Ever been curious about how to be an Airbnb host? How much extra income could you earn if you transitioned a property from a long-term to a short-term rental?<\/p>\n\n\n\n
We tracked down several Airbnb experts to explain how to become a host for Airbnb with minimal fuss and maximum profits. They quickly pointed out that\u00a0managing a short-term rental business<\/a>\u00a0is not for everyone \u2014 or every property \u2014 but can be highly profitable.<\/p>\n\n\n\n From broad-level strategy and narrowing into more tactical tips, here are 14 tips for how to be an Airbnb host as you\u00a0try out Airbnb rentals<\/a>\u00a0as a landlord!<\/p>\n\n\n\n Real estate investing and property management aren\u2019t \u201crocket surgery,\u201d as my ex-girlfriend used to say. But as you research how to become a host for\u00a0Airbnb<\/a>, you quickly realize that throwing up a listing with a few photos snapped with your smartphone won\u2019t land you huge returns.<\/p>\n\n\n\n Follow these host tips from the experts, and prepare to put in some good ol\u2019 fashioned hard work along the way.<\/p>\n\n\n\n \u201cBefore you become an Airbnb host, calculate whether the additional effort is worth the money, compared to what you could earn if you rented out the same space on a long-term lease.\u201d<\/p>\n\n\n\n The sharp mind behind Afford Anything, Paula Pant, uses Airbnb and short-term hosting for some of her rental properties. But not all.<\/p>\n\n\n\n Here\u2019s how she breaks down the math:<\/p>\n\n\n\n \u201cLet\u2019s say that you could rent an apartment on a 12-month lease agreement for $1,200\/month. You could Airbnb the same space for $100\/night by comparison.<\/p>\n\n\n\n \u201cOn the surface, that $100 per night sounds like a no-brainer. At full occupancy, that\u2019s $3000 per month. Why wouldn\u2019t you take that?<\/p>\n\n\n\n \u201cBut if Airbnb only gets you 18 days per month of occupancy, then your gross income would only be $1,800\/month.\u201d<\/p>\n\n\n\n The vacancy rate is far from your only expense, though. You\u2019ll need to pay for gas, electricity, water, internet, consumables like toilet paper and soap. And don\u2019t forget extra occupancy taxes tacked onto short-term rentals!<\/p>\n\n\n\n \u201cOnce you subtract these from that $1,800\/month gross, you\u2019ll find \u2014 in this example \u2014 that the long-term 12-month lease nets you more money.<\/p>\n\n\n\n \u201cThat\u2019s not to say that all long-term rentals are better, nor is it to say that all short-term rentals are better. It simply means that you should not make assumptions based on gross income alone. Compare the two options to see which one is more lucrative.\u201d<\/p>\n\n\n\n Al Williamson, arguably the top expert on Airbnb rentals in the country, urges a counterintuitive approach to pricing.<\/p>\n\n\n\n \u201cYour Airbnb pricing should have nothing to do with what you could charge for a long-term rental. In fact, don\u2019t even price your nightly rates based on other nearby Airbnbs!<\/p>\n\n\n\n \u201cYour competition is made up of nearby hotels. Look at comparable hotels\u2019 nightly rates, and then try to beat them by 15-25%.\u201d<\/p>\n\n\n\n When I asked Al about units with multiple bedrooms, he said the same principle applies. \u201cA family of six could either book three rooms at the nearby hotel chain\u2026 or they could book your three-bedroom unit. In that example, consider pricing your three-bedroom at the cost of booking two hotel rooms to make your unit an easy decision.\u201d<\/p>\n\n\n\n Want a complete online lesson from Al about how to succeed as a short-term rental business? Here\u2019s a\u00a0free webinar we hosted with him, breaking down how he\u2019s doubled his rental revenues<\/a>.<\/p>\n\n\n\n The hotel industry is no pushover. With billions of dollars on the line, they aren\u2019t just laying down and surrendering the loss in market share.