Getting Started on Airbnb • OurLittleLifestyle (2024)

Congratulations! You are taking the first step toward becoming an Airbnb host and investing in your future! You may already have a space in mind or be considering purchasing a short-term rental investment property and getting started on Airbnb. Either way, there are definitely some fundamental questions to ask yourself at this stage in the game.

Let’s break it down step by step!

A Step By Step Guide To Getting Started On Airbnb

1: Research and Planning

Define Your Goals: Determine your objectives for hosting on Airbnb. Is it for extra income, sharing your space, or a business venture? Also, consider your time. How much time and energy can you personally invest?

Market Research: Explore popular Airbnb listings in your area to understand pricing, competition, and guest expectations. Are there a lot of hotels to compete with? Will you be able to attract guests all year long or just seasonally?

Legal Considerations: Check local regulations and zoning laws regarding short-term rentals. Some areas have restrictions or require permits. This includes specific HOA and Condo Association by-laws and declarations.

2: Choosing a Location

Select Your Location: Decide where you want to host on Airbnb. Consider proximity to attractions, transportation, and demand. I highly recommend you choose somewhere that you are familiar with. Being able to provide recommendations and answer questions will really set you apart. I experienced this firsthand on 30A. Also, can you get to your investment property easily? In my opinion, you should be laying eyes on your Airbnb at least once every 6 weeks. Consider choosing somewhere within a couple of hours of your primary residence.

Property Type: Choose between renting a room in your own home, a separate unit, or a property solely for Airbnb. Your choice will impact costs and management. You also want to consider your target market. For example, a large home that sleeps 20 sounds like a money maker. However, multifamily travel is usually limited to school holidays. All four of my Airbnbs sleep 2-4 people, allowing me to accommodate couples and families with young children who can travel all year.

3: Property Preparation

Property Upgrades: Make necessary repairs and improvements to enhance your property’s appeal. Focus on cleanliness, safety, functionality, and amenities.

Furnishing and Styling: Furnish your space with comfortable and functional items. Consider the style and theme you want to convey. My Airbnb Buying Guide includes everything you need to purchase, as well as design inspiration for your space. Remember to limit clutter, and functionality is key here!

Professional Photos: Invest in professional photography to showcase your property in the best light. However, avoid overselling and over-staging your Airbnb. You want everything shown in the photos to be included in your Airbnb. You want it to look exactly as it will when the guest arrives. Frankly, it’s better to have a guest walk in and think your place looks better than the photos than to walk in and be disappointed. Avoid trendy filters and edits on the listing photos. You can view my listing photos here. I am a photographer and took these myself.

Safety Measures: Install smoke detectors, carbon monoxide detectors, and fire extinguishers. Ensure your property meets safety standards. I have my favorites linked here. Consider host protection insurance, and you will definitely need homeowner’s insurance to protect your property.

Cleaning Protocol: This step is very important! Often, your cleaning team serves as your eyes and ears on the ground. Make sure to choose a service provider that you work well with. Also, ask them what they prefer. For example, my cleaners prefer white towels and a duvet + duvet cover setup.

Getting Started on Airbnb • OurLittleLifestyle (1)

4: Setting Up Your Airbnb Account & Listing

Create an Airbnb Account: Sign up for an Airbnb host account using your email address or social media profiles. Fill out your host profile, including a personal description and a clear profile picture.

List Your Property: Provide detailed information about your property, including photos, pricing, and house rules. Open up your calendar, paying close attention to supply and demand. Consider a 4-night minimum stay. You can always lower it as dates get closer, but there is nothing worse than a bunch of one or two-night stays breaking up your calendar, preventing those ideal weeklong stays from booking. Also, choose a cancellation policy that suits your preferences and risk tolerance.

5: Guest Communication and Management

Respond Promptly: Be responsive to guest inquiries and messages. Quick communication can lead to positive reviews. Steal my welcome message and see how I like to communicate by reading that post!

