19th August 2022
The Rewards of Making Money With Airbnb
Short term rental services, like Airbnb, are becoming a large alternative investment for travellers. While some are looking for the feel of “home away from home”, others are searching for accommodations that cover larger groups for a more affordable price. If you’re thinking of listing with Airbnb, here’s what you need to know.
How to List With Airbnb
Listing with Airbnb is free and simple, as you can’t individually approve potential guests. When you set your price, you’ll want to consider the going rate in your neighbourhood. Do this by looking at competing listings and also consider the cost of hosting. This includes cleaning, higher utility bills, taxes and Airbnb’s host fee.
Make sure you have an understanding of Airbnb’s hosting standards. Look for accuracy, communication with guests, keeping commitments and providing basic amenities, like soap and toilet paper.
You’ll want to clean and declutter your new space before you present it on Airbnb. Professional photographers have even been known to capture potential Airbnb rentals. When describing your place, think about it’s unique features, and consider it from an outsiders’ perspective. Is it within walking distance to town or public transport? It is located near great nightlife, bars and restaurants, or cultural activities? Can’t you offer wireless internet, a stocked kitchen, television and/or an outdoor patio and garden?
Be sure to list everything your place provides, and be sure that you are representing the listing accurately. If you have animals on the property, say so. Provide bed towels, linen and other amenities accurately to how you described. Keep your lodgings clean and tidy, to meet Airbnb’s hospitality standards.
Place your listing on Airbnb, but consider cross promotion through your social media platforms, like Facebook and Instagram.
Insurance and Liability
Airbnb’s host guarantee provides $1 million in insurance coverage for property damage in 29 countries, including the United States, United Kingdom and Canada. Their insurance is not a substitute for home or rental insurance, so you should talk to your home insurance provider to make sure policies will cover your property, possessions and liability.
For US hosts, liability insurance is offered by Airbnb for up to $1 million per occurrence. This is secondary to other insurances, such as your landlord’s ensurance, that cover incidents. You can also charge a security deposit to cover possible damage. It’s important to inspect your property after guest check outs. Documenting damage as well, with picture evidence, will substantiate the “before” value of the property.
Guests pay their hosts through Airbnb. As long as there are no issues, Airbnb releases your payment within 24 hours of your guests’ arrival. You’ll receive it within one business day, whether you’ve chosen to get paid via PayPal or Payoneer prepaid debit card (US only); within a few days for bank transfer; or fifteen business days via mailed check.
Guests need to notify Airbnb within a 24 hour check in if there’s a problem that warrants a refund. Be sure to be prompt with responding to guests who try to contact you for any reason, but particularly if there is an issue.
Success with Airbnb, like any business, depends on the desirability for your location, it’s condition and price points.