<\/p>\n\n\n\n And their cries \u2014 and lobbying dollars and campaign contributions \u2014 tend to fall on sympathetic ears in local legislatures. After all, many municipalities charge special hotel taxes.<\/p>\n\n\n\n That means that many local governments have outlawed or severely restricted Airbnb and other short-term\u00a0vacation rental<\/a>\u00a0services. For example, one study found that\u00a0half of the Airbnb listings in New York City are illegal<\/a>. San Francisco only allows people to list Airbnb units if they live in the property themselves at least 275 days per year on the other side of the country.<\/p>\n\n\n\n Look up your local laws, and make sure you can comply before listing on Airbnb<\/a>!<\/p>\n\n\n\n Being a landlord is mainly hands-off, with occasional spurts of effort. That\u2019s what attracts most landlords in the first place \u2014 the promise of a passive income<\/a>!<\/p>\n\n\n\n Short-term rentals can produce strong income, but they\u2019re far less passive. And they require a more holistic approach to operate profitably.<\/p>\n\n\n\n \u201cSo many people who try out Airbnb<\/a> just throw up the listing and then sit back and wait,\u201d laments Al Williamson. \u201cThey don\u2019t do marketing outside of Airbnb or VRBO. Then when it\u2019s off-season, these hosts don\u2019t make any money, which ruins their annual returns.<\/p>\n\n\n\n \u201cWhat they should be doing is launching multi-pronged marketing campaigns. Registering with travel websites like Booking.com, posting on Craigslist, leveraging their website and audience, even using hyper-targeted Facebook ads to reach extended-stay business travelers.<\/p>\n\n\n\n \u201cShort-term landlords who approach it as a business can virtually eliminate vacancies, while those who just think of themselves as Airbnb hosts will wonder why their vacancy rate is so high.\u201d<\/p>\n\n\n\n As mentioned earlier that you should price against the competition of hotels. That also means you should aim to operate with the smooth efficiency that hotels do, too.<\/p>\n\n\n\n When most people approach the task of furnishing their rental, their first thought is, \u201cI guess I should go to the furniture store.\u201d<\/p>\n\n\n\n Wrong. False. Incorrect.<\/p>\n\n\n\n Your potential guests don\u2019t expect their bums to be the first to sit on your sofa. Not a single piece of furniture in your unit needs to be new.<\/p>\n\n\n\n Buy used furniture, and make sure it\u2019s in good condition.<\/p>\n\n\n\n Options include Craigslist<\/a>, Freecycle, garage sales, Goodwill, the Facebook Marketplace, and used furniture stores. You can furnish your unit for a few hundred dollars if you go about it with discerning taste.<\/p>\n\n\n\n Just make sure the d\u00e9cor matches within each room. You don\u2019t need to be Betty Draper when learning to be an Airbnb host; pick a color scheme and go with it. Black and white is an easy one. Blue and wood tones are another easy scheme.<\/p>\n\n\n\n When in doubt, take a tasteful friend with you to do your shopping.<\/p>\n\n\n\n One other tip: avoid political, sexual, or juvenile wall decorations. If that sounds obvious, I\u2019ve stayed at numerous Airbnb units that broke those rules. The weirdest was decorated with rabbits with leather S&M outfits on. Seriously.<\/p>\n\n\n\n Every landlord wants to paint their property in the best light. And that\u2019s fine \u2014 as long as guests won\u2019t be disappointed when they see the real thing.<\/p>\n\n\n\n Your listing photos are not the right place to show off your Photoshop skills. Your listing description is not the place to wax poetic.<\/p>\n\n\n\n By all means, show off the property\u2019s strengths. Brag a little. But when it comes to your property\u2019s weaknesses, be honest.<\/p>\n\n\n\n That doesn\u2019t mean you can\u2019t put a positive spin on them. If you\u2019re renting out a small studio, \u201cintimate\u201d and \u201ccozy\u201d are reasonable alternatives to \u201ccramped\u201d and \u201ctiny.