Starting an Airbnb business isn’t for everyone. If hosting is something that appeals to you, make sure your home is in good shape and that it’s a rental-worthy space. You’ll also need to consider any rental restrictions that may apply in your community.
Hosting requires courtesy, as well as superb communication skills. You’ll have guests who may or may not speak your language. They may be of totally different cultures, mindsets, religions, and political backgrounds. Can you look past those?
The STR industry is not real estate. It’s hospitality. You’ll need to have patience with each of your guests. There’s a lot to consider but answer the following questions before you get started and you’ll get your business started off on the right foot from the beginning.
1. Where Is Your Rental Located?
A good Airbnb location has to be value-worthy; otherwise, you’ll be Airbnbing in a boring space. Choose an Airbnb rental that’s within walking distance of popular landmarks or public transportation so renters don’t need to worry about driving when they’re tired or using the airport shuttle after a long flight.
Your Airbnb space has to be close enough for guests to get a good night’s sleep, but far away enough from your neighbors so you can enjoy peace and quiet. Choose an Airbnb rental that’s free of noise pollution, like outdoor lawnmowers at the crack of dawn or heavy traffic. Your prospective renters won’t be happy if they’re awakened by the sounds of your neighborhood, and you might lose some sleep yourself.
If your Airbnb is too quiet, consider adding an alarm clock or radio that plays music quietly in each room so guests can wake up to something other than silence. Of course, there are perks to a peaceful neighborhood, which could even be a selling point for your Airbnb.
Also, make sure your rental is free and clear of any hazards; otherwise, guests could file complaints against you for not keeping the Airbnb safe for guests.
2. What Are The Local Rules And Regulations?
If you’re in a location where Airbnb hosting is not allowed, don’t try to do it anyway. You could get in trouble with the authorities. It’s best to choose an Airbnb location where renting your home is allowed and even encouraged. However, there are some communities that don’t allow rentals of any kind. If you want to be sure your community allows Airbnbs in private homes, check with your local authorities before you get started hosting.
In some states, it’s illegal to Airbnb a whole house or apartment for less than 30 days. There may also be requirements that the rental property is owner-occupied, which could make it difficult for you to rent your house on Airbnb. The bottom line is if you want to start your business in a community that has restrictions, check the local rules and regulations first and read the fine print. If renting out an entire home or apartment is not allowed, consider renting out a spare room instead.
Looking for more information on Airbnb rules and regulations by city? You can check out this handy tool, which includes nationwide information.
3. Are You Willing To Put In The Time And The Work?
Running a rental is managing a small business. It requires effort and skills in marketing, customer relations, accounting, and property management. Similarly, it is not passive, seasonal work that will require only minimum input while bringing in huge, passive income. It can be a lot of work — especially at the start.
If you want to make a serious income through Airbnb, you need to work hard. You’ll have service and maintenance requirements that include tidying up the inside of your home and the outside too, putting in new bedding for every guest, and making sure there are fresh towels for each one as well.
Each Airbnb host sets their own property rules and determines how much time they personally want to invest. Running one can be a full-time job, or it can work around your existing schedule.
If you’re a busy professional, you might not have time to do all the cleaning and maintenance yourself. You could save time and energy by hiring someone with Airbnb hosting skills… or – if you want to keep things as simple as possible – find a local caretaker who can take care of your property while you’re gone.
Read this article that details the different types of management and strategies to get a full list of roles and responsibilities.
4. Are You Patient?
There may be people who are rude or demanding, who have demands beyond what is reasonable. Some may not respond to your messages or cancel their reservations with little warning. You could have a group of loud young people turn up who break things and leave a big mess for you to clean up afterward. Your guests may not even show up at all, even though you’ve received the money from their booking.
Feedback is great, but guests can complain about the smallest things. They may ask for discounts and refunds. All these things are a part of hosting. To make things easier on yourself, you may need to learn how to handle difficult customers both professionally and kindly.
Though troublesome guests are a rare occurrence, remember that hospitality is a service industry, and accommodating difficult guests will take more patience than one expects. Just as restaurants and hotels do, you need to train yourself to be on your best behavior when working in this capacity. Even if you can’t please everyone, help those who are sincerely looking for a good experience.
5. Are You Clean And Have High Sanitary Standards?
Airbnb has made enhanced cleaning protocols the standard, with additional focus from Covid, but different people have different standards for how clean things should be.
Be obsessed with cleanliness. Or, hire cleaners who are. When guests come to stay, you’ll want to give them a sanitary environment that meets their standards. If you can’t or don’t invest time and money into cleaning your property with each guest, consider renting out a room in your own home instead of letting an Airbnb host do it for you.
Looking for more tips? Check out the top 10 things all successful Airbnb hosts have in common!
6. Can You Handle The Risks?
Running an Airbnb as a business comes with its own set of risks and liabilities. You may have to consider a possible reduction in income during the slow season, as well as the potential for minor damages or theft.
To ensure protection, check Airbnb’s host protection insurance to find out which unlikely incidents are covered. We also recommend considering homeowner’s insurance for vacation rentals. While hosts can try and prevent accidents from occurring at a rental, there are certain things that they cannot control. It is best to be prepared for any potential mishaps.
Also, be wary of scams and frauds that are out there, that may try to lure you with lavish promises. In the end, it’s all about understanding your own capacity and what you can do well as a host. Understanding how these limits impact your hosting ability will help you assess your readiness to host on Airbnb.
7. What Are Your Expectations?
Many people want to be rolling in the returns as soon as they get up and started but its important to know that it could take a minute to take off. Your expectations going into your venture should be considerate of the costs you’ll be spending along the way.
Furnishing your place, maintenance, and operational costs of keeping it up and running as well as turning it over between guests. All these costs can be estimated before you get involved and you should take note so that your costs do not exceed these set expectations. Taking these into account, what do you expect to earn monthly and yearly even? Set your expectations for both against each other to judge what’s fair.
The reason you’ve decided to start a short-term rental business is also important to consider. Are you trying to bring in a significant amount of income to offset another job? Or are you renting out a spare room and just hoping to earn little extra cash? Whether you’re just keeping one property on your portfolio or shooting for more to get under your belt to grow your business your expectations and outcome will be different. Make your expectations realistic, and set goals to make those expectations a reality.
Are You Ready To Start Your Own Airbnb Business?
In conclusion, running an Airbnb can be a great way to make more money on the side or even as a primary source of income. The key is knowing your limits and what you’re comfortable with when hosting guests in your own home. If this seems like something that could work for you, we recommend checking out Airbnb’s website for their host protection insurance which covers certain incidents such as damage or theft at no cost to hosts (though there are limitations). Also, consider homeowner’s insurance if possible- it will provide coverage in the event of occurrences outside of standard Airbnb protections. If all these things sound daunting and you want help implementing them into your business plan, let us know! Our team would love to partner with you and create a detailed plan for you to get started with your own Airbnb.
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