There are some essential things to know before becoming an Airbnb host. If you’re willing to put in some effort, Airbnb hosting can be a lucrative business. Continue reading to discover the six essential things to know before becoming an Airbnb host.
Get All the Essentials for your Rental Property
Guests’ expectations have grown since more and more Airbnb hosts are competing for bookings. For example, when it comes to furniture, there are two categories: form and function. Consider the right furniture pieces for your guests when choosing between the two. All sleep-related furniture should be top-notch. You shouldn’t cut corners on these things, or your bookings might take a hit.
Set Realistic Time Commitment Expectations
Airbnb hosting will eat up some of your time. If you’re not ready to make the time commitment or hire a property manager to do it for you, you’ll be missing out on a lot of money. Hosts are usually expected to talk to potential guests, work on earning the best reviews, check guests in and out, and deal with unexpected issues. Take these things into consideration when setting your time commitment expectations.
Be Informed About Local Airbnb Laws
It’s critical to understand your local Airbnb laws. Miami Beach, New York City, Santa Monica, Barcelona, and Paris have some of the strictest Airbnb laws. On the other hand, Portland, London, and Amsterdam have some of the loosest policies when it comes to short-term rentals. In most areas, you need to register as an Airbnb host and obtain a permit or license before you’re allowed to list your property or accept guests. Local governments differ in enforcing home rental laws. In some areas, Airbnb will take on the responsibility of calculating, collecting, and remitting occupancy tax on your behalf. You should take the time to understand the local laws when it comes to Airbnb hosting and the occupancy tax in your specific tax jurisdiction.
Find the Right Customers
Position your listing to appeal to customers who are most likely to book it. For example, business people are usually willing to pay more for accommodations. However, they typically want something closer to a city’s business district. If your property is out in the suburbs, this type of customer probably isn’t your best bet.
Determine Your Cancellation Policy
When considering your cancellation policy, remember that a flexible cancellation policy allows your guests to cancel 24 hours before check-in and get a full refund. This means potential revenue loss and scrambling to fill occupancy as a host. A strict cancellation policy means you’ll only be responsible for the cleaning fee. However, more stringent cancellation policies might be offputting to customers who want flexibility while traveling. Take these points into consideration when deciding on your cancellation policy.
Know Your Pricing and Fees
If your Airbnb property is in a crowded city with many Airbnb options, you need to nail your pricing to stay competitive. You can determine the appropriate pricing with the Airbnb calculator. This calculator uses the most recent and accurate Airbnb data to help users calculate their property’s market value.
Airbnb Property Management, Done Right
When it comes to Airbnb properties, there are many things to consider if you want to make the most out of your rental property. Some of these things take the time that investors don’t have. That’s where Majestic Vacation Management comes into play. Majestic Vacation Management helps manage your property, so you don’t have to. We specialize in Airbnb management services, including location consulting and cleanings, home staging, linen services, landscaping, etc. Contact us for more information.