3 Steps to Running A Successful AirBNB Business
Whether you're an AirBNB consultant or managing AirBNB properties, here are 3 things that you need to have.
Chances are you have stayed in, or at least heard of Airbnb. It is the number one home sharing platform, and it allows normal homeowners like you and me to list properties so that other people can rent these as alternatives to staying in a hotel. Many people prefer Airbnb properties to hotels as they are generally larger than hotel rooms, so can be better for families and those with pets to stay in. If you own a home or an apartment, or even a room in an ideal location, you can make a real business from renting it out to businesspeople or holidaymakers. But running an Airbnb comes with its challenges, so here are the main 3 steps to running a successful Airbnb.
Table of Contents
1. Use your Airbnb as a Business and not a Side Hustle.
Many people have Airbnb properties that they do use as extra income on the side, however if you want to be truly successful, then it is best to view it as a full-time job opportunity. Often people will think that an Airbnb is an easy way to make quick money and they completely underestimate the work and time involved. The Guestready website explains that the average vacation Airbnb will require a minimum of 2-3 hours of management per day, and even more on days when there is a changeover on guests. This is not something that can be managed in the ad breaks in your favorite tv show. So, if you want to be successful, you will need to view it as a business and manage your time as you would with any job.
2. Be Organized – Airbnb’s Require Ongoing Management.
There is so much more to running a successful Airbnb than to own a property. Guests don’t want to rent out an empty house or room. When you go to a hotel, it is fully furnished and there are amenities such as soaps, towels, cutlery, and bedding. The same goes for an Airbnb, and this will require organization. You need to ensure that each property is move-in ready and that it is cleaned and that the linen and towels are fresh for each new visitor. These are the minimums that people expect when renting out an Airbnb and if you are not prepared, then you are setting yourself up for failure. Running of an Airbnb will generally be done remotely by you so some organizational skills will come in handy. Know what each property requires and have a plan on how to manage it on an ongoing basis. As a minimum you will require the following:
- A checklist. Every property will be different depending on the size and location (is it beach, city or rural?). Have a checklist ready for what each property requires and ensure that it is fully checked off before a paying guest arrives.
- Signage. This is something that many people do not consider. When your guests are inside of your property, they need to know how to navigate it. You will not be there to take them around and explain things, so having something as simple as signage in a welcome book can make all the difference. This will outline procedures and leave contact information in case of issues. Your guests should know where things are, how to use them and what to do in the event of any issues.
3. Get Trusted Partners
If you are planning on running your Airbnb remotely, there are three key people that you will need to be in the general vicinity of the property – a cleaner, a maintenance person or company, and someone customer facing. These should all be locals and be able to get to the property easily if something were to go wrong such as something needs repairing or a key is lost. And the cleaner of course needs to clean and restock between visitors. These partners will all have access to your property, which is why they need to be trusted. Using professional companies is the best way to guarantee a minimum level of service. The costs of these partners should be reflected in what you charge your guests to stay.
Airbnb’s have a very high potential for generating a good course of income, however, as can be seen, they do require management. One good thing about an Airbnb is that you can successfully run and manage one no matter where you are – you can be in a different state or even country. As long as you spend the time required and have a trusted system in place, then there is no reason why your Airbnb cannot be a success like so many others.
Charles is the founder of infoSpike.com. He enjoys real estate investing, marketing, and personal finance. Read more about Charles here.