Despite the idea of Airbnb as a platform ‘for the people, by the people’, professional landlords are generating over $500 million dollars a year using Airbnb.
According to the research conducted by Pennsylvania State University, Airbnb guests in 12 major metropolitan areas spent $1.3 billion, including rental costs and fees, over a 13 month period ending in September 2015. 39% of that revenue, or more than $500 million, was generated by landlords that operated more than one unit.
In short, if you’re a landlord, you’re going to want to sit up and pay attention now.
Why Landlords Should Use Airbnb
As a landlord, Airbnb is one of the most innovative technologies to rent out your units and pull down top profits, beyond the limits of monthly rates. Especially for those Canadian snowbirds and vacation property owners, Airbnb is an ideal platform to quickly and easily advertise your property for no cost so you can connect with tenants immediately.
One of the greatest advantages that Airbnb offers you is gaining maximum profits renting out your space by the night, rather than being limited by a monthly rate. If your unit typically rents for between $100-$150 per night, you pull in nearly double in profit.
Airbnb landlords are now generating more profits than monthly rentals, renting units out for just 10 nights or more in any given month.
The sweet spot is for landlords who are in hot spot areas who offer nightly rental rates that are lower than other hotels nearby. Course, you have total freedom to set up the terms of your rental from rates to minimum stay for bookings and otherwise.
One of the draws for travellers to look to professional Airbnb landlords is based on perks short-term tenants gain from the inclusion of items at no extra charges, unlike hotels. From wireless access and parking to scuba gear or surf boards, there’s a reason that vacationers are looking to Airbnb instead of large chain hotels.
If you haven’t set up your Airbnb profile yet, go over and get started. The desktop and app platform makes it easy for you to get a sense of how it works and setting up your profile only takes a few minutes.
It isn’t just a free for all either, everyone has their identify checked and verified to create a profile and your property address isn’t listed. This gives you the opportunity to create specific available dates, post pictures and screen any interested short-term tenants before you make commitments.
With professional landlords starting to leverage all the profits in the Airbnb model, it’s expected that more and more property managers and commercial owners will start to use this platform. By all means, get your property listed as soon as possible with beautiful pictures and get started.
To help you do just that, here are 5 tips for making the most of your Airbnb listing.
#1: Location, location, location
Yes, it’s a cliche and a damn relevant one. More often than not, there are features of the location of your rental that make it great. Whether you’re in a tourist-friendly spot or a residential haven, be sure to let visitors know what is appealing about your location and what’s nearby. Is it family friendly? What restaurants and amenities are nearby? Think about the types of people who would enjoy staying where your property is located and explain why.
#2: Be a good host
If you’re renting out your property for a short-term rental, be sure to be a good host with clean towels, fresh sheets, new soap and other essentials. Some Airbnb hosts leave out helpful gift baskets with free coffee and snacks or otherwise, just remember that your reviews are essential for your continued success.
#3: Get good tenants and good reviews
That brings us to the third point, reviews, As with all online shopping, your reviews are important. One negative review is more than enough to make tenants avoid dealing with you. Be sure to feel prospective tenants out over email so you know who you’re renting out to.
Also, remember that customer service is part of the professional Airbnb landlord package. Stay accessible and friendly.
#4: Use good photos
Make sure that your photos show the true sense of your property in an appealing way. Take pictures of the view if there’s a great landscape. Show off the big bedroom, take pictures of the kitchen… in other words, show your tenants the best eye of your property so that it’s appealing. Remember, these are generally vacationers looking for a great getaway.
#5: Set up reasonable rates
A great way to get a good sense of rates in your area is to simply browse your local neighborhoods on Airbnb. There’s usually a good array of differing types of rentals and prices depending on the type of units and space available. Another idea for setting up good rates is to look at nearby hotels and make sure that you’re pricing in a competitive way.
Take a look at what your offering and make a smart estimate of the market value. You can always change your rates as time goes on, so be sure to start off on the lower end of the spectrum until you gain more positive reviews from Airbnb guests.