a competitive search term. It takes time and effort to build up your ranking. Now, on Airbnb, the situation is different. A listing in Medellin, San Francisco, or Houston is also competitive, but you can start your listing today and potentially be on the first page right away. Additionally, Airbnb’s algorithm considers various factors that are not always visible.

Airbnb sees the guest, what city they go to, what listings they look at, what listing they eventually booked, and the review that resulted in that booking.

Daniel Rusteen: Google tracks metrics like time on page and clicks, and possibly even purchases, but it doesn’t assess whether users made a good decision. On the other hand, Airbnb uses highly customized search results based on guest behavior. If a guest has a history of bookings or searches, their results will differ significantly from someone without that history. I tested this recently with a group of eight people. We all looked at the same city with the same filters, filtered down to the same area on the map, and took screenshots. The differences in what we saw were greater than expected. Only two listings were consistently shown in all screenshots; the rest varied, with some showing private rooms and others showing entire spaces.

Miguel Alexander: Irrespective of the filters?

Daniel Rusteen: Yes, we all used the same filters. We filtered by the same dates and settings and then took screenshots to compare. This demonstrates how personalized Airbnb’s search results are.

Miguel Alexander: What should we do with that knowledge?

Daniel Rusteen: If you could pay to improve your search rank, knowing your exact rank would be valuable. You could then invest in ranking higher to get more bookings. However, this isn’t possible on Airbnb. Instead, focus on metrics you can control, like occupancy. Views are another common metric people think of, but the key is to look at your occupancy rate. This includes future occupancy, which can guide your pricing strategy. There is one known “hack” to improve your search rank on Airbnb: increasing wishlist saves. When guests save your listing to their wishlist, it signals a positive interaction to Airbnb, potentially improving your search rank.

Jacob Burris: Do you think Airbnb doesn’t allow payment for ranking to keep it competitive, so the highest bidder doesn’t always win?

Daniel Rusteen: Exactly. It’s a business decision to maintain fairness and competitiveness, similar to why you can’t filter out listings below a 4.5-star rating.

Miguel Alexander: What about external linking or social media? Does it impact search rank?

Daniel Rusteen: That’s a complex question. There’s a balance between getting lots of views and having high conversion rates. For instance, a listing with few views but high conversions might perform better than one with many backlinks but low conversions. While some services sell views, Airbnb might be more concerned with actual bookings that generate commission, rather than just high view counts.

Miguel Alexander: Reviews—how can we ensure we get better reviews?

Daniel Rusteen: Understanding guest psychology and the reservation flow is crucial. Guests need specific information at different stages. For example, they don’t need checkout rules during check-in. Many hosts fail by sending one large message with all details too close to check-in. Instead, I use a nine-message template that includes messages at key points in the reservation flow, such as expressing hope for a five-star experience and informing guests of a five-star review upon checkout. A recent case involved a host with nine five-star reviews and one one-star review. The guest’s low rating seemed inconsistent with their feedback, possibly due to a misunderstanding of the rating system. It’s important to guide guests subtly by mentioning you hope their stay is five-star and addressing any concerns they might have before checkout.

Miguel Alexander: We had a situation where a cockroach incident didn’t affect our review despite the inconvenience. It’s important to consider how a host’s overall performance and communication can impact the guest’s final review rating.

Jacob Burris: Yes, despite the issue, good host communication made a difference in our review.

Daniel Rusteen: Absolutely. If a host handles issues well, it can positively impact the guest’s overall perception, much like how a positive interaction with an Uber driver can change a review.

Miguel Alexander: Any final thoughts on reviews before we move on?

Daniel Rusteen: Responding to reviews is important, but it’s just one of many decisions hosts need to make. While responding to some reviews can be beneficial, it won’t alone determine success. Focus on making the best decisions overall.

Jacob Burris: How would you personally respond to a bad review?

Daniel Rusteen: Responding to negative reviews requires a tailored approach. Avoid being defensive and aim to address the problem. For detailed strategies, check out my book, Profitable Properties. It includes a whole chapter on handling negative reviews and other relevant topics.

Miguel Alexander: Should someone read Profitable Properties before my previous book?

