Over the last decade, it's become quite popular for people to rent out any extra space to people who need a place to crash while traveling through the city. Airbnb managed to change the way people search for places where they could stay. It also has assisted many homeowners who had spare rooms to make a healthy profit by setting their additional room up for rental.
Chances are you are one of the many people who have some extra room to rent out to people who need a place to stay while touring around your city. If so, you're going to need to go through the process of setting everything up and launching a page on Airbnb that will get you started on putting up your place for rental.
Of course, setting up the entire thing isn’t easy as most people seem to think it is when placing a property for rental. There are several things people have to consider when setting up an Airbnb.
Setting up your goals
Making some money on the side is most likely the primary reason why you're hosting on Airbnb, but there needs to be more to it than that. Consider your goal for monthly income and occupancy. How much money do you wish to make from this endeavor?
How often are you planning to rent out your space to meet your goals? Is your occupancy goal viable in terms of the market and your ability to manage turnover?
Depending on your goals, the amount of time, risk, and resources you spend hosting on Airbnb will vary from other hosts on the site. To assess your goals, you need to decide what kind of host you wish to be. You should also consider the experience you want to provide for your guests and what to avoid.
For example, how much contact do you wish to have with your guests? Is it going to be merely a business relationship or a social connection? What experience would cause you to stop hosting your space on Airbnb?
Taking the time to answer these questions will help you determine if you can meet your goals by sharing your space on Airbnb.
Be aware of your customers
Airbnb uses an algorithm to emphasize the customer experience. The search results provided by the site aren't something that randomly occurs. The hosting company uses a complex algorithm that works behind the scenes to provide the best possible results. Airbnb uses an algorithm that is based on KPIs.
That algorithm makes it crucial for hosts to give their guests an exceptional customer experience. The experience your previous guests go through at your property and the way you treated them has a significant role in the decision-making process.
There are several varying categories you should know about the search algorithm. The first is effortless booking, which determines how the host interacts with their customers and how fast they respond to inquiries.
The second is the quality of the listing, which is affected by high-quality pictures, reviews from past guests, verification, detailed information, and so forth, to determine the quality of your listing. Lastly, the preferences of guests are determined by the information provided by the traveler.
Every one of these categories is based on the experience and requirements of the guests. Keep that in mind when hosting your property.
Inviting people into your property
When you start hosting your space on Airbnb, you are inviting people you have never met into your household. Plus, if you are only renting a section of your property, and you’ll also be staying there, you are spending the night with strangers under the same roof of your household.
If having strangers in your house is enough to make you uncomfortable, then you need to take a step back and think about whether hosting on Airbnb is worth it for you.
If hosting strangers in your house is not something you are comfortable with, your only option is to find and acquire a dedicated rental space.
Or, you may have to entirely turn down the idea of hosting your property on Airbnb, if you are not comfortable with having strangers in your home. Unless you have a separate property that you won’t have to share with them, your options may be more limited depending on you.
Running and operating a successful Airbnb listing can take a great amount of time and effort on your part. That’s especially true when it comes to first-timers, who are still learning the ins and out of setting up an Airbnb.
Even when you have managed to grasp most of the procedures and are not spending too much time with the booking process, you still need to deal with any emergency calls from the guest whenever they are staying on your property. For example, maybe there is something wrong with the plumbing, and they need your help fixing it, or the air conditioning unit isn’t operating properly.
These are commitments you need to make when it comes to hosting an Airbnb. If you want your listing to be successful, you’ll have to dedicate time to address any issues that may pop up. If not, the guests will leave a negative review on your page.
That will severely impact your chances of getting more travelers to book with your room in the future. So ask yourself, do you have the time and flexibility to ensure that your Airbnb business is a success?
Airbnb has become a highly competitive business over the years. There are going to be plenty of other people placing their listings up in your area, which will increase your chances of getting people to book with your space.
You need to consider what makes your listing unique or different from the other listings. Why should any guest stay at your listing instead of choosing one of the other alternatives on Airbnb?
You need to provide enticing offers that position your listing favorable among the rest of the competition. The information you provide on your listing should include everything from photos to a description of what you are choosing to highlight and the reason behind your pricing of the space you are renting out.
