So, you’ve got a sweet property and you want to rent it out to guests with as little hassle as possible, but you are not sure what to do. Airbnb enables you to rent out your properties to clients with little effort. In no time, you can earn revenue on a rented property and let Airbnb’s instant booking handle all of the reservations.
You may be seriously considering becoming an Airbnb host. With the world reeling from the COVID-19 pandemic over the last 12 months – and continuing in the future – it is likely that travellers will seek out Airbnb accommodation rather than staying at hotels. You could make a considerable amount of income by renting out a property. Here, you will learn how to become an Airbnb host and begin making money off of your property.
Although you are gung-ho about adding your property to Airbnb, you need to pump the brakes a bit. There are some things you must consider before adding your apartment or house to the website. Regardless if you just want to make some extra cash or to go all-in at making money off of renting out your property, you need to consider the same things everyone does.
Firstly, consider how long you want to be in the Airbnb game. Is this something you want to do for the long-term or is it a short-term way to make some quick cash off of your property? If hosting a property is a long-term plan, then you need to be ready to deal with guests and their issues.
Research how much money you need to invest into an Airbnb property to rent it out and what you need to earn to make it worthwhile. The risk may not be worth the reward. Just because you advertise a property on Airbnb doesn’t mean people will rent it out.
Complete strangers will be renting your property. If you list your home while living elsewhere, you need to be aware that strangers will come into your house to live. Being uneasy about travellers living in your home is understandable. You may decide Airbnb isn’t for you knowing that a stranger is sleeping in your bed or sitting on your sofa. How realistic are you about the commitment?
Airbnb seems like a great way to make money. The problem many hosts quickly discover is that they realise the commitment is more than first expected. You need to take a hands-on approach to renting out the property. You will need to be in communication with renters and available for their every need.
Okay, so you are ready to list your property on the Airbnb website. You don’t magically begin receiving bookings overnight. If you follow these steps, hopefully, it won’t be long until you are turning potential guests away due to consistently having your property booked.
Along with great photos and an insightful description of the property, you need to make sure your listing is different than others in your city, neighbourhood and local area. Travellers may pick one property over a similar one due to one small aspect, so your listing needs to standout.
Of course, make sure the photos are great and the description is flowery. Consider what type of images would inspire you to book the property for a holiday. You want the guests to take photos of the property and post them on social media. That is the best advertisement you can get.
Discover who your target guests are and market towards them. Do you want to attract families, backpackers, solo travellers, or someone else? By knowing your target market, you will be able to create a listing that attracts the right guests. Make simple to follow house rules
All Airbnb listings have house rules that the guests must follow. These should be as simple as possible with no grey areas. Some listings have too many rules which turn off travellers – especially if they have read some unflattering reviews. You should make the rules of what is off-limits from the start such as smoking, parties, etc.
Your motivation for being an Airbnb host is likely to make money. However, if the price isn’t right from the start, you can end up losing money as the property doesn’t pay for itself. Even if it does pay for itself, the commitment to letting it out may not reap enough rewards to make it a long-term venture.
Getting the price right isn’t just a one-off deal. You will need to research, update, and adjust the price over time. Travellers may believe your price is too high for the property, location, and destination. This will mean the property is empty more times than it is occupied.
If you price the property to low, it may be occupied nearly every day of the week, but you won’t get the full amount you should receive for it. There are third-party groups out there that help Airbnb hosts optimise their property pricing to earn the most profits possible. Airbnb does offer a pricing recommendation for your property that is based on various metrics. However, some hosts believe that the company recommends properties at lower prices to influence more travellers to book them. Keep in mind that Airbnb makes money regardless of your profits. Therefore, it wants to maximise bookings and not the money you make off of the website.
The good news for prospective Airbnb hosts is that there is money to make off of renting out their apartment or home. According to reports, the average Airbnb listing makes around $14,000 US a year in gross revenue. That is before expenses. It is a nice windfall of cash and managing a single property can be done easily by one person. If you have a day job and hosting an Airbnb is a second job or investment, then you may need to bring someone else into the fold to run it smoothly.
The busier your property is, the more work you will have to do. Eight to 10 bookings a month is considered a lot, although not all properties will receive this many per month. You may have multiple properties to list on Airbnb and if they are regularly booked, you will have little time to handle everything.
You need to become more efficient to handle all of the work. By using similar templates to handle issues with guests, you will optimise your time. In addition, adding elements to properties such as smart locks and remote check-ins allows you to free up your time. You won’t need to meet and greet every single guest.
Answering guest emails can take time. Adding an automated email response or having stock answers to questions saved to send when needed can save you hours. You may need to pay money for certain automated systems to make your property listing run smoothly. To continue to make money on your listings, you will need to spend money. Don’t be afraid of spending a bit of cash. Finally, don’t try to do every little job to take care of your property or properties. Get professional cleaners and individuals to do work that needs to be done. Three steps to Airbnb hosting
Once you have decided to put your property on Airbnb, the good news is that there are three simple steps to list it. Listing your property is free. You need to determine the type of hosting you prefer. You can decide to list it on your own schedule, price, and requirements for guests. Once your listing is live on the Airbnb website, you can welcome guests who are qualified to book the property.
It is simple to become an Airbnb host. You should review the standards and guidelines set out by the company before joining as a host. In addition, the company offers insightful information on safety, security, and other areas.
One fear that many potential Airbnb hosts have is that their property will be damaged. The good news is that the Airbnb Host Guarantee provides a safety net to property owners. The scheme offers hosts with $1 million worth of protection. The money will cover any damage the property incurs from a guest. The guarantee kicks in if the deposit paid by the guest is exceeded by the damage. Hosts need to read the protection guarantee carefully as with all insurance plans, there are exclusions.
Airbnb makes the whole listing and rental process quick, secure, and easy to do. You are always in control of availability of the listing along with the price and how you communicate with guests. Airbnb really leaves a lot of the work up to you and allows you to manage things the way you see fit.
All Airbnb guest bookings require specific information when the reservation for a rental property is made. Information must include a confirmed phone number and email address. Guests may also need to provide a verified ID and recommendations from other Airbnb hosts from previous stays.
Airbnb is a great way to make money off of an extra property or on your own home when out of town. It is also a great way to make money off of a property investment. So, what are you waiting for? Airbnb hosting is easy and you can have your property listed in no time.