How to Create Ranch Revenue with an AirBNB
Returning home to the family operation can be an exciting time for the rising generation, however finding ways to add value and support another family is no easy feat. Additional revenue sources need to work with the ranch’s goals and overall system. What works for one neighbor, might not work for the other.
Lettie Nickell knows exactly how challenging it can be to find ways to create additional revenue, yet she didn’t let that stop her from finding unique ways to earn a salary with the resources already on hand.
“I originally started selling beef directly to consumers to create extra revenue but when I really looked at the needs of our area, I realized there weren’t many options for people to stay who were traveling through,” says Lettie during her interview on the Casual Cattle Conversations podcast.
Lettie is located in a desolate area of Kansas. She is 80 miles from the nearest Walmart, five hours from Denver, four hours from Wichita and three and a half hours from Amarillo. She notes that the busier seasons correlate with hunting but remains busy year around.
“I started by renting out my house and staying with my parents when it was being rented. Little did I know that I would be staying with my parents three out of the four weeks in a month,” says Lettie.
After seeing how successful this opportunity could be, she began brainstorming ways to create another AirBNB with the resources she already had. Her solution was renovating an old grain bin on her property and advertising it as a glamping experience.
She says, “People are craving getting back to the roots of outdoors and seeing a farm or ranch. A lot of times we’ll have people drive down from cities just for a date night.”
Lettie makes a point to host her guests more if she is available and they desire the interaction. This can be as simple as making omelets with fresh eggs or just showing them the reality of ranch life.
The Airbnb works perfect for Lettie’s lifestyle as it is flexible and not time consuming. It also adds to the ranch’s wedding venue and community event space. Lettie is solely in charge of both these enterprises and made a point for them both to be as hands off as possible.
“We all know margins are tights and every little bit counts. The Airbnb is my salary and I can still do what I love every day on the ranch while hosting guests,” says Lettie.
Liability is of course something to consider with this experience. Airbnb does have liability policies for damages to the property, however it is worth talking to an expert about taking out an additional policy.
“The Airbnb is separate from the rest of the farming and ranching. It’s in it’s own little parcel and I kept it that way on purpose. I think it is a smart business move because things can happen and it’s important to protect yourself,” says Lettie.
The process of hosting starts by simply looking at what is available on the property. The opportunity could lie in an empty farmhouse, grain bin or any building that is structurally sound. Even if there are no additional structures worth renovating, yurts and teepees are also popular options on Airbnb.
Lettie says, “Sometimes we get tunnel vision within the agriculture industry and we don’t think about all the resources we have and the different ways we can utilize them for extra income.”
If you are interested in creating extra revenue for your operation through hosting guests, don’t be afraid to think outside the box and look at the bigger picture of what your community needs.
You can listen to the full conversation with Lettie on the Casual Cattle Conversations podcast.
