6 Reasons to Become an Airbnb Host
The sharing economy has been taking over the world in recent years. It is based on the concept of renting private belongings to other people and earn a profit. Airbnb is a prime example of how prosperous the sharing economy can be. It allows private individuals to lease unused space and it currently has over four million listings.
Not only that, but it has been evolving and introducing new features such as Airbnb Experiences and Adventures. Those features allow individuals to earn extra money by giving local tours or offering different activities. The earning potential is enormous and it’s no wonder that many people nowadays want to utilize its advantages. If you’re still not convinced, here are even more reasons why you should consider becoming a part of the Airbnb community.
1. Airbnb is Better Than Traditional Rent
By offering short term rentals, you have an opportunity to double or triple your earning potential. Not only that, but it is also much safer because an Airbnb host receives money as soon as they accept reservations. This way, they don’t have to worry about missed rents. Moreover, you can host multiple guests every month. This gives you the chance to check your property frequently and see whether the guests respected your house rules. When it comes to traditional renting, you can only inspect the home a couple of times per year, or when the contract expires.
Another great benefit is the fact that you’re fully covered in case your belongings get damaged. You have an option to set a deposit amount in case something goes wrong. The host receives compensation for damaged items as soon as the platform confirms your evidence. Also, in case the damages go above the paid security deposit, the Airbnb Host Guarantee provides protection for up to $1 million.
2. Earn Money by Smartly Utilizing Your Free Space
If you have a free room, a vacation home, or any other unused property, deciding to lease them as short-term rentals will allow you to earn a passive income. What’s also great about listing on Airbnb is the fact that you can set your prices and rent individual rooms to gain an even higher profit. Moreover, unlike traditional renting, Airbnb allows you to set a cleaning fee. You can use that money to hire professional cleaning service, or put that money in a piggy bank and do the cleaning yourself. You can also use it to purchase essentials such as toilet paper or cleaning supplies, instead of using your pocket money.
3. Use Rental Arbitrage to Your Advantage and Earn a Profit
If you don’t have a free space, but would like to become an Airbnb host, then you can utilize rental arbitrage to earn a profit. Rental arbitrage is a process where you rent an apartment and then sublet it to prospective Airbnb guests – you sign a long-term lease, and then rent the space for short-term stays. However, before making any final decisions, make sure to check local laws. States such as Ohio and Arizona have non-restrictive rental arbitrage regulations, while others are much stricter. Moreover, you need to ensure that your landlord agrees with this practice. You can offer some incentives, such as giving 10% of booking earnings, to sweeten the deal. Lastly, this practice only makes sense if your earnings exceed the cost of renting and furnishing the apartment. Otherwise, you’re losing profit.
4. Travel More While Managing Your Airbnb Remotely
What’s excellent about passive income is the fact that you can manage everything remotely. You can use that free time to travel or do anything else that makes you happy. You can implement keyless entry or key management to let the guests or cleaners inside the home. Keyless entry utilizes smart locks to notify the owner of a someone’s arrival. You have to confirm the entrance through a digital device, and the door will be unlocked. On the other hand, management apps allow you to use existing keys and receive an SMS notification every time a key has been returned.
5. You Can Automate Different Processes to Lessen the Workload
If you’d like to have as much free time as possible, then using different vacation rental service software can be a great choice. Not only will it help with messaging and reservation requests, but it can also help with setting prices. Some software solutions utilize smart pricing by analyzing surrounding rentals and calculating the best price. Bear in mind that most of these solutions have a service fee, though. However, the fee is usually fair compared to the many benefits you’ll reap from using it, such as increasing revenue, scaling the business, providing analytics and actionable advice, as well as improving communication and response time through automated messaging.
6. Meet New People and Interact with Different Cultures
Becoming an Airbnb host doesn’t only come with financial benefits, but it also offers a unique social insight into different cultures. It allows you to meet people from around the globe, perhaps try some exquisite local cuisine, and make life-long friends. Airbnb forums are filled with wonderful stories about strong bonds that have been formed through hosting, so why not give it a shot?
Becoming an Airbnb host is fantastic for earning an additional income. Moreover, it will also allow you to meet people and form strong connections. However, bear in mind that being an Airbnb host isn’t always easy. It comes with a lot of responsibilities and risks, and it may take a while before you score a first guest. Don’t let that discourage you, though. Airbnb hosting can also be an outstanding educational experience that will allow you to improve your communication and money-management skills.