Research and Planning
Unless you already own or rent the property you’ll be listing, you first need to conduct market research to understand the market demand, competition, revenue potential, and legal requirements for the area you plan to have a listing in. If you have no idea what market you’d like to invest in, you can use tools like AirDNA, STR Insights, Mashvisor, or Airbnb’s free tool to evaluate the potential profitability of a market or property. Once you’ve found a market you’re interested in, you’d be well served to reach out to a realtor who specializes in short-term rentals to help you find a property with good STR potential.
Property Preparation
Travelers have more choices than ever when searching for a place to stay on Airbnb. In the past, hosts were able to get away with dated or average decor, now if you hope to be a top property your listing will need to stand out from your local competition. Let your inner interior designer free and style your property with pops of color and Instagram-worthy spaces. If you’re too busy to tackle decorating and staging your home Showplace can completely take care of getting your property decorated and ready to list, or you can use the services of interior designers who specialize in short-term rentals. Be sure to declutter, organize, and pay extra attention to details such as quality linens, comfortable mattresses, and essential amenities like Wi-Fi, kitchen appliances, and toiletries. Also consider joining discount buying services such as Minoan, HostGPO, and Inhaven, to save money on bigger ticket items such as furnishings, decor, and amenities.
Set Competitive Pricing
As a new host, you need to strike the balance between pricing your listing competitively to attract guests and pricing your property as high as possible to maximize profitability. If you set a flat nightly rate for the entire year you are almost certainly losing money. Factors such as location, demand, seasonality, local events, and amenities should influence your rates over the course of the year. You can research similar listings in your area to see what they are charging and use Airbnb’s built-in smart pricing tools to help you determine how to set your prices, but many of the most successful hosts prefer to use dynamic pricing software such as Pricelabs, Wheelhouse, Beyond or others. These tools use algorithms and market data scraped from Airbnb, Vrbo to help hosts and property managers make data-driven decisions and adjust their rates to maximize profitability.
Create an Engaging Listing
High-quality photos are the first thing that will convince people to tap on your listing and are essential. It bears repeating for emphasis – the most successful listings in each market will have professional photos. Once you have your photos, you need to decide what order they appear in your listing. Pay particular attention to choosing the first five photos because these are the photos that will likely determine whether users will book your listing or move on to explore other options. Crafting a compelling listing title and description are also crucial to attracting potential guests. Keep your ideal guest in mind as you write a detailed description and highlight the unique features of your property, nearby attractions, and amenities.
Optimize Guest Experience
Exceptional guest experiences are key to building a positive reputation and securing return bookings. Develop clear communication channels to promptly respond to inquiries, respond to guest messages quickly, and address any concerns which arise during stays. Offering small touches like a digital guest guide, welcome basket, local recommendations, and a smooth check-in/check-out process contribute to a memorable guest experience.
Maintain a High Level of Cleanliness and Stock Adequate Linens
Nothing makes a better or worse first impression on guests than the cleanliness of your property. Establish a regular cleaning routine or hire professional cleaners to ensure your property is spotless when guests arrive. Take the time to carefully train your cleaning team to ensure they understand your standards and any unique aspects of your property. Smart hosts and those who manage multiple properties automate the notification of new reservations, reservation modifications, and reservation cancellations to their cleaning teams by utilizing either property management software with notification features or use cleaning and property care solutions.
Wondering how many sheets and towels to buy for a new property? For toweling, we suggest multiplying your maximum occupancy by three and getting that number of towel sets. For bedding, buy three sets of sheets for each bed. This will allow the cleaners to have clean sets of everything to put out while the dirty set is washing, and it also provides a backup set to use in case one set gets damaged or stained.
Ensure Legal Compliance
Become familiar with local laws, regulations, and the permits which are required for short-term rentals in your area. Also, familiarize yourself with tax obligations and ensure you comply with all applicable laws to avoid penalties or legal issues. For certain locations Airbnb and Vrbo may submit taxes on your behalf, but in other locations they do not. You will need to double-check with the platforms whether they will be submitting taxes on your behalf. Make sure you have all of your permits, banking, and tax accounts set up and ready before you start accepting reservations.
Utilize Airbnb Tools and Services or Utilize Property Management Software
Make the most of Airbnb’s free features and services to enhance and automate aspects of your business. The platform’s calendar and availability settings allow you to manage bookings effectively. You can also set up automated messaging, a local area guide, and smart pricing through the Airbnb platform. If you only list your properties on Airbnb these features will serve you well and help make hosting easier, but if you decide to list your property on additional platforms such as Vrbo, Booking.com, TripAdvisor, etc. you should consider using a property management software or channel manager. These tools can help you manage your listings, guest communication, and additional property management tasks from one place instead of constantly logging into multiple platforms. They will also eliminate the risk of double bookings, which is extremely important!
Marketing and Promotion
In addition to the exposure gained through the Airbnb platform, consider additional marketing strategies to reach a broader audience. Learn how to leverage social media platforms, create a direct booking website for your business or properties, or collaborate with local businesses and influencers to promote your property. Positive guest reviews and testimonials can significantly enhance your reputation and attract new guests.
Keep Learning and Continuously Improve
Stay informed about industry trends, guest feedback, and evolving guest expectations. Regularly update and improve your listings, adjust pricing strategies, and invest in upgrades or renovations to stay competitive. Actively engage with guests to gather feedback and implement necessary changes to enhance the guest experience.
Final Thoughts
Starting an Airbnb business can be a lucrative endeavor if approached with careful planning and attention to detail. By conducting thorough research, preparing your property, optimizing pricing and guest experience, ensuring legal compliance, and utilizing Airbnb’s tools and services, you can establish a successful and profitable Airbnb business. Remember to continuously improve and adapt to ever-changing market dynamics to stay ahead in the competitive short-term rental industry.
Do you have additional questions before you’re ready to jump into hosting on Airbnb? Bring all your questions to our STR HUB Facebook Forum, and we’ll be happy to help and guide you through your journey!