23rd August 2018
7 Things Profitable Auckland Airbnbs Have in Common
Over the past few years, Airbnb has become extremely popular around the globe as a short-term accommodation option for travellers. The opportunity to periodically rent out an entire house or a single room has opened up doors for property owners to earn an income from the platform, and people have jumped at the chance. With thousands of listings available in Auckland alone, the market is now full of people making money with Airbnb.
While all property owners have the option to utilise the website, not all users will earn the same amount. Airbnb has the potential to be extremely profitable, however, this all depends on your property and your attitude. Particularly with increasing short-term accommodation rates in Auckland City, there are a multitude of factors which will affect how profitable an Airbnb is.
While there’s no way of promising a positive return-on-investment through Airbnb other than by putting in the hard yards and following best hosting practices, there are some key characteristics that successful property listings relate on.
If you’re at the stage of considering renting out your property or investing in a home for the sole purpose of Airbnb, these similarities can help you make an informed decision about your next move. Here are the 7 things profitable Auckland Airbnbs have in common:
1. They’re in an Optimum Location
Hotels and commercial accommodation providers are generally located in city centres or close to popular tourist locations. This is for good reason. Those visiting Auckland are unlikely to have personal transportation means during their stay leading them to seek accommodation near to where they need to be. For Auckland tourists, this means they’re most likely looking for a place located right in town.
Auckland City Airbnbs charge the highest nightly rates and in general, they receive the most bookings throughout the year. If you’re looking at purchasing a property to rent out on Airbnb, the CBD is your best bet for a profitable venture.
2. They Have Great Reviews
Reviews are everything on Airbnb. Not only do they let potential guests know that you’re a host they can trust, but they work to push your listing to the top of search results pages, getting you as many eyes on your efforts as possible. Essentially, the more great reviews Airbnbs have, the more profitable they are. Successful Auckland Airbnbs are equipped with outstanding reviews, ratings and testimonials. In most cases, you’ll find that the most profitable hosts have been awarded the Superhost status.
3. They are Tastefully Decorated
Getting guests to book your property on Airbnb is just half of the profitability battle. You also need to make sure your guests enjoy their stay and recommend you to others in the community. A big part of this relies on how your property is presented. You’ll have to get your decor in presentable shape and think about what guests want to see and need to have for a 5-star experience.
Profitable Airbnbs are always decorated with care. If you want to earn an income from this platform, you’re going to have to put in the effort to make sure the place is tastefully decorated with finishings and homely comforts. Your walls don’t have to be clad with Monet paintings but all successful Airbnbs will have some element of appeal!
Airbnb is known for its unique and interesting listings. Many fans of the website use the platform because they enjoy finding aesthetically pleasing places to enjoy their holiday. If you’re looking for ways to stand out from other listings and exceed expectations, going further with your decor could be the way to go.
4. They Have Optimised Listings
When someone’s searching for a place to stay on Airbnb, they’re usually given a selection of listings based on the location and requirements they’ve put into their query. This selection on the search results page will show your listing’s primary photo, how many beds you have, your listing type and your rating. Optimising your listing means tailoring your details to be as appealing as possible to potential guests.
The optimisation process is all about displaying the best features of your property and the things that users are searching for the most, and all for good reason. Optimised listings will always get the most bookings through Airbnb, and in turn, they’ll make the most money.
The highest profiting Airbnbs in Auckland are always optimised. With this process involving photo taking, profile completion, outstanding review generation and price adjustment, it can be time-consuming, however, it’s extremely beneficial for Airbnb success. You will be hard-pressed to find an Auckland Airbnb listing that isn’t putting a lot of effort into optimisation and you’ll be even more hard-pressed to compete with any listing that is if you’re not.
They’re Multiple Room Properties or Private Residences
It goes without saying that letting out a room in your personal residence will earn much less than renting out a private property. For the most part, people are looking for commercial style accommodation, without the price tag. This means that the most popular types of listings are solely for Airbnb purposes. Properties that provide privacy, retreat and comfort perform the best in Auckland.
There is a market for home sharing Airbnbs out there, however, they’re a different niche to break into. Guests searching for this kind of accommodation are likely younger travellers or tourists on a budget. Airbnb caught its big break on this style of service and while it may be just what you’re looking for, it will result in a smaller revenue stream for your Airbnb efforts.
They Know Their Legal Obligations
Airbnb is now subject to ATPR taxes in Auckland. This means that those hosting guests for more than a certain amount of nights each year are required to pay rates to Auckland Council. Profitable Airbnb hosts will always understand their obligations, plan a strategy and make appropriate moves to ensure they’re not hit with a hefty bill at the end of the tax year.
They Know How to Manage Their Listings
As mentioned, getting people to book your property on Airbnb is only part of the journey. Managing your listing is the most difficult part of utilising Airbnb and becoming profitable through the platform. Auckland Airbnb hosts achieving success are always top-tier hosts, dedicated to offering a great experience. With exceptional Airbnb management, hosts are able to generate top ratings and get superior recommendations, all working to improve profitability in the long-run.