Air b and b is a business model which allows property owners to rent a room or an entire place to tourists. Travellers can rent a shared space, an individual room or a whole house. In this blog, we'll walk you through the steps along to start an Airbnb business, no matter what your current situation is.
Renting with Airbnb is a great way to generate extra income, especially if you have unused rooms or a lot of space in your home. However, it is important to understand that guests will be in your house and potentially in your personal space therefore, you should feel comfortable talking and interacting with them.
Some homeowners who travel a lot also rent out their homes whilst they are away. This allows them to earn an income and have someone look after their home when they are not around. Next, we'll tell you how to start an Airbnb.
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When you're renting with Airbnb, most of the costs will be geared towards maintenance and any necessary upgrades. Guest amenities will be relatively inexpensive, depending on what you offer.
Airbnb also charges a fee to both the host and the guest. These are explained in more detail below.
Guest Service Fee: guests are charged a fee of 6-12% by Airbnb each time they book a place to stay.
Host Fee: hosts are charged a 3% fee each time a space is rented through the site. This is automatically calculated by Airbnb and deducted from the host payout.
Renting Deposit: this is a deposit paid by the customer for hosts to cover any damage, repairs, or lost items such as keys, etc. If you offer amenities like coffee, tea, or snacks, you'll need to restock after each guest. Any new or used furniture that will add to your guest's comfort will also vary depending on the need. Renting with Airbnb requires a small but regular investment. Also, don't forget about keeping your home clean. The platform offers the option of charging a cleaning fee. You will need to calculate the cost of a cleaning service yourself and add it to the description. Now let's take look at how to start an Airbnb business.
Outlined below are steps you need to take when starting a business renting on Airbnb.
1. Create value.
This may sound simple, but the success or failure of any business depends mainly on the concept. This usually involves building an identity and sourcing the relevant property insurance for your business - this is essential. To evaluate the
feasibility of your offer, ask yourself how to become a host on Airbnb and look at your offer from that perspective.
2. Prepare your space.
This includes shopping for essentials that your guests will require in order to have a comfortable stay. For example, items for the bedroom, living room, bathroom, and kitchen along with a few safety items like a fire extinguisher, smoke detector and a first aid kit.
3. Create a listing.
There are several listings out there so it's imperative to make yours stand out. The easiest way to do this is to post aesthetically pleasing photos and come up with a catchy headline. The more photos, the better.
4. Promote your offer.
Renting on Airbnb requires a steady stream of clicks which eventually turns into an established flow of clients. There are a large number of places to stay on the platform therefore, yours may get lost among them if it doesn't stand out enough. The platform's algorithm is designed so that the more your listing is interacted with, the more often your offer will show up. You can add new photos, change the description and add details every day - these actions will be picked up as activity by Airbnb and will get you noticed more.
5. Accept bids.
Always be prepared to interact with potential guests. Millions of people use Airbnb as a renter on a daily basis and they can contact you at any time of day. We recommend that you answer all of their questions quickly and offer friendly, unobtrusive advice. Even if your guest chooses to stay somewhere else, the system will count your interaction as an activity and will better promote your offer.
Renting on Airbnb is very popular right now, so there is quite a bit of demand. Once you sign up on Airbnb and list your space, you'll start getting enquiries from potential renters. Your job will be to manage enquiries for renting on Airbnb, interact with potential clients and make sure your rental space is as welcoming and ready as possible.
The thought of how to start an Airbnb business and not knowing what to do, shouldn't put you off. To successfully start you will need to be personable and comfortable interacting with others. If you have a background in hospitality, the service industry, or even retail, an Airbnb business could work for you.
You will need to be able to balance your finances and resources around renting in order to maximise business potential. With this approach, you will easily be able to raise your ranking and sustain it in the long run. Going forward, you need to make sure your guests are satisfied and comfortable, so they leave positive feedback. This will guarantee you a steady flow of new guests.
**Please note that this blog should not be taken as formal advice. If you are unclear on any of the information mentioned above, you should always seek professional advice.**
Image Credit: sdx15 / Shutterstock.com
We're an expert property management company specializing in short, medium and long lets. Since launching in 2016 we’ve managed over 130,000 stays and have earned our clients and property partners over £38M in revenue.
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