Are You Crazy, or Just an Idiot?

That’s exactly what Avi said to me at our first meeting.

No “hello”, no “nice to meet you”. Straight to the point: “Renting apartments on Airbnb is like playing Russian roulette with your money.”

Avi isn’t just anybody. He’s a former CFO of a public company. He analyses every decision twice. He’s the kind of person who checks the expiry date when he buys chocolate milk at the supermarket.

And there he was, sitting across from me with a printed A4 sheet (yes, he printed it), a list of fears laid out like a board-meeting memo:

Low occupancy in winter: “What, you’ll wait six months with no income?” Damage: “It’s not a home, it’s a bachelor party you weren’t invited to.” Remote management: “You’re in Tel Aviv, the apartment’s in Budapest. What are you, a prophet?” Regulation: “In a year they’ll ban it. You’re stuck with an empty apartment.”

Lack of control: “As if they’ll actually tell you someone threw up on the sofa.”

I listened to him patiently. Then I said something that stopped him mid-breath:

“Avi, you’re absolutely right. If you do it that way, you’ll lose everything.”

He looked at me the way you look at someone who’s about to say “but…”

“But there’s a completely different way. A way in which every weakness you listed becomes an advantage.”

How I went from a worrier like him to an investor who sleeps well at night

Three years ago, I thought exactly like Avi.

I’d heard all the stories: someone bought an apartment in Berlin and now it stands empty because short-term rentals were banned; someone invested in Bucharest and a guest wrecked the place at a jungle party; someone paid a management company that skimmed his profits.

So what did I do? Instead of running away, I went to investigate on the ground.

15 cities in Europe. 57 apartments I visited personally. Meetings with hotel managers, local lawyers, accountants and, of course, investors who had already done it right.

And I discovered something surprising:

98% of the people who failed at short-term rentals made the same 3 mistakes.

The 3 fatal mistakes (that everyone makes)

Mistake #1: Buying a cheap apartment in a “good neighbourhood”

The reality: tourists aren’t looking for a “good neighbourhood”. They want a 10-minute walk to the city centre.

If the apartment is 3 km from the attractions, it will stand empty 60% of the time. Better a small apartment in the centre than a huge one on the edge of town.

Mistake #2: Furnishing it like a regular rental

The reality: Airbnb guests don’t rent an apartment. They buy an experience.

IKEA design + a smell of damp = bad reviews = zero bookings. You have to design it like a boutique hotel, not like a rental flat.

Mistake #3: Relying on a random management company

The reality: most management companies don’t really work for you. They work for themselves.

Got a report saying the apartment is 70% occupied? Check again. Sometimes they rent your apartment out long-term and pocket the difference.

So what works? (The model we built)

When I presented this to Avi, he suddenly started taking notes himself.

Our formula:

1. Prime neighbourhoods only

We don’t buy in the suburbs. We don’t buy in “up-and-coming neighbourhoods”. Areas where 80% of tourists sleep, or nothing.

2. Boutique-hotel-level renovation

Every apartment goes through a transformation: – modern design with local touches – quality mattresses (guests rate this first) – a fully equipped kitchen (because nobody likes eating out for every meal)

• Fast WiFi (obviously) – full automation: digital check-in, smart locks

3. Close management + total transparency

The investor sees everything in real time: – occupancy, income, reviews, costs – photos of the cleaning after every guest – direct communication with the management team

Zero surprises. Zero headaches.

“Okay, but does it actually work?”

That’s exactly what Avi asked.

I showed him Yael.

Yael bought a small apartment in Bucharest for €180,000: one bedroom, 45 m², city centre.

Renovation: €25,000. Furniture and design: €8,000. Total investment: €213,000.

The results after one year:

• Average occupancy of 89% (including winter)
• Average rating of 9.7/10
• Phone calls Yael had to answer: zero

What happened next?

Two weeks after the meeting, Avi called.

“Let’s start. I want Budapest.”

Today he has an apartment in the city centre. A 9.8 rating on Booking, and 91% occupancy in the last quarter.

And the funniest part? Avi now explains to his friends why Airbnb investing is the safest thing he’s ever done.

The conclusion (that you didn’t expect)

The real risk isn’t investing in Airbnb

The real risk is investing the wrong way, and then telling everyone that “it doesn’t work”.

When I hear someone say “risky investment”, I know there’s something they don’t understand.

Because every good investment looks risky, until someone shows you how to do it right.