Airbnb has emerged as one of the top lodging options for today’s travelers, and many homeowners are finding that renting out a room or their entire home for set periods of time can be an extremely lucrative venture. It provides an awesome way for homeowners to make some extra cash and supplement their income.
If you have an extra bedroom or in-suite you’d be willing to rent out, you can make huge amounts of cash. Before you decide to list your space on this website conglomerate, take the following facets into consideration.
Location, Location, Location
Before putting your home up on a site like Airbnb, look at demand. If you’re in a big city that sees its fair share of tourists, you’re likely well set to compete with expensive hotel rates. You’re also in the clear if you reside in a college town; visiting family and friends always need somewhere to stay, especially during big events like a Parents Weekend or graduation (multiple times per year).
The Startup Costs
You won’t make money without at first putting some out. While you may have the space prepared, you’ll need to ensure you’ve got the amenities. This may include new towels and sheets, and modern décor from in your room to appeal to younger vacationers.
You can find awesome deals on linens from a site like Overstock.com and take care of your décor needs on a website like TouchofModern.com. You want your room or space to be appealing enough to battle the competition, and with choices galore, renters have the right to be discerning.
You’ll also need to offer a clean space to those you rent to, so consider saving yourself time and effort by hiring a cleaning service. This level of professionalism will garner you better reviews and increase your chances of being able to charge higher nightly rates.
Airbnb also charges a service fee which covers processing costs, so keep that in mind when you start pricing.
Managing Your Listing
Your listing is what attracts those on Airbnb, so do your due diligence to make your posting as appealing as possible. This includes professional photos of your space, and what you might not know is that Airbnb will send a professional photographer to your home, free of charge. These photographers are skilled at accentuating the best areas of room, and this extra step could gain you higher numbers of quality renters.
The Review Factor
Your success rate will depend heavily upon the reviews you receive, so do your part to always respond promptly to those staying with you and make sure their needs are met. If they do have an unsatisfactory review, you’ll want to be able to respond in a courteous way. Your response just might make them reconsider their review, but if not, your polite response will speak volumes to new renters looking at your home.
Beware of Taxes
According to The Washington Post, if you rent your personal home out more than 14 days out of the year you will have to pay taxes, and Airbnb should provide these forms at the end of the year. If you rent out a non-personal home, that is to say, a vacation home, then you must report it as rental income on Schedule E.
Use Verifications
Use the verifications offered to you through the website. You can verify your phone number, email address, and even your Facebook account. The more verifications you have, the more reservation requests you’ll receive. At the same time, look for verifications of those requesting to stay in your home. Similar to a landlord, you’ll want as much screening as possible before allowing someone to stay in your personal property.
Insurance Issues
You’ll want to talk to your insurance agent to determine what is covered in your home. While Airbnb does have insurance measures in place, you’ll want to make sure you have as much coverage as possible.
Some insurance companies may require that you buy a business policy, depending upon the number of visitors you host each year so it’s definitely a good idea to do some research before committing your home to the website.