Plenty of people who travel look to Airbnb for cheap and gorgeous accommodation. Nowadays, it’s seen as weird if you haven’t tried out the renting site that has changed vacationing forever. Apart from being cheap and novel, it’s great to have the full range of home accessories at your disposal. Hotels are brilliant, but houses are twice as good.
Of course, there is another side to Airbnb and that is being a host. Consider the next time you travel that you may make money in the process. After all, the property isn’t being used and everyone can do with the extra cash. It’s the dream, right? Sure is, but going through the looking glass is a tricky journey. Ask Airbnb hardliners and they’ll let you in on a few horror stories.
So, if you’re hell-bent on trying to kill two birds with one stone, how do you make sure you don’t get hit in the process? Well, you can start by taking a look at the following advice. This is what every beginner should do before they open their doors to the public.
Understand The Market
As soon as a new tech company blasts off into the stratosphere, the question is the same: how do they do it? The answers vary depending on the product and business, but Airbnb relies on something called “rental arbitrage.” For anyone who hasn’t heard this term before, it’s a fancy way of saying short-term renting. People want a bed for a night, and you want to make money and that is the equation. Of course, it isn’t as simple as this as not all hosts and landlords are created in God’s image. How much money you make comes down to a variety of factors, from the number of listings in the area to the popularity of the location. Too much or too little of both, and the venture will skyrocket or tank accordingly. It’s vital that beginners understand this before signing up as it may not be the sure-fire money-spinner you imagine.
Who Do You Want To Be?
Hosts have to decide who they want to be and what they want to get from the experience. This isn’t Westworld so the decision is yours and yours alone. Let’s confront the elephant in the room first – money is a factor. Cash will always play a part in the decision-making process regardless of how much of little you have. Still, it doesn’t have to dictate everything about being an Airbnb host. For instance, you may simply need a few extra bucks to supplement the household income for a while. Perfect, because renting your home is an easy and accessible method. Others, however, want to go further and turn hosting into a primary source of income. Those who fall into the second category need to cover every base, from cleanliness to gift packs. A stove fan comparison guide should even be on your radar because the whole property has to be perfect. Otherwise, tenants won’t leave a five-star rating and traffic will decrease.
Value Your Time
To decide which type of host you want to be, it’s important to think about time. Time is another valuable resource because we all need to mix work and life. Those that don’t tend to lack the same fulfillment from life. It’s Sod’s Law, then, that being a host takes up a large chunk of time when there aren’t enough hours in a day anyway. Being able to generate a wage from renting a property is less time-consuming as it’s a full-time job, yet it takes months of hard work to reach this goal. So, depending on the other things you want to do, time may play a factor. As always, the trick is to be realistic and not to overextend. When excitement hits, it straightforward to bite off more than one can chew, and this only becomes apparent when you’re up a certain creek. Factor in the time it takes to talk to guests, to set up a reservation, and to check them in and out to ensure there is plenty of time for other things.
Know The Market
The first paragraph went into this but it’s worth looking at it from a different perspective. Some markets aren’t big enough for hosting, and every patron should know this is in advance. However, there is also the argument that people must realize when they are in a hotspot. The obvious ones are easy to figure out, such as the Upper East Side in Manhattan or Chelsea in London. But, you may live next door to an attraction which is super popular. Better, the area may have excellent transport links and be cheaper on the whole than the city center. The reason it’s essential to know about these sorts of things is money. Would you charge half the price in NYC or London? Hell no! If anything, you may add a little bit extra to the amount due to demand. Therefore, there is no reason to do the same anywhere else in the world. By analyzing the market, you can figure out whether you’re under or overplaying your hand.
Adjust Insurance Policies
Homeowners have coverage to ensure they are not out on the street if the worst happens. Usually, nothing in a policy relates to renting out a property to a third-party. Insurers assume you and your family is going to live there so they don’t factor it into the price. Therefore, the policy may be void if there is damage as a result of listing it on Airbnb. Without a doubt, one of the first things a host has to do is contact their insurance company and have a conversation. If they are willing to add amendments, everything is fine as there is a solid backup plan. Think carefully about the next steps should they say no. Airbnb does have a $1 million insurance policy, but will that be enough?
Are you looking to rent for the first time? What are the things you’re excited and worried about?