Skip to main content

Frequently Asked Questions

Updated over 2 weeks ago

Start-up phase/business structure

  • Who do you recommend, or who should I talk to when it comes to setting up my business in the States? (THIS ONLY APPLIES IF THEY'RE A CANADIAN CITIZEN)

    • If you do not have an active Canadian corporation, we suggest you create one by reaching out to a lawyer or finding a service provider to help you create one.

    • On the US side, our preferred legal counsel is Mark Canfield - mcanfield@lippes.com - (904)-660-0020 ext 1523

      • Mark will help you set up an LP (Limited Partnership). A Limited Partnership consists of limited partners and a general partner. Usually, your Canadian corporation will be the Limited Partner (LP) and own 99.999% of the Limited Partnership

  • Usually, Mark will create a new entity known as the General Partner (GP), which owns 0.001% of the Limited Partnership

  • We suggest you also consult with your Canadian lawyer and accountant to ensure assets in the existing Canadian corp will not be affected.

  • The US lawyer (Mark) will file all the papers necessary. Once filed, it will take 10-14 business days to receive EINs for your LP and GP

***The above is not legal or financial advice; everyone’s situation may be different. Please consult experts to better understand if a Limited Partnership structure is best for you***

  • Once you have landed on the name of your LP, you can go to https://physicaladdress.com/ and get a US Business mailing address.

    • Physicaladdress.com is able to help receive/ship and scan mail on your behalf.

    • You need a US Mailing address to set up a US business bank account

  • I don't have a Canadian business. What do you recommend I do?

    • If you do not have a Canadian corporation, please consult with your Canadian lawyer and accountant to see if you should create one to start this business

  • We suggest you also consult with your Canadian lawyer and accountant to ensure assets in the existing Canadian corp will not be affected.

  • What is an ITIN?

    • ITIN is equivalent to your SIN number, but in the US. (Individual Taxpayer Identification Number)

    • You can use a service called https://frugalflyer.ca/itin/ to apply for an ITIN number.

    • The ITIN number serves like an SSN. You will be able to slowly build a credit history and credit score with an ITIN

  • What is an EIN?

    • EIN is equivalent to a business number

    • You need an EIN to open a US business bank account

  • I don't have any US credit cards. Are there any particular banks you'd recommend?

    • AMEX is a good start. In order to get a US AMEX card, you will usually need a good history with AMEX Canada.

  • Which bank would you recommend opening up in the US?

    • Once you receive your EIN for your LP, you can reach out to a bank and open a US business bank account.

  • If you have a CIBC Canada business bank account, we can refer you to CIBC USA.

  • If you do not bank with CIBC Canada (Business) you will have to inquire with your Canadian bank on whether you can open a US Business Bank account remotely

  • How much capital do I need to invest in units?

    • For a 1-bedroom apartment, the cost would range from $8,000 to $12,000. This is all inclusive of rent, security deposits, design, furniture, setup, etc.

  • For a 2-bedroom apartment, the cost would range from $10,000-$14,000. This is all inclusive of rent, security deposits, design, furniture, setup, etc.

  • For larger properties, like homes, the cost would be upwards of $15,000. This is all inclusive of rent, security deposits, design, furniture, setup, etc

  • When we are setting up the units, how do I go about funding the projects? How do I send the money to you guys?

    • There are 3 ways to go about this.

      • Wire transfer:

      • Credit card authorization. If you're going to go down this route, please call your bank and let them know you will be making big transactions so they don't block your account. Furthermore, if you are using a Canadian credit card, let them know you will be making some transactions in the US.

      • ACH Payments

  • Why do I need a physical address?

    • to register your business and also to receive mail. If the entity is not physically located in the registered location, it must appoint a Registered Agent to fulfill the requirement. Registered Agents are responsible for accepting Service of Process, as well as providing information for billing and tax obligations to the entities they represent.

  • I'm in the process of setting up my Physical Address. Which location do you recommend, and which plan should I go with? 30,50,100,200

    • To answer your question, you should have the location in the state where you registered your business.

    • It's recommended to choose a 30/50 plan.

  • What balance transfer cards should I look into in Canada?

    • Canada TD usually gives me balance transfer options from 1.5-4% one-time transfer rate, depending on their promotional period. MBNA is also another good option.

  • What number can I call to chase the IRS for my EIN?

    • You can reach out to 1-267-941-1099. They typically will answer within 20 minutes

  • I’m in the process of setting up my US bank accounts. Do I need to wait for that, or can I start looking at leases?

    • If you use Relayfi, it’ll be a quicker process. But yes, you can start looking at leases.

  • Does a Canadian corporation need an EIN?

    • Yes, it does. Speak to your accountant to get that set up. It’s mainly for tax purposes

  • Do I need to get a personal USA mailing address?

    • No, it is not needed. However, if you plan on getting US business and personal credit cards, then you should get a personal mailing address.

