Airbnb started in 2006 with three guys who couldn’t pay rent in their San Francisco apartment. In order to make their rent, they started renting air mattresses to travellers. Today the company is worth 10 billion dollars.
Airbnb may have had humble beginnings, but there’s no denying that they have changed the travel industry forever. What this means is that travel is more accessible – but it also means that it’s easier than ever to make an income off of your space.
If you’re looking to get into short term rentals and improve your cash flow, Airbnb is a great place to start.
Before we dive in – while being an Airbnb host is amazing, we won’t pretend it’s all rainbows and sunshine. We won’t deny that running an Airbnb comes with its risks like damages to property or unruly guests. Understandably, a lot of hosts struggle to get over the “what-ifs” and fully understand what they’re getting into when listing their home on short term rental sites. (By the way – if you’re interested in learning more about Airbnb risk management, check out our guide here)
Here are a few things you should think about if you want a better idea of what being a host entails!
You’ll be busy!
If the goal is to get the most bang for your buck, you’ll want to have a high occupancy rate at your rental. With a high occupancy rate, you’ll have a lot of guests coming and going which can take up a lot of your time, especially in the beginning. Even after you have all your procedures down for check-in, checkout, and cleaning, you’ll constantly be on call for guest emergencies that might come up. Be sure to consider how much time it will take to maintain and host a successful Airbnb rental. Always have a plan in place to ensure things can run smoothly.
You’ll be hosting strangers.
Airbnb has put a lot of safety measures in place to protect guests and hosts. For example, hosts can ask travellers for verified ID before accommodating them.If the thought of hosting strangers makes you feel uneasy, there are extra steps you can take to make sure your property is kept more secure while you have guests. Always asking for ID, reading your guest’s past reviews, and installing exterior security cameras is a great way to keep your property secure and it allows you to monitor who enters and exits your Airbnb.
You’ll have to figure out your pricing.
Once your BNB is listed, it may take some time to find the optimal price point for your rental. Too high, you’ll likely discourage a lot of potential guests who aren’t willing to spend the money. Too low, you might not make enough profit to sustain your rental. Even after you think you have found the perfect listing price, you’ll want to constantly monitor competitor rates and other special events that may affect your listing in order to maintain optimal pricing for optimal profits!
Have more questions about listing your property on Airbnb? We’d love to answer them! Reach out to us for a consultation. We’ll walk you through the Airbnb process and help you figure out the best plan of action for your vacation rental.