Airbnb is a fast-growing, disruptive company that has changed the way people travel. As an Airbnb business owner, you have access to a large audience of potential customers who are willing to pay for accommodation in homes instead of hotels. If you’re interested in opening your own Airbnb business and don’t know where to begin, check out this helpful guide from Small Biz Buddha!
Decide what kind of Airbnb business you want to run
This is the first and most important step in starting an Airbnb business. Before you set up shop, you need to decide what kind of Airbnb business you want to run. There are many different types of Airbnb businesses, and each has its own unique benefits and drawbacks. Here are the main types of Airbnb businesses and their pros and cons.
- Airbnb Vacation Rentals
This is the most common Airbnb business model. With an Airbnb vacation rental, you buy or rent a property and then list it on Airbnb as a place to stay for vacationers.
- Airbnb Short-Term Rentals
This is similar to the vacation rental model, but it’s focused on folks who want to rent their property on a short-term basis. Instead of renting out the property for an extended period of time, like a vacation rental does, you would rent it out for a few days at a time to different guests.
- Airbnb Business Travelers
Business travelers make up a growing portion of Airbnb traffic. If you choose this type of Airbnb business, you’ll buy or rent a place close to a company’s office and then rent it out to people traveling to that company.
- Airbnb High-End Rentals
If you have high-quality furniture or a vintage property, you may want to set up a high-end Airbnb business. With this type of Airbnb business, you rent out a luxury property and charge premium prices. – Airbnb Rent Out Your Own Room – If you live alone, you can create an Airbnb business by renting out your own room. You can also do this if you have a spare room you don’t use. This is a great way to earn extra money from a spare room.
Pick the right location
When choosing the right location for your Airbnb business, you should consider three factors.
The first thing you need to consider is the neighborhood. What is the neighborhood like? Is it relatively safe? Are there lots of tourists in the area? What is the average income of nearby residents?
Next, you need to think about the amenities of the neighborhood. What types of restaurants, shops, and services are nearby? Is public transportation available? What kind of public services, like hospitals, are nearby?
Finally, you need to consider the space itself. Where are the best places to put your Airbnb listing? What kind of people would be interested in staying in that neighborhood?
Get the right tools
Before you open your Airbnb business, it’s important to get the right tools and supplies. Here are some essentials you need to open an Airbnb business.
- Computer
You need a computer to run your Airbnb business. You can’t run your Airbnb business from a tablet or smartphone—you need a computer with a big screen.
- Internet
You’ll also need a high-speed internet connection to run your Airbnb business. You can’t run an Airbnb business without internet.
Airbnb Account
You need an Airbnb account to list your properties on the site.
- Smartphone
Even though you need a computer, you also need a smartphone to run your Airbnb business. You need to be able to respond to inquiries from guests, check reviews, and communicate with other Airbnb hosts.
- Hosting Platform
You need a hosting platform to manage your Airbnb business. In other words, you need software on your computer that allows you to list your properties, communicate with guests, and manage reservations.
Write a great ad
Next, you need to write a great ad that attracts the right guests. The ad is the single most important aspect of your Airbnb business because it’s the first impression guests have of your operation. Here are some tips for writing a great ad.
- Include a clear picture
People are visual beings, so a clear picture is essential to a great ad. An attractive and well-taken photo will make your ad stand out.
- Offer a great price
You can’t just have a great photo—you have to have a great price. Put the price in bold letters, and make sure it’s lower than the average price in your area.
- Offer good amenities
Airbnb guests expect something extra, like Wi-Fi, fresh towels, and fresh bedding. Make sure to include these basic amenities in your ad.
- Write a compelling description
Your ad needs to tell a compelling story about the property, yourself, and your guests. What’s the story behind the property? What kind of guests would stay there? Why would guests stay with you instead of a hotel?
Step 2: Promote your business effectively
After you open your Airbnb business, the next step is to promote your business effectively. There are some basic marketing techniques you can use to promote your Airbnb property. These techniques are easy and effective, so you should use them regularly. Here are a few basic ways to promote your Airbnb business.
- Join Airbnb groups
Airbnb has a large and active community. Joining relevant Airbnb groups is a great way to connect with other Airbnb hosts, learn from their experiences, and inspire new ideas for your own business.
Be active on Airbnb
You should regularly be online and engaged on Airbnb. You should respond to inquiries, leave reviews for other hosts, and offer advice as much as you can.
- Use Airbnb’s other features
Airbnb has a lot of other features that you should be using regularly, like Airbnb ads, where you can pay to promote your business to guests browsing the site. You should also be putting up a calendar that shows when the property is available and when it’s not.
- Advertise your Airbnb
You can also use paid advertising to promote your Airbnb business. The best places to advertise your Airbnb business are travel-focused websites and apps like Google, Facebook, and Booking.com.
Step 3: Earn trust and recommendations
After you promote your Airbnb business and guests start booking stays, the next step is to earn trust and positive reviews from your guests. This is the single most important part of operating an Airbnb business. Without positive reviews, your business will suffer. If you want to succeed with Airbnb, you have to earn positive reviews. There are a few ways to earn positive reviews from your guests.
First, make sure your house rules are clear and reasonable. Your guests don’t know you, so they don’t know what’s normal and what’s not. Make sure to spell out your house rules before they book, so you can avoid any misunderstandings.
Next, make sure your home is clean and comfortable. Clean your home thoroughly before each guest arrives and make sure it’s comfortable. Give your guests some privacy and let them enjoy the home.
Finally, go above and beyond for your guests. Do things in addition to what’s expected, like leave them a gift or baked good. – And remember, you can only earn positive reviews if your guests stay with you! Make sure to communicate with your guests, handle any issues quickly, and be overall nice and helpful.
Step 4: Run the operation efficiently
After you’ve built your reputation and have a steady flow of guests, the next step is to run your Airbnb operation efficiently. You need to do all the little things in order to operate a successful Airbnb business. Here are a few tips for running your Airbnb business more efficiently.
First, make sure you’re managing your calendar properly. You should be scheduling out your calendar for the next month or two and marking off the days when your property is unavailable. This will help you avoid double-booking and help future guests plan their trips.
Next, keep your house clean. Regularly clean your home to maintain a good reputation and keep your hygiene rating high.
Finally, pay your taxes! Running an Airbnb business means you’re running a small business, so you need to make sure you’re meeting all the required business taxes. The more efficient you are, the easier it is to run your Airbnb business. You’ll have more free time, more money in your bank account, and more peace of mind.