Airbnb is the coined term for vacation rentals in today’s market. With over 100 million users across 191 countries, Airbnb now has over 640,000 registered hosts. That’s a huge number for someone who is just thinking of entering the business. It is normal to feel like you might be washed up in these high tides. Here’s a guide on how to survive and make a profit from this fast-growing business.

1.Things to do before joining Airbnb

Be it any business, you can’t enter without being prepared. Before you register yourself, think.  Do you have everything you need? Do you know who you are catering to? There are multiple questions you need to answer before you get yourself out in the public. 

Know your target audience

You need to identify who you want to cater to. This will decide what kind of property you should buy. Or if you have a property, what type of customers would like it?

Is your place suitable for a family or for a group of partying friends? Is the location of your property viable for a family or is it better for a retired couple?

Know the location

Discussing the above point, we come to the location. This is another element that matters a lot.

Is the place in a neighborhood that won’t allow youngsters? Then a family might like it. 

Is your property near a famous tourist attraction? The chances of renting will be higher. 

Are there many famous hotel chains nearby? This might affect your revenue or make you seem like a more affordable choice.

Study your competition 

Knowing your competition is also important in every business. You can check out nearby Airbnbs and look at how they are handling their properties. You can also check out their reviews and see what the customers are suggesting. You can get improvement ideas from such reviews. 

Know your property

When you plan for potential guests, you need to know what you are attracting them with. You should be well aware of your property. You need to understand what type of property it is, what amenities you can accommodate, what all things are available around the place, etc. 

Once you answer all these questions, you will get a clearer idea about a lot of other factors. 

Fees and Airbnb commission

While the listing is free, you will be paying a certain type of commission to Airbnb. They have two fee structures in place - host service fees and host-only fees.

You should check out all such policies before finalizing anything. 

Local tax regulations 

You need to be aware of your local VAT and other regulations that are relevant to your business. Airbnb is a taxable income; hence, you must report to the federal agency. Also, Airbnb is illegal in certain cities! You might want to make sure you aren’t in one such city.

Profitability 

What you earn from Airbnb depends heavily on your property. The location, amenities, type, etc of the property will add to its value and overall profit of the owner. Cities with a strong tourism market will help hosts earn a lot of cash from this business. 

Here are some ways to receive Airbnb payments:

1. PayPal

2. AIS Debit Card

3. Payoneer Bank transfer/debit card

4. ACH/Direct deposit 

5. Western Union

Is Airbnb reliable?

Every business has risks and so does Airbnb. You should look into getting property insurance. Along with this, make sure you admit only verified tenants. 

Also, don’t forget to add extra security layers like cameras and alarms. 

You can also add a damage deposit to your rates. That is a common practice. 

2. Preparing your property 

Before you sign-up for Airbnb, it is very important to make your house ready to host guests. The preparations include: 

1. Make sure your house has some must-have amenities like a coffee maker, a complete kitchen, air conditioning, parking space, all necessary cutlery, wifi, TV, TV cable or streaming services, movies and books, family-friendly games, stationery, cleaning supplies, etc. 

2. You can consider re-furnishing your house as a vacation rental house. Make sure that you put your guest’s comfort as the top priority while re-furnishing. Your house must give a welcoming and comfortable feeling. Make use of more whites and neutral colors to make your space look big. Invest in good quality, durable furniture and cover up small flaws like a hole or chip on the wall with a painting. 

3. You can prepare a set of house rules that should be followed by people who stay in.

Make sure that the entire house is very clean and take nice pictures for uploading on Airbnb. 

3. Airbnb Sign-up and listing

Signing up and listing your property on Airbnb isn’t as easy as it seems. You need to do it right for your business to reach soaring heights. Here are some ways to make sure of that.

Host profile 

People need to know their host. They can’t put their trust in any random property. Having a clear and nicely made host profile can help build trustworthiness. 

Make sure you mention your personal description in all honesty and clarity. This will add to the good image of your business. 

Photography 

Photos are also equally important when it comes to trust-building. You need some great, professionally clicked shots as well as some normal ones so that it doesn’t look deceiving. Quality and authenticity are both keys to good photos. 

Attractive titles 

Make sure you use the right words and attractive titles to catch the attention of bypassers. A good title will make the customer stop and consider. So, don’t hold back on vocabulary. 

Make sure these words are relevant and persistent in your market. You can also mention noteworthy tourist attractions. 

Focus on location 

You can add any tourist attractions that are nearby. But don’t add too much unnecessary location information. If customers come across you, they must have a rough idea of the location. That’s how Airbnb works. 

Consistent upgrades 

You can keep updating your titles every once in a while. This will help you gain major traction. 

Great description 

Your listing is all the customers will have to book the place. Hence, make sure you add a great, detailed description of the place to give your customers a clear idea and now feel like they are hitting a blind spot. 

In this description, make sure you set the right tone and talk enough about your USP. Don’t go on forever. Keep it precise but ensure that you cover all things that the customers need to know. 

Instant Book button 

This is quite the magic button. Most customers prefer properties that have an instant book option. It is simply more convenient for them. Hence, offering this option can help you boost booking rates.

House rules

Ensure that you mention all your house rules. This is a good way of conveying to your guests what you are expecting from them. 

Verification 

By meeting the stated standards of Airbnb, one can get verified. Having a verified profile will make your business more trustworthy and reliable. 

