How much will I make by putting my home up for PairUp management?
PairUp management is a shared success model, where PairUp, property holders, and managers all get a fixed percentage of the Airbnb earnings. However, there’s a local hotel tax that PairUp will first deduct from the earnings. Hotel taxes vary by municipality, but it’s 3.5% in Montreal. After hotel tax is deducted, the net payouts break down like this:
Managers also receive cleaning fees from each guest, which is not shared with any other parties.
In 2016, PairUp had 1, 2, and 4 bedroom apartments under its management. To help give you an idea of what you may be able to expect this year, here’s what the apartments in each size category made on Airbnb in 2016:
- One-bedroom apartments averaged $1360 / month on Airbnb
- Two-bedroom apartments averaged $2500 / month on Airbnb
- Four-bedroom apartments averaged $5200 / month on Airbnb
You can use those figures from 2016 along with the percentages outlined above to get a rough estimate of what you may make this summer with PairUp. The best and worst earning apartments of 2016 made $1304 / month and $5790 / month on average, respectively.
How can I know what kind of people are staying in my home? How can I protect my belongings?
PairUp managers have several strategies and safeguards in place to protect your belongings and property, and to ensure that they don’t host unwanted or risky guests.
- PairUp managers do not allow single-night bookings. This prevents guests from using the property as a one-night party pad, where guests would rather book an Airbnb for a night than have to clean up their own homes after a party.
- PairUp managers do not accept any guests from the home city. For example, a guest from Montreal cannot book a PairUp property in Montreal. This also prevents local guests who would use the Airbnb to throw a party rather than having to clean their own homes.
- PairUp managers also have a default rule in their listings that parties are strictly not allowed. If a guest breaks this rule, they will be automatically fined for $100 from their security deposit. Guests at PairUp properties have to accept this rule before making a booking.
- Each guest must pay a security deposit before booking a stay in a PairUp property. This deposit amount will vary depending on the size, contents, and condition of the property, and will be determined by mutual agreement between the property holder and manager.
- Should damages exceed the security deposit amount, PairUp will support managers through making claims under Airbnb’s host insurance and host guarantee policies. These policies are designed to cover your possessions and property in the event of any guest-related incident.
- Finally, should all these measures all fall through for some reason, PairUp will cover each property under PairUp management for up to $1500 CAD worth of theft or damages.
What do I have to do to prepare my home for PairUp management?
PairUp properties must be exceptionally clean to be ready for management. Guests will be paying good money to stay in your home, so your home should be clean and welcoming for them. Although cleaning up between guests is up to your manager, getting your home clean for the first booking is up to you. This means that your oven and fridge should be spotless, your windows should be clean, your floors should be swept and washed, your kitchen cupboards should be tidy, and every surface should be dusted. Please contact PairUp if you would like to be recommended to a professional maid service for this initial cleaning.
Beyond cleaning, it is always good practice to remove any personal valuables and jewelry. A good rule of thumb is that if the item is worth more than $200 and small enough to fit into a carry-on suitcase, it should be locked away. Portable musical instruments should also be placed in storage before hosting guests. PairUp can provide storage for some items as needed, please contact us for more details.
Finally, make sure your home has enough items for people to live comfortably during their stay. Your home should have at least the following:
- Enough dishware and cutlery for two people per bed in your home
- Two sheets, two pillows, two pillow cases, and one comforter per bed
- Two bath towels, one hand towel, and two facecloths per bed
- Adequate furniture and lighting throughout the home
If your home does not have all these things, PairUp can furnish some of it on your behalf, but it will be charged back to you through your earnings. For example, say PairUp provides you with new towels that cost a total of $20, and your first booking earns you $250; PairUp will pay you only $230 and will keep the additional $20 to repay the towels, which you will then own.
What are the next steps if I want to get started?
Go ahead and register your property! You’ll want to click “request access” [insert location] and just follow the prompts to complete your property profile. Once we have your profile registered with PairUp, we’ll send you a follow-up email with some details. Here’s what will happen after you create your profile:
- If you rent your home, you’ll need to provide the PairUp team with your landlord’s contact information. From there, PairUp will negotiate on your behalf to get permission to operate in your building.