Climbing your way to the best possible ranking can take some time. It also requires adjustments to be made every once in a while. The market and competition will consistently shift. If you don’t make these adjustments, you will fall behind in your rankings.
Of course, setting all of this up can be quite the hassle. Fortunately, there is an easy way to get through this process and ensure that your listing manages to make it to the top. Our service - TopKey can help you craft an Airbnb listing that will make its way to the highest possible ranking and drive booking conversions to your page. We can help you with everything from title, description, and host profile.
We can also help you with capturing your space in the best way possible. We help you set the stage for an at-home photo shoot, guide you through the process of taking a photo, and professionally edit the images for you. Unless you are willing to place the time and energy yourself, consider using our platform to assist you in these endeavors.
The landlord issue
If you are not the owner of the property you are renting out, you need to carefully consider how you want to approach and communicate with your landlord to host an Airbnb. There have been a surprising number of people who have hosted on Airbnb without permission from the landlord.
We strongly recommend that you do NOT do this. Not only will you destroy your chances of putting up a quality listing, but you’ll be dealing with an angry landlord. You need to speak to them before doing so or consider if it's a good idea to ask them. They may either be for it or not, depending on your relationship with them.
Relationship with neighbors
As a property owner, you have neighbors who live next door to the property you are responsible for. Renting out a place will make you liable for any problems the guest causes with the neighbors surrounding your property.
Consider what their reaction will be when you start hosting guests at your space. Of course, the way they react will vary vastly depending on the city and neighborhood that your property is located.
Some areas have had neighborhoods petition to restrict or even outright ban short-term rentals on Airbnb. If your neighborhood is one of the many locations dealing with a petition, setting one up might not be a good idea. There is a good chance that you will deal with hefty fines if you break the local laws.
In the end, you need to weigh the pros and cons if it is worth the trouble of dealing with your neighbors' complaints to host your Airbnb.
Compliance with local regulations
Speaking of petitions, before you can list your property on Airbnb, you need to do some research on your local regulations. You need to take some time to check if there are any particular rules regarding short-term rentals in your city.
If you are not the owner of the property that is being listed, you will also need to look over the lease agreement to make sure you're not breaching your contract. For most cases, subleasing is not permitted, and you can end up getting evicted if you begin renting out the property to strangers.
The rules and regulations will vastly vary from location to location, given the fact that Airbnb rules are based on what the local laws are for short-term rentals in each area.
For example, some cities have laws restricting a person's ability to host paying guests for a short time. These laws are usually a part of the city's zoning or administrative codes.
Furthermore, plenty of cities in the U.S. require a person to acquire permits and a business license before they are permitted to start operating an Airbnb business. The requirements for these can vary, but there isn’t much of a difference between renting out a room from your house and having several properties listed on Airbnb.
The local government will consider you a real estate business owner once you acquire these credentials and start your operations. Depending on the city you are based in, the documents may have a different name, such as lodgers tax license, business license, TOT certificate, or land use permit.
If you have multiple properties that you wish to set up on Airbnb, even if they are located within the same state, you may need to acquire different licenses or permits for each prosperity before you can list them on Airbnb.
As you’ve already guessed, all of this will become tiresome to acquire, especially if you are planning to list multiple properties on Airbnb. Having to buckle down and do some serious research on the credentials you need to start getting your Airbnb operations can eat up time you may not have and even cause you to drop the idea entirely. Fortunately, there is a way to set up these properties without having to do much on your end.
Here at Topkey, we provide you with a service that helps with the entire process of getting your Airbnb operation up and running. We do the heavy lifting for you and acquire the necessary short-term rental licenses and permits for your property.
You won’t have to worry about spending countless nights researching every bit of information you need to get your papers in order. Let us deal with the trouble and start your path on listing your properties on Airbnb.
Hosting your property on Airbnb can be a lucrative endeavor! If you are considering renting out your property, you need to make sure of everything we have mentioned here. There are several hurdles you’ll need to go through, although it can be worthwhile in the end.
If you need help setting up your hosting, then check out our services. We help set up the tedious parts of setting up an Airbnb listing. Check out our website to learn more and get started today!