When the cat is away let other tenants pay…
One of the best ways to make money online is through Airbnb. This platform allows you to actually get something from that extra property that you hardly ever use. It could be anything from a cabin in the mountains to a beachside summer home. You could also list your main home if you happen to travel a lot.
However, making money on Airbnb is not as easy as simply listing the property and waiting for tenants to line up. First and foremost you need to get started off on the right foot. You also need to learn the secrets of the trade that will put you ahead of the competition and allow you to get the most out of this passive income idea. If you have no idea where to start, here is a comprehensive guide that should come in super handy.
Get started the right way
Starting your Airbnb venture the right way will make the entire process a lot easier for you. It is all about being sufficiently prepared and covering all your bases before getting onto the market. Here are 6 of the most important steps involved in the initial process.
STEP 1: Identify the free space
Do you actually have property available for rent? This is the most important question. As earlier stated, it could be a spare or the main home. It all depends on how often it is empty and unused.
STEP 2: Do some research
It is important to understand the market that you are getting into. Doing some research on Airbnb gives you an idea of what to expect when you list your property. You get to learn the ropes, stock up on success tips and get familiar with all that could possibly go wrong.
STEP 3: Figure out how much it will cost you
Airbnb is a money-making venture but it will also cost you a lot. Remember that the most important thing is to make the place habitable. This means investing in things like cleaning, amenities like water and power and so much more. Doing this math prepares you and allows you to set the best price that will allow you to actually profit.
STEP 4: Get permission if needed
It is your property and you can do whatever you want with it. However, there are communities where renting out to strangers could cause issues. This is common with properties covered under homeowner associations as well as gated neighborhoods. In order to avoid any issues after listing, make sure to get the relevant authorities to sign off on the venture.
STEP 5: Take flattering photos of the property
The best way to market your property is through photos. This gives potential tenants a great idea of what to expect. So invest in great photos of all the best part of your home before you even put it on Airbnb.
STEP 6: List on Airbnb and set your price
With all these steps covered you can now list your property. Include the photos to give your profile an edge. Also, remember to factor in costs when setting your price so you can make a profit or at the very least break even.
Tips for success on Airbnb
Once you have your account set up and your property listed, the next step is getting ahead of the competition. Whether your property is in a rural area or in the heart of a city there will always be competing listings. So what is it that will make yours stand out? Below are 6 important tips and tricks on how to be successful on Airbnb.
1. Factor in seasonal changes
One of the most important tips on how to make money on Airbnb is paying attention to demand seasons. These vary from region to region which is why it is important to do some research before getting started. You need to be ready to change everything from pricing to marketing strategies as the market changes from peak season to off-peak times.
2. Make use of statistics and predictive data
There are numerous Airbnb statistics available online. You need to make use of them if you want to get ahead in this game. These allow you to figure out what to expect not only as the seasons change but also as client priorities evolve.
3. Include upkeep costs for tax deduction
All passive income is liable for taxation and Airbnb earnings are no different. However, there are ways to ensure you stay on the right side of the law without going broke. The best way to do this is by including running costs as deductibles. That way, your final bill to the IRS is significantly lower allowing you to actually enjoy profits.
4. Be flexible in terms of pricing
Another way to make the most of this passive income venture is to be ready to change prices as the seasons change. Maintaining steep peak season prices when demand is low is never a good idea. The best thing to do here is to set prices that allow you to break even. This will keep you on the map and allow you to enjoy good ratings on the platform. That way, when peak season swings back around you can start ahead of the pack despite increasing your price.
5. Go the extra mile to make guests feel welcome
Being an Airbnb landlord is about more than just providing tenants with a place to rest their heads. In order to stand out, you need to invest in special services to make them feel truly at home. This could be anything from pick-up and drop-off services to meal packages.
6. Get on the platform’s good graces
If you want to make it in this cut-throat online world you need to be highly ranked by Airbnb. One of the best ways to do this is by getting great ratings from your tenants. You can also be ranked as a priority listing if you constantly update your profile.
With all this information it should be easy to figure out how to make money Airbnb style. You just need to prepare sufficiently, understand the market and go out of your way to stand out. So give our master tips a try and turn your empty property into a mint.
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