Do you like houses? Do the idea of decorative interiors and hosting get you going? If that’s the case, there’s something that you can do to increase your current income. It’s investing in a travel hosting business. Real estate has always been a lucrative sector, but the introduction of the travel hosting business has really changed the game.
Many successful businesses and mere house owners are leveraging the opportunity to earn extra bucks through Airbnb. It’s a great source of passive income, and the owner doesn’t have to do much. If you have a property at a nice location that can attract clients, you are set to begin your journey as a successful Airbnb host. If not, then you can invest and buy a house to start.
How to Start Your Hosting Business
You can put your house or a separate property up on the site, and it pays you every time someone visits. The process begins by listing the property on the app. Click a few well-lit photos of the house that accentuate the unique selling points (USPs) and bring customers to your door. Provide ample information about the facilities and what makes your place unique.
The price depends upon you. You decide what your place is worth and can change with time. Prices fluctuate as per seasons and demand in your area. Airbnb offers you to set the price as per the prime factors: the demand and popularity of the location.
Listing on Airbnb is totally free. However, you have to pay a three to five percent service charge. The best part is, Airbnb offers up to one million dollars as protection money for your property. Here, you must check what the conditions for your area are. Properly check what the insurance policies cover to avoid any confusion.
Getting Good Airbnb Reviews
Ratings are crucial to your Airbnb business. After all, nobody ever visits an Airbnb without checking the reviews. Positive reviews can build trustworthiness and improve your search rankings. Some points that can lead to great reviews are:
- Essential amenities
- Easy check-in process
When you treat your customers as guests, they feel at home. That’s exactly the purpose of Airbnb. You must understand what your guests require and communicate your requirements positively. You can talk to them about what kind of actions you prohibit, like parties or drinking, and ask them if they’d like something specific. Showing them that you care is essential.
Growing Your Business
There is a popular concept in a business where you estimate the income and expenditure of your company. It’s called the velocity of the working capital. It basically analyses the time your business takes to bring the invested money back to you.
Suppose you’re in the retail sector and you sell t-shirts. In the beginning, you’ll have to buy some shirts from the wholesaler. You put them on the rack and try to sell them for a higher price. As far as Airbnb is concerned, you have to buy furniture, list it and pay rent.
The money put in your Airbnb tends to come back in a span of five months because of profits. The profit depends on the location of your property, the demand, and how well you host. Of course, you can do better than this, but this is a general idea.
How Much Can You Earn?
Airbnb has confirmed that hosts on the app have earned 110 million dollars in total. On average, any host can make up to $7900. Earnest has estimated the average income of a host to be $924. Profits also depend on the popularity of the place and demand in the area. If there are many competitors, it’s natural that the prices will fall. At the end of the day, customers look for services and a good experience. This is what determines your profits.
Airbnb business is quite profitable if you put your heart into it. Before pouring in money, make sure you’ve done enough competitor and market research. Use the map vies on the app itself to find popular properties that are similar to what you’re going to put up. You can find out their average prices, the difference in cost on weekdays and weekends.
Researching and investing in a suitable interior can set you up for Airbnb success. However, the main thing that you must focus on is being a good host. That’s all the matters. If your customers are satisfied with your service, you’ll get good word of mouth, which is the best form of marketing.