Most millennials have used Airbnbs at least once in their life, especially if they are travel enthusiasts. Airbnbs have become a more affordable and convenient rental option than traditional renting. Airbnb is short for Air Bed and Breakfast and allows individuals to rent out spaces, rooms, or entire properties to travelers and vacationers.
Turning your property into an Airbnb or purchasing and remodeling an existing property into an Airbnb can be daunting but gets easier with experience. You need to ensure the location is suitable, the rates are competitive, and the services you provide are relevant. We compiled a few tips to ensure your Airbnb business brings in huge profits:
Suitable Location
The location you select for your Airbnb will affect other factors as you move forward. For instance, the costs per night or how often properties are rented in the area. Consider geopolitical and socioeconomic factors to have a somewhat clear vision of who your target audience will be.
Of course, buying property around popular tourist attractions is expensive. Your rates should reflect this and reimburse you for these costs. Be careful of overcharging. If you doubt the rates you offer, hire a valuer to assess the actual value of your property so that you can come up with a comprehensive figure as you move forward.
Gather 5-star reviews
Having 5-star reviews is one of the best rewards in the service industry. Hosts should ensure that their guests thoroughly enjoy their stay, whether it is by offering excellent rates or going beyond the bar in service delivery. The hardest part is actually getting these reviews. You may ask your guests to leave reviews on the app or wait for them to leave these reviews on their own. Be it as it may, prospective clients look at reviews right after looking at the property’s pictures or, in other cases, right before.
Furnish well
The interior design structure of any rental house is as important as the price, for instance. In fact, it may be directly proportional to the cost of the property. If unsure about your skills, consider hiring the skills of a professional interior designer. Declutter spaces that seem too congested. Bring excitement to areas that seem a bit boring.
Your rental’s furnishings are assets. Spend time and money on them because they will have long-term returns. However, do not overspend on this, as furnishings may grow outdated with time and may require replacements.
Commitment
Despite your Airbnb business being passive income, allocate lots of time to your property, including scheduling on-site visits if you are out of state. Sometimes, being there when guests check in shows that you are committed to your craft and creates a personal feel to the property. Some guests prefer no contact, which may not require you at the property at check-in and during their stay. Know the area’s service providers, such as the best places to buy fresh food and the best taxi companies, so that you may refer them to your guests.
Set reasonable rental rates
Compare the prices of both nearby Airbnbs and hotels in the area. It is not advisable to charge too much above the area’s average, despite offering better services. If the services you provide are expensive and are what cause the prices to be higher, consider either sizing down their operations or packaging this service in a way your clients will have no problem paying for it. Instead of communicating the price, you could tell prospective clients about the value they get from renting your Airbnb.
Automate check-ins
This strategy is advantageous for both you as the property owner and the individual renting it. You do not have to be present when your clients check in, especially when they are doing so during the night. You could install smart lock systems or a lock box that will ease check-in. It will also allow your guests more flexibility and freedom to come in and out of the property as they please.
Minimize costs
Running your Airbnb may run up your utility bill. You may be required to pay for a business license, taxation, and water and electricity bills. Another way to reduce costs would be to clean your property yourself rather than hire cleaning services. Hire professional cleaning services only periodically, say, monthly, then hire a cleaning help for daily needs.
Be responsive
Respond clearly, and respond on time. Individuals who want to rent out your property will require quick feedback concerning any questions they may raise. In the service industry, it is very easy to lose a client because of a lack of timely responses or by providing fluffy, shoddy responses. If you are forgetful, set reminders to check your email. You could also set up notifications to know when prospective clients are looking at your property.
Perfect your listing
Your property’s listing on the Airbnb website or app is the first thing your client will see. Make your listing pop out from among the rest. Have a professional photographer take pictures of your property, or if you are doing it yourself, ensure there is proper lighting. Be clear on the rooms and amenities available, including bedrooms, bathrooms, WIFI, swimming pool, jacuzzi, and parking facilities.
As a pro tip, include some of the quirks of the property. If it is a bit far from the city, have that in your listing. It may throw off some individuals but draw in others. Some travelers may actually prefer living far from the hustle and bustle of the city for a few days.
Make a great first impression.
Some hosts leave a bottle of wine for their guests to enjoy, while others offer a discount to returning visitors. Whichever incentive you apply, be careful that it does not significantly increase your expenditure.
The best way to go about this is to imagine yourself as a guest. What would impress you first about a property? Is it welcome snacks or a present host to welcome you? Is it a quick check-in process? Once you find what you would love as a first impression, manifest it into your property.