\u201d<\/p>\n\n\n\n Your guests will rate your property not just overall but also on the accuracy of your listing. And if they feel gypped when they arrive, they\u2019ll leave terrible reviews: a fast way to sink your short-term rental business.<\/p>\n\n\n\n First and foremost, ask all guests to leave a review for you. Pretty please. With a cherry on top.<\/p>\n\n\n\n Many will forget or not get around to it if you don\u2019t ask.<\/p>\n\n\n\n But building your rating doesn\u2019t stop with asking for reviews. In the beginning, you might need to price your unit more competitively and go the extra mile with each guest.<\/p>\n\n\n\n \u201cPeople love a deal, and as a new Airbnb host, it can be difficult to stand out amongst the other Airbnb listings in your area,\u201d explains Andy Kolodgie, owner of Cash Home Buyers Georgia<\/a>. \u201cBy initially lowering the price of your Airbnb, you will draw in more people because most are looking for affordable accommodations. This will build your AirBnb reputation and allow you to start getting reviews. Building this credibility early on will attract more people to your Airbnb, enabling you to increase the price down the road.\u201d<\/p>\n\n\n\n The faster you can score your first five positive reviews, the quicker you\u2019ll drop that vacancy rate. Many guests refuse to stay in units without at least 5-10 reviews, so make gathering reviews a priority for becoming a host for Airbnb.<\/p>\n\n\n\n Everything about your unit and your guests\u2019 stay could be perfect, but if they see one cockroach cruise across the kitchen counters, you can expect a bad review.<\/p>\n\n\n\n Your units must be spotlessly clean. That goes doubly for kitchens and bathrooms.<\/p>\n\n\n\n And while we\u2019re speaking of reviews, guests will rate your unit; cleanliness is another category that guests will use. And not just on Airbnb, but on travel websites as well.<\/p>\n\n\n\n If you hire a maid or cleaning service, screen them well, and inspect their work regularly. Check that the bed linens are spotless and turned down professionally. If you do the cleaning yourself, make sure you do a spectacular job worthy of Mr. Clean\u2019s shining pate.<\/p>\n\n\n\n As a business person (you\u2019re a businessperson, not an Airbnb host, right?), you should be on the lookout for differentiators. Ways to make your product more attractive than your competitors.<\/p>\n\n\n\n Lily He-Prudhomme, who writes about her\u00a0frugal<\/a>\u00a0journey to financial independence at\u00a0The Frugal Gene, uses Airbnb rentals as part of her strategy. \u201cTurn on \u2018Instabook\u2019 if you don\u2019t have specific schedule demands. It does make a difference in the appeal of your listing, which translates to higher prices and occupancy rates.\u201d<\/p>\n\n\n\n As a frequent traveler and guest on Airbnb myself, I\u2019ve had many bad experiences with approval delays. There have been times when I\u2019ve thrown my hands up and said, \u201cThat\u2019s it, I\u2019m not booking any other places without Instabook.\u201d<\/p>\n\n\n\n Sometimes it\u2019s the little things that make the big difference.<\/p>\n\n\n\n Experienced hosts know that communication with guests is crucial. So much so that it warrants its rating category when guests leave reviews.<\/p>\n\n\n\n When a prospective guest inquires about your rental space, answer immediately. Do likewise when approving booking requests (if you refuse to turn on Instabook). And when future guests (or currently staying guests) message you with questions, hop to it.<\/p>\n\n\n\n Your response rate is the percentage of guest queries you respond to within 24 hours. It would help if you had it to display as 100%.<\/p>\n\n\n\n What do guests need to know to stay in your unit?<\/p>\n\n\n\n What would make their stay even more enjoyable?