5 Things To Consider Before Becoming An Airbnb Host
Do you have a spare room in your home? Perhaps you’re someone who has purchased another home as an investment. Whichever the case, you may be considering leasing your home or room out and becoming an Airbnb guest to create a spare channel of income for yourself. Whilst With over 5 million lodging options across the globe, Airbnb has in recent years become the to-go for travellers and homeowners alike. It is no surprise that before you become an Airbnb host, there are a number of things to take into consideration. In this article, we have a look at 5 of the main factors to consider before you decide to take the plunge and rent your home out, so read on to find out more!
How Much Time Do You Have To Spare?
When it comes to short term rentals, it is important for potential hosts to consider how much time they have to spare. Unlike long term leases where tenants are left to handle your property for the entire duration of the lease, short term rentals with high turnover require you to spend a decent amount of time organising, responding to messages, cleaning and getting the property ready for the next guest. You will also have to ensure that you focus on offering your guests a fantastic experience so that you end up with a glowing reward at the end of each stay. This means ensuring the property is well managed, kept clean and always fully functioning. All these factors take up a considerable amount of time, so be sure that you are willing to make Airbnb a semi-permanent full-time job before you decide to become a host. If you don’t think you’ll have enough time to devote to your Airbnb property, you can always look into utilising the services of an Airbnb property management company that will sort out all the nitty-gritty for you.
Are You Familiar With Your Local Laws?
When Airbnb first started, most people had no legal issues to face when renting out their rooms or spare properties. However, over the years as Airbnb has grown in popularity, more and more laws have sprouted with regards to what hosts can and cannot do with their properties. New rules and regulations have been and still are being introduced in many countries, so always make sure that you familiarise yourself with your local laws and legislation when it comes to letting your property. Take for example the law which states that hosts within the Greater Sydney region will now only be able to let their home for a maximum of 6 months a year. Depending on where you are located, laws may vary. This is why it is so important that you do your research to prevent yourself from getting into unnecessary hot water.
Are You Okay With Allowing Strangers Into Your Home?
One extremely important factor to consider when you’re looking to be an Airbnb host is whether you are comfortable with letting multiple strangers into your home. This is especially important if you’re only renting part of your unit to travellers, as you will be sharing your home with a number of different strangers throughout the year. If you’re someone who values privacy, this may end up becoming something that you may not feel comfortable with. Similarly, if you’re particular about the kinds of people whom you allow into your property when you are not around, you may have to think long and hard about hosting on Airbnb. A great way to get over any anxiety is to always look at guest reviews from previous hosts, and only accepting people with high ratings and sparkling reviews.
What Is Your Unique Selling Point?
With the growth in popularity with Airbnb, you’ve probably noticed that there are up to a dozen existing listings in your area. This is why you need to work on your unique selling point. What makes your listing special? What makes it stand out of the crowd? You’ll need to find a compelling offer that encourages people to book your listing instead of a competitor listing down the road. A great way to do this is to ensure that you offer high-quality photos of your property, pay attention to details and offer a price that guests cannot resist. It is also great to go the extra mile and offer amenities and perks that your competitors do not offer. This can come in the form of offering laundry services, daily cleaning or even complimentary snacks and drinks for your guests. Whatever you do, make sure yours is the listing that people are just dying to book!
Make Sure You’re Insured
Last but not least, if you’re looking to rent your home to a string of strangers, it is highly important that your home is insured. Short term leasing exposes your property to threats such as damage and theft, so having the correct insurance policies in place before becoming a host is an absolute necessity. You can always discuss with your broker about any Airbnb specific insurance policies that they may have, so don’t hesitate to do a little research when it comes to purchasing the right plan for you and your home.
Airbnb can be an extremely rewarding venture for anyone as long as hosts take the right precautions and know exactly what they’re getting themselves into. We hope that this article has been useful in giving you some insight into the factors everyone should take into consideration before becoming an Airbnb host.