In light of the pandemic, the demand for private rentals has increased exponentially in the last year or two alone. As a result, more people are considering services like Airbnb to host their own properties and earn extra money by providing people with a place to stay. The great thing is that these days, you don’t necessarily even have to live in a place that’s a hot vacation destination or tourist area.
While that certainly helps your booking rates and the ease of finding people who need a place to stay, there is a lot to be said for having a private residence that’s a mile or two from the local business park where professionals are staying or working for an extended period of time.
That’s right– Airbnb isn’t just for vacations. It can be used for all kinds of temporary housing needs, from vacations to business trips and everything in between. Even a family visiting their own family in a different town might prefer a private residence to a hotel or chain destination.
So, step one of becoming an Airbnb host is to stop doubting your ability to be successful. Then, you can get started.
Create a Mission Statement and Purpose
You’ll want to create your own mission statement for your business and give yourself a proper name so that you can designate yourself as a business and not just another person renting their property. Make sure that you know why you’re doing this so that you can share that intent with others. A lot of renters will choose a place based on the owners, after all, so it can make a difference.
If you want to get a better idea, see what others are doing by checking out other Airbnb accounts and pages. You can even check with Airbnb themselves, because they offer so many resources to help people become the best hosts and start their own Airbnb businesses.
Create a Airbnb Business Plan and Budget
If you are going to do this as a business, you need to treat it like one. That means making and following a proper business plan, which will also allow you to set a budget as to what you will spend on your business operations. You can download business plan templates online or simply follow the basic structure of having a mission statement, business plan, financial prospectus, market research, company overview, marketing plan, sales plan, and other essential elements. You may even need to get a business loan.
Survey the Market
You’ll want to check out the local market in order to see where you can market and who you can market to, based on where you live. Consider the demographic of those who are likely to stay with you. Are you looking for vacationers? Business professionals? Perhaps you are marketing specifically to visiting parents in a college town, for example. You’ll also want to consider your amenities compared to those in the market around you to see how they stack up. Consider anything you can advertise that allows your space to stand out from the crowd.
Price for Profit
It might be nice to create a budget and price your unit based on creating something affordable, but you have to be realistic. You’re starting a business, not a charity organization. Choose a budget that is affordable and allows room for profit. When pricing your unit, make sure that you set it at a fair price that will give you the earnings that you want.
If you’re looking to increase your profits, consider upgrades and improvements that you can make to get more money. Tech improvements and upgrades are always a good choice to start with, as well as plenty of creature comforts– comfortable furniture, beds, sheets, and even plenty of blankets and pillows can go a long way. Make sure that you include things in your budget like toiletries or other essentials that you might not be thinking about giving to your tenants, because those will add up over time.
Automate Your Airbnb Business
When it comes to hosting a successful Airbnb business and creating the profits that you want, it’s all about giving people a place where they can stay privately, book simply, and enjoy all the comforts of home. When you use automation, you make things even easier for them, and for yourself, every step of the way. Here are some big ways to improve your operations once you’re up and running:
- Web-based apps for lockboxes, email booking confirmations, booking engines, and more
- Smart locks that can be changed after every visit
- Chat and other customer service tools for your visitors
- A checklist of routine maintenance and events that need to take place throughout the year
The more of your business you can automate with Airbnb hosting, the better. That means less work for you, more profits for your business, and a more private, non-invasive interaction for everyone involved. It’s a great way to have a flexible business without having to invest a lot of money.
Don’t Have Property Yet? Find Your First Airbnb Rental
Some people aren’t looking to rent out their primary residence or a property that they already own. They are just considering getting into the Airbnb hosting game while the market is hot and will need to find a property to use. If you’re one of these people, make sure that you consider where you buy and what type of property you choose based on the most likely demographic in the area. For example, you might want to choose a downtown loft that caters to business professionals, or a park side home that is ideal for family vacationers.
The future is remote, in several ways, and the privacy that comes with these types of rentals is unmatched. In the world we live in today, people want the comfort and peace of mind of being in a place that feels like home. Thanks to the growing demand for properties, now is a better time than ever to consider becoming an Airbnb host. Keep these tips in mind and you’ll be on your way to success in no time.