Photo by Andres Molina on Unsplash
Airbnb hosting has become a popular side hustle for many homeowners but making it a successful venture requires having all your ducks in a row! If you’re thinking of becoming an Airbnb host and opening your home to paying guests, you need to do your homework.
Before listing your house or rental space on Airbnb, you need to take into consideration a number of factors. This could include taking out Airbnb home insurance to protect you against loss, damage or legal claims. You also need to find out if there’s a demand for accommodation in your area.
Let’s talk about what you need to do before turning your home into a potentially lucrative accommodation business.
4 Essential Things You Need to Do Before Listing Your House on Airbnb
1. Is Your Location in Demand for Travellers?
If you’ve ever dealt with real estate agents, you’ll be familiar with the phrase, “location, location, location!” The location of your home determines the resale price of your property. But, it can also determine whether it’s suitable for listing on Airbnb or not. Capturing the travellers’ market means meeting their demands such as being in the right place.
If your home is located close to popular tourist spots such as beaches, entertainment precincts, and famous landmarks, you’ve got a potential winner. But, guests are also looking for accommodation close to central business districts, hospitals and universities. Do your homework and find out if there’s a demand for accommodation in your location for a specific type of traveller.
You also need to find out what kind of competition there is in your area. You’ll need to work extra-hard to stand out in the crowd if there’s an oversupply of Airbnb-style accommodation in your region.
2. Tidy Up Your Property
Your home may be comfortable for you and your family but it might need some tidying up before you can list it on Airbnb for paying guests. The same applies if you’re listing a rental space not used as your main residential property. Be critical when assessing how you can improve your Airbnb space so travellers feel welcome, comfortable and relaxed when staying on your property.
- Adding a coat of fresh paint, getting a new bed and adding other furnishings are all ways of sprucing up a room for paying guests to feel at home.
- Spending money on modernising the bathroom and repairing leaking toilets and dripping taps is highly recommended.
- Hiring a garden service is a good idea if your grounds need sprucing up.
3. Get the Right Insurance Cover
It’s absolutely essential to get the right insurance coverage when offering Airbnb accommodation. Even if you’re only renting out one room to Airbnb travellers, you still need protection against loss, damage or legal claims.
Airbnb home insurance protects you against unexpected costs that arise from the following:
Accidental or impact damage:
You may be faced with repair costs caused by accidental spills or damage to fittings or fixtures in the guest room. Visitors using their own vehicles can also damage areas such as external or boundary walls when entering or leaving your property.
It’s not unusual to lose property such as televisions, bedding, towels, appliances and more through theft by guests or burglars targeting your home.
While hopefully not a common problem, there are occasions where you need to replace property damaged by malicious acts of vandalism.
Taking out the right insurance coverage will protect you against loss and damage caused by fire, storm, flood, lightening, tsunami and earthquake events.
If your Airbnb is pet-friendly, you want to protect yourself against any loss or damage caused by unruly pets.
When looking for the right Airbnb insurance make sure the insurer you deal with specialises in this industry. This way you can have peace of mind you’re appropriately protected where it matters most!
4. Understand Short-Stay Accomodation Regulations
Every country has its own set of rules and regulations for listing and renting out your home for short-stay accommodation. Before spending any money in setting up your home for Airbnb rental, be sure you comply with your local government regulations.
You’ll also have to abide by local homeowners’ bylaws and rules, so check them out before listing your home with Airbnb. Letting out your home or any other empty rental space for Airbnb-s’k/tyle or any other form of short-term accommodation purposes is an ongoing discussion in different states. Do your homework and make sure hosting your Airbnb complies with all regulations.
Hosting an Airbnb can be a viable business if you know what you’re doing. Getting the essential things done such as checking if your location is suitable for travellers and sprucing up the accommodation is a good place to start.
But, ensuring you have the right insurance cover for Airbnb or short-term rental is especially important. Lastly, complying with local short-term rental accommodation regulations is a must if you want to stay on the right side of the law!
Do your homework so you can enjoy that new income stream!