Guide to make money as an Airbnb host

Many people asked this question that how to start an Airbnb business.

So today, I'm getting to share a guide that how you'll make money as an Airbnb host.

Before I start I want to mention that if you want to know about how to make money on Airbnb without property, do read this article starting an Airbnb Business without Owning Property it's worth reading it.

So, Airbnb hosts earn, on average, around R28 000 a month by making their property available for short-term let.

Airbnb is often an exciting income stream, but you ought to do your homework carefully before buying a property specifically for this purpose.

So here are the ideas on the way to set about the study:

1. Have a glance at the present Airbnb research that’s available online

I would recommend a goal of securing a minimum of 60% more income from an Airbnb property than you'd from a long-term tenant. Anything but this, you ought to consider very carefully whether it's worthwhile or not.

Sites like Airdna provide area-specific Airbnb data, with details on the number of hosts and rentals within the vicinity, occupancy rates by percentile, the typical price per listing type, revenue per room type, and price shifts consistent with seasonality.

Additionally, Nested released an encouraging report that found that South Africans could recuperate house value faster through Airbnb than via traditional rental options.

Johannesburg was ranked in 5th place, while Cape Town came out 12th out of 75 cities, with investors set to recoup value in 50 months. In Durban, however, the typical price of a three-bedroom property indicated that investors could recover value in only 18 months. But don’t be fooled, this report assumes 80% occupancy, which is never guaranteed.

2. Read the map

Spend a couple of hours on the Airbnb site investigating your area and current competition. Search consistent with your region of interest, and remember to increase some period across a couple of months when inputting the length of your stay, otherwise booked rentals won’t show up. Have a glance at the map alongside the listings; you'll see where clusters of rentals crop up and what their prices are. This means popular areas, and therefore the regions that land the host a better rate.

3. Check out the listings

Choose five or six places that are almost like your prospective offering. Create a spreadsheet that charts what each place offers in terms of amenities, and record the costs. Compute the typical rate, which should offer you a thought of where your pricing should sit. You’ll also determine what price will undercut the competition.

4. Check the percentage 

Click through each of your chosen properties on Airbnb, select the ‘check availability option, and have a glance at their calendars. Record their levels of occupancy - what percentage days they're booked each month? Do they need any serious dips thanks to seasonality? This may offer you a robust indication of what quiet occupancy you'll expect, and whether this makes your investment feasible.

5. Think through all the expenses and legalities involved

Check if your accommodation complies with its current zoning restrictions, and apply for permission from the town do you have to be renting a whole dwelling for short-term lets. If your property is during a sectional title block or development, check whether Airbnb and short-term let us are allowed.

In terms of insurance, Airbnb does provide host protection insurance but make certain to possess read through what this entails, so you'll get supporting coverage if necessary. Tax-wise, you'll get to declare your additional revenue. Once operational, hidden costs include things sort of a weekly cleaning service, and welcoming gifts for guests, which go an extended thanks to getting you good reviews.

And lastly,

If you create the choice to take a position in Airbnb, there are some ways to maximize your returns.

Additionally, make use of Airbnb’s new ‘Trips’ feature to feature your itinerary to the user-friendly guide book and audio tour suggestions. Upload a brief video to point out the attractions in your property’s area.

You can also work on making your property as appealing as possible so you get great reviews, referrals, and repeat visits. Clean décor, an awesome espresso machine, secure parking, unlimited Wi-Fi, and special little touches will all add your favor.