- Once we have permission to operate in your building, you’ll be paired up with a manager who has registered to work in your neighborhood. First, you’ll have an in-person meeting with the manager. This will give you a chance to make sure that you and your manager are comfortable working together, and for the manager to make certain that your home is a good fit for Airbnb management.
- Once you’ve selected your manager, you and the manager will e-sign the services agreement hosted [insert location]. You’ll be able to set terms for the listing such as smoking or no smoking, pets or no pets, maximum number of guests, etc.
- After agreements are in place, all you have to do is prepare your home for hosting and get keys ready for when you leave. Let your manager know when you’ll be leaving, arrange to hand over the keys to them, and you’re done! From there you’ll receive weekly wire transfers for your share of the Airbnb earnings.
How will I get paid?
PairUp will send you wire transfers each week using the service Plooto. We will never store your banking information, all we will ever need is your email address. You’ll receive a weekly email saying how much money is waiting for you on Plooto and you’ll be able to claim the money whenever you like.
How does it work?
PairUp management is a shared success business model that enables you to work as a property manager for people who are leaving their home for a while. As a manager, you will host short-term subletters from sites like Airbnb in people's’ homes and look after all aspects of managing their stay, from creating the listing and answering messages, to handling the key exchange and cleaning between subletters.
Why would I use PairUp? Why not just manage things on my own?
At first glance, that seems like a fair point, but there’s more to managing properties on sites like Airbnb than first meets the eye. Here’s why managing with PairUp is better than going alone:
- Insurance. PairUp will guarantee a property against theft or damages from subletters up to $1500. This is in addition to the operating policies that PairUp holds, and the host insurance provided by whatever short-term sublet site being used to find subletters.
- Hotel Tax. Ever set up a hotel tax account with your local tourism authority? It’s not fun. PairUp will automatically collect and remit all hotel taxes on your behalf, so you never have to worry about trying to time cashflows for your quarterly tax payments.
- Legal Agreements. PairUp provides cloud-hosted, legally binding agreements for its users that protect everyone from undue liability. These agreements make the terms of your agreement and property listing clear for everyone. Say the refrigerator were to break down due to regular wear and tear in one of the properties you manage; without an agreement in place to clearly state what you are responsible for as a manager, you may get stuck with a repair bill.
- Trust. PairUp provides complete transparency between managers and the people holding the properties the manager works with. This means that your clients will always be able to see exactly how much is being made from their property, giving you automatic accountability and removing a large trust barrier.
- Support. What happens if you have a family emergency and need a few days off? PairUp has your back. If you need time off, PairUp will take over your account while you’re away and have another manager in the PairUp network look after your properties while you’re away. You’ll never have to cancel bookings (which looks bad on an Airbnb profile) and your clients have the assurance that their property will be continually managed - no matter what.
- Operating Procedures. Much of the risk and bad press associated with short-term subletting comes from having few or no risk-avoidance safeguards in place. With PairUp, you’ll be provided with safeguard standards that are proven to significantly reduce the risk of getting unsavory subletters - making your life easier and ensuring that the properties you manage stay safe.
I’ve created my manager profile, now when does the work start?
As soon as you like! PairUp is not a guaranteed job, but rather a tool that can make it possible for you to create your own job. You can be paired up with properties that are registered on PairUp, but the supply of available properties changes over time. For example, in a university town during the summer months, there will likely be an enormous influx of properties to manage as many university students leave to go home for the summer, or to travel, take an internship, etc. If waiting to be paired up with properties isn’t your style, you can find properties that are going to be empty for a while by searching the sublet section on Craigslist, Kijiji, or other local housing pages. Show these people that PairUp provides them with a better option, have them register with you as their manager on PairUp, and away you go!
How much will I make?
