How to start an Airbnb business
Fancy earning money from your property? Find out how you can start an Airbnb business.
Although a comparative newcomer, Airbnb has already made a significant impact on the vacation rental industry. With over 7 million listed properties in 200+ countries, the competition is fierce. If you’re looking to earn good money with Airbnb, here’s all you need to do.
Find an ideal property
It all begins with finding the best suitable property. Do you have a spare property or are you looking to get one on a lease? Airbnb listings vary from the renovated basements to newly built full-serviced apartments.
An ideal property must have a design that promises comfort and functionality. Your potential guests vary from solo business travellers to families & friends looking for a perfect holiday home. From penthouses to studios, all work out well for different guests.
Before a property gets listed, it requires inspection and approval from the Airbnb team. There are certain industry standards that your place must match. It’s worth noting that the most sought after Airbnb listings are fully serviced; you will require to renovate the space.
Choose an ideal location
The location of your property is one of the most important factors deciding how well you will sell on Airbnb. If you are looking to rent out space you already own, you don’t have much choice. However, if you’re looking to buy a new place or get one on a lease, you must decide on the best suitable location.
The ideal location depends on the group of guests who are your primary target. For example, business travellers prefer to rent out a place in the city centre. Whereas, families prefer a more tranquil locale.
International guests are more likely to choose a hipster area or a vicinity with a buzzing tourist scene contrary to domestic guests. Pricing is another chief factor to help you pick the best neighbourhood as a host.
Hosting a place in a posh neighbourhood or an extremely remote locale will amount to a higher maintenance cost. This, in turn, will significantly change the renting price for your guests. The location is a prime parameter that divides budget travellers and those willing to splash the cash.
Familiarise yourself with local rental laws
The best way to get it done smoothly is by seeking the aid of a property management agency. Other than basic rental laws, there are other issues that need acknowledgement such as Covid-safety protocols, health and cleanliness standards, sustainability.
Check with your local government to learn more about the rental laws in your city. You may also choose to register the business as a legal entity to help you avoid liability in case you get sued for your AirBnB business.
Target the right audience
While a ‘one place for all’ listing sounds tempting but it is not feasible. Depending on several factors such as location, size, city, pricing, amenities, design; a property serves the best interest of a particular community. Here’s what different guests seem to like:
- Solo business travellers: Business travellers are usually looking to book a place for 2-5 days. They prefer a fully-serviced studio or 1 bedroom apartment. A work desk, strong wifi, power backup are primitive requirements of biz travellers. If you have a small, well-furnished unit in a quiet locale, your main focus should be entertaining guests visiting the city for work.
- Young group travellers: A group of young people seeks a buzzing nightlife scene, fancy restaurants, clubs and parks nearby. Such guests might not be the pickiest, it is fairly easy to entertain them in a hospitable environment with minimal interference. If you have extra space where an extra bed/mattress can be provided, get ready to host young, wild and crazy ones.
- International tourists: These guests look for two things – a touristy and safe vicinity. Safety is the main concern for people visiting from other countries. International travellers are looking for a friendly and clean neighbourhood that is not too far from the city centre and airport.
Other requirements include upscale markets flooding with restaurants and street shopping counters. These guests are looking for a place that makes a nice home in a foreign land and offers an authentic cultural experience.
- Family: Hosting a family is both easy and difficult. If you have a large place furnished with modern amenities, families are your ideal guests. Such guests look for comfy furniture and a well-functioning kitchen. Pet-friendly apartments appeal to a wide range of families looking for an Airbnb vacation rental.
- Budget travellers: These guests are willing to make compromises on anything if it saves them money. Such travellers usually look for a place away from posh localities. Other must-haves for such travellers are easy access to public transport and cheap street food stalls. If you have a non-fancy listing away from the city centre, get ready to host budget travellers.
- Experience seekers: This bunch of guests are passionate travellers. They are always looking for some kind of experience – art, theatre, culture, outdoor, culinary etc. If you have a listing that promises one such experience, get ready to host some of the most interesting people from around the globe.
- Luxury travellers: The elite group of travellers look for everything grand. If you have a beautiful property ornamented with famous artworks, king-sized beds, fancy amenities, expensive and tasteful furniture; you’ll attract a number of luxury travellers. Historic villas with pools and full-time service make the cut for such guests.
Reaching out to the correct audience is essential to trigger a higher booking rate. Social media platforms such as Instagram and Facebook are additional places to advertise and connect with the target audience.
Act like a rentrepreneur
Now that you have a property ready, all you need is the vision of a “rentrepreneur” to become a super host in no time.
- Sell an experience: Guests prefer Airbnb over Hotels in the hope of finding ‘home away from home.’ Always ensure that you are available to answer any queries, communicate and welcome your guests in person. Share stories that make your Airbnb listing a unique experience.
- Pricing and scaling: Choosing the right price depends on various factors such as the area of your listing, location, renovation cost, maintenance cost, service cost, taxes and valuation of amenities.
- Make an outstanding listing: Hire a professional photographer to get the best shots of your place. Make your listing stand out with informative description and high-quality pictures. Ask your guests to leave feedback and reviews. Take time out to personally reply to your guests.
With the world fighting so impressively with the Covid-19 pandemic, it seems like a matter of time before travel returns to normality. As the industry prepares to bounce back from a huge loss, the timing could not be better for you to start your Airbnb journey as a host. Follow our guidelines and you’re all set for an excellent start.
We hope this article answers any question that you had in mind about starting your own Airbnb business.