DERBYBNB WITH JONATHAN KLUNK

JONATHAN KLUNK, PRESIDENT OF KEY SOURCE PROPERTIES, JOINS US TO DISCUSS SHORT-TERM RENTALS (AIRBNB), WHICH ARE HUGE IN LOUISVILLE DURING KENTUCKY DERBY TIME.

• Jonathan got his start in short-term rentals by trying it out on his own, which caused him to realize how little others knew about the budding industry.
  • He was interested to see if his property would get demand for Kentucky Derby, and was shocked at how quickly his property became booked.
• After requests from his friends to help them out with their Airbnbs, he decided to start a side business.
• The perfect Airbnb property?
  • Jonathan says you should strive to make your property as unique and interesting as possible.
  • Many people love staying in Airbnbs that remind them of hotels, so you should have all the same amenities somebody would ordinarily find in a hotel.
  • Also, remember your guests are on vacation, so they don’t necessarily want to stay in a house that reminds them of their own home – your property should be eclectic and unique to stand out in a crowded market!
• While you might think of Airbnb as somebody staying at your house on weekends, it is becoming more common for investors to purchase properties and use them exclusively for Airbnb/short-term rentals.
  • Additionally, Jonathan has never run into a situation where a property was trashed, so if you’re worried about somebody messing up your house that should not be a concern.
  • It could also be a great idea to purchase a property in a city you like to visit and renting it out on Airbnb to cover your costs.
• While building his company, one of Jonathan’s keys was starting it as a side business and being able to grow it while still keeping a full-time job.
• Jonathan also sees a growing market for corporate rentals – rentals that are greater than 30 days that are popular with business executives.
  • There are also less regulatory hurdles if you operate your property this way – as it is not considered a “short-term” rental property.
• Some considerations if you’re interested in owning a short-term rental property:
  • State and city taxes (including transient/hotel taxes).
  • Increase in property insurance.
  • There is more competition today due to the popularity of Airbnb, so it is important to get in the game early to have more reviews for potential customers to view.
• In addition to Airbnb, there is a growing market for VRBO (Vacation Rental by Owner) as well as other alternatives for people looking to get into the short-term rental business.
• The biggest thing Jonathan has learned being an entrepreneur is how to be a great salesman.
• Jonathan’s favorite thing about the Kentucky Derby is the excitement it brings to the City of Louisville.
• Key Source Properties is looking to expand in the Nasvhille, Lexington, and Frankfort markets in the next year as well as expanding into different services.

LAST CALL QUESTIONS AND ANSWERS:

• What’s your definition of success?
  • Have a nice retirement.
  • Be happy with the trajectory of the business.
• What advice would you give to somebody who wants to be an entrepreneur?
  • Whenever you thing the time is right you need to just do it.
  • Nobody know for sure what will happen.
• What advice would you give to your 22 year old self?
  • To be a sponge and learn about everything – read more.
• What advice would your 60-year-old self give you today?
  • Slow down.
• What’s your favorite thing to drink?
  • Bourbon and Fresca
• The best thing you have spent money on in the past 6 months:
  • Investment plan for employees.

SHOUTOUTS:

• 3 Floyds Brewing Co.
• West Sixth Brewing
• Country Boy Brewing
• Brewgrass Homebrew Supply
• Young Professionals Association of Louisville (YPAL)
• Nathan Shanks
• Goodwood Brewing Company 
• Galaxie Bar

Be sure to learn more about Jonathan and Key Source Properties by checking out the company’s website, Facebook, and Instagram.

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