Short-term rentals have become one of the most lucrative sources of income in the modern day. This is because they are in high demand, especially due to platforms such as Airbnb. However, many people shy away from getting into this line of work because they don’t know how to start an Airbnb business.
While acquiring a short-term rental and running an Airbnb business may initially seem daunting, it is extremely rewarding. That’s why you shouldn’t avoid the idea and why we have put together this guide to help you do it.
Keep reading these seven simple steps on how to start an Airbnb business and prepare for a future of success.
Find the right Airbnb space to rent
Before you start an Airbnb business, you need a property. Well, you don’t actually need a property; you just need somewhere that people can stay in and that you can rent out. In today’s climate, many people advertise unique spaces on Airbnb, such as tree houses or boats, and people love staying there because it is something different and great to put on the gram.
However, before you start with somewhere a bit more bizarre, you might want to start with renting out a spare room or small apartment. This will allow you to get your head around how Airbnb works, build rapport with the platform, and start earning some initial cash that you can then invest in other spaces.
Assess your market
One of the first things you should do when starting an Airbnb business, alongside finding a space to rent, is find out who you’ll be renting to. For example, what sort of people tend to visit your area, and why do they visit that area? You won’t want to rent an Airbnb to a single, smart businessman if it is a romantic treehouse covered in twinkly lights.
The best way to assess your market is to look at other Airbnbs similar to yours and see who they rent to. You can do this by looking at reviews. Similarly, you’ll want to conduct market research in your area by seeing which demographic of people frequent your area and what groups the amenities attract. You can then tailor your Airbnb space to your market.
Set up and furnish your Airbnb
After you have a location and know your market, it is time to set up your Airbnb. You want to create an atmosphere that will attract your target audience. For example, if you live near the sea and people come to surf in your area, you may want to decorate your space with a maritime theme. No matter what theme you choose, make sure you don’t go too over-the-top but simply incorporate some small elements and comfortable furnishings.
Some other theme ideas you may want to consider include the following:
- Family-oriented: Introduce some bright colors, board games, and seating areas perfect for a family.
- Romantic: Cater the entire Airbnb space to couples. Include pairs of everything and maybe a few sparkly lights and rose petals.
- Modern: Keep the space minimalistic with neutral colors - great for people traveling for business.
Build an Airbnb team
You may want to do everything for your Airbnb yourself, but realistically it will be a lot of work. This is especially the case as you start to add more properties and spaces to your collection. That’s why you’ll want to put together a dream team that will help your Airbnb become successful and ensure all guests are looked after at all times.
Here are some roles you may want to add to your team:
- Property manager
You might be able to do some of these jobs yourself but don’t push yourself and hire help if your workload seems too big.
Determine and set your price
You can’t make money from your Airbnb business if you don’t charge rent. That’s why you need to find the right price to charge your guests per night. The problem most hosts face at this stage in their business is they set their price too low and don’t make much profit, or they set it too high and don’t receive any guests.
The best way to figure out what the price for your Airbnb should be is by looking at other similar listings. You will want to offer a price like these properties, but you also want to have competitive rates. If you can offer a lower price than your competitors, do it. If not, stick to the same price but try to offer something unique that they don’t have, to set yourself apart.
List your space
It is now time to place your space’s listing on Airbnb. This is a crucial step in starting an Airbnb business because, without the right listing, you can get lost in a sea of other properties and struggle to get any bookings.
When you list your space, you need to ensure you have two things: attractive photos and a persuasive description. It might be a good idea to stage your Airbnb to make it look nice and hire a professional photographer to give you high-quality images for your listing. You want to highlight all the amenities of your property in your description and highlight what makes your listing unique.
Market your space
Once your listing is up and ready to go, you need to find people to make bookings. Of course, you can leave it on Airbnb and hope that someone comes across the listing, but that isn’t a very business-savvy method. Instead, you want to market it on other platforms and include a link for potential guests to inquire about or make a booking.
You can market your space by finding groups for travelers in your area on social media and sharing your listing there. You can also invest in an SEO blogger to help you rank better on Google and ensure higher capacity. If these methods don’t work, assess what you are doing and try to change your marketing plan.
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