Airbnb Advantages for Hosts
Let’s start with the positives and talk about the Airbnb advantages that make it an attractive rental estate side hustle.
First of all, Airbnb has made it very easy for property owners to list their homes or apartments on its website and start earning money. Creating a listing is free, and Airbnb only charges a flat 3% booking fee to the host in the split-fee setup for each reservation to cover the cost of processing the transaction.
One of the biggest advantages of being an Airbnb host is flexibility. You can use your spare space to get extra income on your terms. You can set your pricing and adjust it as you see fit during peak seasons. This provides room for building an effective strategy and is an excellent way for budding entrepreneurs to make more money.
You can block off dates when your home or apartment is not available. For example, if you have friends or relatives coming over to stay, you can save the room or property for them. You control your vacation rental property and can change your arrangement or stop renting it out at any time.
You’ll feel protected because Airbnb takes care of payments and insurance. You don’t have to worry about chasing your guests for payment because they pay before they get to stay in your home or apartment. Airbnb’s Host Guarantee program protects you if any of your guests damage your property.
Besides, Airbnb allows hosts to vet their potential guests before they arrive. The platform has a two-way review process. Guests review the properties they stayed in, and hosts review their guests—their stay and how they treated their space. This practice allows hosts to browse potential guests and make better decisions.
What Are the Disadvantages of Hosting on Airbnb?
Airbnb renting is not legal everywhere, and local rules can change at any time. So before you create a listing, you should check your local zoning ordinances to make sure that Airbnb is permitted in your area. You may also be required to obtain a special permit or license to become a host. It’s crucial that you do your homework and check the legal requirements of starting an Airbnb business in your area.
There is the possibility of making more money off your property as an Airbnb rental than as a long-term rental, but still, hosting on Airbnb comes with no guarantee of continuous income. It’s unlikely that you’ll be able to get a lot of bookings from the start. And if you don’t live in a highly in-demand area, you should be ready that the income from your short-term rental can be inconsistent and seasonal. And it’s never easy to predict.
You may experience a few months of regular bookings, and then suddenly find that your property is empty for a certain period. So if you plan to rely on your Airbnb income, you’ll need to develop a strategy to get through inevitable slow periods.
And if you thought becoming an Airbnb host would mean more personal freedom, think again. Hosting on Airbnb is actually running a small business, and it requires work. You’ll need to take care of booking communication, cleaning, maintenance, and check-ins.
It can be rather disruptive and time-consuming. You’ll need to be prepared to respond to guest inquiries fast and be available 24/7 when you have Airbnb guests staying at your property. This way, you’ll ensure a perfect guest experience and get 5-star reviews, which can help you get more bookings.
But don’t worry. You can save a lot of time and automate the routine if you use short-term rental software like Hospitable.com.
