Adam Hager, co-founder of Airpreneur, has assisted over 350 clients in establishing profitable Airbnb businesses through his mentorship platform. His expertise lies in automation, systems thinking, and the Airbnb arbitrage model, which he used to rapidly scale his own portfolio from zero to 19 units within a year. This expansion generated over $150,000 in revenue with a 55% profit margin, all without owning any properties.
Introduction: Shifting the Airbnb Mindset
When you think about making money with Airbnb, you might imagine owning a luxurious beach house. However, Adam Hager, guest on the After Hours Entrepreneur podcast with Mark, debunks this misconception. The episode dives into creative business models, emerging technologies, and practical advice to build a thriving Airbnb business—without ever owning property.
Getting Started: The Power of Arbitrage
Contrary to popular belief, you do not need to own real estate to be profitable on Airbnb. Adam Hager explains the concept of rental arbitrage. You rent properties from landlords looking for dependable, long-term tenants. Then, as a business, you sublease them on Airbnb and similar platforms. You ensure the landlord receives rent on time and that the property stays in good condition. Meanwhile, you profit from the difference after covering essentials like cleaning and utilities.
This approach makes entry into the short-term rental market accessible, even if you lack the funds for a down payment. Over time, the goal can shift toward purchasing property, but arbitrage lets you generate cash flow quickly.
The Biggest Challenge: Securing Properties
Adam Hager points out that finding the right properties is the toughest part starting out. Many people do not know how to determine if a listing will be profitable or where to look. Factors like location, average daily rate, and occupancy demand must be researched. However, Adam Hager emphasizes that, like any skill, it gets easier with repetition. Once you develop a property acquisition system, the next hurdle becomes scaling and automating operations.
Scaling with Technology: Automation and AI
Once you have several properties, managing them turns into a new challenge. This is where technology comes into play. Adam Hager leverages artificial intelligence to streamline and enhance the Airbnb experience. For example, he developed a custom ChatGPT prompt that helps his students create compelling, complete Airbnb listings. This is crucial because many hosts fail to even finish their profiles.
Beyond listings, Adam Hager uses a custom guest portal. This portal provides guests all the information they need in one easy link—directions, amenities, and more. It prompts guests at optimal times to upsell services like late checkout or extended stays at additional rates. Automation also ensures timely reviews and manages feedback, helping hosts maintain superhost status.
Hospitality in the Age of Technology
While automation is critical, Adam Hager stresses the importance of the human touch. Small gestures—like a handwritten note or complementary water—can make guests feel welcome and boost five-star ratings. Positive reviews drive more bookings because platforms like Airbnb reward highly-rated properties with better rankings and visibility.
Airbnb Experiences: New Revenue Streams
A recent update on Airbnb allows hosts to recommend and even manage local experiences—like tours, salons, or fitness classes. Adam Hager explains that hosts can earn referral fees from local businesses by sending guests their way. This not only improves guest satisfaction but also creates additional revenue streams. Remarkably, many cities have very few experiences listed, presenting a golden opportunity for forward-thinking hosts.
Margins and the Path Forward
For standard units such as studios and one-bedrooms, Adam Hager targets a 20-30% margin. Luxury properties can yield more, but regular units are easier to scale. Hosts aim for automation, freeing up their time and allowing them to grow their portfolios or even reinvest in property.
The Future: Skills, Systems, and Consistency
The podcast concludes by highlighting the importance of continuous learning and systemization. As automation and AI advance, low-skill jobs may disappear, making adaptability essential. Smart hosts record and systemize their trainings, using tools like Scribe or ChatGPT to onboard new team members efficiently.
Final Thoughts
Adam Hager’s journey demonstrates that you don’t need to purchase real estate to build a successful short-term rental business. Leveraging technology, prioritizing hospitality, and seeking new opportunities—like Airbnb Experiences—set you up for long-term success. As the world changes, those who automate, systemize, and adapt will come out ahead.
Takeaways with Adam Hager
- Rental arbitrage work
- Automation and AI = Scale
- Capitalize on new revenue with experiences
Timestamps:
00:00 – Demystifying Airbnb: You don’t need a beachfront home to get started
02:03 – The business model: Airbnb arbitrage and how to profit without ownership
03:26 – What’s hardest: Finding properties, guests, or managing the process?
04:14 – Scaling up: Using AI and automation for listings, portals, and reviews
07:16 – Is this business real estate or digital marketing?
09:22 – The critical importance of five-star reviews and Superhost status
13:14 – Maximizing income: Add-ons, upsells, and Airbnb Experiences
17:43 – Building for scale: Automating, hiring, and leveraging training assets with AI
20:02 – The future of work: Why skill-building and risk taking are essential in the AI era
22:39 – Systematizing hospitality: Training, onboarding, and SOPs for repeatable success
26:15 – Special listener offer: Free Cash Flow Quick Start Kit and clarity session
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