Airbnb is an online marketplace enabling property owners to post listings for short-term rentals and find conscientious customers. Clients will get access to place ads on Airbnb after registering a free account. Hosts can add the premises’ photos, describe the rules and requirements for visitors, post location, prices, and living conditions. Owners may offer the whole house or a single room. The more colorful their ads look, the more likely they will ensure a stable guests’ flow.
Lots of entrepreneurs also provide facts about themselves, their hobbies, or offer additional services, such as city tours or breakfast included in the rental price. The Airbnb platform ensures financial integrity by acting as a third party in transactions between hosts and clients, charging a commission of 3% for each deal.
Who Should Run a Business on Airbnb
Renting out a house on Airbnb can be a profitable way to earn extra money, in the following cases:
You already have a vacant rental home or some free space guests can live in. Purchasing a property is another matter that requires risk assessment and cost recovery.
Renting a house in your area is legal.
The tax collection, the upcoming insurance, and housing maintenance don’t scare you.
You will be able to rent out your property with a light heart, knowing that strangers will stay in your home.
Potential guests have an opportunity to receive your answer almost immediately. A qualified assistant can also be helpful.
You have enough time to plan your rental business growth or funds to hire an Airbnb manager for help.
A rental house is completely ready to receive visitors right now.
You want to do business safely, with guarantees and insurance.
Advantages and Disadvantages of Doing Business on Airbnb
Partnering with Airbnb in your rental business, in addition to a source of extra income, can be useful for the following reasons:
Clients will find you by themselves. You don’t need to search. Guests from all over the world can watch your Airbnb ad and relax in your area.
Free listing. You don’t have to pay for posting your advertisement on Airbnb.
Clients check-up. A guest profile can give you useful information about a person who intends to live in your house. This will also serve as the basis for your acceptance or rejection.
Competitors analysis. You will be able to look at similar offers from tenants in your area and increase your competitiveness by applying a loyal price or offering additional amenities to customers.
Protection. Hosts on Airbnb receive a damages guarantee in the event of a visit by a dishonest guest (in some countries).
Safe financial transactions. Guests pay for the service through the Airbnb platform, where everything is fair and secure.
Sharing travel experiences. Broadcast knowledge about your culture, places of interest to people around the world.
It’s also worth mentioning some downsides Airbnb hosts can face:
Your home is always in sight. It would be great if all people were honest and had good intentions. But you cannot be completely sure, whether potential thieves are looking through your home.
Negative feedback. Each client, who visits you, can rate your property or the owner himself. These reviews are not always objective. But they can spoil the following guests’ opinions.
Requires extra time to maintain an account. Fresh photos, colorful descriptions, current prices on weekdays and holidays — the owner needs to visit the profile regularly.
Additional costs. Rental housing in some regions requires an appropriate license. You may also need additional insurance. Plus the 3% platform fee also contributes its share in costs.
How to Start Your Own Business on Airbnb
Hosts need to be well-prepared before they start posting on Airbnb. The entrepreneur must familiarize himself with the rental business legality in his area, obtain the necessary permits. On the financial side, the landlord must have money reserves to pay all the necessary documents, prepare the vacation house for rent (updating communications, repairs, buying furniture, etc.).
You need to decide whether you will run the business on your own or need a competent person. Also, you may hire a professional photographer to showcase your interior for a successful portfolio.
What are Airbnb’s Host Requirements?
Almost anyone over the age of 18 can start an Airbnb business. However, the platform values its reputation, so it requires hosts to follow some tips:
Respond to guest inquiries within 24 hours.
Avoid cancellations caused by owners.
Update the calendar to include non-rental days.
Maintain a high rating, work on the guests’ negative comments.
Failure in complying with these requirements may result in the landlord’s fines.
Things to Consider Before Dealing with Airbnb
The homeowner has also to address several important issues:
Obtain a business permit, certificates from local authorities: a cooperative council or a homeowners’ association.
Find out the percentage of taxes to pay as an Airbnb business owner (if you rent out a house more than 14 days a year).
Get home and business insurance, if necessary.
After careful document preparation, you can start creating a profile on the platform. Pay attention to its design. Your property photos should be attractive and your face in the profile looks friendly. Try to describe a rental house positively. However, you should not invent non-existent amenities or fittings so as not to get a bad guest review. Better take care of home furnishing.
What Can Help with Your Airbnb Business
Don’t be scared of the inability to manage your Airbnb business. There are special companies, where you can hire a manager to help with your rental job. This person will be responsible for incoming requests, meeting guests, managing the cleaning and maintenance of your home. Of course, this will require additional money.
Otherwise, you may install the application from the official website hostyapp.com, which will become a “right hand” in running your business. The program brings some automation in daily tasks:
collects requests from all your Airbnb accounts;
consolidated information about current and future reservations;
generates analytical reports about your income, maintenance costs, and much more.
Airbnb property management software allows hosts to balance their day-to-day work in short-term rentals, streamline current processes, and keep them efficient. Now you won’t get confused about the terms of booking or income and will always stay in touch with potential customers.
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