Airbnb has risen exponentially in recent years and shows no signs of slowing down anytime soon. This home-sharing business has changed how millions of people travel worldwide, but running your own Airbnb property might be difficult if you’re new to the game. The most important thing to note when running an Airbnb property is to treat it like a business rather than just renting out your spare room.
If you’re considering offering your house on Airbnb, it’s critical to understand what works and what doesn’t. The following tips will help you make your property profitable and well-received by your guests and Airbnb.
- Run the Numbers
- Price Against Hotels, Not Other Rentals
- Know Your Local Laws
- Approach Short-Term Rentals as a Complete Hospitality Business
- Furnish Affordably
- Never Misrepresent the Property
- Accrue 5-Star Reviews ASAP
- Cleanliness Is Next to Godliness
- Turn on “Instabook” If You Can
- Be Extremely Responsive
- Create a Concierge Document or Booklet
- Leave a Free Bottle of Wine for Guests
- Hire It Out When in Doubt
- Stop Talking About It and Just Try It Already
1. Run the Numbers
Before you do anything, you need to sit down and figure out the numbers. This includes your mortgage or rent payments, monthly bills, Airbnb fees, taxes, etc. You can begin setting your rental price once you have a good understanding of your costs.
Be sure to compare your nightly rate to hotel prices in the area. You don’t want to price yourself out of the market, but you also don’t want to underprice your property and leave money on the table.
2. Price Against Hotels, Not Other Rentals
When pricing your Airbnb, it’s important to compare your rates against local hotels—not other rentals on Airbnb. This is because most people looking for a place to stay will start searching websites that show hotel prices first.
If your nightly rate is significantly higher than the cost of a hotel room, you’re likely to lose out on potential guests. However, if your price is lower or on par with hotel rates, you’ll likely attract travelers looking for a budget-friendly alternative to traditional lodging.
3. Know Your Local Laws
Each city has its laws and regulations regarding short-term rentals, so before listing your property on Airbnb, make sure you’re familiar with the rules in your area.
For example, some cities require hosts to obtain a business license or permit before starting renting out their homes. Others have strict limits on how many nights per year you can rent out your property, or how many people can stay at one time.
Failing to comply with local laws could result in steep fines, so make sure you do your research before listing your property.
4. Approach Short-Term Rentals as a Complete Hospitality Business
If you want to succeed with Airbnb, you must approach it as a business rather than a side hustle. This means being professional, responsive, and organized at all times.
You also need to be prepared to deal with guests who have special requests or problems during their stay. By approaching Airbnb as a complete hospitality business, you’ll be more likely to succeed in the long run.
5. Furnish Affordably
One of the most expensive aspects of running an Airbnb property is furnishing your rental. If you’re on a tight budget, it’s important to shop furniture wisely to not overspend.
A few ways to furnish your rental affordably include shopping at second-hand stores, buying used furniture online, or scouring Craigslist for deals. By being smart about how you furnish your rental, you can save a lot of money in the long run.
6. Never Misrepresent the Property
When creating your Airbnb listing, it’s important to be honest about your property. Don’t try to trick guests by misrepresenting your rental’s size, location, or amenities.
This isn’t good for business, but it could also kick you off in Airbnb. So play it safe and always be truthful in your listings.
7. Accrue 5-Star Reviews ASAP
If you want to be successful on Airbnb, it’s important to start with a few good reviews. These reviews will help attract new guests and also help increase your search ranking on the Airbnb website.
To get started, offer discounts or freebies to your first few guests in exchange for an honest review. Once you have a few good reviews under your belt, you’ll be well on your way to success.
8. Cleanliness Is Next to Godliness
When it comes to Airbnb, cleanliness is next to godliness. This means that you need to keep your property clean at all times, especially if you have multiple guests staying there.
If possible, hire a professional cleaning service to come in after each guest leaves. This will ensure that your rental is always sparkling clean and ready for the next guest.
9. Turn On “Instabook” if You Can
Consider turning on the “Instabook” feature in your Airbnb listing if you want to simplify things. This feature allows guests to book your rental without sending a request first.
While this might not be ideal for everyone, it can be helpful if you’re trying to attract last-minute guests or fill up empty nights.
10. Be Extremely Responsive
When running an Airbnb property, it’s essential to be responsive to guests’ needs. This means responding to messages quickly, being available to answer questions, and addressing any problems that might arise.
By being responsive, you’ll not only build goodwill with your guests, but you’ll also be more likely to receive positive reviews. If you’re not responsive, guests will likely look elsewhere for lodging. So make sure you’re always available to address your guests’ needs.
