# 55 DerbyBNB

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.

Have any topics you want to be covered or amazing people you’d like us to interview? Let us know! You can email us at [email protected]. You can also find us on Facebook, Instagram, Twitter, and Linkedin. Please be sure to subscribe to our weekly mailing list at drunkenmoney.com/subscribe.