Airbnb is a great way to make some extra income by renting out your own property (or properties) like a guest house. People assume it is easy. However, there’re lots of things to consider before jumping into the world of Airbnb. This article outlines all the big questions you need to answer before becoming an Airbnb host.
What is Airbnb?
Airbnb is an online platform through which you can book rooms in properties around the world from private homes to whole villas. It’s been particularly successful in large cities like London, Paris, Tokyo, and New York. As an Airbnb host, you would typically rent out your spare room or even an entire property (with or without a manager). The renter pays you directly.
Now you have a clearer sense of what Airbnb is and how it works, let’s take a look at the top things to keep in mind before joining as a host.
Do you have the time?
As an Airbnb host, you’ll need to be present for key handovers and show the renter how everything works. You also need to solve any problems that may arise. This can take a lot of time if you’re hosting someone for a long period of time (e.g., one month). If you don’t have much spare time or want to go on holiday, it might be better not to rent out your home.
Can you afford the overheads?
Before becoming an Airbnb host, you must know what the costs will be and whether you’ll make a profit. There are two main overheads (costs):
– You need to factor in cleaning fees because it’s your responsibility as a host to keep the property livable for your renter. This can cost anywhere from $25 upwards depending on the size of your home.
– You need to factor in Airbnb service fees, which are a small fee ranging from 6% – 12% of the total rental price. This covers all the services provided by Airbnb, including 24/7 customer support and secure payments.
This doesn’t include additional costs such as utilities (e.g., water), cleaning supplies, WiFi, etc. It also doesn’t include tax.
Is your property in a desirable location?
To be a successful Airbnb host, you need to have good reviews. This means that your property needs to be in an area where guests want to stay. Good areas are often expensive because they’re popular with tourists. If your area is not desirable, it will take longer for guests to choose your property and you’ll have fewer bookings. It might be better to invest in a property in a better area if you want to be an Airbnb host.
If you wish to get a clearer sense of where people will be visiting, visit this site.
Are you prepared for the risks?
Being an Airbnb host can come with a lot of risks.
For example, if the renter receives any damage to their property or items during their stay, you could be held liable and asked to pay for it. This is why it’s important to have protection through an insurance policy so both parties are protected from any damages occurring during the rental period.