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[00:00:00] Sarah: Hello. Welcome back for another great episode. My name is Sarah Karakaian.

[00:00:04] Annette: I’m Annette Grant. And together we are–

[00:00:06] Both Annette & Sarah: Thanks for Visiting.

[00:00:06] Sarah: And this is the–

[00:00:07] Both Annette & Sarah: Hosting Hotline.

[00:00:08] Sarah: Ooh, I’m so excited about today’s question, but I’m supposed to remind you that if you have questions about your hosting business, please go to hostinghotline.com, record your question, send it our way.

[00:00:21] We’ll answer here on the podcast. Remember, we’re happy to help you. And the cool thing is, when we help you, you then help thousands of other hosts avoid whatever challenge they’re facing at this time. So hostinghotline.com. Ask us your question. It’s one of our favorite things to do, is to help hosts, and we’re going to help Susie today, and I’m so excited to help Susie with this question.

[00:00:41] Question: Hey, Sarah and Anette. This is Susie. Love your show. I am new to co-hosting and want my contract to be thorough but not too nitpicky. What are some items you would add to your co-hosting contract today that you didn’t think of when you were starting out? Repair and maintenance time, supply purchasing, design fees. Do I even charge for my time? Ah, there’s so much. I’d love any insight you have.

[00:01:09] Sarah: Susie, you know that I love co-hosting, and I have a special place in my heart for co-hosts because our job as co-hosts is so multifaceted. It is very challenging. It’s so addictive, and it’s so rewarding all at the same time.

[00:01:27] Annette: We see so many co-hosts. We’re just sharing this. They foundationally do not get started on a solid foundation. And it takes a lot of difficult conversations with the owners to get it back on solid ground. So Susie, we’re glad that you’re asking this ahead of time. And just for anybody out there, because Airbnb just released they’re going to bring back the co-host marketplace, you might be eager to get on it.

[00:01:57] But listen, you said some words there, Susie, that said nitpicky. Listen, this contract is that foundation where you do have to set down the rules and the boundaries of the relationship. That is why it is there. So those words nitpicky, I want you to take that completely out of your vocabulary because the contract is here to make sure that both parties are in alignment and protected.

[00:02:21] Sarah: Now is the time when you are about to embark on a client co-host relationship. This contract is actually the more– and we’re not going to say nitpick. We’re going to say the more detailed you are, the better your relationship is going to be. I understand that you don’t know what you don’t know, Susie, which is exactly why you’ve called it and you’ve asked this question.

[00:02:43] And I am willing to wager that Susie listens to the podcast and she checks us out on Instagram and YouTube. So any other aspiring co-hosts out there or co-hosts who are active and they didn’t set up their business with a solid foundation, I cannot stress how important your job is. You are responsible for someone’s biggest purchase decision for an asset.

[00:03:07] You are, for all intents and purposes, an asset manager. You have taken upon yourself to– if you’re not completely in charge of, because I know co-hosts do different things, but you are in charge of helping these people property owners bring in revenue and make money on their asset. You are responsible for the guest’s safety and for their enjoyment of the property.

[00:03:28] You have a lot of responsibilities that you’ve taken on. And I applaud you. Having responsibilities, doing work like this is important because you are the face of the short-term rental community wherever you operate. And so it’s really important that you have a strong foundation up front with these owners, because I will tell you this too, not every owner who approaches you needs to be your client.

[00:03:52] You do need to learn to say no to a potential partnership. If it’s not in alignment now, when they review your contract or when you discuss with them the things that are important to you and how you want to operate, it is not going to get any easier down the line. And I say this from experience.

[00:04:10] Annette: Yeah, so let’s give her some really important things that we see people falter on in the beginning. I can say one that you definitely want to get laid out in the contract, Susie, it’s probably something you’re not even really thinking about right now, is what is the time periods or the length of time of the owner usage of the property?

[00:04:33] You want to make sure that you have that covered of how many days they’re able to stay each year. Are you protecting those times that are peak season where you can make the most money? We’ve seen a lot of hosts that don’t have any guardrails on this. And then the owner is just staying at the property all the time. And then you’re not really co-hosting and you’re not really making any money there. So I want to just put that out there to definitely get that out with the owner.

[00:04:56] Sarah: You want to make sure that you’re detailed on what’s included in your co-hosting services and what is excluded in your co-hosting services. And this is where you can truly run the gamut, Susie. I know one of our coaches inside of our mastermind, Amy, she offers different packages that include different services.

[00:05:12] So some of her packages, she only offers guest communication. Other packages are full service. And so depending on what you want to offer Susie, what your strong suits are, me, I’m a control freak. I need control over the whole thing. I need to do bracing and cleaning. It’s my program. And when people want to work with me it’s because they trust me and they want everything I’ve put together to optimize a property.

[00:05:37] They want me to run with it. So Susie, you have to ask yourself, what do you want to include, exclude? I can tell you some of the big exclusions that you want to include in your contract are big capital improvement responsibilities. Even property managers of long-term rentals are very limited on this aspect.

[00:05:56] They’re not general contractors. So when things are of concern when it comes to major electrical issues, HVAC issues, major plumbing situations, renovations, those are sorts of things that you want to call out in your contract that are above and beyond your scope of work.

