You’ve been thinking about hosting an Airbnb, but you’re wondering what does it really take? There are many questions that you should ask yourself before you start hosting. This is a list that most wish they had when they got started. Here is what you should consider before you host an Airbnb.
10 things you need to think about BEFORE you start
1. Goal vs. expectation
What type of host do you want to be? Are you looking for some occasional extra income, reliable secondary income or income replacement? Depending on your goals, the amount of capital, time, and risk involved in hosting an Airbnb will be quite different.
2. Inviting strangers into your home
If the idea is spending your days or nights with strangers in your home, you’ll need to think long and hard about hosting on Airbnb. Your only Airbnb route is to find and acquire a dedicated rental unit. Will the rental be your primary residence or a secondary one? There is a lot to think about.
3. Time commitment
Listing and running a successful Airbnb listing can take MUCH more time and effort than you expect, especially in the beginning. From honing your procedures, handling the bookings, and dealing with unexpected emergencies; these are just some of your duties as a host.
4. Standing out from the crowd
Why would a potential guest want to look at your listing and book with you rather than the growing list of other alternatives? You’ll need to consider what you have to offer that sets you apart. This can include everything from the photos, descriptions and pricing of your unit. Constant adjustments are a requirement, as well as reading the current market. You’ll need to be willing to put the time and energy to get your positioning right.
5. Customer and neighbour relations
An important aspect to consider is how you want to approach and communicate with your guests. Guests will email you to ask questions; before booking, after booking, and during their stay. How available can you be to answer questions? Being responsive is key to getting good reviews and providing a positive experience for your guests. Additionally, you may have to consider how your neighbours will react to a rental. This may depend on the type of home you live in: condo, apartment, townhome or detached building. This will vary greatly by city and neighbourhood. Ultimately, you’ll need to decide if the potential headaches from your neighbours are worth the effort to host on Airbnb.
6. Risk and liability when hosting an Airbnb
You will be exposing yourself to a variety of risks by hosting on Airbnb. You’re putting yourself, and your property, at risk of theft. You risk renting to a squatter. You’ll also risk potential liability risk if your guests get injured or if they damage other property or injure neighbours.
7. Optimal pricing
Pricing is NOT just setting your weekday and weekend rates, and then never revisiting again. Optimal pricing takes time to get right initially and to keep it right as you continue to host an Airbnb. Are you up for the task of constantly monitoring competitive rates and special events in order to keep your pricing optimized for profits?
8. Keeping up with news and market
If you want success hosting an Airbnb, you’ll need to be constantly learning and adapting your listing to the changing market conditions, guest tastes, or even local law. You may have very different kinds of travellers during different seasons that require completely different positioning.
9. Life interruptions
With all these considerations, you can expect that hosting an Airbnb will interrupt your life in one way or another. Especially if you’re hosting just one unit and not hiring a third-party listing manager to handle hosting for you. You’ll need to be ready to check guests in and out, do all the cleaning, restocking, and responding to guest inquiries, lock outs, neighbour complaints, etc.
10. Identify who your typical guest will be
A tech worker coming to your city? A bunch of friends coming to do some site-seeing? Then center your ideal guest in every decision you make when designing and decorating your space.
Most home insurance policies don’t cover damage or loss caused by renters staying in the home. They need to protect themselves and their belongings with their own renters or tenants insurance policy.
Other important considerations
11. Research your local laws before hosting an Airbnb
The importance of this cannot be underestimated! Cities and counties across the world are working hard to protect long-term housing stock, as they should, by creating regulations, issuing permits to host, or collecting taxes.
12. Know your budget before you host an Airbnb
It seems obvious, but many potential hosts don’t look too far past the initial set-up investment. How much are you able to spend to set up a space really well for guests? From a great mattress, towels, decor, art and amenities for guests, can you make your space beautiful without breaking the bank? Second, plan for upgrades that can make your rental amazing. Third, estimate what your ongoing costs will be:
- Toilet paper
- Coffee
- Cleaning supplies
- Heating
- Electrical
- Water
- Garbage, etc.
Make a list of your ongoing costs. Lastly, have a contingency for upkeep, maintenance and repairs.
13. How often do you want to host your Airbnb?
Do you want to block certain nights for your own use, or host every night? Also, consider whether you want to host one-night stays, or whether that’s too much work for cleaning. Will you set a minimum number of nights – if so, what will that look like?
14. Nightly rates
Pretend you’re a guest searching for a space similar in size in your neighbourhood. What are the going rates for other rentals? Is there a high season and a low season?
15. Clean-up fees as an Airbnb host
Will you hire a cleaning person or do the cleanings yourself? Will you hire a property manager to do all of the cleaning management, guest communications, and bookings management? You will have to consider the fee to include in the overall Airbnb rental price, as well.
16. Be a local ambassador
The best hosts consider themselves guides to the local area. Good Airbnb hosts, or ‘Superhosts’, provide great restaurant recommendations, tips on activities and give guests personalized tips. Does that scare you or get you excited? Offer a few hand-picked favourites to help your guests have the best experience possible.
17. Going above and beyond when hosting an Airbnb
How can you wow your guests? Think about tailoring your welcome to the reason for your guest’s stay. From special occasions to work commitments, knowing these details can help you customize for each guest. From a hand-written note, bag of coffee, maps, coupons to local businesses, think about what your guest will appreciate.
Before you rent out your personal property, it’s best to get a few home insurance quotes that provide an Airbnb endorsement. Hosting an Airbnb can make you a lot of money, so make sure it doesn’t cost you thousands with unnecessary risks. Contact one of our isure representatives to help understand your insurance needs if you’d like to host an Airbnb short-term rental.