Well, that depends. Larger and nicer homes will make you more money per booking, but smaller homes and apartments will often book more frequently. In addition, your performance as a host will directly impact how often subletters book with you. Do you have positive reviews? A high cleanliness rating? Are you always personable when you meet people? Those little differences add up. The number of properties you decide to manage will also make a big difference. It is possible to make as little as a couple hundred dollars a month, if you are doing PairUp management part-time, or with little effort, but it is also possible to make well over one thousand dollars per week as a full-time manager who goes the extra mile. Since you work on a fixed percentage of the Airbnb earnings, there’s no real cap on how much you can make in someone’s home - it all comes down to how much you can book.
What are the hours like as a PairUp manager?
Just like your earnings, it depends. A good rule of thumb is that each property should take you 5 - 7 hours per week to manage. This range will all depend on factors such as: how close you live to the properties you manage, how often the properties you manage receive bookings, and how long it takes you to clean the properties between subletters.
How can I tell what a property will make?
This depends on where the property is, how nicely decorated and furnished it is, and what the general market for short-term sublets in your area is like. There are a number of tools available to help you forecast this, but here are three of the simplest to use:
- Check local listings and compare them to the property you are considering managing. See what they’re charging, and check their availability calendar. This is time consuming, but it’s a good way to get a very close estimate of the appropriate pricing for each neighborhood.
- Check the free data available on Inside Airbnb. Most major cities are well represented on the site, and you can’t beat free data.
- Purchase a data package from AirDNA. This is a more costly option, but the data is relatively easy to read, and is available for individual neighborhoods in most major cities.
How do I get paid?
PairUp will send you weekly direct deposits for your share of the Airbnb earnings. We will never store your banking information ourselves, but rather we use a BBB - accredited direct transfer service called Plooto. All we need from you is your email address, and all you need to have is a Canadian bank account.
What do I have to do to get started?
It’s easy to start! You can create your manager profile by clicking on ‘request access’ on the main page. We’ll send you a follow-up email shortly after with some next steps to get you started.
How do I approach landlords?
Carefully. Many landlords have been burned by tenants operating short-term sublets behind their backs and with no safeguards in place. Nonetheless, operating without landlord permission is not an option. You can refer landlords to the landlord FAQ page, or ask a PairUp agent to negotiate for landlord permissions on your behalf.
What are you doing?
Pairup works with people who are going to be out of their home for some time (minimum one month). PairUp will pair the property holder (tenant or owner) up with a property manager who will find subletters for the property holder while they’re away. The manager looks after inspecting the property, cleaning the property, and securing a security deposit from each subletter.
How do you prevent the building rules from being broken?
All subletters that stay in PairUp-managed properties must agree to the building rules, in addition to any other rules imposed by the property holder or building administration. If the subletters break the rules, they are automatically fined $100 from their security deposit for the first offence - there is no warning period.
How do you keep my tenants’ belongings safe?
PairUp offers insurance of up to $1500 for your tenant’s belongings against theft or damages. This is in addition to the security deposit demanded from each subletter. Should the tenant want to place some valuables in storage, PairUp will also provide accommodations and options for them.
Who will be staying in my building?
This depends on the rules imposed by the tenant or building administration. Provided there are no special restrictions in place, PairUp will follow these minimum filters:
- Subletters must pay for entire rent amount up front
- Subletters must pay a minimum $300 security deposit
- Subletters must agree to building rules
- Subletters must agree to be fined $100 for any infraction of building rules
These baseline rules ensure that PairUp only provides sublet options for quality subletters.
Who is responsible for the rent and lease?
Your original tenant still holds all their obligations to whatever lease they have signed with you. PairUp is not responsible for and does not guarantee any amount of their rent money, and tenants must agree to this before registering with PairUp.
Why do my tenants want to use PairUp?
PairUp offers insurance and protection beyond any traditional sublet system they can find or use on their own. With PairUp, your tenants can rest assured knowing that their home is being professionally managed and cleaned, and that their belongings are covered in the unlikely case of an incident. All while helping your tenants to lose less money while they’re out of their homes by offsetting their rent expenses.
Will I have any oversight?
Yes. Upon request, PairUp can create a data portal for you to view any activity in your building. The activity reports will include the name and contact information of any subletters staying in your building, as well as the duration of their stay. PairUp can also provide you with a monthly email digest, if you prefer. All landlords must prove their identity as either owner or administrator of the building before being granted data access.