Ever get the feeling that maybe the nine-to-five grind isn’t what you signed up for?
You only get a couple of weeks off, the pay is lousy, and the work is monotonous. That’s not to mention the stress; let’s just say you don’t want to be in a place that feels like a prison.
Well, you’re not alone!
Hosting an Airbnb could be a great opportunity to get away from your typical nine-to-five commitment. But like every online business, running a vacation rental business has its fair share of challenges.
Don’t worry, though; we’ve got you covered. In this article, we will walk you through every aspect of how to become an Airbnb host in six easy steps.
- An Overview of Airbnb Hosting: A Primer
- What You’ll Need to Become an Airbnb Host [& Associated Costs]
- How Much Does It Cost to Become an Airbnb Host?
- Is It Hard to Become an Airbnb Host?
- How to Become an Airbnb Host in 6 Simple Steps
- Reasons to Become an Airbnb Host
- Frequently Asked Questions
- Similar Gigs to Check Out
- Wrapping Up
An Overview of Airbnb Hosting: A Primer
Hosting on Airbnb is a lucrative side hustle that attracts people who are looking to make extra money off an existing asset: their house.
You become part of a global community that connects travelers with accommodations. Airbnb brings together homeowners and individuals who are looking for a place to stay.
The concept is simple: list your property on Airbnb and start making money!
How Much Do Airbnb Hosts Make?
According to research from low-interest lender Earnest, Airbnb hosts earn around $924 per month on average, making nearly three times as much as other workers.
The same research suggests that one in two Airbnb hosts earns less than $500 per month and nearly three in every four earn less than $1,000 per month. Also, only one in 10 hosts will earn $2,000 or more per month.
What You’ll Need to Become an Airbnb Host [& Associated Costs]
To calculate how much money you’ll make as an Airbnb host, you must first understand and estimate the operating expenses of your Airbnb rental.
- Service Fees: The service fees vary depending on the host and the type of property. Based on whether you choose host-only or the split-fee option, it could be anywhere from 3% to 16% of the booking subtotal.
- Management fees: It’s the commission paid to others to manage your property. You’ll need to allot a portion of your rental revenue to pay a property manager or co-host to manage your listing on your behalf. It could be 20% to 40% of each booking.
- Utilities: Guests will want utilities like electricity, gas, water, air conditioning, and more. You need to pay the gas, water, electricity bills, and cleaning fee. Utilities take up around 10% to 15% of every booking.
- Internet/cable/satellite: High-speed internet is a must-have amenity in practically all Airbnb listings. You may also want to provide cable or satellite television. These expenses are fixed, and you can expect them no matter what.
How Much Does It Cost to Become an Airbnb Host?
The cost of starting an Airbnb business will vary based on the location of the property, among other factors.
For instance, the cost may differ depending on whether you’ll manage the property on your own or hire a co-host to do it on your behalf.
If you already own a house, you can expect to pay at least $3,000 to start your Airbnb and get it running.
There are also other expenses that go into property maintenance, such as the cost of stocking up supplies, cleaning services, repairs, subscriptions, etc.
Is It Hard to Become an Airbnb Host?
Whether you’re a first-time host or looking to take your rental business to the next level, having the right type of mindset is important.
While it’s not hard to become an Airbnb host, you should be aware of some of the common misconceptions about hosting an Airbnb.
- Money: People typically have a number in their heads for how much money they’ll make. While a property’s location matters a lot, it’s not the only thing that contributes to revenue growth.
- Time: People often believe that they can simply create an Airbnb listing and then forget about it while the money rolls in. This isn’t the case, and hosting requires a fair bit of ongoing effort.
- Long-term rentals don’t pay off: According to a popular belief, long-term rentals don’t pay off as dearly as short-term rentals. But, that’s not true. Longer stays mean higher occupancy and less maintenance work.
As long as your prospects are clear and reasonable, you’ll be able to make an informed decision about whether or not hosting is right for you.
How Long Does It Take to Become an Airbnb Host?
There are a few steps you need to follow to set up a complete Airbnb host account. It’s a self-explanatory process that shouldn’t take more than 30 minutes.
When you become a host, Airbnb may need to verify your account. This includes verifying your personal information, address, contact number, and other details.
It shouldn’t take more than 24 hours for account verification. You can check your status in the verification tab of your profile.
How to Become an Airbnb Host in 6 Simple Steps
You don’t need any business experience to become a successful Airbnb host!
If you have a space to rent out, you can get started in six simple steps.
1. Understand the Local Laws and Regulations
Airbnb rules and regulations vary from location to location because they are based on local laws for short-term rentals in each location.
