Secrets to being a successful Airbnb hos
Airbnb the popular short-term home rental site offers hosts and guests a unique opportunity. The company was founded in 2007 and has since expanded to almost all countries. As of September 2020 the platform includes over 4 million hosts 5.6 million active listings and more Over 800 million occupancy. 1
The site acts as an online accommodation marketplace allowing landlords to list rental spaces ranging from private rooms to entire houses. If you have space available Airbnb might be your chance to bring in some extra income or even turn it into a full-time business.
The Popularity of Airbnb
Diverse accommodation options competitive prices and an easy-to-use platform all contribute to the company’s success – evident through its rapid growth. According to Airbnb there are active listings in 100,000 cities in over 220 countries and territories (as of September 2020). 1 Interest in short-term rentals and home sharing has also increased in 2020 as people work from home and with many offices closed more people become “digital nomads”.
Airbnb gives travelers the opportunity to experience an area as a local and often offers more privacy than hotels. Many guests are drawn to unique accommodations such as tiny houses boats castle yurts and tree houses. Airbnb is generally a budget-friendly option because of housing costs Can be split between groups and kitchen access can help reduce meal costs.
The Opportunity of Airbnb Hosting
According to Airbnb as of October 2020 hosts earned more than $110 billion in total through the platform. The company estimates the average annual income of landlords to be $7,900.1
Airbnb hosts make an average of $924 a month with a median monthly income of $440 according to data from lending company Earnest. The company reports a wide range of hosting revenue some of which are over $10,000 a month while others are under $200.20 a month
Using Airbnb hosting can also lead to other opportunities such as encouraging more travel on your own through the connection you create with your guests or the ability to buy and rent more properties.
How Airbnb Hosting Works
Creating a listing is the first step in getting started with Airbnb. We’ll go into more detail on how to make your listing stand out later but you need to include all the basics and provide well-lit photos that showcase the space and emphasize what makes your listing unique.
You decide how much to charge for your listing and you can change your rate based on the day of the week or time of year. 3 The platform offers an optional smart pricing tool that automatically adjusts your listing rate factors based on seasonal and other demand in your area. posting a After booking listings on Airbnb are free and the company charges hosts a 3-5% service fee. 4
Airbnb offers the Host Guarantee which provides up to $1 million in property damage protection and Host Protection Insurance a liability insurance plan that provides up to $1 million in liability coverage. Certain countries and plans are exempt from coverage. 5 You may wish to Buy additional insurance.
Home insurers have various rules about short-term rentals and what they will or won’t cover. Some insurance companies offer special policies for short-term rentals. Check with your insurance company before escrow to make sure you understand your policy.
Measure your commitment to the Airbnb business
Before signing up as an Airbnb host familiarize yourself with the challenges a host may face. There are logistical issues to consider and the time commitment required to provide great customer service to your guests.
Do You Have Time to Host?
Creating a successful Airbnb hosting business takes effort: in addition to responding quickly to booking inquiries you need to be on hand to answer any questions your guests may have during their stay. Cleaning the space between bookings and making any necessary repairs will also work time consuming.
If the extra cost is worth it to you to relieve some of your hosting duties you can always sub-contract cleaning and maintenance duties.
Be Sure You Can Rent Your Space
From municipal laws to rental restrictions and community expectations make sure you clear any potential hosting hurdles before you start posting on Airbnb.
Depending on where you live country-city or property-level requirements may apply. Registration permits or licenses as well as safety certifications and additional insurance may be required. Airbnb provides resources to help hosts understand location-specific regulations and Host clubs are encouraged to make efforts to contact local hosts who can share information. 6
Have You Counted All the Costs?
Make sure to approach your hosting with a business mindset. Develop a business plan and set realistic financial forecasts and expectations before you start. Decide in advance how much time and effort you want to invest in your business.
You’ll need to factor in extra costs such as increased utility bills extra laundry and any homey services you provide such as coffee or snacks. The price of any necessary proof of obtaining a business license or additional insurance will also add up. Track your hosting costs Have a budget and save receipts for tax time.
Airbnb income tax must be charged to guests in certain regions. The type of tax and how it is collected depends on the location. It is recommended to include details of any necessary guest taxes and fees in the listing description.
Steps to a Successful Airbnb Business
We’ll discuss what you can do as a host to make your Airbnb business more successful. Having an engaging description well-placed photos and a high host rating all help make your listing more attractive to potential guests.
Prepare Your Airbnb Listing
A good list includes accurate descriptions and basic details about all the space’s important information – how many rooms and bathrooms there are what amenities guests have access to and what’s nearby the property.
Detail things that affect guests such as stairs and parking spaces and be upfront about any quirks your property may have. Think about what makes your listing unique and include it in your listing title. Is it walking distance from the city center or there is a huge courtyard?
You need high-quality photos of your listing so make sure your space is clean and include photos of each area before taking photos. If the space is dark try using natural light or adding professional lighting and take the photo in landscape orientation.
Imagine yourself as a guest in the space and recommend Airbnb host Sara Tyndall accordingly in your email with The Balance. She stressed that cleaning is a must.
Tyndall has been listing a room in her apartment on Airbnb since 2014 and says she really enjoys hosting as a part-time activity.
Additional measures such as offering local snacks or a bottle of wine can help make guests feel at home. Ask guests ahead of time if they are celebrating a special occasion during their stay – hanging a congratulatory banner can help create a festive atmosphere.
Improve Your Host Rating
Positive reviews will improve your host rating and your search ranking on the Airbnb website and can help you get more bookings in the future. Airbnb cites the following as important factors in getting good reviews: Cleanliness Provides Basic Amenities Accurate Listing Details Fluency Check-in process and proactive communication.
Tyndall says she lets guests direct the level of interaction they want since some will want to have a conversation while others prefer to be alone.
She said she would ask potential guests questions ahead of time to see if they would be a good fit and let them know her expectations such as not going to parties and keeping common areas tidy.
Grow Your Business
Once you get comfortable with hosting on Airbnb and find a routine that fits your lifestyle you can expand your hosting into a full-time business. Depending on your goals you can even continue to grow your business by adding more properties to adapt your hosting to suit each goal listed individually.
Hosting with Airbnb offers an opportunity to generate additional income on your own terms with spaces that might otherwise be vacant. The platform allows landlords to tailor the situation to the conditions that best meet their needs and expectations. It’s up to each moderator The growth of their business is in their own hands – take it as a part-time job or expand their business to earn more income.
