The Boostly Podcast: Scaling & Selling – Lessons from Guest Homes with Josh Guest
Host: Mark Simpson
Guest: Josh Guest, Founder of Guest Homes
Release Date: December 16, 2024
Introduction to Guest Homes
In this episode of The Boostly Podcast, host Mark Simpson welcomes Josh Guest, the founder of Guest Homes, to discuss his journey in the short-term rental industry. Josh shares his experiences from starting a rent-to-rent business, scaling it to 130 units, and eventually selling the business to the Host and Stay group. This episode is particularly insightful for hosts aiming to grow their rental businesses sustainably and effectively.
Starting Out: Lessons Learned [02:05 – 07:17]
Josh Guest began Guest Homes in 2018 by acquiring an existing rental service accommodation (RSA) business in Brighton, despite having limited knowledge of the industry. Reflecting on his early days, Josh emphasizes the steep learning curve involved in managing properties remotely:
“I literally just some guy basically said he's got these free rental estate properties. I didn't even know the terminology of that.”
— Josh Guest [03:06]
Key challenges included managing logistics from four hours away, dealing with maintenance issues, and unfamiliarity with property operations. Josh advises newcomers to immerse themselves in the details and systemize operations to handle scaling effectively.
Scaling the Business [07:17 – 10:41]
Transitioning from managing a few units to scaling up was not instantaneous. Josh recounts a period of intense networking, conducting numerous property viewings, and facing numerous rejections before gaining traction. Persistence paid off as referrals and positive word-of-mouth began to drive exponential growth:
“It just sort of just snowboard effect just flowing off from there.”
— Josh Guest [10:41]
Acquiring Units vs. Focusing on Guests [10:41 – 13:57]
Josh underscores the importance of prioritizing unit acquisition over guest acquisition, especially in the early stages. Acquiring more properties lays a stronger foundation for sustainable growth, while guest acquisition can follow through established channels like OTAs.
“Initially you've got to go for acquiring units.”
— Josh Guest [11:09]
He advises leveraging OTAs initially to build a customer base before shifting focus to direct bookings, highlighting that competing with OTA marketing budgets is challenging without significant resources.
Marketing Strategies [26:53 – 28:34]
Effective marketing is crucial for scaling a short-term rental business. Josh elaborates on a multifaceted approach, incorporating:
- Networking Events: Building relationships with property investors and landlords.
- Online Advertising: Utilizing Facebook Ads, Google Ads, and SEO to attract leads.
- Social Media: Growing personal and business brands on platforms like LinkedIn and Instagram.
- Direct Outreach: Contacting landlords directly through calls, emails, or LinkedIn to pitch management services.
“Look at the funnel. There's no actual strategy of actually how to actually scale the business there.”
— Josh Guest [27:06]
Role of Technology [29:07 – 32:55]
Technology plays a pivotal role in scaling and managing multiple properties efficiently. Josh highlights essential tools such as:
- CRM Systems and Channel Managers: Streamlining bookings, automated messaging, and payment processing.
- Property Management Software: Tools like PriceLabs for dynamic pricing.
- Maintenance and Housekeeping Software: Managing schedules and quality control.
However, Josh cautions against over-investing in expensive software too early:
“Make sure you're working at your costs and keep costs low.”
— Josh Guest [31:50]
He advises starting with cost-effective solutions and scaling technology investments in line with business growth to avoid unnecessary expenses.
Challenges of Managing Wide Areas [32:55 – 35:10]
Managing properties spread across different locations introduces complexities such as maintenance coordination and quality control. Josh recommends establishing robust systems, including:
- Local Teams: Hiring reliable cleaning and maintenance services in each area.
- Standard Operating Procedures (SOPs): Detailed guidelines for property inspections, appliance usage, and emergency protocols.
- Documentation: Comprehensive manuals and video tutorials for property-specific quirks to minimize on-site issues.
“Basically just try and think of everything you might get question of or an issue with and try and document it all.”
— Josh Guest [35:10]
Selling the Business [21:53 – 22:54]
After achieving significant growth, Josh decided to sell Guest Homes to the Host and Stay group. The decision was influenced by opportunities to further scale the business under a larger umbrella while maintaining involvement:
“We agreed a deal from there and I thought, well, that'd be the right time to sort of exit.”
— Josh Guest [21:53]
This strategic exit allowed Josh to leverage Host and Stay’s resources to continue growing his portfolio and explore new ventures.
Key Ingredients for Success [24:21 – 26:53]
Josh identifies several critical factors that contributed to his success:
- Hard Work and Determination: A relentless drive to scale and overcome challenges.
- Client and Customer Care: Prioritizing excellent service to earn positive reviews and referrals.
- Effective Marketing: Implementing comprehensive marketing strategies to attract clients and guests.
- Systemization: Establishing robust operational systems to manage multiple properties seamlessly.
“If you've really got that determination to drive, then you'll get it to a stage, wherever that is.”
— Josh Guest [24:21]
Future Plans and Additional Ventures [38:22 – 40:17]
Post-sale, Josh is expanding into the linen hire business with Guest Linen, serving Worcestershire, Birmingham, and nearby areas. He plans to scale this new venture while continuing to grow his involvement with Host and Stay.
“I'm looking forward to that and then see where my journey takes me.”
— Josh Guest [40:17]
Conclusion
Josh Guest’s journey with Guest Homes exemplifies strategic scaling, effective use of technology, and the importance of robust systems in managing and growing a short-term rental business. His insights provide valuable lessons for hosts aiming to achieve independence and scalability in the competitive hospitality industry.
For more information or to connect with Josh Guest, visit www.guesthomes.uk or reach out via his social media channels.
Notable Quotes:
- Josh Guest [03:06]: “I didn't even know the terminology of that.”
- Josh Guest [10:41]: “It just sort of just snowboard effect just flowing off from there.”
- Josh Guest [11:09]: “Initially you've got to go for acquiring units.”
- Josh Guest [27:06]: “Look at the funnel. There's no actual strategy of actually how to actually scale the business there.”
- Josh Guest [31:50]: “Make sure you're working at your costs and keep costs low.”
- Josh Guest [35:10]: “Basically just try and think of everything you might get question of or an issue with and try and document it all.”
- Josh Guest [24:21]: “If you've really got that determination to drive, then you'll get it to a stage, wherever that is.”
- Josh Guest [40:17]: “I'm looking forward to that and then see where my journey takes me.”
This comprehensive summary encapsulates Josh Guest’s experiences and strategies in scaling a short-term rental business, offering actionable insights for hosts aiming to enhance their own operations and achieve sustainable growth.