Would you be interested in renting your home on Airbnb? Feeling uncertain? If you are considering listing your home on Airbnb but aren’t sure if you should do it just yet, you are not alone.
There are several things to think about before deciding whether to offer your house on Airbnb. Let’s go over some of the tactical options to consider when creating an Airbnb account.
Why rent your home on Airbnb?
In the short-term rental market, renting your home on Airbnb is one of the biggest and most well-known online peer-to-peer marketplaces. Its extensive selection of housing options, affordable prices, and user-friendly platform all attest to its quick growth. Consider the following data from search logistics:
- More than 1 billion nights have been booked on Airbnb by its more than 150 million customers globally.
- Every second, 6 people check into an Airbnb listing.
Let’s take a look at a few things you should think about before placing that welcome sign outside of your Airbnb property.
1. Get your property ready
Before renting your home on Airbnb. you must first do some research on local demand before you begin remodeling your rental property. You can start with a disadvantage if your house is not near a popular Airbnb destination.
Next, make sure your rental can function lawfully. Spend some time determining whether hosting is permitted in your area and what conditions you must satisfy.
And even while you might be able to greet visitors without taking this step, it could spare you trouble in the future. Check the regulations and legislation that are upheld by landlords, condo boards, and homeowners’ organizations as well.
If you want to rent your home on Airbnb, consider the laws and regulations in your area.Marketing Seas Team
Find out which local rules and ordinances apply to your home based on where you reside and the type of property you own. You need to be aware of the local legislation in your city before determining whether to sign up for a host and rent your home on Airbnb.
Several localities have regulations that limit your ability to temporarily host paid visitors. These regulations are frequently included in a city’s administrative or zoning codes.
Short-term reservations may not be listed at all in some circumstances. Across localities, there are significant differences in how these laws are applied. Penalties can take the shape of fines or other types of enforcement, which occasionally include a period during which you are not allowed to rent out your home at all. Please verify your local laws first before renting your home on Airbnb.
On the Airbnb website, under the city regulations section, go to the Responsible Hosting page to learn more about the rules and laws that apply in your city. It is usually preferable to use the formal method to prevent any unwelcome legal headaches.
2. Learn about taxes!
Depending on how much money you made by renting out all or a portion of your home, you can receive a tax form when you list your property. Even if you don’t get any documentation, you still need to record your income. When weighing your costs and possible earnings, this should be considered.
In certain areas, Airbnb hosts could have access to a collect and remit feature to manage occupancy tax. Local variations exist in tax categories and methods of collection. Any applicable guest taxes should be stated in the listing description.
One benefit of renting your home on Airbnb would be that you would be able to deduct your mortgage interest from your taxes. But, you must determine the portion of the cost that you can write off based on your occupancy as opposed to that of your visitors. When you file your annual taxes, don’t forget to include this.
Speak with a tax expert to find out the deductions you qualify for.
3. Get insurance for you property
Renting your home on Airbnb cannot be easy as you might think. There are horror stories about unpleasant visitors, damaged furniture, and run-ins with the police for every success story.
Make sure your insurance covers your new business to protect your investment. The automatic liability insurance that large firms like Airbnb, HomeAway, and Vrbo offer to every host covers up to $1 million, but there are restrictions, and it can be difficult to make claims.
Get short-term rental insurance if you’re concerned about being stuck with a payment for some pricey accidental damage. Also, it’s a good idea to carefully examine the terms of your current homeowners’ or renters’ insurance policy before you start hosting visitors. Some policies have clauses stating that additional renters may void your entire coverage.
4. know how Airbnb works
In order to rent your home on Airbnb, one of the most crucial jobs is to have a thorough understanding of Airbnb’s operations. Learn about the procedure and prerequisites. The Airbnb website offers this material for free, and you can also take the time to join online host communities and discussion forums on Facebook and LinkedIn.
Understanding how other hosts run their businesses and the typical problems and solutions they have found useful would be quite beneficial, especially when starting. This might be an excellent resource.
5. Make your property shine
Renting your home on Airbnb is a matter of quality. Because one of the qualities guests look for in an Airbnb rental property is cleanliness. Keep in mind how crucial it is to offer every visitor a spotless, fresh property with crisp bedding. If you’re the one who constantly keeps things clean and fresh, it can be difficult.
