Airbnb is an online short-term vacation rental marketplace and a lustrous example of a shared economy. The platform brings hosts and travelers together and helps both parties of the business to benefit from using a rental space. As such, with Airbnb, owners can lease out their living properties and earn real cash while guests have the opportunity to find lovely accommodation to stay for a while without breaking the bank. Airbnb properties are generally dramatically cheaper opposed to hotels and inns, yet they offer pretty the same quality of service and experience.
Airbnb today is one of the largest rental accommodation providers in the world offering nearly 2M listings for rent in nearly every country (except for Crimea and a few other disputed territories). Its wide reach allows travelers to rent private homes in any corner of the globe. The platform uses a smart rating and review system to provide information about hosts and their offerings. Owners are also able to review the information and reviews of a potential tenant before accepting or declining their booking request.
Benefits and drawbacks of running an Airbnb business
Becoming an Airbnb entrepreneur may be a hard decision because you actually are going to rent your much-loved and cherished property to absolute strangers, and who knows whether they will respect it. Trusting unfamiliar people is not the only problem that kicks in when you publish your rental property on Airbnb.
Pitfalls of being an Airbnb host:
- Your income is never stable. Unlike renting long-term accommodation when you receive a fixed payment every month, earnings with Airbnb can be highly erratic. Periods of unceasing bookings can be swept with periods of scant business. Your Airbnb income directly depends on the overall market situation in your community and seasonality.
- Huge time investments in cleaning and maintaining. If you cannot afford to outsource professional cleaners and repairs, you will have to spruce up the rooms on your own before new guests arrive, and it is fiendishly time-consuming, especially during hot seasons when tourists are flooding.
- Communication with guests is disruptive and time-consuming. You will have to be constantly online and respond to inquiries ASAP, otherwise, your reputation on the platform may suffer. Welcoming guests when they check-in, being ready to solve their issues, preparing the rooms for the next vacationers – being an Airbnb host requires solid managerial skills.
- Irresponsible clients. There is always a certain risk that you one day will let problematic guests in who will eventually damage your property and drive your neighbors crazy with their anti-social behavior.
- You will have to deal with negative reviews. You may be an infinitely caring and friendly host doing your utmost to keep the rooms sparkling and cozy. Still, you are never safe against difficult, snappish clients who would love to leave a negative review and hit two stars against your Airbnb listing just because your smile was not broad enough when they were checking in. However, if you are a client-focused owner going a great length to provide an excellent guest experience, your reviews will be overwhelmingly positive.
Benefits you reap if starting an Airbnb business:
An additional source of income. When your spare corners bring extra dollars, it dramatically simplifies your life, allowing you to afford much more.
You grow culturally. Meeting new people from all corners of the world expands your own outlook, lets you know about foreign cultures, and improves your tolerance to people.
You are somewhat insured. Airbnb provides has developed a host insurance program to protect properties against damage caused by ill-behaved guests, which gives you a little peace of mind that your losses will be compensated.
Your property is actually not used much. Travelers are not going to use your rooms heavily as they have come to your place to explore it through and through, not to be caged up within four walls. Indeed, they just need a cozy, secure nook to sleep the night and keep their stuff. Airbnb guests spend most of their time out, so your property remains nearly untouched.
What should you know before starting an Airbnb business?
If you choose to host Airbnb, it is essential that you first familiarize yourself with local laws and realize how they work.
Some regions apply laws that restrict or even prohibit short-term rental business. Oftentimes, hosts need permission or a license from local authorities, or even a written agreement from neighbors to be able to list on Airbnb.
However, in most regions, you can safely run your Airbnb properties, provided you are compliant with all tax regulations. To help you, Airbnb can calculate, collect, and pay all necessary taxes on your behalf if you are not very good at business accounting and compliance questions. You should thoroughly investigate your local laws before listing on Airbnb. We advise you to visit the Airbnb Responsible Hosting section to learn more about taxes and short-term rental policies in your area.
You can help you manage your Airbnb business?
Like any other business, operating an Airbnb property is quite a challenge given the galore of things to do, arrange, and control. Still, you can sit back and relax while enjoying a steady flow of guests (and money) by exploiting the services of professional Airbnb property managers like MasterHost. For a moderate fee, a team of well-versed vacation property managers will completely take care of your guests and property.
From licensing support, Airbnb ranking optimization, and handling your bookings to professional maintenance, property insurance, key exchange management, and financial accounting, qualified Airbnb property management crews will tackle simply everything associated with your short-stay rental business.