Expectations-Research-Goals
Airbnb is a hosting platform that connects host and travelers from all over the world in a very easy and relatively safe way from everyone. You can casually rent one extra room to have some additional income or you can turn it into a full time business.
You need to consider where on that spectrum you want to operate in order to properly evaluate your goals and write your first listing.
About you
What kind of host do you want to be?
There are three different types of Airbnb hosts: those who want to make some pocket money renting out an extra room in their home, those who want to make stable secondary income, and finally those who want to build a serious business, which will later turn into their primary source of income. The more income potential you desire, the more capital, work, and time you’ll need to invest and the more risk you’ll be taking on.
How much time and commitment are you willing to invest?
New hosts tend to get overwhelmed by the effort needed to properly deliver the offered services to their guests. Regardless of wether you’re a casual, single-unit host or a full-time business owner, you will have to invest a certain amount of time in your business, in order to fulfill your guests’ expectations.
If you are a part-time host, you may spend less time overall, but you will definitely spend more time on a single unit than a full time host. Why?
A full-time host is going to spend more time managing their business and would rather pay for services such as cleaning.
A part-time host will try to maximize their profit on a single unit, which means performing all the services on their own: check-ins, check-outs, cleaning, communicating with guests, unexpected emergencies, etc.
If you are a full-time host, you may save your time by paying for those services, but you will lower your units income. But you can then use your time to grow your business.
Either way, calculating the amount of time you plan to spend, by determining the average number of booking per month and the number of hours per booking, will help you set your business goals and determine which type of Airbnb host you want to become.
Do you have your landlord’s permission to rent out a property?
You don’t necessarily need to own your property to start hosting, but you do need to find a landlord that is open to the possibility of short-term subleasing. Always consider this before renting a unit.
Are you familiar with your local laws and regulations?
It is extremely important to investigate your local laws and regulations BEFORE you start hosting. Some places will have regulations covering the short-term rental businesses, like registration requirements and taxes. They may significantly influence your capability to perform business.
About Your Market
What is your market?
Some markets won’t support your ambitions due to lack of demand. By doing proper market research, you will discover your property’s potential, adjust your expectations, and set the proper goals.
What is the type of your property?
Whether it’s a suite, cabin, house, etc., how it is designed and what kind of amenities you provide.
Interior design is important and it can boost your bookings. Think about what kind of style would incorporate well into the area in which you are located and look into other listings for inspiration. If it makes financial sense, you can even hire professional help, but it is not necessary.
There are some essential amenities which guests expect to have while staying in your place, such as toilet paper, soap, towels, pillows, and linens. But there are also some thoughtful amenities which will make you stand out from the competition and earn you some extra bookings (and five star reviews!). Those can be anything from a welcome gift to a coffee corner, or some locally made artisan goods.
A welcoming environment will also make your property more attractive in the photos. It is highly recommended to have professional photos for your Airbnb listing.
Think of these as investments rather than expenses. Remember, you have to spend money to make money. That adage turned out to be absolutely correct in our experience.
Who is your future customer?
This will depend mostly on your property’s location and the type of the property you’re renting.
If your property is located close to a business district area or a city center, you will mostly target business travelers and tourists. If you’re on a farm or close to the beach, or renting a cottage in the woods then you’ll gather attention from a different kind of travelers. Families, for example, will be more interested in local attractions or more peaceful areas.
Consider the type of your property as well. Whether it’s an entire home, a spare room, or just a sofa, there’s likely to be a traveler who will be interested. You will then advertise your listing to that specific customer.
Do your research to discern your potential customers and then position your listing to appeal to those people.
Who is your competition?
Looking into the listings within your area will help you familiarize with your competition, find inspiration and learn your price range. This will help you understand the potential of your property better. You will also be better able to make your listing stand out among your competition.
Final Words
The market is always changing. If you want to be successful in the short-term rental business, you need to keep up with the news and always adjust your goals to fit the market conditions.
Different seasons may bring you different types of travelers, which will require different listing positioning.
Unexpected world events (such as the one we are currently experiencing) may change the market demand completely. One example is the rise of digital-nomad travelers who have completely different needs than the traditional vacationers (proper workspace, fast and reliable wi-if, monthly discounts, etc.).
Your local laws may affect your business too. You need to keep up with the local regulations to make sure there aren’t any roadblocks in your way, now or in the future.
Now you have the basic knowledge to manage your expectations and set realistic goals for your business, and you are ready for the fun part: writing your first Airbnb listing!
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