4. Pricing 

The market for rental houses and Airbnbs is very competitive. Finding the right price will allow you to have repeat renters. If you keep your prices lower than the fair market rates, you will find renters who will damage your property and you will end up with more losses. 

If your prices are on the higher side compared to the market, you will end up with less occupancy. 

1. Keep prices low at the beginning, to get good bookings initially.

2. Don’t keep your prices low for too long.  A good rule of thumb is to increase prices when you have between 75%-90% occupancy for the next 2-4 weeks, but only 50% occupancy for 8-10 weeks out. 

3. Change prices for weekdays and weekends. You can get higher prices on weekends. 

4. You can use a seasonal pricing strategy as well, just like hotels. 

Once you have a good presence in the market, don’t enter the rat race of pricing, instead, price moderately and provide more amenities at the same price. This will help you develop a great reputation and in the future, this will enable you to raise prices. 

5. Being the ideal host 

Being a super host isn’t just an Airbnb title. You need to be a host that your customers would love to engage with. Nobody would like a mean or uncooperative host.

1. The first step is to respond on time. People won’t wait around for you to accept their request. They are planning a vacation and hence, they need fast answers to carry on the procedures. Hence, be efficient in responding. 

Your goal is to give them a comfortable stay and to do that, you can arrange a warm welcome and easy resolutions. 

1. Studies show that 88% of people trust Airbnbs based on customer reviews. Hence, go to a stretch and provide people with the best hospitality that can encourage them to leave a stellar review. This will also boost your ratings. 

2. Talking about the actual ‘Superhost’ status of Airbnb is quite the badge of honor. You need to maintain certain standards to achieve this title. It will include getting 80% of 5-star reviews, maintaining a 90% response rate, low cancellation rates, etc. These aren’t complicated. They are basic requirements that ensure a good experience for the customers. 

6. Maintaining your property

The first thing that people notice when they enter their hotel room or Airbnb is how clean is the place. Cleanliness can be a deal-maker or deal-breaker. For the guest, a dirty home will ruin their vacation and experience, while for the host the dirty house will ruin their business as it will spoil the reputation. Some cleaning guidelines are: 

1. Clean small places the switches, doorknobs, cupboard handles, cobwebs in corners, spaces between sofa cushions, etc. 

2. Vacuum wipe sofas, disinfect all common touchpoints, and clean the TV, and bookshelf. Wash the cushion covers if needed. 

3. Clean the whole kitchen, wash the cutlery and ensure no dry food is on the cleaned dishes. Wipe the backsplash and cabinet doors. 

4. Keep the toilets clean, and clean the entire bathroom area on a regular basis as well. Replace all the complimentary toiletry items and wash all the towels and bathmats. 

5. While cleaning the bedrooms, replace the dirty linens, clean all the small spaces like the space between mattress and headboard, vacuum the floor and wipe the furniture clean. 

This list isn’t exhaustive. 

7. Marketing and promotions 

A customer will not find out about your house on his/her own. You should promote your listing to attract guests. Make use of better titles, descriptions, and good photos in combination with reasonable pricing. To get noticed you can do: 

1. Promote your page on social media by making use of the latest tools like SEO, content marketing, Reels, blogging, etc. 

2. Think about optimizing your listing on Airbnb results. This will increase the number of visitors to your page, increasing the chances of booking. 

3. Collaborating with travel bloggers and influencers can also help in promoting your Airbnb. It’s becoming one of the biggest trends and people’s choices are influenced by their favorite influencers and travel bloggers.

4. You can plan some special offers and discounts to promote your listing. For example, if it’s your guest’s birthday during their stay, you can provide them with say a bottle of wine or a free meal, etc.

5. You can hire a professional consultant to help you with your Airbnb optimization. 

8. Books for Airbnb hosts

There is so much information available for helping you with your Airbnb business. Some experts from around the world have written books that have examples and tips that can help you learn and create your own plan. The books are:  

1. Optimize your Bnb: The Definitive Guide to Ranking #1 Airbnb Search, by Daniel Vroman Rusteen.

2.  The Entrepreneurial Airbnb Hosting Guide, by Rick Wong. 

3. Airbnb: How to Make a Six-figure Income Without Owning Any Property, by Andrew Smith.

4. Airbnb Listing Hacks- The Complete Guide to Maximising Your Bookings and Profits, by Alex Wong.

5. Make Money On Airbnb: How to Quickly And Easily Earn $2,500 A Month From your Home, by Sally Miller. 

9. Knowing if Airbnb is right for you

You may be liking to host guests, clean the house and pay the taxes on your income, but you have to give a thought to whether it’s sustainable in long run or not? Consider the following: 

1. How much effort you are putting into your Airbnb to make it successful?

2. How much you are able to earn after taxes, fees, and house maintenance and upkeep expenses? 

3. Do you find yourself happy with all the time and effort spent managing your Airbnb business and welcoming strangers? Or is it a source of stress and disappointment? 

4. Are your guest happy with your service and writing good reviews?

5. Is it worth keeping your listing on Airbnb or you should go ahead by creating your own website? 

You should try to find answers to these questions and that will help you determine whether Airbnb is suitable for you or not. Don’t get tired very quickly, give some time to it. Put up your best efforts and follow all good practices and take a couple of years of experience with Airbnb and then decide whether it’s right for you or not. 

We hope we could help you get an idea of where to begin! Building an Airbnb does take some work and dedication but in the end, it is all worth it.