Check-In and Check-Out Process: Streamline the guest arrival and departure process, providing clear instructions.

House Rules: Establish clear house rules for guests regarding smoking, pets, parties, and other expectations.

Guest Interaction: Be respectful and accommodating while maintaining boundaries with guests. I personally ask all guests to communicate with me solely through Airbnb. I have systems in place to ensure I don’t miss a message. Allowing them to contact you via text can lead to a lot of extra stress.

Getting Started on Airbnb • OurLittleLifestyle (2)

6: Analyze, Adjust and Grow

Review Performance: Continually analyze your hosting performance, including occupancy rates, income, and guest feedback.

Adjust Your Strategy: Make necessary changes to your pricing, property, or hosting approach based on feedback and data.

Grow Your Business: I was able to quickly grow my Airbnb from one condo to four in a matter of three years. I was able to scale up because I reinvested all of my profits and streamlined my workflow. You’ll know when the time is right to grow. Honestly, I don’t think you should even be thinking about this until after you launch your first Airbnb. You will very quickly learn what works, what doesn’t, and what you’d do differently next time!

Getting Started on Airbnb Blog Posts

That’s a lot, isn’t it? I will tell you that being an Airbnb host (self-managing your rental) is not passive income. I work incredibly hard to earn all of my 5-star reviews and maximize my occupancy. However, it is a flexible job. I have checked in guests while on a vacation in Amsterdam and sent recommendations from Paris! The freedom and flexibility are why I love this job!

I have many incredible Airbnb-related blog posts ( in addition to family travel content) here at Our Little Lifestyle! The following list includes articles and guides especially related to getting started on Airbnb. This includes things to consider, my personal experiences as I got started, and the first steps for starting your Airbnb business. In another section, Airbnb Buying Guides, I share everything I buy for my condos. So, check that out next!

Below is a section of posts specifically related to getting started. Click any link to read that post. You can click here to view all of my Airbnb content in one place!

  • Where Should You Buy an Airbnb Investment Property?

  • Airbnb Hosting: Steal My FREE Airbnb House Manual Template

  • Airbnb Hosting Tips: 8 Important Truths I Wish I Knew Before Starting My Airbnbs

  • Navigating Airbnb Taxes: A Superhost’s Guide To Taxes in 2024

  • 5 Charming Coastal Design Ideas For Airbnb Vacation Rental

  • Should You Self Manage An Airbnb or Hire a Vacation Rental Property Management Company?

  • How To Become An Airbnb Superhost

  • Why We Exclusively Host on Airbnb

  • Buying a Non Warrantable Condo in Florida

More Airbnb Hosting Resources

Getting Started on Airbnb • OurLittleLifestyle (2024)

FAQs

Getting Started on Airbnb • OurLittleLifestyle? ›

Create an Airbnb

Airbnb
Airbnb, Inc. (/ˌɛərˌbiːɛnˈbiː/ AIR-BEE-en-BEE) is an American company operating an online marketplace for short- and long-term homestays and experiences. The company acts as a broker and charges a commission from each booking.
https://en.wikipedia.org › wiki › Airbnb
Account: Sign up for an Airbnb host account using your email address or social media profiles. Fill out your host profile, including a personal description and a clear profile picture. List Your Property: Provide detailed information about your property, including photos, pricing, and house rules.

How much does it cost to start an Airbnb business? ›

How much does it cost to start an Airbnb? An Airbnb costs, on average, $6k to start — assuming you already own the property. Putting everything together, Airbnb costs include: Cleaning and maintenance (e.g., supplies, cleaner fees)

What is the income potential for Airbnb? ›

Airbnb host income potential

While there's no single answer, estimates suggest the average annual earnings for U.S. hosts are around $14,000 based on recent data. However, earnings can vary dramatically depending on a number of elements such as location, property type, expenses, and more.

How do I start passive income on Airbnb? ›

The best way to earn passive income with Airbnb is to automate as much as possible. The less direct involvement you have in being a vacation rental owner, the better. You can automate cleaning, maintenance, guest check-in and outs, payments, and more. Automation also allows you to scale your Airbnb business.

