Following the conclusion of this Christmas season, it is time to come back to work and begin making preparations for the following year. And what better way to kick off your new year than with a relaxing vacation in your own home? I’ve worded it a bit strangely, but stay with me for a moment.
How about you launch an Airbnb business? It is a fantastic way to make money while renting out your home or apartment rather than staying on as a lodger. The income potential is dependent on the location of your property, the details of your property, and of course the average rating your property receives after each booking. All of that being said, the real income potential is the sky. Yes, the sky is the limit. You only have to be right once. So, if you can create a 5-star Airbnb and implement foolproof systems, all you have to do is rinse and repeat. If you are still considering this business, continue reading for additional information on how to get started, the operations, potential dangers and rewards.
What exactly is an Airbnb business?
Well, Airbnb is an internet marketplace that brings together tourists and residents prepared to rent out their homes while the hosts are away. The most typical way to make use of Airbnb is to rent out a spare room or home when you aren’t there yourself. This can be an excellent way to earn some more income while you are away or while you have a lot of empty living space in your home.
How to Get Your Business Started with Airbnb
When you get started with your own Airbnb you are considered a “host,” which implies that you own and run a company that provides lodging through Airbnb. To get started, you’ll first need to select a location and a market for your property. After that, you’ll go to work constructing your Airbnb listing. You must be sure that your Airbnb is very clean and professional as this is monumental for the overall success of your business. The absolute best way to do research is to stay one or two nights at highly rated Airbnb’s in your target market and take note of what you see and how they operate. The goal is to become a superhost and have a plethora of 5 star reviews. With this business you will live and die by the reviews so I would advise that you don’t start hosting until you are sure you have a 5 star quality place.
Why Should You Consider Beginning Your Own Airbnb Business?
It’s a fast-growing industry
Airbnb is currently expanding at a rate that is unheard of. There are now more than 9 million active Airbnb listings in over 190 countries, which indicates that the business as a whole has increased by more than 50% worldwide in just this single year. Demand is high as a result of the growing number of people who are now making money through Airbnb. This means that you have the potential to earn a respectable amount of money by renting out your properties. And if you plan to own the properties rather than arbitrage then you are winning two times over.
You don’t need to be an expert
You do not need to be an expert in the tourist industry, in contrast to the requirements of several other sectors. I say this because Airbnb is just a cozy hotel. Make your Airbnb a cozy hotel and you will likely find success. Also, you don’t necessarily need to be local to your market, so the potential for you to make money from a remote location is a very real one. However, I’d recommend starting in a market you are familiar with and perfecting the formula before moving to markets in more remote locations.
What to consider before starting an Airbnb business
Airbnb is not for everyone, even though its business model has the potential to be incredibly profitable, not everyone wants to truly have the responsibility of being a host. Make sure you have a solid understanding of the potential drawbacks involved in beginning an Airbnb business before you take the plunge. The biggest drawback in the very start would be your loss of time as you are now operating a business. You could have some tenants trash your property in a weekend that they spend partying.
Just these two things you need to take into consideration as you will likely have to deal with everything yourself in the beginning of your journey. So, be sure to have insurance. You will also need to be aware of the rules and regulations that are specific to the area. Some municipalities have regulations concerning short-term rentals that may place limitations on, or even completely outlaw, services like Airbnb.
The Benefits of Getting Started with Your Own Airbnb Business
Because of the great demand, its very realistic to expect at least a breakeven income with first listing. Depending on your location, you could even offer extra services for a small fee. Once you have a good amount of reviews and have a very aesthetically pleasing Airbnb, you can start to charge a premium price. Which, believe it or not, will probably result in even more bookings. Again, just rinse and repeat. Build a portfolio of properties that generate more than an enough income to get you your freedom and run it until the wheels fall off or just bundle it all up and sell it. It would be tough to lose, but the first step, and the usually the scariest, is to just start.
Conclusion
Even though it is subject to a lot of regulation, Airbnb has experienced significant growth over the past ten years, and this growth is continuing at a breakneck speed. Because of this, it will likely continue to grow in the near future, which makes it an excellent investment opportunity, particularly for millennials who are looking to expand their sources of income and diversify their portfolios. For more information, check out some of these books as well as other real estate related articles on the site.
