Are you considering starting an Airbnb business, but you are not sure if it’s the right call? We might have an answer for you!
In this article, we are analyzing all details of entering the industry of short-term rentals. We will focus on the required steps to start an Airbnb business, costs, and other resources related to it, as well as how you can make your rental profitable.
Why Should You Become an Airbnb Host?
The majority of hosts might be in it for the money, but starting an Airbnb business has other benefits, too.
- It doesn’t have to be a full-time job – you can choose when you want to rent your property, and for how long, which secures flexibility.
- Pick your guests – it is up to you whether to accept potential guests. But if they seem like good people, you might even make new friends.
- Exchange opinions about your city and other topics – it is always interesting to hear tourists speaking about your city. If they are open to talking, feel free to discuss other topics, too.
Steps to Becoming Airbnb Hosts
The first thing to do is to determine the space you will be renting. Will it be a single property or multiple apartments?
Next, you need to acquire all permissions and licenses. That includes Airbnb verification, which is a way of protecting both guests and hosts from frauds, theft, and other potential problems.
Search the local area for similar properties and check out their prices and amenities. You want to ensure that your property is competitive and offers a fair price.
Pay special attention to the property listing, upload high-quality photos, and add an engaging description. Mention all amenities and everything that sets your listing apart from the competition.
Finally, you may consider promoting the listing. Paid advertising might help in the beginning when you still don’t have any reviews.
Costs of Opening an Airbnb Business
Before starting an Airbnb business, you should be aware it comes with certain costs. Your initial investments may include the following:
- Renter service fee – the regulations may require to pay a renter service fee. These are usually between 1-2%, but make sure to check your local laws to learn the exact rate.
- Renter insurance – it is an expense, but many consider it a mandatory layer of protection against things going wrong.
- Getting the apartment ready – you might need to buy new furniture or update the existing furniture. The apartment also needs towels, linens, and other essentials that guests will use during their stay.
- Amenities – a TV and Wi-Fi are considered basics these days. You can also consider other amenities, such as other gadgets, streaming services like Netflix, etc. Some of these come with a recurring fee.
- Cleaning service – you can do this yourself, but you should still invest in cleaning products. Cleaning is another recurring cost because you need to clean the property between visits.
- Taking photos of the apartment – it is always wise to hire a professional photographer to take superb pictures of your listing.
How Much Time Does Hosting an Airbnb Take?
Money should be a top priority, but running an Airbnb also takes time. First, starting an Airbnb business can take days or weeks. While guests are in your rental property, you need to be at their service. Experienced hosts advise to let them know they can call you 24/7. That means you can’t leave town because you need to be ready to come quickly if there are any issues.
Once the guests leave the apartment, you need to clean and get it ready for the next travelers. Although all these things are time-consuming, you will be able to handle them if you optimize your schedule.
Hiring a property management company could save you time as they will handle everything. On the other hand, that will increase your Airbnb expenses.
Another great idea is to take advantage of technology. That involves finding a software solution to automate guest communication, key exchange, etc. Using suitable software can save up to 70% of your time.
How Much Money Can You Earn as an Airbnb Host?
According to Travel + Leisure, earnings can vary from $200 to more than $10,000 monthly. However, the majority of hosts have a $500+ profit each month, which means this can be a source of extra income.
Your earnings will depend on many factors, including:
- Are you renting one or multiple Airbnb listings? The math is simple – the more listings you have, the higher your earning can be.
- Is your property open for renting throughout the year or only during certain months? If you want to maximize profit, keep your rental available whenever possible.
- Is the interest in your rental high? If the answer is no, you may need to adjust the price or work on your marketing strategies.
Starting an Airbnb business will take a bit of time, effort, and money. However, as long as you plan things through, this can become a stable income source. If you see that things are going well, you may even consider becoming a full-time host and maximizing your earnings!
Photo is pixabay creative commons
Guest Author Bio
Inna has 10 years of experience in marketing and content writing specifically. Currently, she is the Director of Marketing at iGMS, a short-term rental management software company.