How to Turn Around a Failing Airbnb: A Case Study Approach

Running an Airbnb isn’t always smooth sailing, especially with today’s market shifts.

Whether you're dealing with rising interest rates, high operational costs, or stiff competition, it’s not uncommon to feel like your Airbnb is bleeding money. But here's the good news: you don’t have to sell your property just yet. With a few strategic changes, you can turn around even the most underperforming listings.

In this post, I’m going to walk you through how I’ve transformed some of my own properties that were on the brink of failure into top-performing, revenue-generating machines. These are real examples from my portfolio, and I’ll show you step-by-step how to identify the issues and make impactful changes.

1. The Problem with Focusing on Door Count

When I first got into the short-term rental game, I was obsessed with door count. More doors meant more money, right? Not exactly. It wasn’t until I took a closer look at the performance of my properties that I realized having more doors didn’t equate to more profit.

In fact, my attention was divided across so many properties that I wasn’t maximizing the potential of each one. That’s when I shifted my focus from scaling horizontally (adding more properties) to scaling vertically (increasing the revenue from my current listings). Instead of spreading myself thin, I started diving deep into how I could make each property perform better.

Key takeaway: Profitability matters more than the number of properties you own. Focus on maximizing your current portfolio before scaling up.

2. Why Investing Back into Your Property is the Best Move

One of the most valuable lessons I’ve learned is that you don’t need to buy another property to boost your income. In fact, investing back into your current properties can yield incredible results.

Let’s take my Scottsdale property, for example. It was a beautiful, high-end home, but it was underperforming. Guests weren’t booking as frequently as I expected, and I was losing money—$7,000 in one month alone. Rather than give up, I invested $22,000 to add a pickleball court and upgrade the outdoor space.

The result? My revenue shot up from $13,000 to $37,000 the very next month. That’s a 100% return on investment in just 30 days.

Key takeaway: Before you think about selling, consider reinvesting into your property. It’s often easier and cheaper than buying a new property, and the return can be massive.

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3. Amenities That Create Experiences

The reason that pickleball court made such a difference wasn’t just because it’s trendy. It’s because it turned the property into an experience. Travelers today aren’t just looking for a place to sleep—they’re looking for something memorable. They want to be able to tell their friends, take photos, and share on social media.

I’ve found that amenities like:

• Pickleball courts
• Fire pits with string lights
• Neon signs for Instagrammable moments
• Outdoor games or mini-golf

...can be game-changers in setting your property apart from the competition. These features don’t just boost bookings—they command higher nightly rates.

4. The Power of Professional Photography

If you’re still using cell phone photos for your Airbnb listing, you’re leaving money on the table. High-quality photography isn’t just about making your property look good—it directly impacts your booking rate.

In one of my Scottsdale properties, I had decent occupancy, but I knew I could do better. I hired a professional photographer, spent about $500, and within 24 hours, I received $18,000 in bookings. It was the easiest money I’ve ever made.

Professional photos make your property stand out in a crowded marketplace. They capture the essence and vibe of your space in a way that resonates with potential guests, turning browsers into bookers.

Key takeaway: Invest in professional photography. The ROI is undeniable.

5. Cash on Cash Return: The Golden Metric

One of the most misunderstood concepts in real estate investing is cash on cash return. It’s the metric that shows you how much money your investment is making relative to the cash you put in. For example, if you invested $100,000 into a property and made $20,000 after expenses, that’s a 20% cash on cash return.

When interest rates were low, achieving a 30% or 40% return wasn’t unheard of. But with today’s higher rates, that’s become more difficult. However, by focusing on amenities and experiences that add value, it’s still possible to achieve solid returns. In fact, I’ve seen 100% ROI on some of my investments simply by making strategic upgrades.

Key takeaway: Understand and track your cash on cash return. It’s the ultimate measure of how well your property is performing.

6. Design for Your Target Audience

A well-designed space can elevate your Airbnb to new heights, but it’s not just about making things look pretty. It’s about designing with your target audience in mind. For example, in one of my Austin properties, we noticed a lack of listings catering to bachelorette parties, a huge demographic in the area. So, we leaned into that and designed a bold, colorful, and Instagram-friendly space.

By focusing on creating a space specifically for bachelorettes, we were able to stand out in a competitive market. We even named the property “The Pink Pickle” and installed a pink pickleball court to match the theme.

Key takeaway: Design with a specific audience in mind. If you try to appeal to everyone, you’ll end up appealing to no one.

7. The Value of Continuous Improvement

The Airbnb market is constantly evolving. What worked two years ago might not be enough today. That’s why I’m always looking for ways to improve my properties, whether it’s through adding new amenities, updating the design, or rethinking the layout.

One of my properties in Bryan, Texas, wasn’t performing as well as I’d hoped. After some analysis, I realized the backyard was underwhelming. We invested about $35,000 into revamping the outdoor space, adding a pickleball court, and enhancing the overall guest experience.

In just a few months, the property’s monthly revenue increased by $2,000—a significant boost for a house in a college town.

Key takeaway: Never stop improving. Even small changes can lead to big results.

Conclusion: The Path to Airbnb Success

Turning around a failing Airbnb isn’t just about luck or timing—it’s about making smart, calculated decisions that add value. Whether it’s through adding unique amenities, improving the design, or simply upgrading your photos, there are plenty of ways to breathe new life into your property and boost profitability.

Before you think about selling, take a step back and evaluate what you can improve. You’d be surprised how a few strategic investments can completely turn things around.

If you want more insights into how to optimize your Airbnb and maximize your returns, check out my full video on this topic here.

And for free tools, guides, and courses to help you along the way, head over to Hostcamp.com.

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