Over the years, Airbnb has transformed the way that people travel the world. Rather than having to fork out for hotels or spend hours researching for hostels, holiday-goers can find high-quality accommodation options within seconds using Airbnb. But how do you start a rental business using this advanced platform?
To cover the basics for those unaware, Airbnb is essentially a marketplace where people who need a place to stay meet those offering this space. While some people offer a spare room to people in the city, others provide a complete holiday home, a hostel, or whatever else they have available. The important detail is that you can offer whatever you have to people needing accommodation; of course, the price will reflect the quality and access to facilities. Some people are investing in affordable 3 bedroom house plans and building these homes specifically to be used as an Airbnb rental.
If you have a holiday home, you can charge more than somebody renting out a room with a shared bathroom and kitchen, for example. However, accommodations of all types are accepted and appreciated on Airbnb.
Starting an Airbnb Rental Business
Step 1: The Research Stage
Before anything else, you need to do some research (sorry!). For example, think about whether renting is legal according to your contract or ownership of the property. If you’re renting, you may not have the right to sublet a room to visitors.
During this stage, you should also consider whether you have the time to maintain the room/property. Can you clean the room between guests? Will you earn enough money to make it worthwhile? How competitive is the local market? Are people visiting your city frequently enough to get regular guests? Do you have a home/property worthy of sharing? If you struggle to find space for yourself, guests may not have a positive experience, which affects your rating and ability to keep finding willing guests.
What’s more, you also need to think about whether you need to create a business entity and how the income will affect your taxes.
Most people don’t know that Airbnb established an insurance program that provides up to $1,000,000 in coverage for injuries that occur at Airbnb properties, states Armen Khoshoryan, an airbnb injury lawyer at Dordulian Law Group. Issues surrounding liability in an Ai
Step 2: Creating the Business
If you’ve spent lots of time researching and an Airbnb management business is still a viable option, this is excellent news. Now, you need to enter the preparation phase and draw up a basic business plan. Although some people don’t see Airbnb ventures as genuine businesses, it’s important to take it seriously if you want to make money.
Firstly, register with the government as a business and create a business bank account. This way, you won’t confuse business funds with personal funds. Also, you’ll know exactly how much you’re earning and how much you’re spending. When cleaning the room/property, use funds from the business bank account and try not to mix the two.
Simultaneously, it’s always good to consider insurance as an Airbnb business. What happens if somebody is injured while in your home? It’s better to be protected than run the risk.
In terms of a business plan, write down what you hope to achieve and your long-term goal. For example, do you want to start with a single room before investing in a property and using this to scale the business? Is the ultimate goal to own several properties around the city, all earning a healthy sum?
Step 3: Launch the Business
At this stage, you’re ready to create your Airbnb account, post the listing using high-quality images, and start building those fantastic reviews. If you want to grow quickly, give the best experience possible to all those who visit – go out of your way to make them smile.
Whether you want to launch a business and scale or just earn money for a single room, this guide should help start your journey!