4. What makes for a successful Airbnb (that makes a lot of money)?
You can just launch your Airbnb listing and hope for the best, or you can implement strategies that have helped others make their listings profitable. Here are a few tips and tricks to help you make your Airbnb listing a success:
Understand your motivation
Although many may start this venture part-time, the goal is to make your short-term rental a full-time effort until you achieve your target. The more effort you put in the better your results will be. You won’t be able to build up a profitable multi-unit portfolio without putting in some serious time and effort.
Ultimately, you want to find yourself being fully supported by your Airbnb listings, as in the success stories above. To get there you’ll need to devote enough of your spare time until the earnings cover your current salary, then you’re free to do it full time.
Location, location, location
Not every city is going to be an instant Airbnb success, you’ll need to carefully consider where you want to set-up shop, especially if it means moving. This might seem extreme to you, but some cities are going to do better than others and if you want to receive passive income from your Airbnb listings you might want to take that into account.
For example
Miami and San Diego are ranked the two most profitable American cities for Airbnb hosts. These two coastal towns have quite a few things in common that could help you determine what Airbnb travellers are looking for, such as they both have warm weather and affordable housing.
How expensive a city is, does influence how many people visit it, and how many people will need Airbnb’s. Another factor to consider is both cities are on the list of American cities attracting the most international tourists, with both destinations setting overseas visitation records.
You’re looking for an affordable city with a temperate climate that has a lot of local and international visitors every year.
Multiple versus single listings
Airbnb hosts who rent one room will earn less money than Airbnb hosts who rent an entire apartment. The more rooms you offer the more opportunity you have, to match demand and supply more potential guests.
But like the success stories above, don’t purchase multiple properties at the same time and have several bonds to pay off simultaneously. Start small, and when you can afford to, buy the next property, then when that one is performing well, expand.
The more listings you have will increase the options you have in the marketplace. Numerous options will appeal to a wider variety of travellers.
Have help running your Airbnb
The launch of Airbnb has created an entire market of spin-off businesses offering assistance to hosts. Whether it’s a property management service or someone to meet your guest at the door while you’re jet setting around the world, all these services are available to you.
Even though you want to keep costs down, try and find others who can do jobs more efficiently and more economically than doing it on your own. That means you should try out the best providers to outsource cleaning, maid services and even check-ins/check-outs. This means you’ll have to pay extra for these third-party services, but it also means you’ll have more time for your other units and yourself.
Perfect the little things
Here are a few little details that if you get right can directly influence how successful your listing is:
- Photographs: Take high quality photographs of the space you’re offering. The photos should capture the character of your place, the surrounding area and any amenities. You should consider having the photographs professionally taken, as high quality professional photos can help your listing to stand out.
- Make it an experience: For impact think about the type of experience you’ll create for your prospective guests. With so much competition in some places, hosts who highlight features of their locations, such as nearby activities and types of experiences on offer, could get more attention than those who simply list the property details.
- It’s all about the price: Travellers have turned to Airbnb because it’s more cost effective than staying in a hotel. Pricing your listing reasonably will increase the likelihood of guests positing good reviews, which in turn makes your listing more favourable.