When Erin and I talk to others who have hosted for any length of time on Airbnb, we hear
the same thing over and over:
Airbnb changed their lives.
We’ve worked with several clients whose Airbnb money emboldened them to make new choices.
And that’s our story as well.
In addition to paying down credit card debt and buying a car, our Airbnb money helped
us buy our first home.
Since then, we’ve leveraged that to buy other investment properties.
But for the uninitiated, Airbnb and short-term rentals can seem a little daunting.
It doesn’t have to be.
While perfecting the art of Airbnb takes some time, getting started is easy.
Here are 6 steps you need to take to become a successful Airbnb host.
Whether you choose to follow the rules on Airbnb is up to you, but you should at least
know what they are and the consequences of breaking them.
To find your city laws, call your city’s planning or zoning department.
There are three questions you need to ask your city planner:
Do they have any rules specific to short-term renting, Airbnb or VRBO?
Do they have rules restricting rentals that are 30 days or less?
Are short-term rentals recognized in the city use code, and if not, are uses not addressed
in the use code considered illegal?
Asking those three questions should tell you what you need to know about the legality of
short-term renting in your city.
Similarly, if you have an HOA, you’ll want to check the declarations or emailing your
HOA board and asking if there are rules limiting 30 day or less rentals.
(Some condo communities are small enough that directly asking them may put you on their
radar, so reviewing the governing docs may be your best option here.)
Paring down your furnishings to the minimum is a sure-fire way to make your place more
appealing in photographs.
Some staging experts recommend getting rid of a third of your furniture for the best
look.
Even the frumpiest couch will look better when it’s not surrounded by junk.
If that doesn’t seem feasible, make sure your place is at least tidy:
tuck chairs into the table, fold blankets, organize magazines and books & remove any
dishes from the sink…
it seems obvious, but it isn’t to everyone, so just remember: tidier is better.
Here’s something to remember:
Potential guests are looking at tens of listings and making snap judgments based on a quick
glance.
What draws them in?
Photographs.
And if yours are dark or not framed correctly, you could be missing out.
Unless you have some expertise with photography, your smartphone isn't going to cut it.
Instead, do one of two things:
Take advantage of Airbnb’s free photography or hire your own.
Many listings qualify for Airbnb’s free photography.
Just Google “Airbnb free photography.”
Unfortunately, some listings don’t qualify or the wait may be too long.
In that case, I urge you to hire a professional real estate photographer.
It may be $100 or $150, but you’ll make that up in no time.
When listing your space, think “inside and out.”
What is most appealing about the inside of your space?
And what is most appealing about the outside or location?
When you have your answers, fold them into one headline.
And when doing this, try to sell the experience, not just the amenities.
For Instance, a good listing title would be:
Live the Local’s Life - 1 Bedroom within Walking Distance to Downtown
or See the City: Urban Loft with Floor to Ceiling Windows.
The listing is also a great place to discuss other important items:
Are animals allowed?
Is there laundry (and how much is it)?
Remember this is public, so list the basics here but not the details
(i.e. no wifi passwords, nothing about the neighbors, etc.)
One other note on your listing.
Be transparent and honest about your space.
People will forgive a leaky faucet or a not-quite-as-light basement apartment if you’re up-front with
them.
Set accurate expectations, and you’ll prevent a lot of problems in the future.
Okay, you’ve de-cluttered your place, taken good photos, and set up your listing.
Now, how much do you charge?
You’ve got a couple tools.
Airbnb offers a tool that sets the price for you.
This is great for those that don’t want to think too much.
The problem is that they’re based on averages, and if your home is above average (and 50%
of you will be), then Airbnb is pricing you too low.
I’ve heard of people upset that somehow Airbnb allowed their two-bedroom condo to
get booked for $70/ night over New Year’s Eve.
There’s a cottage industry of dynamic pricing tools tailored to short-term rentals.
These have the same benefit of Airbnb’s Smart Pricing.
And the drawbacks.
It’s ease of use but not that precise.
Do your own research.
The third option (and our personal favorite) is some good old fashioned market research.
Act like you’re a guest and search for properties of similar size, with similar furnishings
in your immediate area.
Be sure to check their reviews to see if they have a few recent ones, which would indicate
they’re getting booked.
Now that know what comparable properties rent for, you’re set!
Well, almost.
When you're first starting out, you should cut 10-20% off that price.
Now, why would you do that?
Because positive reviews are one of the best ways to move up in the Airbnb search rankings.
If you’re priced at the same rate as similar properties that have a lot of reviews, guests
are going to choose the listing with reviews.
You need to undercut your competition for awhile, grab a couple stellar reviews, and
only then should you start to raise your prices.
I can't emphasize this enough.
Be enthusiastic and nice in your messages, in your face-to-face interactions and in any
phone calls/texts you have during your guests' stay.
This is both an offensive and a defensive tactic.
It's offensive because your kindness may spill into the good review they'll leave.
That's a good thing!
It's defensive because I've found that even if a guest has a bad time at your place, if
they like you and think you’ve tried hard, they are less likely to leave a bad review.
I've hosted tens of people who I know had something go wrong during their stay, and
they either don't leave a review or leave a review that simply says the host was super
attentive and nice.
As we said before, to become a rockstar Airbnb host it takes time,
and there are certainly more advanced tips to follow when operating a short-term rental.
But don’t let that stop you.
Take the steps we talked about and give it a go.
We hope you enjoyed this video and if you did, make sure to give us a thumbs up
and let us know in the comments section.
For BiggerPockets.com my name is James & I'm Erin.
Thank you for watching and stay tuned next week to learn some of the Pro's & Cons that
come with AirBnB rentals.