There are some general rules that apply to most locations, which you can use to determine whether or not your listing is permitted.
Here’s a quick checklist of things to consider before listing your property on Airbnb:
- Check your short-term rental rules and regulations.
- Obtain the required permits and licenses.
- Identify and understand the taxation rules.
- Comply with safety and insurance regulations to ensure guests’ safety.
2. Get Your Property Ready for Guests
Whether you have a spare room, an entire property, or a unique space like a tree house, it’s important to set clear expectations by accurately describing your place’s features.
Optimize your space and pay special attention to cleanliness, decor, and comfort. Hire a professional cleaning service to keep your property clean and attract more guests.
Provide plenty of amenities to improve the guest experience, such as clean bedding and toiletries, high-speed Wi-Fi, etc.
Personal touches, such as a box of chocolates or a bottle of local wine, can also make guests feel extra special.
3. Create a Catchy Listing to Stand Out
Like other hosts, you need to list your property on Airbnb. Your Airbnb listing is the page where potential guests can learn all about your property and make bookings.
Start with a catchy headline that highlights your property’s unique selling points. Mention the key features, amenities, and any personal touches that set your space apart.
Also, take high-quality pictures because it’s the first thing guests notice when looking for accommodation.
4. Decide on How You’ll Host on Airbnb
As a host, you have complete control over how you’ll host on Airbnb. You can list an entire house, a private room, or even a shared room.
One of the unique ways of hosting on Airbnb is through experiences. It’s a great way to connect travelers to unique experiences in the places they’re visiting.
You can host an experience if you have something unique to share with your guests.
5. Set Your Price and Get Paid
The right price can help you attract guests and increase your earnings. But with so many different variables at play, the pricing can get quite complicated.
Luckily, Airbnb has a built-in “Smart Pricing” tool that analyzes relevant data and parameters to find the right price for your listing. But, not everyone likes the idea of a dynamic pricing model.
It’s important to consider other factors, like what other hosts in your area charge and how your initial price compares.
You can strategically set the price based on demand, and update your prices seasonally, at weekends, or during big events.
6. Master Your Guests’ Experience
Some hosts prefer to interact with guests only at key moments, while others love to meet their guests in person.
You can create an inviting space by regularly communicating with guests prior to check-in, doing in-person check-ins, and handling early arrivals.
Offer your guests welcome gifts or complimentary refreshments on arrival. This is a small gesture to make your guests feel at home.
Keep your property clean and well-maintained, and be quick to address any issues that guests may face during their stay.
Reasons to Become an Airbnb Host
Here are some compelling reasons to become an Airbnb host:
- Financial Freedom: Hosting an Airbnb is like running a small business. Depending on the property’s location, you can earn a lot of money from short-term rentals.
- High Flexibility: You have complete independence and control of your schedule. You can set your own availability, house rules, and prices. Also, Airbnb makes it easy for you to set up and start earning in no time.
- Meet New People: You get to meet many new and interesting people—virtually and/or in person. You’ll create lasting memories and foster meaningful connections.
- Diversify Your Income: Being a host means you can diversify your income. Short-term lodgings can be more profitable and you can boost your passive income by doing it full-time.
Frequently Asked Questions
Can anyone become an Airbnb host?
Yes, anyone can begin hosting on Airbnb as long as they meet the set requirements, which typically include being at least 18 years old, owning or renting out a property or space, and adhering to local laws and regulations.
How do I get approved as an Airbnb host?
Potential hosts must first create an Airbnb account and provide basic information, including their name, email address, and phone number.
Then, they need to complete a verification process to make sure their property meets the safety and quality standards. This process shouldn’t take more than 24 hours.
Similar Gigs to Check Out
While Airbnb is a great way to generate passive income, it might not be the right business model for everyone. If that’s the case, you should consider other alternatives.
- Start a Food Truck Business: If you’re a foodie who likes the idea of running your own restaurant on wheels, then the food truck business is for you. The upfront costs are minimal and the profit margins are high.
- Start a Catering Business: If you’re into food and cooking, then it’s time you started your own catering business. While the competition is stiff, the business model can be wildly profitable and fulfilling.
- Become a Rideshare Driver: If you’re looking for a flexible side gig, then it’s an easy way to earn extra money. With the increasing demand for rideshare drivers, you’re likely to get plenty of work.
With the right approach, you can turn your space into an Airbnb business that accommodates travelers from every corner of the world.
Whether you own an entire house or just a single-room apartment, you can list your property on Airbnb and earn extra money.
We hope this step-by-step guide will help you build a successful and profitable vacation rental business.
We’d love to hear your thoughts! So, share your experience or shoot any questions you might have in the comments section below.