If you are looking to turn your current home or a vacation home into an Airbnb then here’s a roadmap to help you get started…
- Can you airbnb your home?
- Is renting your house on airbnb worth it?
- Find a niche for your airbnb
- Set up your airbnb
- Create a memorable guest experience
- Set up a direct booking website
- Automate and grow your airbnb business
#1 Can you Airbnb your home?
The first step to start an Airbnb is to check local laws and regulations…
Some cities have restrictions or have completely banned Airbnb altogether. In many cases you will need a business license or a permit.
If your home is in an HOA, you’ll want to check with them as well as they may also have restrictions.
#2 Is renting your house on Airbnb worth it?
Once you’ve verified that you are clear to run an airbnb from your home, the next step is to do market research to make sure your Airbnb will be profitable…
There are tools like AirDNA that will give you detailed information on how well your home can perform as a vacation rental.
To find out how much you can rent your house for on airbnb, you can simply plug in your address into the AirDNA Rentalizer tool and you will get an estimate on average annual revenue, occupancy rates and also show you how the property will perform based on seasonality…
It’s important to take into account the expenses of running an Airbnb such as paying for cleaners, maintenance, sales tax, restocking amenities, laundry, etc.
Although many new Airbnb hosts choose to do it all themselves when starting out, most will soon realize they’ve underestimated the amount of time required to run an Airbnb since it’s not just about “renting out the home”…
Running an Airbnb is a hospitality business, and requires someone actively managing the property and taking care of guests.
#3 Find a niche for your Airbnb
Once you’ve determined that there is demand and good revenue potential for your home as a vacation rental, the next step is to find a niche for your property.
This is possibly one of the most important parts of starting and growing an Airbnb business that most hosts overlook.
Everything you do moving forward will be centered around your chosen niche…
A niche for your Airbnb can be location or design of the property (remote cabin, tiny home, eco-friendly luxury, etc.)…
Other ways to create a niche for your Airbnb is to determine what kind of traveler are you looking to attract and host.
Some ideas could be business travelers, solo travelers, romantic getaways, family friendly, corporate retreats, pet friendly, etc.
Choosing a good niche can make the difference between charging average daily rates for your home VS charging premium prices for your home (pet fees, etc.).
#3 Set up your airbnb
Once you have picked a niche for your Airbnb, you’ll want to go through your home and look at it from the point of view of your guests…
Suppose you chose to run a family friendly Airbnb. Knowing that your guests will include children, you can choose to set up a game room, have outdoor games like cornhole, big jenga, etc.
You will want to go through the full Airbnb checklist for hosts to make sure you have everything you need…
The most important areas to make sure are fully stocked are
- Kitchen
- Dining table, chairs, placemats
- Dinnerware set
- Silverware
- Drinking glasses
- Coffee mugs
- Coffee maker
- Toaster
- Dishwasher safe cutting boards
- 13 Gallon trash can with lid
- Cooking pots & pans
- Cooking utensils
- Dish soap & hand soap dispenser
- Paper towel holder
- Rubber oven mitts
- Cleaning supplies
- Bathroom
- Handsoap dispenser
- Hair dryer
- Non-slip bathtub suction mat
- Make up mirrors
- Bedroom
- Sturdy bed frame and comfortable mattress
- Mattress & pillow encasement
- Dresser or nightstand
- Lamp with USB charging port
- Luggage rack
- Blinds or blackout curtains
- Living room
- Couch
- Chairs
- Side tables and/or coffee table
- Laptop friendly workspace
- Board games
- Lamps with USB ports
- Other items needed
- Fast reliable Wi-Fi
- Weekly house side trash pickup
- Roku for streaming services
- Smoke alarms
- ABC rated fire extinguishers (5 lb)
- CO detectors
- First aid kit
- Emergency information contact card
- Guest House Rules
- Check out checklist
- Area guide
Again, this is just a brief summary and recommend going through this more comprehensive Airbnb checklist…
Last, it’s important to have a safety inspection done throughout the home to check for potential safety issues. A good safety inspector will check for things like trip hazards, making sure adequate lighting is provided for guests checking in after hours, etc.
… and while you’re at it, look into short term rental insurance. While Airbnb covers some, you’ll want to talk to an advisor to see if short term rental insurance is recommended for your home.
