So, you’ve decided to list your house on Airbnb? Good for you. Empty houses that no one lives in can be very lucrative, as long as you do what needs to be done.
Some people believe that all it takes is posting a notice, and people will start throwing their money at you just so they could spend a night at your place. You, on the other hand, know that that’s a load of rubbish.
Having a successful rental on Airbnb or any other rental marketplace takes a lot of hard work and preparation, which is exactly why we’re here. We’re going to tell you all you need to about it. Let’s begin.
1. You Won’t Start Making Money Right Away
First of all, don’t start thinking you’ll be able to make thousands of dollars a month as soon as you put your house up on Airbnb. It doesn’t work that way. Airbnb is the world’s largest, most popular platform, which means you’ll have a lot of competition. Unless you can find a way to just blaze past against all of them, it’ll take some time before people start noticing your lodge.
2. It Might Be Illegal To List Your House On Airbnb
Just because you can easily put your house up for rental on Airbnb doesn’t necessarily mean that you’re allowed to. Before doing any of this, it’s advisable that you take your time and research the legality of renting in your area.
Sometimes, you might even have to get licenced or registered as a “bed and breakfast” in order to rent your house. If you don’t do your research, you might get yourself in some legal or financial trouble. You might end up paying thousands of pounds in fees because you didn’t know you were breaking the law.
3. Airbnb Might Not Be Enough
To be fair, just listing your house on a single platform might not be enough. This is very true if you’re just getting started. Exposing your rental property in as many places as you possibly can will probably be better for business than just leaving it in one spot.
4. You’ll Have To Pay Taxes
Whenever someone is paying to stay at your rental home, the two of you are conducting a business transaction. That means that all the money you make from your rental home is a taxable income. It doesn’t matter if they’re paying you in cash – you will still have to report that.
It’s not perfect, we know, but that’s just the way it is. No one likes giving their hard-earned money to the government, but we all have to do it.
5. You’ll Have To (Keep) Invest(ing)
While you may not have to invest in new living room furniture, you will certainly have to invest some money into your home before you can start renting it.
First of all, if you want anyone to leave a good rating – you’ll have to have a good bed. Unless you’ve bought a mattress a year or two ago, you’ll have to get a new one. Also, common household commodities like sheets and towels are also something you’d have to buy. We don’t even need to mention things like soap, paper towels and other toiletries.
And, as you can so obviously see – you’ll have to keep investing in new stuff at all times.
6. You’ll Have To Commit To It
Most people have this false notion that listing a house as a rental requires no work at all. An Airbnb rental is not a passive income – it’s hard work and dedication. In fact, some people get so overwhelmed by all work on a rental they hire services like Helloguest to help them keep the place nice and tidy.
But, keeping the place clean won’t be your only concern. You’ll have to dial everything down to perfection to be able to stay on top of things. Also, what about emergencies? Can you be readily available if something goes sideways? Do you even have the skills for it? One way or another, you’ll have to fully commit to it if you want it to succeed.
7. You Should Be Wary Of Squatters
Depending on where you are and where your rental place is, you might become a victim of an Airbnb squatter. As you know, in some places, if you let someone stay at your property for an extended period of time (sometimes that’s as low as a month), they become eligible for squatting rights.
That’s a pain if it happens. It’s hard to solve, it’s tiring physically and emotionally, and in the worst-case scenario – you might even lose a house.
To prevent this from ever happening – never rent your place for more than, say, two weeks. You could, but only to repeat guests and people you trust.
8. Some Things Might Not Be As Important As You Might Think
What we often see when we take a look at Airbnb rentals is people going all out on the living room, getting new 60-inch TVs, comfy sofas, AC units and so on. But, the thing is, most people don’t really spend that much time in front of a TV when they visit an Airbnb. Investing in a great TV is probably a waste of money in this case.
On the other hand, things like small kitchen appliances, comfortable beds, and spacious showers absolutely seal the deal.
9. You Will Have To Set The Right Price
Finally, you’ll really have to pay attention to pricing. You’ll have to research similar properties in your area and see what they’re going for and set your price accordingly. Jacking up the price won’t work, and lowering your price to attract customers will only cause you to lose money.
Also, keep in mind that you’ll have to adjust your pricing with dates. Most Airbnbs have higher weekend rates or higher rates near the holidays or during a travel season. All of these things must be kept in mind in order to earn as much money as possible.
Renting your house is appealing – there’s no doubt about it. Compared to some other work – this one’s pretty effortless. Also, it pays really good once you get it set up.
Hopefully, reading through our mini-guide gave you a good idea of what you can expect from a business venture such as this one.
We wish you the best of luck and even better guests.