If you are wondering how to rent your home on Airbnb, you have come to the right place. when done correctly, homeowners can double their monthly rental returns with the short-term rental model vs. the tradition month-to-month model. Keep reading to learn how you can start making more money with an Airbnb rental.
There are many things to consider before renting your home on Airbnb. Firstly, if you do not live close to your property, or you do not have the time to manage it, you might want hire a property manager. Property managers will handle everything from daily cleaning and maintenance schedules to online reservation management, pricing strategy and more.
Secondly, you want to see what similar properties in your area are charging per night to assess the realistic income you can generate. Some important factors to consider are the property’s location, its interior decor and building amenities like pools, rooftops and security guards.
Once you have a firm grasp of your property’s earning potential and who will manage it, you can start listing it on Airbnb! Here are the top 10 most frequently asked questions Airbnb Hosts have when starting out.
First, you must consider your local Airbnb laws. In some cities, for example, you can only be a host if you own your property. In other cities, you can get written permission from your landlord saying you are allowed to host an Airbnb. Once you know that you qualify as an Airbnb host, you will be required to validate your identity by sending in a government-issued ID and a selfie.
b) Photos: Once your account has been validated, you will need to take photos of your space. We recommend hiring a professional photographer, since photos are the main driver when it comes to bookings.
c) Amenities and appliances: Make sure you have all of the essential appliances and amenities that guests are looking for. Airbnb has compiled a list (here) of the amenities guests request most frequently request.
Creating an Airbnb account is relatively simple and free of cost.
Airbnb Hosts can choose how they would like to get paid. Depending on your location, you can choose between Bank Transfers, PayPal, Western Uninion and more. The verification process can take anywhere from 5-10 days. If you are based in the US, you will also need to provide official tax documents.
How to calculate your payment, according to Airbnb: To calculate your payout, multiply your nightly price by the number of nights in the booking, then add any optional extra charges per stay (like your cleaning fee). This is your booking subtotal.
From your booking subtotal, subtract applicable taxes and fees. While taxes can vary based on where you live, most Hosts pay a service fee of 3%. This fee helps cover the costs of the products and services Airbnb provides (like AirCover for Hosts) and is calculated from the booking subtotal.
When you’ll get paid, according to Airbnb: The money you earn from hosting is released to you about 24 hours after your guest’s scheduled check-in time. Exactly when the funds arrive in your account depends on the payout method you’ve selected.
Having a robust pricing strategy is going to be one of the most important aspects of your Airbnb business. Depending on where your property is located, demand will most likely fluctuate by season, meaning you must adjust your prices constantly to match market demand.
Airbnb has a basic tool built in called “Smart Pricing” that will adjust your prices according to demand. You can also use this tool to pre-schedule pricing changes for a later date. If you would like to go even further and predict market trends or analyze the entire hospitality industry in your region, we recommend hiring a property manager that will manage your revenue for you.
5. Does Airbnb pay more than renting?
Airbnb can generate around twice as much monthly revenue than a traditional long-term rental. However, how much you make depends on your pricing strategy, demand for your property and the service you provide your guests. If you can ace all three of these categories, providing your guests with a five-star experience, you can turn your property into a lucrative side hustle.
6. How do I run a successful Airbnb?
Running a successful Airbnb is harder than it looks. Airbnb Super Hosts spend, on average, 40 hours per week on administrative tasks. Between guest messages, reviews, organizing cleaning and maintenance schedules and maintaining a smart pricing strategy, it can become very burdensome to those looking for a quick way to make extra cash. Many hosts opt to hire a professional property management company who can handle their whole business. For a small percentage, a property manager can free you from all day-to-day tasks while earning you even more money - in most cases earning more than the commission fee.
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