When Airbnb was founded in 2008, it set out to provide a different kind of accommodation experience, one that would be more personal and immersive than a traditional hotel stay. And in the decade since, it has definitely made its mark on the travel industry – from family getaways to business trips.
In Australia, there are now over 350,000 Airbnb properties available for booking, ranging from entire houses to private rooms in city apartments. This increase in choice has been a boon for travellers, who can now find accommodation that better suits their needs and budget.
Moreover, the rise of Airbnb hosting has also forced hotels to rethink their business model, resulting in a more competitive and customer-focused industry. There’s no question that Airbnb has had a major impact on the Australian travel market, and it looks like this disruption is here to stay.
For property investors on the hunt to invest in new opportunities, creating what’s ultimately their own Airbnb business could be a pretty lucrative investment. For starters, Airbnb hosting allows investors to tap into a whole new market of potential renters. Secondly, it offers greater flexibility in terms of pricing and availability. And finally, it provides a more personalised experience for guests, which can lead to higher rates of occupancy.
But there are a few things to keep in mind if you’re considering taking on your own personal Airbnb business as an investment strategy.
Risk Appetite and Running an Airbnb Business
For many investors, the prospect of extra income potential through an Airbnb business in the short-term rental market is an appealing one. After all, who wouldn’t want to put their cash flow on steroids instead of relying on the ‘slow-burn’, permanent rental market?
However, it’s important to remember that your Airbnb listing is essentially a small business, and like any business, it comes with some risks. For example, your Airbnb income can vary greatly from month to month, and you may not always have a steady stream of guests.
As a result, it’s important to have a good cash buffer in place in case of lean months. Airbnb hosts may even want to consider opening a business bank account for reporting and tax purposes; all of this needs to be taken into consideration.
And, of course, you need to factor in that while most guests will be perfectly respectable, there is always the possibility that something could go wrong. Unexpected and ongoing expenses aren’t limited to cancellations and slow periods. You may also have to cover unexpected damage or minor repairs to your short-term rental property. Insurance companies consider this a factor too, and often raise their premiums for that reason when it comes to covering your personal assets and the property itself.
Consider your risk tolerance and make sure you have a plan in place to protect yourself financially before making the decision to list your home on Airbnb as a rental space.
Does Your Airbnb Listing Actually Appeal to Holidaymakers?
When you’re thinking about turning properties into Airbnb rentals, it’s important to consider whether there is even a demand for your local market. Does the property appeal to holidaymakers? Is it located in a popular tourist destination?
If not, you may have difficulty generating interest in your listing and turning it into a successful Airbnb business. Even if your property is located in a popular tourist destination, there are other factors to take into consideration. For example, is your property close to local attractions and amenities? Have you given it a personal touch? Is it well-equipped and furnished?
If not, you may find that guests are not willing to pay as much for your listing. It’s important to carry out market research and make sure that there is a demand for your property before you list it on the Airbnb website. It could be the difference between positive reviews and zero interest at all.
Otherwise, you may be disappointed with the results, and your customer satisfaction won’t reach the level you need it to.
Create a Beautiful Listing Without Overcapitalising
When it comes to your Airbnb property, first impressions matter, and that’s the true key to landing happy customers. Potential guests will make a split-second decision about whether or not to book based on the photos they see online, so it’s important to style your space in a way that is both inviting and appealing. Your first guests are also your most important – their positive words will kick-start future bookings.
So how can you strike the right balance between making your property stand out and overcapitalising?
The key is to focus on creating a warm and inviting space that reflects your unique personality and style. Adding personal touches such as photos, artwork, and books can help give your guests a sense of what it would be like to stay in your home.
At the same time, you don’t want to go overboard with clutter or personal items, as this can make your space feel cramped and cluttered. Instead, focus on creating a few key areas that will really ‘wow’ your guests, such as a cosy reading nook or a beautiful breakfast nook complete with a coffee maker. It’s the little things that matter most.
With these guidelines in mind, take some time to browse through some online listings for inspiration. And when you’re ready to start styling your own Airbnb property, remember to keep it personal, comfortable, and stylish – but don’t overcapitalise!
The Admin of Being an Airbnb Host is No Small Feat
As any experienced Airbnb host knows, there is a lot more to running a successful rental business than just providing a clean and comfortable space for guests. In addition to the physical work of preparing the space, there is also a significant amount of administrative and labour involved in running an Airbnb. In essence, hosting also means taking on the role of small business owners, complete with all the responsibilities that come with the title.
From creating and maintaining listings to coordinating housekeeping and responding to guest inquiries, hosting an Airbnb can be a full-time job. However, with a little planning and preparation, it is possible to run a successful Airbnb with minimal stress. By being organised and efficient in your listing creation and management, you can free up time to focus on other aspects of your business.
In addition, by building strong relationships with reliable housekeeping and maintenance professionals, you can outsource many of the day-to-day tasks associated with running an Airbnb. By being prepared for the administrative and labour involved in running an Airbnb, you can set yourself up for success.
Create Your Listing and Set Your Pricing
There are a few key factors to keep in mind when creating your listing and setting your price.
First, you’ll want to make sure that your listing is clear and concise, with professional photographs and all the relevant information that guests will need. Secondly, your price should be competitive with similar listings in your area.
To do this, you’ll need to decide what kind of space you’re offering. Are you renting out a private room, a shared space, or an entire home? Each option has its own set of considerations, so be sure to factor in the type of space you have available when setting your price.
You’ll also need to consider what amenities are included. Will your guests have access to a kitchen, laundry facilities, or other common areas? Be sure to factor in the cost of these amenities when setting your price.
In most cases, you’ll also need to consider whether there are local attractions nearby or if the guests will spend most of their time in your Airbnb space. This will also mean considering whether to be pet-friendly, if you need to add a security deposit, and whether or not a cancellation policy applies.
Take some time to research comparable listings in your area to get an idea of what other hosts are charging for similar accommodations, and what their requirements are. Remember that your goal is to attract guests while also making a profit, so don’t be afraid to charge a fair price for your rental.
Consider Getting the Professionals on Board
It can be really tough to keep on top of everything when you’re running your own business – there’s just so much to do, and it’s hard to know where to start. And when it comes to Airbnb, there’s a lot more to it than just putting up a listing and hoping for the best.
You need to make sure you’re getting seen by potential guests and that your property is in top condition for when they do come to stay. That’s why it can be a good idea to consider getting professionals on board – they can help with the day-to-day running of your Airbnb, personal touches, and marketing across various different holiday-rental platforms.
And that means you can relax, safe in the knowledge that everything is being taken care of.
How Can GrowHOST Help?
We are a property management company that specialises in short-term rentals, and we have a team of experienced professionals who can take care of everything for you. From listing your property and handling guest enquiries to managing cleaning services and maintaining the property, we will take care of everything.
In addition, our service is designed to help you maximise your earnings and grow your business.
With GrowHOST, you can start an Airbnb business with ease. If you would like to enquire about how we can help you set up your Airbnb for success, get in touch today.
