There are many benefits to building a small home, including providing accommodation for people who travel to other countries yearly to seek new experiences and different cultures. When they arrive, accommodation can be a challenge. However, this provides a business opportunity for those who want to rent out their homes and make some money. If you are a small homeowner who wants to start an Airbnb, here is a step-by-step guide.
What is Airbnb?
Airbnb stands for “Air Bed and Breakfast.” It is a marketplace that allows homeowners to rent their homes to travellers looking for short-term accommodation. Travellers can share a home with others or choose to own the house.
Why you should start your own Airbnb business
Earn additional income
Having a small home can be a great source of income when you put it up for rent. With multiple listings, you could yield millions in annual revenue. You will only need to dedicate a small portion of your time and energy to your rental business to make all that passive income.
List for free on Airbnb
The Airbnb website allows you to list your property for free, which means no subscription cost. All you have to do is create an account and list your home.
Complete control over listing
Airbnb offers you full control and flexibility over your booking dates. For instance, you can decide when to take a break from hosting.
Host protection insurance
Whenever a guest books your property, you are automatically covered by the Airbnb host protection insurance. The insurance works like the liability policy. In the case of injury or property damage by a third party, the insurance will cover up to $1 million.
Steps to starting an Airbnb
Get relevant permissions
Before renting your small home, you will need proper permission from the right authorities, like the homeowners association or landlord.
Find and prepare your Airbnb space
You can use a spare bedroom in your house or co-host. After finding your space, create a perfect and beautiful atmosphere for your guests.
Work out how much to charge
To set the right price, you need to research your local competition, compare prices, and offer lower prices to attract new guests.
Create a compelling list
Take attractive pictures of your home and highlight its best features. List your house rules and set availability and price.
Boost your profits
Offer an experience to your guests by providing services like private tours or home-cooked meals.
Other things to consider before listing on Airbnb
Safety
You will need a functioning smoke alarm and a first-aid kit for your guests.
Insurance
You will need other insurance to cover your home. Examples are short-term rental insurance and landlord insurance.
Tax implications
The Australian Tax Office declares income earned from Airbnb as taxable income.
Refunds or cancellations
According to the Airbnb website, guests must cancel for a full refund at least thirty days before check-in.
Starting an Airbnb business will give you financial freedom and time to pursue and enjoy your other interests.