#4 Create a memorable guest experience
Once all the heavy lifting is done, it’s time to do what most consider the fun part of hosting, creating a guest experience that will have people booking your place over and over.
A) Think like a guest
It may be hard for an owner to think like a guest. It’s important to remove any emotional attachment to the home. What you like about it may not be what the guest likes about your home. Be open to feedback and different opinions. One way to look at your home from your guest’s perspective is to have a friend stay at your home. They’ll probably be able to notice what works and what doesn’t.
B) Be thorough with your pictures and listing description
It’s important to have professional pictures of your home that not only entice people to learn more about your listing, but also that shows what they can expect from staying at your home. Guests will want to know sleeping accommodations, so it’s good to include a picture of every bed that will be available to them.
If you have special amenities that guests look for such as hot tubs, views, etc., then definitely showcase them. Any areas where guests may spend time should be highlighted and shown in the first 5 pictures.
C) Does your home have faults?
It’s better to be open and set expectations than hide it and end up with a negative review. If your home sits on a busy road, it’s better to bring it up in a listing. We have homes that sit on a busy street, bedrooms are away from the noise and we also have white noise machines. People still book and they give us positive reviews because we were clear and upfront with every detail of the home.
D) Communication is key
On one hand, guests want to be able to book, check in, be left alone and check out. On the other hand, they want to be able to reach out to someone if needed and get an immediate response.
This is one reason why eventually many Airbnb hosts end up building a team or hiring a vacation rental property manager so their guests can reach out 24/7 if they need.
E) Personalize Your Hospitality
This is where knowing your niche plays a big role in helping your Airbnb stand out.
Suppose you cater to adventure travelers. You could provide a detailed guide or all the hikes and adventures near your Airbnb.
You can add special touches like welcome gift baskets that include local craft beer or coffee or anything else that makes you stand out depending on your niche and demographics.
Hotel-like amenities like extra toothbrushes, make up wipe removers, etc., are also nice touches guests appreciate.
D) Don’t skimp on amenities
Many Airbnb hosts try to increase their booking revenue by cutting down on costs. While this is a natural tendency, it’s important not to cheapen your product by providing guests with low quality amenities.
If your guests show up and they find 1-ply translucent toilet paper, their Airbnb experience at your home may be short of a 5 star review. If you are providing things like coffee, or other amenities, it’s worth it to spend a little extra to earn 5 star reviews and have guests wanting to come back to stay at your place.
E) Clean, clean, clean
This will be one of the most judged aspects of your Airbnb… It has definitely played a big role in our 5 star reviews.
F) Go above and beyond with unique experiences
One thing that makes our Airbnbs stand out is that we offer unique experiences like private chef experiences, in home yoga, etc., and that’s definitely one way to stand out.
#5 Set up a direct booking website
You’ve done all this work up until now… if you are happy with the extra income you are making with your Airbnb, then it’s okay to just stay where you are…
… but if you see potential in growing and scaling your Airbnb, then these are the extra steps you can start to consider.
One way to increase your booking revenue is to have a direct booking site and let your guests know that they can book directly. They can save the booking fee and you can start to build your own client list.
This way if you find your home is fully booked, you can start looking for a similar property to purchase that you can offer to your existing guest database.
#6 Automate & Grow Your Airbnb Business
As you begin to add more properties to your Airbnb portfolio, you will invariably need to automate tasks so that you can scale.
There are tasks that require daily attention such as handling inquiries, current guest communications, dynamic pricing, coordinating cleaners and maintenance tasks. As you begin to grow your Airbnb business, you will find that the number of problems will grow alongside your portfolio.
You will want to have good systems in place to keep your Airbnb running smoothly. This includes having a good vetting system to avoid unruly guests, and avoid fraudulent activity or scams.
Yes, there will be guests who will try to pull a fast one… they’ll usually have a story about how their work or someone else will be paying for their stay and ask you to do something out of the norm. They may entice you by offering to “pay more for your trouble”. Trust your gut and keep all communications within the platform.
These are few and far between, but it’s good to know what you are up against.
Other than that, get started and you will learn a lot more as you go.
If you don’t want to build a team to manage your airbnb, you can look into hiring an Airbnb property manager. Not all property managers offer all the services you’d want (and need)…
You can learn more about what to expect and how much to pay in airbnb property management fees to get an idea of who to hire when looking to hire a professional airbnb manager.
