The short-term home rental platform Airbnb has grown popular over the years among travelers as an alternative to hotel accommodation.
Established in 2007, Airbnb, also an abbreviation for “air mattress bed and breakfast,” has skyrocketed to over 7 million Airbnb listings worldwide in 2022, according to
stratojets.com. It is now present in 100,000 cities and 220 countries and regions with 2.9 million hosts.
The Airbnb success story is rooted in the unique way it connects the Airbnb host and Airbnb guests, offering the latter a deeper travel and local cultural immersion than what a hotel room can. It also provides Airbnb guests a range of lodging options since a rental property can be a big house, a studio apartment, sometimes even a yurt or a tiny house.
Short-term rentals and home-sharing demand also increased since the pandemic brought about the work-from-home set-up. With the rise of digital nomads, Airbnb has been hosting guests from beach fronts and near mountains.
The Airbnb Business Opportunity
In the Philippines, Airbnb hosting has become a lucrative means to earn passive income especially among OFWs, millennials, and retirees. Anecdotes from Airbnb hosts in the Philippines say that monthly income for Airbnb rentals can range from 20,000 PHP to 40,000 PHP a month, depending on the location of your Airbnb listing.It can go higher for Airbnb a rental space near tourist attractions like the beach.
According to a survey by
Philstar.com, Airbnb hosts this 2022 are able to allocate their earnings to cover food and necessities which have increased dramatically in the Philippines due to inflation. In the same survey, nearly “two out of five Airbnb hosts said they host to earn extra income to make ends meet, while over 50 percent said they host to earn extra spending money.” 60 percent responded that they also host to earn extra income to grow their Airbnb business.
Whether you're still deciding on renting out your spare room or just listed a property you just invested in, here are useful tips for running a successful Airbnb property.
1. Compute, compute, compute.
Remember that the main goal of a successful airbnb business is to profit from your rental property. The first order of business of any Airbnb host is to sit down and run the numbers. Compute your mortgage, rent payments, monthly utilities, Airbnb fees, taxes, etc. You may only begin setting the price of your vacation rental property once you determine your overall expenses.
Be sure to compare your rental property to other nearby hotels in your area and not other rentals. This is because potential guests looking for accommodations will begin searching websites that will first show hotel prices of the surrounding area. If your Airbnb property goes lower or on par with hotel rates, you will likely be attracting guest looking for lodging with friendly and competitive rates.
2. Educate yourself about your city's local laws
Another essential pre-work of any Airbnb host is to research and educate himself about the local laws for short term rentals. Knowing the rules before you play is a good foundation of a successful airbnb business. Does the city require a business license or business permit before running a vacation rental? Is there a limit to how many nights per year you can rent your property? Is there a limit to how many guests can stay at a time in your rental property?
3. Work hard on your Airbnb listing profile
To run an Airbnb business successfully starts with a catchy but accurate description and details of your Airbnb property. Your listing description should include how many rooms and bathrooms can house potential guests, what amenities are available to use, are there nearby places of convenience and attraction, how many vehicles can your parking space accommodate?
It would be good to mention the main highlight of your Airbnb property (does it have a great view of the lake?) as well as the quirks (do future guests have to pass by a construction before reaching your Airbnb property?) so your guests feel safe and secure in their future stay at your Airbnb residence. A successful host always practices transparency to show they care.
4. Furnish Within Your Budget
Successful Airbnb hosts are great at attracting guests with unique accommodations with Instagram-worthy interiors. Part of the labor and fun of putting up an Airbnb property for rental is being able to decorate your rental space like your own home. That said, try to maintain a budget when shopping for furniture. A good practice would be to shop for furniture from second-hand stores or searching online for great deals. Guests are sure to appreciate a cozy home but that doesn't mean you have to break the bank. Furnish affordably.
5. Have a go-to cleaning service
Approach your short term rental business as a complete hospitality business. This means the cleanliness of your Airbnb property is top priority. When in doubt, hire a reliable cleaning service who can diligently come after guests checks out.
6. Work towards improving your host and property rating
Prospective guests rely on positive reviews when picking out a property to rent. Great reviews go a long way so make sure to work towards this. Get started by offering freebies and discounts to your guests in exchange for an honest review. Once you've collected great reviews as a host and good reviews about your property you will easily accrue those five star ratings and improve your search ranking.
7. Always be responsive to guest queries
You job as Airbnb host means committing to your guests. A huge responsibility of running a successful airbnb property is being able to respond to your guests quickly whenever they have queries and being able to quickly address any concerns they have. Other guests may be demanding more than others but as Airbnb host, you have to be able to make their stay comfortable. This will likely make you reap positive reviews.
8. Give the full Airbnb experience
Guests put value in the details Airbnb hosts put in their home. Stocking the pantry with essentials and cleaning supplies will be highly appreciated. Providing board games, books, movies, and entertainment options to ensure guests stay comfortably in your rental will go a long way. Make sure to provide condiments, coffee, tea and basic appliances. A good host will always go the extra mile to add in a free bottle of wine or a basket of goodies to thank their guests for choosing their property.
Key takeaways: Once you find your rhythm in being successful host, you can always expand your Airbnb business and make it a full-time job. Hosting is undeniably a great way to earn income if not more money. It is also a good way to expand opportunities like encouraging more travel of your own through the connections you make with guests.
