How To Start An Airbnb Business- Do you have an extra room, flat or apartment that you rarely use? Do you know you can earn some extra income from those extras. Instead of just leasing them freely to dusts, wall-geckos and other pests and having to pay heavily for their maintenance. This kind of business is called Airbnb business. Airbnb stands for “Air and Breakfast”. Airbnb is fast becoming alternative for many travelers in place of the conventional hotel. Airbnb platform allows people rent out their apartments and homes to travelers needing short term-accomodation. So if you need some extra and passive income, you may want to try our Airbnb business. In this post, I will be showing you everything you need to know to start an Airbnb business.
What Is An Airbnb Business
Airbnb business is simply an online market place where property owners and people needing to rent such properties meet. The online platform has been in existence since 2008 , operating in more than 220 countries. With this platform, property owners can easily get to rent out their properties such as apartments, homes or extra rooms to travelers needing them. As a property owner, you can list your available properties on the platform for free while the guests that will rent them will pay service charge to Airbnb.
How To Start An Airbnb Business
Before you start an Airbnb business, it is important you understand how the business works. This will help you prepare well and know what to expect.
How Airbnb Business Works
Airbnb is of benefit to both traveler and host. The traveler gets to find a comfortable accommodation based on his/her budget, location and taste through Airbnb platform. While the host get to earn some extra income by listing their homes and accommodation on the Airbnb platform for rent.
- The business owner ( termed the host) will have to first sign up on the Airbnb platform. You will be required to list the properties available for rent and give specific details such as date the accommodations will be available, amenities present, your rental fee, etc.
- Travelers needing accommodation visit Airbnb website to search a suitable one. Search can be done based on location, rental fee, amenities present, category of accommodation, etc.
- Traveler finds a suitable accommodation and then books for it.
- Traveler makes payment to Airbnb. Airbnb receives payment and hold on to it until stay is completed
- Traveler and host then communicates to make arrangement on the check-in modalities
- When the stay is completed , host gets paid by airbnb the rental fee (after the necessary service deductions had been made).
Now, let us proceed to how to start an Airbnb business
Tips To Start An Airbnb Business
Do market research
Before you start an Airbnb business, you need to research the market very well. These are some of the things you need to find out. Is the business viable in your location? What do other air business owners (hosts) charge as rental fee? What and what do you need to fix in your accommodation to make it attractive to travelers ? And some other details.
Who are your target guests
The next important step to follow to start an Airbnb business is to ascertain what kind of guests you want to host in your apartment. Are you out for business people, families, couples, etc. This will guide you when you are listing on the Airbnb platform and also preparing the accommodation.
Get the accommodation ready
Next is getting the accommodation ready. The accommodation should be neat, well-ventilated, comfortable and most of all attractive. Do all you need to do make it attractive. You may need to fix some gadgets in the house, repair furnitures and add some decorations.
Photoshoot of your accommodation
After getting the accommodation ready, you need to take some good and quality shots of your accommodation space. You may need to get a professional photographer to do so for you. It is actually worth it. Remember first impression is what will even determine if guests will show interests in your space or just scroll past.
Set your rental fee
You need to set prices for accommodation. To do this, you may need to check what other hosts are charging and try to fix your price around such. In setting your prices, you should also put your expenses in place such as electricity bills, cleaning, etc.
List on Airbnb platform
This stage is very important. Airbnb is like your showroom where you display your available space for guests to make their choices. I believe you have already gotten nice shots of your apartment. So put up those shots and also add important details such as description of the accommodation, amenities present, guiding rules (such as: pets are not allowed).
After listing on Airbnb platform, you should be available to manage your bookings. Be prompt in responding to enquiries. Be courteous in responding to chats and calls from your prospective guests
With this in place, you are ready to start earning some cool income via Airbnb business.
Now lets up look at some pros and cons you may come across in Airbnb business. Its important that you also have this information so you can really be prepared for the business.
Pros And Cons Of Airbnb Business
- Airbnb business creates opportunity for property owners to earn additional income by renting out extra rooms and accommodations to guests.
- The Airbnb platform is quite easy to navigate and use
- The platform can reach a wide range of audience in different locations
- Travelers can easily get suitable accommodation that matches their taste and pocket without much stress.
- Platform is actually cost-effective when compared to the conventional property management companies.
- Income can be irregular and unreliable
- Airbnb Business is getting more competitive by the day
- Any damage done during stay will borne by the hosts.
- There could be security risks during guests stay such as theft, damage, etc.
Other Things To Know About Airbnb Business
Is Airbnb Business Safe?
Yes. Airbnb company has a lot of security measures in place to ensure safety of its users (both the guests and hosts). Here are some of those measures:
Verification of host and guest
Whenever an host is setting up an account and listing up space, one of the requirements is usually a valid government-issued Identity card. Guests are also required to provide similar detail when making bookings.
Secured payment methods
Airbnb company handles the payment through secure means. So there is no issue of being swindled or scammed by a stranger.
24 hours support service
Airbnb company has a very functional support service that works 24/7 to help resolve any issues that may pop up.
Insurance available for host
Airbnb has an insurance of over 1 million dollar to cover the host in case of any damage or injury to guests during their stay.
Ratings and reviews
Guests can easily leave reviews (positive or negative) on the site. These reviews can help subsequent guests make that choice on where to stay.
To start an Airbnb business is not difficult. First, you should have a free apartment that you want to let out, then do market research to be sure Airbnb is profitable in your location and get the accommodation ready and attractive. Then get listed on Airbnb platform and start earning extra income.
Frequently Asked Questions
How much money do I need to run an Airbnb business?
To start up an Airbnb business, you need averagely $6,000.
How to book with Airbnb for the first time
The following tips will be helpful if you are booking with Airbnb for the very Ist time.
Ensure you book well in advance so you can get a great accommodation space
Check the kind of property you are booking for. It could be a private room, a shared room, hotel room or an entire apartment.
Check available amenities in the apartment
Use map to check through the neighborhood for details such as accessibility to public transportation, walking distance from eateries, etc.
Search beyond the first page for listings. You may even get better offer as you scroll further.
Watch out for superhost symbol. A superhost is already experienced in the Airbnb business and has a high rating in terms of performance.
Check if there are additional fees
Is Airbnb a good business?
Yes. It is a good one that can yield a lot of profits most especially if you stay in an area where such business is in high demand.
How much do Airbnb business owners earn monthly?
Averagely, Airbnb business owners earn $2,000 monthly.
- www. makemoney. ng-How to start an Airbnb business (An In-depth guide)
- www. nerdwallet. com- How to start an Airbnb business in 6 steps – and make money
- www. smallbiztrends. com- How to start an Airbnb business
- https: // thatbackpacker.com- First time booking with Airbnb? Here are 10 tips on how to book