<\/p>\n\n\n\n Start with the basics: an emergency contact name and number, the WiFi network name and password, which key is for which door, check-out procedure, and so on.<\/p>\n\n\n\n But don\u2019t stop there. What neighborhood restaurants<\/a> are divine? Which are tourist traps?<\/p>\n\n\n\n What entertainment or activities are available in the area? Have any tips to get the most out of the experiences? Any recommendations?<\/p>\n\n\n\n Can you include any coupons for local restaurants, events, etc.?<\/p>\n\n\n\n Don\u2019t feel like you need to go overboard with this. Start basic with the bare necessities and add to them over time.<\/p>\n\n\n\n You can buy a good-tasting bottle of wine for under $10 if you know what you\u2019re doing.<\/p>\n\n\n\n Since most people don\u2019t know what they\u2019re doing, ask for a recommendation from an oenophile friend or a boutique wine shop if your friends are all beer drinkers.<\/p>\n\n\n\n Once you\u2019ve chosen the perfect sub-$10 bottle, buy it by the case for a discount. Half your guests won\u2019t drink the bottle you leave for them, cutting your costs even further.<\/p>\n\n\n\n Please leave a little handwritten note under the bottle, addressed by name to your guest, inviting them to enjoy the bottle as they enjoy their stay.<\/p>\n\n\n\n It\u2019s a nice gesture and one that guests won\u2019t get at a hotel.<\/p>\n\n\n\n Which is your competition, remember?<\/p>\n\n\n\n Just make sure you leave a corkscrew in the unit, along with the silverware!<\/p>\n\n\n\n \u201cBeing successful with any Airbnb property will take time to manage, regardless of how close it is to where you live,\u201d reminds Danny Margagliano, a Realtor and Destin Airbnb<\/a> expert. \u201cYou will not only have to be available for fielding questions and inquiries but also be ready to spring into action when a problem arises.<\/p>\n\n\n\n \u201cIf an appliance breaks or the toilet gets clogged, they are going to call upon you to fix it. This not only takes time, but you also need to be available and have flexibility in your schedule. If you work a 9-to-5 job where you can\u2019t have access to your email or phone, you may want to rethink the idea of self-managing your rental property through Airbnb.<\/p>\n\n\n\n \u201cSome of the responsibilities include but are not limited to cleaning in between guests, general maintenance, answering general inquiries in a timely fashion, and making sure guest check-ins go smoothly. If this list doesn\u2019t scare you that you may be a great candidate for hosting an Airbnb property.\u201d<\/p>\n\n\n\n Know those people who are constantly talking about this or that thing they\u2019re going to try out, but who never actually get around to doing it?<\/p>\n\n\n\n Don\u2019t be one of them.<\/p>\n\n\n\n Success requires some experimentation. Airbnb might not be for you\u2026 or it might be wildly successful<\/a> for you.<\/p>\n\n\n\n Lily from The Frugal Gene has had the same conversation over and over. \u201cMy friends kept asking me about it, and a year later, I checked in with them, and they still never did it. It\u2019s new, so I understand the hesitancy, but to a degree, you have to jump in!\u201d<\/p>\n\n\n\n Stop talking, start walking.<\/p>\n\n\n\nHow to Be an Airbnb Host<\/h2>\n\n\n\n
1. Run the Numbers<\/h3>\n\n\n\n
2. Price Against Hotels, Not Other Rentals<\/h3>\n\n\n\n
3. Know Your Local Laws<\/h3>\n\n\n\n
4. Approach Short-Term Rentals as a Complete Hospitality Business<\/h3>\n\n\n\n
5. Furnish Affordably (But Tastefully!)<\/h3>\n\n\n\n
6. Never Misrepresent the Property<\/h3>\n\n\n\n
7. Accrue 5-Star Reviews ASAP<\/h3>\n\n\n\n
8. Cleanliness Is Next to Godliness<\/h3>\n\n\n\n
9. Turn on \u201cInstabook\u201d If You Can<\/h3>\n\n\n\n
10. Be Extremely Responsive<\/h3>\n\n\n\n
11. Create a Concierge Document or Booklet<\/h3>\n\n\n\n
12. Leave a Free Bottle of Wine for Guests<\/h3>\n\n\n\n
13. When in Doubt, Hire It Out<\/h3>\n\n\n\n
14. Stop Talking About It and Try It Already<\/h3>\n\n\n\n