How to Make Extra Money Renting Your Home as an Airbnb
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Airbnb rentals are in demand this summer, according to Guesty, the world’s leading management platform for the short-term and vacation rental industry. “US sees significant increase in Airbnbs and short-term rentals in urban areas cities across the United States in the summer of 2021, ”said Andrew Wasserstein, communications and brand manager at Guesty. According to Guesty, the top U.S. cities for Airbnb rentals this summer are Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas and Austin, with a 71% to 294% increase in summer Airbnb bookings compared to the last summer.
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And interest in Airbnb rentals is unlikely to end after summer is over. Perks like extra space and amenities that are inconvenient for hotels to offer guests allow Airbnb (and similar businesses) to occupy their own unique niche in the accommodation industry.
So what should you do if you think your property would make a good Airbnb listing? The simple answer is: find out what you can potentially do and decide if it’s worth it. Here’s what you need to consider to find out if becoming an Airbnb host could turn into a lucrative side business that will help you earn more.
How much can you earn by listing your property on Airbnb?
The amount you can earn by listing your property on Airbnb depends on several factors. If you want to play with numbers use this Airbnb calculator to estimate what you could earn in a month. According to Airbnb, the estimate assumes 15 nights booked each month at predicted daily prices, which are average prices for listings with similar placement, listing type, and capacity.
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You can also do your own research to see what you get.
“There is great variability here depending on the profile of the property, amenities and of course, location, location, location, ”said David Goldberg, Founder and CEO of Curos and an Airbnb owner. “If you are considering listing your property on Airbnb or other vacation rental sites the first step is to do competitive research.
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Goldberg suggested looking at comparable property rental listings in your neighborhood to help you determine your own price. Here are some questions provided by Goldberg to help you rate every comparable Airbnb listing you find in your area:
- What is the price per night?
- What is the average price per night?
- Do you see the seasonality in the prices?
- What is the demand in your region? (You can tell this quite easily by how many comparable properties are booked and what price per night they order.)
- What extras do comparable properties charge?
- How much is the cleaning fee?
- Do they charge extra guests or maybe more on weekend evenings?
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Goldberg also recommended that you ask if your property would stand out among the comparable listings. If so, why and would these reasons help you get more for that? If not, what can you do to make it stand out, and what what cost?
What you need to know before listing your property
Before listing your property on Airbnb, here are some things to consider that could help you have a smoother and more successful experience as an Airbnb host.
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Think twice before charging a much cheaper rate than the competition
If you’re tempted to price your property much cheaper than other Airbnb rentals nearby in order to stay solidly booked, you might want to think again.
“Your award attracts a certain type of people,” said Vivi Dahms of Adventure your world. “Our friend listed his house (just twominute walk from our house) for the cheapest price in city, attracting the kind of people who would end up partying, leave the house dirty or constantly text the smallest things. He was always full, but had a lot of problems and was constantly on contact with Airbnb. So before signing up, ask yourself what type of guests you want and how many participation you desire.
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High quality photos are a must
Nick Brennan, Founder and CEO of My UK SIM card, suggests taking professional photos of the property you plan to list. “I’m also an Airbnb guest, and so often I lose interest in a list if the photos are of poor quality, ”he said. “Basically make your place look like you are ready to sell it, then take pictures! “
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You may want to consider hiring a third party
“Before registering, you need to think about how you are going to handle arrivals and departures., laundry and cleaning, ”said Brennan. “It’s definitely something you can do yourself, but you may also consider using a third-party Airbnb management company which will take care of everything, and will take a percentage of the fees for the reservation. This is what I do, and it works great. i don’t have to do anything.”
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Last updated: June 25, 2021