We caught up with the brilliant and insightful Alex Zemianek a few weeks ago and have shared our conversation below.
Hi Alex, thanks for joining us today. One of the things we most admire about small businesses is their ability to diverge from the corporate/industry standard. Is there something that you or your brand do that differs from the industry standard? We’d love to hear about it as well as any stories you might have that illustrate how or why this difference matters.
Embracing the road less traveled is my signature move when it comes to building a top-notch property management company specializing in short-term rentals. While most people refer to our industry as “Airbnb,” encompassing home sharing, vacation rentals, and short-term stays, I’ve always aimed to go beyond the mainstream. Sure, Airbnb has done wonders in popularizing the short-term rental business, making it accessible to savvy individuals with spare rooms and a knack for customer service and/or travel. But here’s the thing: many hosts believe that listing exclusively on Airbnb is the best OR only path to success, overlooking larger travel agents like VRBO, Expedia, and Home2Go. Big Mistake, but happens alot more than it doesn’t.
In my view, the property management realm can be divided into two distinct categories: brands that consistently uphold quality standards across all properties and cohosting companies that fall short. Why does this dichotomy exist? Well, being a cohost is a breeze, requiring little to no investment. It’s like picking an online travel agent for your own trips – you tend to go with the one you’re familiar with, comfortable using, or have had positive experiences with in the past. For most people, that means Airbnb, VRBO, HomeAway, or Booking.com. The problem, however, lies in the fact that 90 to 95 percent of property managers across the US listing owners homes on these sites lack consistency, leaving consumers with only reviews as a means of vetting them.
I discovered this firsthand as a traveler and later through countless calls and messages from friends expressing their shared frustration to vet or narrow down the search of a Quality Brand company or home on Airbnb. Most companies get added on the owners’ Airbnb profile as a “CoHost” and all of the properties are independent of the rest. This business model of Cohosting makes it much easier to lack quality control because each property is secluded from the rest when it comes to reviews which IMO holds the P.M. less accountable to sustain consistent practices or consistent amenities. After many friends, family, and colleagues were seeking my expertise in finding vacation rentals in other cities, I realized that there was a huge gap to plug into building a luxurious brand that maintains the same quality across all properties. An example of this would be our luxury linens, Pillows, and memory foam mattresses. Not only do our guests mention these amenities in most reviews, but we’ve received so many requests for the SKUs that we’ve recently launched an E-commerce page that will allow our guests to buy the items they see or experience in their homes directly on our site.
Six years ago, I made a pivotal decision: we were going to forge our own brand, develop a direct booking website, and establish strict criteria known as our “Guest Standards.” Every property accepted into our system would need to meet these standards, ensuring a level of consistency inspired by the successful practices of the hotel and airline industries, as well as other sectors that prioritize brand building over “property acquisition” or company establishment.
The downside of this choice?
Lower profit margins, slower growth, and having to turn down numerous partners who don’t share our vision of prioritizing quality over quantity. We’re only able to onboard 20 percent of the owners and investors who inquire about our short-term rental property management services.
However, after almost nine years of hosting thousands of guests in multiple cities, our approach has proven to be far more sustainable in the long run. Today, our brand generates more revenue for the owners we represent on our direct booking site via JZVacationRentals.com than Airbnb itself. Additionally, Airbnb and other travel agents online collect high transation fees from the Guest & Owners, so our guest save anywhere from 15-25% on fees to skip the travel agent(Airbnb), and our owners collect more money since Airbnb isn’t dipping in before we share the rent revenue.
The journey hasn’t been easy, but the rockier path we’ve taken has led us to unparalleled success, solidifying our status as a leader in the industry and most importantly residual loyal guest and extremely loyal owners that we call our partners.
Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers.
Before I got into Real Estate, I climbed the corporate latter in the cellular industry. I started out at 18 years old celling cell phones in a kiosk and ending my career as a Regional Manager over a 4 state territory.
While I don’t miss the retail corporate grind(i’m sure most can relate), I do miss the people, and the challenge of entering new markets that lacked consistency on culture, values, people, and retention.
In 2004, my late father passed away from a sudden heart attack, and shortly after, I found out that my father held a passion for Real Estate. I picked up Rich Dad Poor Dad, and I was hooked on REI ever since.
In 2008, I acquired my first investment, then another, then another, and so on.
