You may be thrilled at the thought of turning your vacant property into a cash-generating asset. But there’s more to it than that. There are some important things that you must know about Airbnb before diving into the business. CoCal Design Co explains thoroughly.
Experience of an Airbnb Host
Before joining the bandwagon of property owners listing their properties on Airbnb, there are some important things you should know about Airbnb rentals. In addition, renting out your vacation house or rooms in your own home is a business activity. And also, every business needs a lot of research and preparation.
As a frequent traveler and Airbnb host, there are lots of things I realized and experienced about Airbnb. And I want to share what I wish everyone knew about Airbnb rentals before renting out their property. There are, of course, some things you must know about Airbnb.
What you need to know about Airbnb rentals
Before diving into opening your own Short-Term Rental (STR), we listed some things that you things you must know about Airbnb.
How Airbnb Works
Airbnb is one example of a sharing economy. In addition, it provides an online platform for property owners who want to rent their properties to other people.
Airbnb Rules For Hosts
Airbnb requires hosts to provide essential amenities and respond to guests. Also, Airbnb also encourages hosts to accept trip requests and avoid canceling bookings and provide high-quality stays to guests.
How Hosts Get Paid And How Much You Can Make
Airbnb will release the payment 24 hours after your guest’s arrival. In addition, Airbnb will transfer the payment through Paypal or direct deposit to your bank account. Furthermore, according to Priceonomics, Airbnb hosts earn an average of $924 per month. But that differs from host to host, as the amount you will earn by renting out your apartment will depend on various factors.
Factors That Affect How Much You Will Earn In Airbnb
- Frequency of bookings
- Calendar Rates
No matter how small or big the space you rent out, renting out a space is still a business venture. Also, IRS has particular laws about short-term rentals like Airbnb. Rental income from Airbnb is taxable except for Airbnb accommodations rented less than 14 days a year.
Local home rental laws and regulations
Before applying as an Airbnb host, you need to ask permission from your landlord if your home is under a lease. If your neighborhood is under the supervision of an HOA, you also need to get permission from HOA. Lastly, you need to check with your local government for the permits needed.
What are the expenses of having an Airbnb?
Turning your home into an Airbnb accommodation requires preparation and expenses. Also, to entice Airbnb guests, you need to make your property as pleasing as possible.
Expenses of Keeping Up an Airbnb Accommodation
Amenities and Supplies
As an Airbnb host, you must provide the basic supplies and amenities to your guest. And, furnishing your listing with extra amenities and supplies guests usually look for makes your listing more competitive.
Expect your utility bills to rise whenever Airbnb guests are staying at your home or vacation house.
Cleaning and Maintenance
As an accommodation provider, make sure your property is properly maintained. Cleaning and maintaining your property may need you to hire workers such as:
- AC Specialist
Amenities and Supplies for Airbnb
Though Airbnb only requires hosts to provide basic supplies and amenities, it is still recommended to equip your listing with amenities that will appeal to guests. Moreover, a well-equipped home that provides comfort, convenience, and safety will be a hit with guests.
Basic Supplies and Amenities
Airbnb requires hosts to provide a minimum of these basic supplies and amenities to guests:
- One towel per guest
- One pillow per guest
- Toilet paper
Other Supplies and Amenities
Being extra goes a long way. Also, most guests look for accommodation that provides hotel-like amenities in the comfort of a home. And, according to Airbnb, here are the amenities and supplies guests want:
- Air condition
- Free Parking
- Pet-friendly accommodation
- Hot tubs
- Multi-surface cleaner
- Disposable gloves
- Disinfectant wipes or spray
- Hand sanitizer
Safety and Security
As a responsible host, your guests’ safety and security should also be a priority. Furnishing your home with these items will help protect your home and guests in case of fire, accidents, and emergencies:
- First-aid kit
- Fire extinguisher
- Emergency plan and local numbers
- Smoke and carbon monoxide alarm detectors
Your Insurance Coverage
Whether renting out the entire property or a single room, it is still a business activity. In addition, your standard homeowners’ insurance plan does not cover business activities. So, that’s why it is important to secure additional short-term rental insurance coverage to protect you from sudden financial expenses related to liability claims and property damages.
How To Make Your Listing Stand Out
There are more than 6 million Airbnb listings, and the competition is pretty high. In addition, to make your listing stand out, you need to provide value to Airbnb guests. So, here are some ways to make your listing stand out:
- Adding up amenities
Results from the consumer survey commissioned by Airbnb in the United States showed amenities had high significance in the travel experience of 97% of US travelers.
- Detailed listing description
A detailed listing description helps hosts secure bookings. An honest and detailed description of your property helps set the expectations of guests on what to see when they arrive on your property.
- Be a hospitable host
Good hospitality provides a better travel experience for guests. A well-satisfied guest will give you positive reviews which will help your listing secure more bookings.
- Make it unique
With over 6 million listings available on Airbnb’s platform, being unique will help catch the attention of guests.
Airbnb House Rules
Airbnb hosts must provide house rules to guests. House rules provide information to guests on what you allow in your home. Providing welcome how-to guides about your home, appliances, and furniture helps guests move around your home easily and prevents damage to your property.
How Reviews Work
Airbnb allows guests to write reviews of their stay. Getting positive reviews from previous guests increases your rank on Airbnb, thus a higher chance of getting booked. Also, providing an Airbnb review of your guest can also help you get booked. This shows how engaged you are with your guests.
Starting Your Own Airbnb
Airbnb hosting can feel intimidating. You might be worried that you are a little old, or it’s just not your kind of thing, or you’re past it.
But a lot of people, regardless of age, are using Airbnb as a way to make extra money, and it really isn’t as hard as you think. There are plenty of listings to get ideas from, but of course, there is also tons of info on the site. Who better than an experienced Airbnb host to tell you about hosting?