  • Do I need an EIN for my GP, LP, CAD LP?

    • Yes, you need 3, 1 for each.

Set up process: listing/furnishing, etc

  • How does Turno work for my cleaner?

    • Once in Turno, there is an option for you to invite a cleaner to use Turno (as opposed to finding one on the app). We found our cleaner on Thumbtack, invited them on Turno, and they received a notification and then instructions on how to set up an account. From there, you can arrange to pay them directly after completing projects via the app, and another invite will be sent to them to set up a payment account. Very easy and very efficient once it’s set up 👌🏼Here is a training video you can send to your cleaner.

  • How do I find a cleaner, and how do I know if they're good?

    • We recommend using apps like Thumbtack and Turno to find cleaners for your properties.

  • When interviewing a cleaner for your Airbnb, inquire about their experience with short-term rentals and Airbnb specifically. A candidate with relevant experience in this niche understands the unique demands of the hospitality industry. They are likely familiar with quick turnovers, the importance of attention to detail, and the need for efficient communication. This prior knowledge can significantly streamline your operations, as they grasp the intricacies of the game and contribute to maintaining the high standards required for short-term rental properties. Choosing a cleaner with Airbnb experience can enhance the overall guest experience and contribute to the success of your rental venture.
    ​
    You can watch our video on Hiring Your Power Team in the Vacarya Masterclass

  • How do I go about finding a handyman?

    • Thumbtack, TaskRabbit, Google, or Facebook Marketplace.

  • Should I cancel bookings on my end?

    • DO NOT cancel bookings on your end. This will negatively affect your account, and it's hard to come back from. Get your guests to cancel.

  • How does Aircover work?

    • We have SOPs on this. Go to the master course, there's a whole section explaining how Aircover works and how to properly submit it and maximize your profits

  • Which cancellation policy should I select?

    • We recommend strict

  • Is it worth it to do an off-platform booking?

    • You can consider taking bookings off-platform for mid-term bookings. Always collect money up front, and always include a security deposit.

  • Always accept money via wire as this will remove the ability for the guest to do a chargeback.

Continuous operations

  • I have questions about VAs:

    • Where do I find them?

    • What's a good hourly rate?

    • What should I be looking for in a potential hire

    • Are you already working with a VA you'd recommend

    • Any tips on training them?

    • Are there tax implications?

  • We’ve used onlinejobs.ph, and I hired VAs. Hourly wage ranges from $4-$8/hr. Once you post the ad, you’ll have hundreds of applicants

In terms of training, what you can do is slowly immerse them in your day-to-day life with Airbnb. Start them off slow because it’s a lot for someone to learn everything overnight. Start them off with easy tasks (answering messages, making sure check-ins have been sent correctly), eventually, as they get used to it, slowly get them to take over the overall business process. That way, it frees up more time for you to grow the business. Just an FYI, this is a tax-deductible expense.

  • Aside from getting bookings and good reviews, what else can I do to boost my SEO?

  • Do you think I should use social media to promote my listings?

    • It honestly depends on your goal. Airbnb itself already does a great job promoting your listings. However, if you’re looking to build a brand for yourself and showcase what you do for networking, then YES! It’s a great tool to get your name out there. Also, if you have a very unique listing, then social media might be a great tool for you to get your property out there and attract tourists.

  • How do I get superhost status?

    • There are 4 criteria they look at

      • Host at least 10 trips

      • Maintain a 90% response rate or higher.

      • Maintain a 1% cancellation rate (1 cancellation per 100 reservations) or lower.

      • Maintain a 4.8 overall rating.

  • How do I get the guest favourite badge?

    • Guest Favorites are identified based on a mix of factors related to overall stay and listing quality and reliability.

      • Overall star ratings and feedback in guest reviews

      • Category ratings for check-in, cleanliness, accuracy, Host communication, location, and value

      • Host cancellation rates

      • Quality-related incidents reported to Airbnb customer service

      • A minimum of 5 reviews

  • Can I pay rent with a credit card?

    • It depends on the unit.

  • What should I do if the guest brings an unregistered animal?

    • First, make sure the animal is not a service animal; by law, we don’t have a choice but to accept service animals. You can ask them about it when you find out: Hey (guest name), it was brought to my attention that you brought a dog into the apartment. I was wondering if it's a service dog.

    • If it is a service animal, they should provide all the documents that guarantee it is a service animal.

    • If it's not a service animal and you choose to allow the guest to stay, make sure you are charging a pet fee or deposit if it's an off-platform booking.

    • Most buildings will allow a max of 2 dogs with a combined weight of 50 lbs, and breed restrictions may apply for mastiff, pitbull, rottweiler, doberman pinscher

  • You should ask your guest for: weight, breed, latest vax records, potty traine,d and a photo of the dog

Did this answer your question?