In 2013, I was blessed with the news of my son. His mother & I paid for extra furniture in storage & planned to move out of the apt we were in, so we heard from a friend of mine in Miami about Airbnb, listed our first property, and he we are.
Since my Dad’s name was Kevin Joseph Zemianek, my son Mason Jacob Zemianek, and myself as Alex Jacob Zemianek, I decided to brand the initials “JZ”.
JZ is now made up of two entities and a non-profit. JZ Properties specializes in development, construction, and investing. JZ Vacation Rentals that are now my primary focus, and JZ Gives Back which is a Non Profit that hosts educational events, fights unfair legislation, and overall is aimed at a goal of giving back education to aspiring entrepreneurs and/or Real Estate Enthusiast.
Can you share a story from your journey that illustrates your resilience?
From my incredible journey, I’ve learned that we can’t make it alone. We all need our village, our support system. At one point, I felt utterly lost and defeated, convinced that I had lost my village.
But I was wrong. They were always there for me. It’s just that the negative voices in my head grew louder, drowning out the support and hope. It took time, tears, and countless sleepless nights to realize that this comeback story is about gratitude, humility, and redemption.
When the pandemic hit, the hospitality industry, including our team at JZ Vacation Rentals, was hit hard. We had been diligently building our brand and reputation for four years, looking forward to a promising future. But then, cancellations flooded in, partners couldn’t pay us, and our resources vanished before our eyes.
To keep the business afloat and pay my employees, I had to borrow money from friends and family. It felt like I was desperately trying to stop a flood with my finger, with no help in sight. Over the next few months, things spiraled out of control. I exhausted every possible option to raise capital, maxed out credit cards, and pursued countless refinance loans, all in vain.
In my darkest moment, bankruptcy seemed like the only logical choice, but I couldn’t bring myself to do it. I owed it to my loved ones, investors, and everyone who relied on me to find a way. However, I had to let go of my employees, one of the hardest conversations I’ve ever had.
And then, the miracle happened. It was the beginning of my comeback story, and it made me truly understand the phrase “let go and let God,” even though I had heard it many times before. My entire team, who had been with me since day one, refused to leave. They volunteered to work for free without hesitation. Their unwavering support and dedication inspired me to push forward, rebound, and make our comeback.
That same day, everything changed. I was approved for a PPP loan, followed by an SBA loan and a forbearance on my personal mortgage. Just when I was on the verge of losing my home, the tides turned.
Since then, it hasn’t been easy. We’ve worked tirelessly, doing more with less. We outsourced, streamlined our expenses, and upgraded our software. We haven’t fully recovered from the pandemic yet, but we’re well on our way. We never lost sight of what truly matters.
We are our own village, and together, we can achieve greatness. My purpose in sharing this vulnerable story is to inspire at least one entrepreneur or small business owner to never give up, even when it feels impossible. Silence the negative voices, ignore the haters, and seek out those who uplift and encourage you. Express gratitude to the friends and family who have supported you. Trust that there’s always something to be grateful for and place your faith in a higher power.
When your day of triumph arrives, reach back and lift someone else up. From this day forward, my mission is to do just that.
Can you open up about how you funded your business?
This question resonates deeply with me because my journey didn’t begin with financial abundance. In fact, at 18 years old, I was broke and went through days without a proper meal.
Through my determination and hard work in the cellular industry, I managed to save $8,000, which became the seed money for my first real estate investment. Over the course of a decade, I nurtured and expanded that investment into dozens more sound RE investments, eventually using the proceeds, equity or capital gains to self-fund my property management company as a solo investor.
To this day, I sometimes question whether it was the right decision. Not having the same capital as other companies has posed challenges along the way. However, I find solace in the fact that I have retained 100% control over the brand’s vision. I’ve been able to disrupt the traditional approach to short-term rental management without needing board approval or compromising on my vision.
Since the pandemic, facing theft from a former business partner, and navigating the ups and downs of the journey, I’m considering raising capital to fuel acquisitions and expand our brand to new cities and countries. Ultimately, I’m ready to follow wherever God leads us.
Contact Info:
- Website: www.JZVacationRentals.com
- Instagram: @alex_zemianek
- Facebook: https://www.facebook.com/JZvacationRentals
- Linkedin: https://www.linkedin.com/in/alex-zemianek-b19841145/
- Twitter: JZVacaRentals
- Youtube: https://www.youtube.com/channel/UC8s1TBABFZh36bUVGtC5ynA