How can I make money from AirBnB this summer?
With a boom in the post-covid staycation market, many people are starting to question how they can make money from AirBnB this summer. Rates are currently averaging around £50 per night for a double room, with an average of £228 per night for a whole house or apartment, and even more in tourist hot spots or bespoke and quirky homes. So, it’s not hard to see why this is an attractive option for many homeowners.
This short guide will give you the rundown on what you need to know and cover all the benefits and pitfalls of using Airbnb as an additional income source.
What is Airbnb?
Known as an online Travel agent or OTA, Airbnb is a short-term rental market that allows people to rent a room or a whole property through Airbnb.com, just like when booking a hotel room.
Your guests pay AirBnb, so you are not expected to collect any money from your guests directly. AirBnb then pays you, minus a small commission.
How much can I earn from AirBnB?
Rates are dependent on three main things;
The location of your property
The seasons or local events being held.
The size of your property
A property in a prime seafront location would ordinarily command a higher rate than a similar property elsewhere in the same town. Likewise, this rate would again increase during the summer months and possibly further again during significant local events.
So, although you set your prices on Airbnb, it is essential to consider what is going in your town or nearby your property, leading to increased demand during those periods.
Before listing your property, it is good to research and build a calendar or local events, so you don’t undersell your property during peak periods.
Another excellent resource for rate setting is Airbnb itself. Research properties similar to the one you are considering letting out as this is essentially your competition. Price too high and you may not sell your space, too low and you will start to book up very quickly and won’t be maximising the available revenue.
How do reviews affect Airbnb pricing?
Once your guests have departed, your space and service will then be reviewed by your guests. The better you are as a host, the higher your rating will be. As you gain more high score ratings, guests will be more encouraged to book with you, and Airbnb will even start promoting your property before others in the search results.
After a time and providing you’re an excellent host and meet Airbnb stringent requirements, ‘Superhost’ Status will be awarded. Your property will then show a small icon next to the listing and is an excellent tool for guiding potential guests to the high standard of your accommodation and hosting skills to increase demand for your property. Of course, an increase in demand can relate to a rise in the rates charged by you.
How to list my property on Airbnb
Creating a listing is easy. After all, the site has over 2.9million hosts.
1, List your property for free
2, Decide how you want to host
3, Welcome your first guest
A few things are crucial when creating your listing. Firstly, having great photos will be the primary sales tools used besides the website itself to market your property. YouTube has loads of great resources on camera phone photography and is a great place to start honing your photographic skills.
Once your amazing images have enticed a potential guest to click on and find out more about your space, your property description is the next most important thing. You’ll want to sell yourself as an honest and reliable host. If you are unsure what to write or how to do this, a great place to start is the listings written by ‘Superhosts’.
These experienced AirBnB hosts have created successful listings, and as you read through each one, you will begin to notice some similarities in how they describe the property and themselves. Of course, you will need to adapt these for your own facilities list, selling points and personality, but they are a great resource when first starting out.
Good spelling and grammar are also essential, some guests may not have English as the first language and will struggle to understand poor spelling, whilst text style abbreviations have been proven to put off many potential bookers as they give an impression of ‘slap-dash.’
If writing isn’t one of your strong points, ask someone to proofread it for you, or use a free checker like Grammarly or Microsoft Word.
Is it Safe to Rent Out my Home Through AirBnB?
AirBnB has nearly 3million listings and manages over an average of 800,000 overnight stays per night with few reported problems; however, there are some fundamental aspects you need to consider.
Firstly, the ‘AirBnb Host Guarantee’, which provides property damage cover is great, but it is not a full insurance policy. It will not cover you for claims caused by accidents, trip or falls, and many other caveats that could leave you out of pocket should a claim be made. So always look to protect your home and belongings with a specific host insurance product. You can find out more about insuring your AirBnb here.
Also, remember that although AirBnb does carry out checks on potential guests, essentially, you are inviting a stranger into your home, and the same goes for the guest. To them, you are the stranger, and they are coming into your home with a view to spending the night. Ratings and reviews help with this. Just as you are reviewed as a host, hosts also review your guests who have stayed.
You can choose to set your listing up where guests new to Airbnb with no reviews cannot book your property, which is an excellent idea if you are nervous about the process.
Tax implications are also a consideration. The UK government allows you to earn up to £7,500 tax-free via the rent a room scheme, although, It is wise to check the full details of the scheme and any updates on the government website.
In conclusion, listing your home on Airbnb could be a lucrative way to make some additional money this summer. Still, it is wise to protect your belongings with either with holiday home or specific Airbnb insurance, be careful to read guests’ reviews and check the full details of the tax implications beforehand.