What type of Airbnb is most profitable? ›

For Airbnb hosts looking to make a living on the hospitality platform, full apartment rentals are the way to go. Rates for full apartments are significantly higher than those for single rooms and income after expenses ranged from $15,000 to $31,000 in our analysis.

Is Airbnb still profitable in 2024? ›

Revenue increased to $2.1 billion in Q1 2024 from $1.8 billion in Q1 2023, primarily driven by solid growth in Nights and Experiences Booked, a modest increase in Average Daily Rate (“ADR”) and the shift in timing of Easter from the second quarter of 2023 to the first quarter of 2024.

Is it hard owning an Airbnb? ›

Starting an Airbnb business requires time, effort and investment just like other business ventures. Before becoming an Airbnb host, you'll want to understand the rules and tax implications, thoughtfully design your space and research listings in your area to make sure your pricing is competitive.

What are the hidden costs of running an Airbnb? ›

You'll want to consider the costs of hosting—including cleaning, higher utility bills, taxes, and Airbnb's host fee, which is 3% for payment processing. Your guests pay Airbnb's 6% to 12% booking fees.

How much money should you save to start an Airbnb? ›

Costs Involved in Starting an Airbnb Business

It takes money to make money! In general, a 1-bedroom home will cost between 6,000 and 7,000 dollars to furnish and make it suitable for renting. A 2-bedroom condo will cost between $8,900 and $9,900 if you're starting from scratch.

What is the 90 day rule on Airbnb? ›

Airbnb doesn't allow properties to be rented out for more than 90 nights per year. If your limit for bookings is reached, Airbnb will automatically close your property until the end of the calendar year. In addition to 90 consecutive days, the 90-day limit also applies to 90 days spread throughout the year.

Is Airbnb hosting risky? ›

If you're letting guests into your home, there are also other considerations such as physical safety and property damage that you may want to think about too. However, with some simple precautions, Airbnb should generally be considered as a safe activity for many hosts.

What percentage does Airbnb take? ›

How much does Airbnb charge hosts? Airbnb charges hosts a service fee for each booking. What percentage Airbnb takes can vary, but it's typically around 3% for most hosts. However, Airbnb's commission can go up to 14% or more for hosts who have a Super Strict cancellation policy.

Do I have to report my Airbnb income on taxes? ›

If you are subject to U.S. income tax, you must report your rental income as a cash-basis or accrual- basis taxpayer. If you are a cash-basis taxpayer, you report rental income on your return for the year you actually or constructively receive it and you deduct all expenses in the year you actually pay them.

How many Airbnbs do you need to make a living? ›

To become a full-time Airbnb entrepreneur, you'll almost certainly need to grow beyond offering just one property for rent. It may take three or even 10 rentals, depending on how often you can rent out your properties and for how much, to become financially secure. Growing your property portfolio is not easy.

Do Airbnb hosts make a lot of money? ›

With an average of $44,235 per year, US hosts flaunt the highest average annual earnings, and as of 2020, the country counted more than 2.2 million Airbnb hosts.

How profitable is Airbnb host? ›

An Airbnb short-term rental can be more profitable than renting out your property on a long-term basis. You set your prices and Airbnb nightly rates are usually higher than for longer rentals. According to AllTheRooms, an Airbnb host in the U.S. earned an annual average of $44,235 in 2021.

How much do you get paid to host on Airbnb? ›

How much you'll get paid. To calculate your payout, multiply your nightly price by the number of nights in the booking, then add any optional extra charges per stay (like your cleaning fee). This is your booking subtotal. From your booking subtotal, subtract applicable taxes and fees.

How much do Airbnb hosts get to keep? ›

Split fees

The host pays a flat rate of 3% of the total booking cost and the guest pays a percentage of their reservation fee (this is somewhere between 5-20% depending on the length of stay, the location, and the cost of the reservation to start with).

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