Daniel Rusteen: Profitable Properties is more updated, so it’s a good starting point. It covers new topics and updates from the previous book, which might have outdated information. The description on Amazon can guide you on which book to start with.

Miguel Alexander: We’ll link to it. Let’s open the floor to audience questions.

Jacob Burris: Before we switch topics, if you have two minutes, what are the top three things we should know?

Daniel Rusteen: It’s going to be so in terms of super host checklist, that is, I would equate that to amenities. That is controlling what’s within your control. Not everything is within your control. There’s a lot of hosts who don’t have enough amenities or have cheap amenities. The blender is one. What is your guest gonna use the most? And then go and splurge on that? The bedroom, the bathroom, the towels, the softest towels you can get, the softest toilet paper you can get, the highest end blender you can get. Of course, this depends on what you’re offering, but my advice to you is get the best if you’re going to buy a house or arbitrage, get the maximum your budget allows, because if you have a four bedroom, four bathroom luxury home, and that’s within your budget, and you instead opt for a one bedroom or two bedroom. You’re doing about the same amount of work, but you’re making less than half. Because oftentimes there’s jumps going from three to four bedrooms. 

There’s a jump of, you know, maybe 70% in the revenue. But the house isn’t going to cost 70 more to add on, adding on a bedroom, and then interior design tips I’ve added here, but only because it’s important, but it’s not an ability that I have, unfortunately. So as I mentioned earlier, I would hire an interior designer to sparse up the house. I do have a blog post about interior design tips. I think I have like 50 of them. Anyone can do them. They’re just simple things. But of any two homes, one is in identical homes. One has a nice interior design. One is average. That better designed home is always going to win. And there’s one thing I wanted to mention as well. This is a hack. Not going to hear it anywhere else, I don’t think. But if you look at the Belmonte Penn house, I have, I think as of today, 126 reviews to 4.99 rating, 5.0 is the highest. And the reason I have that, there’s a lot of reasons, but the biggest hack is I do a live check in. 

And as you mentioned, Miguel is the human, the empathy, the human, face to face interaction, they have that. So the guest, if the guest is going to leave a negative review, it’s a lot easier to leave a negative review on a faceless digital screen. Me managing it remotely. Okay, now, now you’re going to be leaving a negative. I also offer daily cleaning. So if you leave a negative review, you’re going to be hurting that lovely cleaner who also cooked your breakfast. One day. You’re going to be hurting that concierge who helped you plan your trip, and I have 24/7 security so, and you’re going to be hurting that guy. So I believe that, because I have a live check in and and guests have human connection, is that because, of course, I’ve had bad experiences, and so have some guests, um, there’s been water turned off citywide, and we didn’t even know that would that would usually lead to a negative review. Wow, I have not gotten any negative. I got one. I got one four star review, and I think I got one three star review, but I was able to get that removed. 

And I also have it. I have a chapter in my new book about how to remove reviews, which is also a very hot topic, and that is similar to responding to reviews. There’s a whole variety of strategies that you can do in terms of getting reviews removed, but you can bet that the hosts with the highest rated reviews listing, they have, have gotten numerous negative reviews removed. Wow. And you can get that if you click on the link for Daniel’s latest book. Well, very good. I want to be mindful of time. 

About the Speakers

Miguel Alexander Centeno transitioned from the Big Four to pursue entrepreneurship, focusing on providing innovative solutions to smaller, equally passionate businesses. Licensed to represent taxpayers before the IRS and the U.S. Tax Court, he’s a recognized expert quoted in publications like the Wall Street Journal, Fox Business, and MSNBC. Miguel has testified before Congress on tax reform for the Sharing Economy and actively blogs on tax, financial, and economic matters. Beyond taxes, he coaches his children’s soccer teams and relishes extended camping and ski trips. Ask him about his favorite BBQ spots in Austin, Texas and he’ll be sure to share a few. 

In 2013, Daniel Rusteen worked as a CPA in Airbnb’s finance department. Then, he decided to take a 3-month solo trip to Australia, which became non-stop world travel with a carry-on, living in Airbnbs ever since. He is an investor, author, property manager, and travel writer/vlogger in his personal brand, dannybooboo. In his free time, he power lifts,cooks, and does handstands.

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