Thinking about becoming an Airbnb entrepreneur? Well, then you are probably aware of how lucrative the industry is and the huge size of the marketplace for rental properties.
Airbnb has over 6 million listings in more than 190 countries due to the fact that it is easy to use and very effective at the same time. Basically, anyone can be an Airbnb entrepreneur and list an extra room in their apartment, the whole place, or a residence on their website.
But to build a thriving Airbnb business in the competitive, evergrowing market, you need to put in the extra effort. Here are some great tips for establishing and running a prosperous Airbnb business.
1. Check out local rules and regulations
The very first thing you should do is find out about Airbnb rules and regulations for vacation rental management in your area. You will need to know if you need any type of permit or license to rent out your property, or if you need to register. Be sure to check all local government restrictions to avoid violating any laws or getting banned by Airbnb.
2. Do your research
Find out what your target audience is looking for and collect as much information as you can to better understand what your offer needs to cover. This also includes an extensive research of the market and the local competition. Use the following as a guide to conducting your research:
- Who is your target audience and what do they expect?
- How many properties similar to yours are rented already, and what is their unique selling point?
- What facilities within the properties are provided by the local Airbnb businesses?
- What unique amenities are provided by your competitors?
- How much do your competitors charge?
3. Write a business plan in detail
The vacation rental market is highly competitive and you need to think of the ways how your Airbnb listing will stand out among many others. Whether you are planning on renting your own place or earn profits with Airbnb rental arbitrage, you will need to come up with a coherent business plan for your Airbnb business.
Rely on all the data you’ve collected during the research and carefully consider what your competition offers. Then, go the extra mile to provide just a little bit more for your guests. This will bring you one step closer to becoming a successful Airbnb entrepreneur.
4. Adjust your prices
This is a tricky part. Unfortunately, there are no rules when it comes to setting the prices, and many Airbnb entrepreneurs struggle with choosing the right prices for their rentals.
Many Airbnb hosts who are new in the business want to attract their guests quickly and do so by lowering their prices drastically. It is of utmost importance to carefully consider your prices — if you set high rates, many guests will probably search for more affordable options.
On the other hand, if you ask for a low rental fee, your price won’t cover your expenses and you will not get the desired profit. Thus, set realistic rates and work from there.
What’s more, you can offer discounts and special promotions for certain days or weekends to attract more guests and increase your occupancy rate.
5. Create great experiences for your guests
To get positive reviews, you need to ensure that your guests have a great time during their stay. This means that your rental should be equipped with various amenities, that everything is spick and span, and that you handle all guest communication quickly and all potential problems and emergencies effectively.
What helps a lot is to automate some processes, such as Airbnb cleaning after the guests’ departure. Investing in rental management software is a great way to keep track of all your employees’ tasks, automate cleanings, and stay in full control of all the property management processes, and all guest communication. All of the aforementioned will ensure your property offers the 5-star experience for your guests.
The short-term rental industry is expanding and growing each day, meaning that there’s always room for more hosts and Airbnb entrepreneurs who dream of running their own Airbnb business.
Although Airbnb management is a challenging task, it is not an impossible one. You will need to invest your time and do extensive research before even showcasing your listing. This also includes thinking of all the often overlooked difficulties that may emerge and creating a plan on how to deal with them. But, once you do all the necessary preparation, you will be more than happy with the results achieved and see the increase in profits very quickly.