Airbnb Hosts Beware: One Bad Review Can Cost $10K

Jasper Ribbers | Freewyld Welcome back to Get Paid For Your Pad. It’s Monday, which means another Rev Up episode where we dive into revenue management and give you a behind-the-scenes look at Freewyld Foundry. Today my guest is one of our revenue management clients, Garrett Ham. He’s been here before, and he’s the CEO and founder of Weekender Management out of Fayetteville, Arkansas. Garrett, welcome back.

Garrett Ham Thank you, Jasper. It’s great to be back.

Jasper Ribbers | FreewyldWe used to meet weekly on Zoom when I was managing your account. Since then, one of our revenue managers took over, so it’s been a while. What’s new in the last six months?

Garrett HamIt’s been eventful. My involvement in the short-term rental space is twofold. I run Weekender Management, managing properties for clients, and I also own and acquire my own properties. On top of that, I practice law exclusively in this area.

In the legal realm, my firm filed a lawsuit against the city of Fayetteville over short-term rental regulations. We argue the ordinances violate the Arkansas Constitution. After years in court, the case is now before the Arkansas Supreme Court, and I’ll be presenting oral arguments next week.

Jasper Ribbers | FreewyldRegulatory challenges are a big issue in many markets. We’ll come back to that. I also know you’ve been expanding into new markets and acquiring properties. With prices holding steady while STR performance drops, how do you approach acquisitions?

Garrett HamTraditional deals are tough right now. Prices aren’t coming down, yet STR performance is trending lower. In the past year, we acquired about 10 or 11 properties, but only one was a traditional purchase. The rest were creative financing deals where sellers carried part of the note.

High-end homes are sitting on the market for 6-12 months, which creates opportunities. Sellers become more open to terms like owner financing. These deals allow us to keep growing even as the market adjusts.

Jasper Ribbers | FreewyldHow many properties do you typically analyze before closing on one?

Garrett HamFor every purchase, we probably look at 100200 properties, make 10-20 offers, and close on one. It’s a big funnel. We use MLS, since I’m a licensed realtor, which also gives credibility when negotiating creative terms.

Jasper Ribbers | FreewyldWhat’s the most important lesson from negotiating these deals?

Garrett HamKnow your bottom line upfront. With creative deals, after many “no’s,” it’s tempting to compromise when someone finally says “maybe.” But stretching numbers or relying on overly optimistic projections can backfire quickly, especially now that tools like AirDNA often overestimate.

Jasper Ribbers | FreewyldLet’s go back to regulations. What exactly happened in Fayetteville?

Garrett HamFayetteville capped the number of STR permits and requires a conditional use permit from the planning commission. The standards are vague and arbitrary, which is part of our argument. We also believe the ordinances violate Arkansas’ strong protections of property rights. That’s what we’re fighting before the Supreme Court.

Jasper Ribbers | FreewyldAirbnb has also tightened policies in the last year. How has that affected you?

Garrett HamWe’ve maintained high-quality listings, so reviews haven’t hurt us much. But Airbnb is less host-friendly than before. Customer service is harder, and even a single bad review can trigger warnings. Competitors are working to reduce dependency on Airbnb, and I understand why.

We’ve seen cases of blackmail where guests demand discounts in exchange for avoiding bad reviews. In the past, Airbnb helped more in these situations. Now it’s harder. One review can linger at the top of your listing and cost thousands in lost revenue.

Jasper Ribbers | FreewyldExactly. I know a client with four identical units. One unit got a one-star review months ago, and it still performs 50% worse than the others. The review is stuck in the “most relevant” section, costing serious revenue.

Garrett HamWe warn guests that four stars can hurt us, since many don’t realize it. People think four out of five is good, but on Airbnb, it’s not. That misunderstanding is one of the most frustrating parts of the system.

Jasper Ribbers | FreewyldDo you think Airbnb will adjust?

Garrett HamI think the pendulum will swing back eventually. They went from tolerating bad hosts to being overly strict. Enough pushback from larger operators could force changes. For now, we’re focused on accuracy, hospitality, and diversifying where possible.

Jasper Ribbers | FreewyldTell us about Weekender Management and how people can connect with you.

Garrett HamWe’re a full-service property management company. We manage our own portfolio and many client properties across Arkansas, Missouri, and Florida. If you want help managing your STRs, visit weekendermanagement.com.

Jasper Ribbers | FreewyldI can vouch for Garrett and his company. Their operations are well-run, and I’ve seen firsthand how they manage revenue. If you’re looking for a trusted property manager, definitely check them out.

Thanks for joining, Garrett. And thank you all for listening. See you next time.