Airbnb has revolutionized the global vacation rental market growing from a mediocre bed & breakfast fleabag into the biggest online accommodation brokerage with over 6 million listings in nearly every corner of the world. The idea behind Airbnb strikes with its genuine simplicity: to supply globe-trotters with comfortable, locale, inclusive, yet affordable and secure spaces to stay in for a while.
The platform is essentially a mediator between travelers and hosts allowing both parties to benefit from short-term rental housing. As such, owners can lease out their living spaces and enjoy an additional source of income while guests have an opportunity to find a nice roof over their head without breaking the bank while in a strange city. It is a pure win-win deal.
Airbnb properties are often considerably cheaper than hotels/motels, still offering the same level of coziness and experience, which clearly explains the insane popularity of Airbnb rentals. This online vacation rental marketplace also implements an advanced review and rating system to let both entrepreneurs and guests know whom they are going to deal with and, consequently, make a weighted decision.
Who can advertise on Airbnb?
Anyone who has a spare lovely cubby to sublet can become an Airbnb host. The range of short-stay rental enterprisers includes:
- Opportunists. They are generally people who have an extra living space in their homes to lease out from time to time. For example, many prominent festivals or events can spur tourist rush to the city, and an opportunist may offer their free rooms to cash in on increased demand.
- Side hustlers. In the realms of the global gig economy, it has already become a norm that people have sources of outside profit in a set with their nine-to-five-jobs. Side hustlers use Airbnb as a way to earn supplemental income, but they do not devote all their time and effort to running such a business. They may open their listings while going on a journey or just offer a vacant room for a token fee to reduce monthly utility costs.
- Full-time entrepreneurs. They are professional hosts who have, at least, one dedicated property to continuously lease out. A full-time host uses Airbnb to generate primary income, and such a host spares neither strength nor resources to maintain and grow their short-term rental business. Solid entrepreneurs have multiple rental properties and generally either buy the dedicated management software or hire a management company to assist with Airbnb daily operational struggles.
Benefits of being an Airbnb host
To begin with, your Airbnb startup may be very lucrative with a proper strategy. Anyone who takes the risk of leveraging their assets may soon reap the following benefits:
- An auxiliary source of income. When your spare unit starts bringing extra money, you will discover that making ends meet has become much easier, and you can afford much more.
- An increased level of culture. You grow culturally and become more tolerant once you begin hosting on Airbnb. People of different cultures and worldviews will come to your place from the four corners of the earth, and you will have to get along well with them if you want your business to go on and new guests to come (happy clients are the best advertisement).
- Your property is insured. Despite there is always a risk that you will come upon problematic guests, Airbnb endeavors to protect your property against mistreatment. The platform has a sophisticated host insurance program to safeguard your lodgings against ill-behaved clients, easing your mind that your losses will be replenished.
- No heavy use. Guests will not use your unit heavily as they have come to your city not to stay within four walls but to go sighting, participating in activities, and doing other things. Indeed, they just need a comfortable secure room to spend the night and keep their bags. Your cherished property actually remains untouched as most Airbnb vacationers spend time outdoors.
Factors to consider before launching an Airbnb business
There are some things you need to know before taking the plunge.
Becoming a legal entity
In most jurisdictions, running any sort of business requires forming a legal entity, which, surely, saves you from potential problems with the Law.
Your municipality may apply certain taxes to short-term rental entrepreneurs. If you are not very brilliant at business accounting questions, you can reckon to a professional Airbnb management team that will solve all your financial questions associated with operating such an enterprise. An experienced Airbnb property manager can even take the entire Airbnb property management burden on themselves, letting you just relax and witness how money from your rentals drop into your bank account. You can learn more about professional Airbnb management here.
Obtain permissions and licenses
Depending on your locality, you may need additional documents to be able to run a short-stay rental venture. In some communities, you may even require getting permits from your municipalities or neighbors. You need to thoroughly research this issue before you take the leap.
Set up a business bank account
When you become a businessman, you need to separate your corporate incomes and expenses from your personal account just to avoid unnecessary hassle with your local tax bureau.
Along with obtaining homeowner insurance, you should also consider purchasing a business insurance policy for added peace of mind.
Not everyone who takes a shot at Airbnb can rich off it immediately. There is a great amount of work to be done before you publish your first listing. Still, if you want quick results without much time and effort wastes, you can seek professional help. Well-trained, legal savvy Airbnb property managers will fully prepare your unit for renting and tackle all the associated issues for a fraction of the price, while you will just kick back and get extra dollars from hiring out your unoccupied rooms.