11. Create a Concierge Document or Booklet
Consider creating a concierge document or booklet to make things easier for yourself (and your guests). This document should include information about your property, nearby attractions, and anything else that might be helpful to guests during their stay.
You can save a load of effort answering questions from guests if you have all of this information in one place. Additionally, your guests will appreciate having all of this information readily available.
12. Leave a Free Bottle of Wine for Guests
One of the best ways to welcome guests to your Airbnb property is to leave a complimentary bottle of wine for them. This effortless gesture will go a long way in making your guests feel welcome and appreciated.
Select a local wine that represents your area to make things even better. This will offer your visitors a taste of the local flavor, making their stay even more memorable.
13. Hire It Out When in Doubt
If you’re ever uncertain about handling a situation at your Airbnb property, don’t be afraid to hire it out. There are plenty of services (such as Airbnb Management) that can help you with everything from guest communication to cleaning and beyond.
While you may have to pay a little more for these services, it is well worth it if it means happy guests and a successful Airbnb business.
14. Stop Talking About It and Just Try It Already
If you’re on the fence about whether to start an Airbnb business, stop talking about it and try it already. You have nothing more to lose by giving it a try; the worst that can happen is that it won’t work out as planned. However, you won’t know unless you try.
Every business venture involves some level of uncertainty, but the rewards can be great if you’re successful. So go ahead and take the plunge—you might find that running an Airbnb property is exactly what you’ve been looking for.
What Exactly Is Airbnb?
Airbnb, also known as “Air Bed and Breakfast,” is a platform that allows people to rent out their homes for short-term stays. Guests can search for listings in their desired location and book them for a set period. Hosts can create listings, set prices, and determine availability. Airbnb takes a percentage of each booking as a service fee.
Airbnb offers a variety of properties, from apartments and houses to treehouses and castles, making it a popular choice for travelers looking for unique accommodations. Additionally, Airbnb is often cheaper than traditional hotels, making it a popular choice for budget-minded travelers.
What Are the Types of Airbnb Rental Property?
When guests reserve your room, they want to know what they’re getting. Select the home type that best describes your property, and be sure to provide any additional (and accurate) information.
- Entire Place: If you opt to post your complete home, condo, or apartment for rent, travelers will have the entire house, condo, or apartment to themselves and will not share space with you or other visitors. Entire place listings are popular with families, persons traveling in larger groups, and those seeking additional privacy.
- Private Room: A private room is a designated area in your home for visitors. As a result, you can interact with visitors during their stay. Additionally, the bathroom and living area may be shared with other guests. Private rooms are ideal for lone travelers or anyone searching for a low-cost stay; however, make sure to include clear expectations for visitors in your listing.
- Shared Room: On Airbnb, shared rooms are rooms with two or more beds where visitors will share the same sleeping area. These are popular with younger, more flexible tourists who love meeting new people and those looking for more affordable lodging.
Who Is Responsible for Hosting an Airbnb Property?
Even if plenty of people are working hard to make the listing the best it can be, there is only one primary Host. When visitors make a booking request, this is the person who appears as the Host.
A reservation can be managed by one of three types of hosts.
- Listing Owner: The Listing Owner is the person who created the listing and will be primarily responsible for hosting visitors.
- Co-Host: A Co-Host is someone who assists with hosting but is not the primary host. For example, a Co-Host might help with communication, cleaning, or other preparations for guests.
- Property Manager: A Property Manager is anyone who manages the property on behalf of the owner. For example, if the owner lives in another city or country, a Property Manager might be responsible for hosting guests and taking care of the listing.
How Much Does Airbnb Rental Property Cost?
There is no standard pricing for Airbnb rentals, as the individual host sets each listing. However, hosts can expect to pay a 3% service fee on each reservation and other possible fees such as cleaning fees, damage deposits, and city taxes.
Additionally, hosts may need to purchase additional insurance for their property. When setting prices for your listing, be sure to factor in all potential costs to ensure that you are profitable.
Is Running an Airbnb Property Can Provide Extra Income?
Yes, running an Airbnb property can provide extra income; however, it is important to note that there are costs associated with being a host. For example, hosts may need to pay for additional insurance, cleaning fees, and city taxes. Additionally, hosts are responsible for any damage caused by guests during their stay.
It is important to factor in all potential costs when setting prices for your listing. So, you will be able to ensure that a business is successful and that the Airbnb property you own generates additional revenue.