It's no secret that the average American is in debt up to their eyeballs. A recent study showed that the average U.S. household owes over $145,000 in various forms of debt.
While some people may think that this insurmountable amount of debt means certain financial ruin for the country as a whole, others see it as an opportunity to make some serious extra cash on the side.
If you're one of the latter and are looking for ways to bring in some extra income, then knowing how to Airbnb your home may be the perfect solution. Before you jump headfirst into this money-making venture, there are a few things you should know before listing your home on Airbnb.
Some Things To Know:
Taking in the following factors will help you decide if renting out your home on Airbnb is right for you, and some of the business expenses and investments you’ll have to consider as you’re getting started.
The first cost you'll need to consider is the cleaning fee. This is the fee that you charge your guests to have their accommodations cleaned after they check out.
While you do have the option to clean the place yourself, we don't recommend it. Not only is it time-consuming, but it's also not very enjoyable. Instead, we suggest hiring a professional cleaning service to take this hassle off your shoulders so you can focus on managing the space itself.
Another cost you'll need to factor in is the increased cost of your utilities. This is because you'll be using more electricity, water, and gas when you have guests staying with you.
While the cost of these utilities will go up, it's important to remember that you're also charging your guests a nightly rate. So, as long as you're pricing your rental correctly, the increased cost of utilities should be covered.
The next cost you'll need to take into account is taxes. When you turn your house into an Airbnb, you are required to pay both state and local taxes.
In knowing how to prepare your house for Airbnb, you must first understand how to meet their hosting standards. These standards are in place to ensure that all guests have a consistently positive experience when using the platform.
The first standard is listing accuracy. This means that your rental listing must accurately reflect the space you are offering. This means that you need to include clear and accurate photos, a detailed description, and an accurate price.
Being responsive to your guests is another one of Airbnb's standards. You are encouraged to answer all guest inquiries within 24 hours, and within 1 to 2 hours for any guests who are currently staying with you.
Reservation commitment means that you must honor all reservations made through your listing. If you need to cancel a reservation, you must do so per Airbnb's cancellation policy.
Naturally, cleaning your home after each guest is a must. This is not only for the comfort of your next guest but also to maintain a high rating on Airbnb. This includes making sure that all surfaces are clean and free of clutter, as well as taking out the trash and doing any laundry that may be needed.
The fifth and final standard is providing basic amenities. This means that you must provide all guests with basic items such as hotel soap, toilet paper, and towels to ensure their comfort.
The amount of money you can make as an Airbnb host depends on a few factors. First, it depends on the price you charge for your rental. Second, it depends on the location of your rental. And third, it depends on the demand for rentals in your area. If you charge a competitive price and are located in a high-demand area, you could potentially make a lot of money as an Airbnb host. With over 2.5 million people hosting their properties on Airbnb, the average Airbnb host makes an average of $924 each month.
To rent your home on Airbnb, there are a few requirements you must meet to comply with Airbnb’s host guidelines.
The first requirement is that you must provide all essential amenities. This includes items like:
Your guests require these items to have a comfortable stay.
Consistency is the difference between getting good reviews and bad reviews. You must stay consistent with the reservation requests that you get to ensure a positive experience for your guests.
Airbnb favors hosts who have a rating of at least four stars. You can maintain a high rating by providing excellent customer service, having a clean and well-organized rental space, and being prompt with your responses to guests.
Now that you know the requirements to rent your home on Airbnb, here is a checklist to help you get started:
Stocking your Airbnb property with the essentials and then some will set you up for success. Items like bulk shampoo, conditioner, hand sanitizer, towels, and more should be provided for your guests and will save you time and money in the long run. Fill your rental property with these bath and body essentials and offer your guests a five-star experience from the moment they step through the door.