Are you considering turning your home, or even just one room, into an Airbnb rental? Are you looking for extra income? Do you want to purchase an entirely new property to turn it into your full-time business?
No matter your reasoning, you will want to start off on the right foot with your entrepreneurial endeavor. Here are a few tips to help you run a successful Airbnb:
Consider a Property Management Company
There are several logistics that come along with running a successful Airbnb that you may not have considered. Hiring a property management company could give you the opportunity to be hands-off while still making the most money possible from your investment.
Property management companies are also incredibly helpful when you’re looking for the right house to turn into an investment property for a vacation rental. Green Residential, for instance, is a San Antonio property management company. Their professional team does a market analysis of the area you are looking to purchase in. They can help you find the best home for the exact need of your property.
Start With a Business Focus
Turning your property into an Airbnb rental is a business, plain and simple. You’ll need to have the mind of an entrepreneur and will need to get innovative with an Airbnb business plan from the beginning. Sure, you may think it’s simply a means of becoming a side hustle or making a little extra cash on the side. But at the end of the day, you need to make sure the time, energy, and money you are investing in your vacation rental are worth it.
Say, for instance, you are letting people stay at your home for $50 a night. Then Airbnb takes their percentage of 3 to 5 percent. You then have to deduct the money you put in towards having coffee stored in the cabinets, special toiletries, and other various necessities for keeping the house a quality Airbnb rental.
Don’t forget about your regular mortgage, taxes, insurance, streaming services, utilities, and other regular bills. Eventually, those costs add up. Your time and money are valuable; you want to create a business plan that is going to make sure you aren’t losing money or breaking even.
Consider The Experience of the Guest
From the moment your guest books their stay and receives their welcome packet, you are making an impression that can impact their guests experience during their stay. As an Airbnb host, you want to make the guest feel welcome and excited to be at your house or unit. But in order to do that, you have to decide what type of experience you want the visitor to have.
For instance, say you buy a secluded cabin in the woods for guests to stay at for a luxury getaway from civilization. These people want a reprieve from the busy life of the city or want to unplug from their phones and reconnect with nature. In this case, your visitors may not necessarily want to sit around with the hosts and have a family dining experience.
However, if you are offering a room within your home, the guests may want to learn more about the family they are staying with and are searching for a more communal and local experience. Think about what type of experience you want your guests to have and how you intend on providing that experience for them from the moment they walk through the front door.
Don’t Rely Solely on Airbnb
Recently, Facebook, Instagram, and Whatsapp all experienced a shutdown that lasted almost the entire day. People who ran their businesses with these platforms were unable to do their jobs and ultimately lost money that day. Because of this, businesses had to rethink things. They had to brainstorm alternatives, in case these websites ever went down again.
The same concept applies to running your property rental through Airbnb. If the website shut down forever, would your vacation rental business be able to thrive? Having your own social media accounts and website to host your property is absolutely recommended for any rental property investor. That way, you are still in control of the success of your property, no matter what life throws your way.