It is worthwhile to hire a cleaning company to do the cleaning because they would do it professionally.
You always have the choice to add a cleaning fee to your listing so that it will be included in your price. Consider the general neatness and look of any area—indoors or outdoors—that visitors can view or access.
6. Get professional photos of your Airbnb
For Renting your home on Airbnb, you’ll need high-quality images. You might want to call the pros. According to research from Airbnb, postings with professional photos generate 24% more reservations.
When shooting images, be sure to decorate the property as if the first visitor were to arrive. Photographs need to be at least 1024 x 683 pixels and include multiple views of each room, as well as vignette detail shots. Fresh flowers or greenery also add a natural touch to your photos.
Make it genuine and be honest in the pictures. Make sure it’s good photography – fuzzy photos or pictures of the toilet seat up are not good! Don’t be stingy with the photographs; more is more. Your photos should look just like Airbnb looks when guests arrive there. You can’t glorify it and then have people disappointed.
7. Set up your price wisely
How much should you charge your guests to get them in the door after you’ve cleaned and staged your Airbnb to look like Instagram-worthy lodging?
To compare pricing, Airbnb advises looking for listings in your neighborhood that are similar to yours in terms of size, number of beds, facilities, and general vibe. You should also account for your cleaning fee, which you can either include in your rate or charge separately.
It is advised to start with a lower price to test the market, then monitor bookings to determine how to adjust the pricing.
Even if you believe your property is worth it, Don’t start too high. If you’re the new listing on the block, you may only be able to compete on price in the first instance – even if you have a fantastic location and fancy furniture! Since Airbnb guests heavily rely on reviews, you need to draw guests to book and leave reviews so that you can grow your business from there.
8. Establish an emergency support system
Renting your home on Airbnb requires an emergency support system. It is essential to have a strategy in place for how you would handle repairs in the event of an emergency. For plumbing, electrical, and other such problems, you must have handyman support available for emergencies. A pipe could burst, for instance, or you could require an electrician on site to fix a wiring problem.
Before putting your space on the market, build a rapport with reliable references. Make sure this handyman team is applauded and fairly compensated. One cannot overestimate the importance of a trustworthy and high-caliber service provider! If you can, hire locally. They will then have a personal stake in your company and be more motivated to perform well in a long-term business partnership.
In case of unforeseen circumstances, always have a backup plan in place. Although doing your best to abide by a disaster preparedness plan, you will need to recognize that not everything can be planned for.
9. Be prepared for extra tasks
One of the most important aspects of renting your home on Airbnb is organization. You need to streamline a few processes to run an effective business. These are a few things you should consistently monitor:
Always keep your calendar up to date. It can be aggravating for both sides when a prospective guest assumes a date is available but you neglected to note it as such. On your calendar, note the free dates. If you turn away fewer visitors, your listing on Airbnb will be ranked higher.
Instructions for the check-in: Try to be as specific as you can. Provide details like the address (including the precise GPS coordinates), parking information, lockbox placement, front door location, and entry instructions. Create a simple check-in map so visitors won’t have to message you with inquiries. Be open and honest about the checkout process, and make sure that guests are informed of all the steps.
Clear Communication: The foundation of the Airbnb platform is the host-guest relationship. Before and during any booking, make sure to communicate frequently. To receive a positive response rate, hosts must react to initial questions and booking requests within 24 hours.
House rules: Provide a binder with a list of your house rules that is easily accessible to all visitors. Common courtesy dictates that there should be no pets, no smoking, quiet hours, and no unregistered guests. You might add your general instructions as well as helpful details like advice on what to do in the area and emergency phone numbers.
10. Consider other marketing methods
Your property doesn’t have to be restricted to Airbnb. Also, you can advertise it on other websites like Expedia and Stayz. You’re not required to restrict it to tourists.
For some simple money, think about renting out your vacation home as a shooting location. You can meet influencers, photographers, and content creators that need to rent apartments for a short period through agencies and applications like iKollab.
You can try other advertising methods like social media marketing, Facebook ads, google ads among others.
Airbnb hosting may turn into a full-time profession once you find a routine that works for you. You could expand your company by adding new properties and modifying your hosting approach in addition to expanding your business. Whether you decide to keep your business a side hustle or grow it to generate more revenue, the choice of what to do with it is totally up to you.