Do you love to host?
Do you have a free space from which you are looking to earn? Are you planning to invest in property for long-term return?
If yes, then starting the Airbnb or renting business is the perfect opportunity for you.
Known to offer you a great return in terms of monetary aspect, it is also one of the businesses that help you to build beautiful relationships with the people around you.
So, before looking at the steps, let us see the top statistics and a few basic questions that you should ensure before starting the Airbnb business.
So, let us dive in to know more.
Basic of Airbnb Business
Airbnb, which stands for “Air Bed and Breakfast,” is a service that allows property owners to rent out their premises to tourists searching for a place to stay. Travelers can rent a room for a group of people, a shared room with separate rooms, or the full house for themselves.
Brian Chesky and Joe Gebbia, two industrial designers who relocated to San Francisco, founded Airbnb in 2008. Because they couldn’t afford to pay the rent on their loft at the time, the couple decided to make up the difference by renting out their flat to those who couldn’t find motels to stay in while attending local trade exhibitions.
They provided air mattresses for their visitors to sleep on in the apartment’s living room and served fresh breakfast in the morning. Since then, Airbnb has emerged as a pioneer in peer-to-peer property rental.
What are some amazing statistics linked to Airbnb Business?
Airbnb’s business model is peer-to-peer. This simplifies it, makes it easier to use, and makes it more beneficial for both sides. The concept also allows you to tweak and customize your customers’ experiences in any way you see fit.
A few statistics that define the benefits of starting the Airbnb business are as follows:
- The average traveler booking on Airbnb will be a young, tech-savvy millennial, accounting for around 60% of all visitors who have ever booked on Airbnb.
- The typical host makes $9,600 per year.
- Guests have booked over 900 million nights.
- Airbnb has almost 4 million listings from hosts.
A great opportunity for all looking to start a business with a vacant space, Airbnb may be a great way to supplement your income or convert it into a full-time company.
Are you sure about your commitment to your Airbnb business?
This question might sound a bit confusing, but trust us, this is truly very important. Airbnb is one of the businesses that demands commitment and time to make it run profitably.
So, in case you are willing to start Airbnb, you are required to know the challenges that might be there, like the logistics, cleaning, hosting, timing, and others.
Make sure you have the backup to meet all the needs with the commitment required to make the business run with profitability. Also, three additional questions are required to be addressed as below:
Do you have the time to host?
It takes time and works to build a successful Airbnb hosting business. You’ll need to be present to answer any queries visitors may have throughout their stay, in addition to responding immediately to booking requests.
Cleaning the facility in between reservations, as well as completing any necessary repairs, might take time.
Do you have space to rent?
Before listing on Airbnb, be sure that you have cleared any potential hosting difficulties, such as municipal rules, lease constraints, and neighborhood expectations.
Depending on where you reside, you may be subject to national, state, local, or property rules. Registration, permits, or licenses may be required, as well as safety certificates and supplementary insurance.
Do you know all the costs involved?
Take a business-like attitude to your hosting. Before you start, make a business strategy and set reasonable financial predictions and objectives.
Determine how much time and energy you are willing to put into the business ahead of time. Maintain a budget for your hosting expenditures and retain your receipts for tax purposes.
It is recommended that any applicable guest taxes be included in the listing description.
So, now you have answered most of the Airbnb business questions and are aware of the various statistics that make the Airbnb business a perfect opportunity to earn better, let us look at the steps to follow.
Steps To Start An Airbnb Business
We’ll talk about what you can do as a host to help your Airbnb company succeed. An attractive description, well-staged images, and a high host rating may help increase the appeal of your listing to potential visitors. But here are the steps to start with:
1. Lay the foundation
You have all the questions and everything you should know before you, so it is time to start brainstorming for the business plan. This is the primary stage and links with creating a broad outline around which the business will work.
The first thing to do is to check the Airbnb needs and requirements in your area. Additionally, you are required to look for the aspects like whether the business needs to be full-time or part-time or any other aspect that seems necessary. Additionally, there is an option to start solely or go for the already prevailing Airbnb platforms for better service.
The things that you need to answer at this stage are:
- Name of the business
- Nature of business: full time vs. part-time
- Logo of the business
- Set up the brand image
- Need for investment
- Services and packages
- Charges and credentials
- Additional certificate courses, if required any
2. Move ahead with finances and legal aspects
When you establish a business, you must ensure that you have all the licenses, permits, and insurance that your local and federal governments demand.
These specifications will differ depending on your area, type of business, and organizational structure. Various state, federal, and municipal business permits are almost certainly necessary.
Check on the U.S. Small Business Administration website for accurate needs and get the EIN for taxation purposes.
Additionally, move ahead with identifying the funding needs and loan requirements for the business. Since you will start Airbnb, you would be required to insure your house and offer general liability insurance to the people planning to reside for better safety terms.
This is also the stage where you would be required to create a budget for all the expenses and the other renting aspects to make the business a profitable venture.
3. Look for the appropriate rental properties
Once you are through the financial aspects, look for the location where you plan to rent the Airbnb business property. When looking for the greatest homes to buy, savvy real estate investors consult numerous sources of real estate listings.
MLS listings, real estate investment websites, “For Sale” sales in the neighborhood, and your network should all be included.
Importantly, each property listing includes an easily accessible Airbnb investment property analysis that demonstrates how excellent of an investment opportunity a particular home is.
With the aid of numerous online applications and platforms, you may look for lucrative Airbnb rental homes for sale in any market without having to visit the site and perform comparative market study and rental market analysis.
4. Fix up the property and make it ready
Once you are ready with the property, develop the property to make it available to the customers to rent. It’s now or never to put such changes into action. Make sure you don’t go overboard.
Keep in mind that this is an investment property rather than your residence. At the same time, you should make sure it’s in the same condition as other Airbnb rental listings in the area so you can charge a reasonable Airbnb daily fee and maintain a high Airbnb occupancy rate.
5. Select the best platform to list
Once the property is ready, you are required to get the same listed on the platform. You can check various online platforms available like VRBO, Booking.com, and many others.
As a first-time Airbnb host, you should research a few different websites before deciding which one is ideal for you. Check whether there is a listing cost or if you are just charged a percentage of your reservations.
Make certain you understand how much you will be asked to spend and what you will receive in exchange.
6. Go market
Now, it’s time to market your Airbnb business. The best thing to do here is to add your listing by creating a social media presence and website.
This will allow the individuals to connect to you irrespective of the platform you are listed on. Additionally, marketing will offer you a better opportunity to increase your business at a fast pace.
7. Host and get reviews
As soon as you have the business up and running, ensure that you receive the reviews to better understand the potential guests in the future.
There is no doubt that feedback is the key to increasing the business and welcoming new potential customers. Post such reviews on your social media platforms and ensure to ask for referrals for better business.
8. Make changes as needed
To obtain better results, you will be expected to continuously examine and comprehend corporate developments. Adjust the goods, business listings, and design to take advantage of the competition based on the season and other factors.
Request feedback and reviews to put on your website, as well as recommendations. This is a fantastic method to expand your business and expand your reach. Furthermore, feedback will provide you with more opportunities for improvement.
A constant examination is all that is required for business success.
Conclusion
There is no doubt that the Airbnb business is perfectly profitable and one that offers you an opportunity to connect with new people and make friends.
Offering a great experience, this is a business opportunity that offers you a great side income or, if you wish to have a full-time job, one that is even better.
So, start looking for licenses and properties to get started with.