[00:06:13] And you might want to have somewhere, maybe it’s an addendum, that if you do need to coordinate with a general contractor, that that will be at your hourly rate. Because you will have to coordinate with these people, especially if it affects your guests or the property. You want to make sure that you’re protecting your time there, that you’re not just coordinating these projects for your clients without having proper compensation there. Furnishing and design and decorating, is that part of your co-hosting services, or is that an extra fee?

[00:06:38] Annette: We would suggest there, Susie, that is a lot of time, money, and teamwork. I know you had sighed during your question of like, do I charge my hours? I can share. That was something that I originally was so hungry to start co-hosting. I did that for free and, wow. That was probably the most laborious thing. I would not do that again.

[00:07:01] Sarah: It takes a team too.

[00:07:02] Annette: It takes a whole– I was paying people out of pocket just to help me because I couldn’t do it on my own. So that is something, exactly what Sarah said there, is co-hosting the actual property and then there’s the setting up of the property.

[00:07:17] Sarah: Will you manage the turnover process? What about routine maintenance? I know there are some co-hosts out there that want nothing to do with the routine maintenance, but then you’re going to have to coordinate with the owner anyway because if you don’t have routine maintenance done, if you’re not preventative with your maintenance, it does make your job as a co-host harder.

[00:07:35] So I’m obviously team full service because when I can have control over the entire property, I can ensure that we’re doing everything we possibly can to make sure that guest has a great, safe stay. What about if your client is shopping for another property and they want to pick your brain on it or they want to have you come over there and take a look at it?

[00:07:55] Is that a lead and that you help and you’re willing to go over there and invest some time in exchange for hopefully getting that as a property in your portfolio, or is that at your hourly rate?

[00:08:08] Annette: I think the other big thing that I want to mention is having a set minimum, Susie, of where you are just allowed to make a decision. Let’s say there’s a guest in the property and maybe the HVAC does go down and you can either maybe get a portable unit in there or you can get someone out for $250 charge.

[00:08:29] You need to have a set limit with all of your contracts of when you can just make the decision that’s in the best interest for the guest. So let’s say, depending on the size of the property and the average daily rate, hey, anything under $750, I’m allowed to just make the decision and go for it.

[00:08:46] I would have that conversation ahead of time with the owner of what is that threshold where you’re allowed to make that decision, especially for what’s best for the guests. Because a lot of times if something happens, if it’s late at night or on the weekend, you need to make a decision fast for your guest.

[00:09:04] Sarah: That’s an excellent tip, Annette. I would have forgotten that one. Another good one is, what are the rental standards that you require, Susie, for a property to be within your portfolio? Because remember, you are only as strong as your weakest link, and your links are your homes. That becomes your brand, Susie. That’s your co-hosting brand.

[00:09:22] And so if you say yes to every property in every condition with some are lackluster, some have not so great furniture, some are in locations where you know you’re going to get dinged on location every time, you really have to think about how this affects your entire business structure and your reputation and your brand.

[00:09:42] And so being selective on those properties and putting those standards in your contract when your potential owner signs that contract, it is understood that they need to read that section and understand what you need to have happen so that you can do your job well.

[00:09:57] Annette: Finally for me is really understanding the fee structure, when you’re going to be paid, how you’re going to be paid, and making sure that that is clearly defined. You don’t get behind on that. You hash that out ahead of time. What’s included? What’s not included. We’ve just seen hosts so many times they don’t have that down on paper. Maybe there’s a misunderstanding of, do I get the damage waiver? You get the damage waiver. Do I get that? It gets very confusing. You just want to make sure you have that ahead of time and you line item an understanding with your owner on that.

[00:10:37] Sarah: What about termination? What if they want out of your relationship before the contract is up? Tip 2, everyone, is I wouldn’t have this never-ending contract. I would have your contract renewed each and every year so that you have a time when you can sit down with your clients and go over how the past year went.

[00:10:49] What did you go rock out? What are you looking to improve upon? And that way, if there’s anything in your business that you want to change and improve in your contracts, you can do that on a yearly basis with your clients. And it’s a great way to keep building that foundation of your co-hosting business and keep strengthening it because you’re going to learn year after year, different things, different nuances that you need your owners to be on board for that you can add to your contracts and update.

[00:11:13] Annette: Ooh, but really, Susie–

[00:11:16] Sarah: Have a contract. I’m glad that you’re asking about it because, Annette, how many times do we get people who are like, I was so excited. I just shook their hand and I said, yes, I’d love to help them. And that’s it.

[00:11:25] Annette: Right. But Susie, we’re going to invite you into our mastermind. All of this information, our sample contract, sample invoicing, co-hosts from across the country are in there.

[00:11:36] Sarah: Access to Annette and me coaching you every step of the way. We would love to help you build this out and make sure that you don’t feel so overwhelmed and stressed in the way you sounded here on your recording.

[00:11:47] Annette: And that’s not just for you, Susie. That’s an invitation to anyone that’s listening to this episode. We’ll put a link below about our masterminds so you can join us. And that’s for a host and co-host. But Susie, you got this. We’re excited that you’re thinking ahead and thanks for the question.

[00:12:01] Sarah: With that, I am Sarah Karakaian.

[00:12:03] Annette: I’m Annette Grant. And together we are–

[00:12:04] Both Annette & Sarah: Thanks for Visiting.

[00:12:05] Sarah: Talk to you next time.