challenging, but the target is well worth the effort. Indeed, once you have ensured that your short-term property rental business works smoothly and efficiently, you will revel in a steady guest flow. The matter is that not every owner, willing to lease out their real estate on Airbnb, has enough knowledge to make their business effective and lucrative. In this guide, we will tell you what it essentially takes to make a killing on Airbnb.
Your opportunities in the hospitality business are ample. Even a tiny hut on a bench of a tranquil picturesque lake can bring pretty good cash. Everything depends on your plans, assertiveness, organizational skills, and sufficient time to devote to your endeavor. You can become an individual host periodically lodging one spare nook in the home to cover personal utility bills or grow into a full-fledge property supervisor with multiple listings requiring professional management. Generally, there are five types of hosts marketing their properties on Airbnb:
- A profiteer. It is a host who just seizes the chance to make a decent buck by lodging the property during a high season when adventure-hungry tourists invade the city to the max and generously throw the cash around. For a profiteer, short-stay vacation rentals are not the main source of income, yet a brilliant opportunity to make quick money.
- A room-mate. It is a group of hosts who have a vacant space in their homes to lease out, thus remarkably cutting household bills and making new friends.
- A landlord. It is an individual having one full-featured property for rent around the year. The landlord considers such a business as a main occupation or a big boost to the basic income. This host will thoroughly screen the guests and strive to stay compliant with the local hospitality legislation.
- A large-scale host. Such a person runs several rental properties and is busy with their Airbnb business full-time. Large-scale hosts have lots of responsibilities to control: from booking management and property cleaning to streamlining customer relationships and handling documentation.
- A professional vacation rental manager. It is an individual who has multiple (more than 3) short-term vacation properties for rent. Such a manager works in the hospitality business full-time or even establishes an appropriate agency with lots of organizational and supervising procedures to tackle.
Now, when you know what type of Airbnb hosts you want to become, you can leverage these smart tips to put your short-term vacation rental undertaking on the road to prosperity.
The property renting business is thoroughly controlled by the government, and attempts to avoid paying income duties can result in serious penalties. For example, some jurisdictions oblige Airbnb hosts to pay occupancy taxes while others even prohibit leasing any property out without the written permission of the neighbors. In certain regions, subletting premises in condominiums is not allowed if the primary resident is not present during the whole stay. Many USA cities also require Airbnb entrepreneurs to acquire corresponding licenses.
Starting a business on Airbnb is not only about having an entrepreneurial spirit and a desire to crush it. It is also about having a clear picture of how your business will grow and what outcomes it is supposed to bring to you. Ask yourself: will you have time and willingness in the future to address all the issues that will immediately arise such as property damages, steals, inadequate clients, and just huge demand fluctuations?
Running a successful business on Airbnb is fiendishly time-consuming. You will have to quickly reply to inquiries (low response rates badly affect your ranking on the platform), administer reservations, outsource third-parties for cleaning and maintenance, process documents, submit financial reports to the tax authority – your range of responsibilities is going to be enormous. To protect themselves from such a headache, professional Airbnb hosts apply to sophisticated vacation property management software. Such software will automate most of the routine Airbnb procedures including booking management, automated responses, task allocation, and report generation for highly efficient property management.
Even if your property is not located in the very heart of a prestigious uptown, it does not mean that your guests will not enjoy the stay. You as a host should do your utmost to ensure a great customer experience by stuffing your place with all the necessities, maintaining everything in proper condition, and providing all modern home comforts. If your guests feel good and safe while staying within your confines, they will keep referrals coming.
While it is quite easy to keep everything under control with a single rental property, problems grow like a rolling snowball when managing a bunch of properties. To make sure all the systems across all your properties work at the peak of their efficiency and all the rooms are clean and shine, it is wise to hire dedicated cleaners and maintenance workers to help you spruce up the premises and earn a five-star rating on Airbnb.
Appeared just 12 years ago, Airbnb has revolutionized the nature of the short-stay property rental market. Now essentially anyone can run a successful business on this platform and make whooping good money, provided the host meets both the customers’ expectations and obeys local hospitality/tax legislation. The path to success on Airbnb may be thorny, but like in any business, you just need to back yourself with knowledge, time, patience, and some shrewdness to blossom out.