Caroline Lupini
The author's home, which she rents out on Airbnb.
If you're considering renting your property on Airbnb but aren't sure whether or not to commit just yet, you're not alone. It isn't a decision to make lightly, and there are several things to take into account before you decide to start renting your place on Airbnb.
I've been renting my property on Airbnb for four years and I've found it to be a rewarding, freeing, and profitable experience, though there are a few things I wish I'd known before I got started.
Here are five bits of advice to consider before renting out your own space.
1. Use a third-party pricing tool
Depending on the location, prices can vary drastically from week to week and season to season. Using a pricing tool automates price setting and ensures that I get the highest nightly rate possible.
Airbnb's pricing tool tends to price listings too low because Airbnb has different incentives (e.g. they want as many people as possible using their site vs. other booking sites).
A few third-party pricing tools include Beyond Pricing and Wheelhouse, which are both great options that provide dynamic pricing insights and trends.
These tools aren't free, but the small fees are offset by the money you'll make by pricing your rental appropriately. On top of that, you can automate your pricing style so that you can set it and forget it.
2. Guests just want to be left alone
As I learned pretty quickly, just give your guests a nice, clean place to stay with everything in good repair and they'll be happy. There's no need for extensive in-person check-in instructions, but feel free to leave them with a written guide to the local area and an invitation to ask for recommendations.
Some travelers use Airbnb to be social and make local friends, but many just prefer a comfortable place to relax.
Usually, if I want to make lots of friends, I'll stay in a hostel or social enterprise accommodation; when I'm staying in an Airbnb, I generally need to hunker down and get some work done while enjoying some me time. I've found that most guests enjoy that hands-off approach.
3. You can get tax deductions
You can take several tax deductions from renting your place on Airbnb, such as writing off a portion of your mortgage interest.
The only difference is that you have to calculate the fraction for which you can take those deductions based on your occupancy vs. guest occupancy. This is an important thing to know - don't forget to factor this in when filing your taxes each year!
It's best to consult with a tax professional to determine what deductions you are eligible to take.
4. Use a cleaning company
It can be hard to work with the schedule of an individual cleaner, so using a cleaning company has worked best for me. A good cleaning company should almost always be available for same-day turnovers, which will increase your revenue.
It may seem obvious, but remember that it's extremely important to offer a clean apartment with fresh linens for every guest. Same-day turnovers can make that transition tight if you're the one always having to clean and refresh the space, but cleaning companies do this professionally, so I think it's worth using one.
5. Be as precise as possible with check-in instructions
When traveling, there are few things more irritating than arriving in a new town after a long travel day and then getting stuck outside because you can't figure out how to find your Airbnb, much less get inside.
Tell your guests the address (or exact GPS coordinates), where to park, how to find the front door, and how to get in. Provide a basic check-in map so guests don't need to message you with questions.
Good instructions are an easy way to always earn five stars in the check-in category. I know that I always give my Airbnb hosts five stars for great check-in instructions when the process is hassle-free and well-illustrated. I always try to provide the same for my guests.
Apart from reading an article like this, the rest of your knowledge will have to come from experience. Reading about others' experiences can give you insight, but it can only take you so far, and you certainly don't want to get so wrapped up in the research phase that you never get going yourself.
If you are serious about starting to rent your place on Airbnb, I suggest taking the plunge as soon as your property is ready to go. As for the rest, you'll learn what works and what doesn't work along the way.
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