Airbnb is the hottest thing right now. It has quickly become the best option for travelers looking for a homey place for those warm and cozy nights. But how do you ensure that your place is good enough for your clients?
Location is critical, and safety is also a significant consideration. However, decorating your living room furniture and fittings need to be on point to attract new and repeat clients. Real estate investors often look for ways to make more money with Airbnb. Upgrades made to their short term rentals could be the answer.
In this article, we're going to share the best ways AirBnB hosts can increase their average nightly rate by properly upgrading their AirBnB property.
What Is Airbnb, And How Does It Work?
Airbnb is an online marketplace where you can look for accommodation in whichever city you would like to visit. The company name comes from the words "Air mattress," "bed," and "breakfast." Interesting, right?
Airbnb offers a platform that connects people who want to rent out their places and those looking for Airbnb rentals. If you have a big house or extra space in your apartment and you're not using it, you can rent it to short-term travelers to earn some cash. For the guests, Airbnb listings offer accommodation at lower prices compared to hotels.
Benefits of Renting Your House on Airbnb
Since its introduction 15 years ago, the Airbnb business has grown to a multi-billion dollar company. It has made great strides to improve the way people rent apartments and rooms. Currently, the Airbnb community has over six million listings worldwide, and it’s because of the many benefits it has. They include:
Generate Extra Income
One of the primary benefits of becoming an Airbnb host is renting your property to others to earn additional income. For example, if you have a spare room, you can list it on Airbnb for short-term rental.
Depending on your location and the rental demand, you can earn more with an Airbnb listing than you would in a typical tenancy rental. By charging your listing on a per night basis, your rental income will grow.
Freedom and Convenience
If you crave convenience and financial freedom, Airbnb’s platform is the place to be! Unlike the traditional rental model of having a long term rental, with Airbnb, you decide when your property listing is available. Not only do you have control over your calendar, but you also have control over your security deposit.
You can easily rent out your house on Airbnb and let someone else take care of your property while you are away. You just need to list your home on Airbnb, set the rental price, and you’ll get paid when a guest books.
Tax Benefits
As a result of Airbnb, you can get a considerable tax benefit while renting out multiple properties, as opposed to a typical tenancy. Some of the expenses you can write off as an Airbnb host include:
- Repair and maintenance costs
- Mortgage interest
- Insurance
- Professional and legal fees
- Property taxes
- Cleaning costs
Taking full advantage of tax benefits is smart whether you have one property or multiple. This helps you keep some extra money in your pocket.
There Is Protection for Hosts
If a guest damages your property, Airbnb provides up to $1,000,000 for protection in an eligible country. This gives you peace of mind knowing that they will cover damages caused by a guest.
Hosts Have the Freedom to Charge as They Want
As a host with an Airbnb investment, the amount of money you will charge will be up to you. Whether you want to charge per month, per night, per week, Airbnb does not interfere with your price charges or Airbnb investment strategy.
Airbnb Has Additional Services
Besides a property listing on Airbnb, the platform offers a list of experiences and sightseeing in the locality you want to vacation in. Seeing this evokes a sense of nostalgia for what your guests expect to see and what their rental property experience will be like.
Cons of Renting Your House On Airbnb
Every good thing has downsides, and renting out your space on Airbnb isn't an exception. While upgrading your home for Airbnb comes with many perks, such as earning more and getting the protection you need, you'll have to deal with guests of varying difficulty among other challenges.
Let's look at them:
Illegal in Some Countries
Although Airbnb has become popular, often racking in six-figure income annually, not all cities have embraced it. Airbnb does not operate in cities like New York and Las Vegas. This is because some areas only allow you to rent out a primary residence. If you are a real estate investor looking for Airbnb investing, it's imperative to do some market research before you invest and see some comparable properties.
Picky Guests
Guests need to stay in a vacation rental that is stylish and has excellent amenities. Different guests have different preferences for things, from the couch to the carpet in your apartment and other things. They want to feel like your place is worth their money.
Hosting Can Be Time Consuming
Being in the hospitality business needs a lot of commitment, patience, and persistence. While it's a great way to make money and earn extra income, it involves a lot of things. You need to be in constant communication with guests and potential guests to give them the best service.
As an Airbnb host, you will need to handle repairs, restock toiletries, coordinate cleanings, and manage the schedule. You will have to oversee everything to ensure the operations run smoothly. Utilizing property managers could ensure that your Airbnb is well kept and in pristine condition compared to others within the same neighborhood. This is essential to keep your Airbnb profitable.
Consider speaking with a local real estate agent for recommendations on hiring a property manager in your area. They'll know who can help you increase your monthly rent, offer the lowest cleaning fee and help your occupancy rates stay higher.
Additional Expenses
You will need to ensure that all the electronic appliances are working. Although you are not required to cook for your guests, you need to ensure that your fridge is working; the microwave is in pristine condition, among other electronics. Also, you should invest in high-quality furniture, appliances, décor, and amenities so that your short term rental has an elegant feel. And to ensure you get the best exposure, you will need real estate agents who will market your Airbnb listing to attract more clients.
Reasons to Upgrade Your Airbnb Rental
Good guest reviews can increase profits, more business, and improve cash flow for your rental property. But how can you ensure that your guests are pleased enough to leave good reviews? The way you have set up your property, including your furniture, the ambiance of the surroundings, Wi-Fi connectivity, and other amenities, leaves a great impression. If your guests are happy, that's a win-win for you!
A well-maintained Airbnb rental attracts more guests, and ultimately, more money! Upgrading your Airbnb rental helps you maximize profits and make the most out of your short term rentals.
Best Ways to Upgrade Your Airbnb Rental Without Spending a Fortune
Do you want to upgrade your Airbnb rentals without breaking the bank?
You don't need to invest a fortune to see improvements in your Airbnb investment property. When working on a limited budget, you need to know which upgrades are worth the price tags. Here are some low-cost upgrades that, as a real estate investor, you should know.
Update Decor With Modern Resale
Average Cost:$30,000-$50,000
Benefit to Renters:
- Promotes interest
- Helps create space
- It gives a house a new look
- Decoration develops a community
Description
Updating your decor with modern items isn’t cheap, but you can always get discounts on pre-owned luxury items. With around $30,000 - $50,000 (depending on the size of your property), you end up with a high-end design. But for your decor to be worth the cost, the rental property should be consistent with the improvement cost.
An upgraded decor makes the guest feel more at home and creates the feeling that the place is worth their money. Good decor always does the trick.
What We Offer
Modern Resale has a wide range of offers on decor for your investment property. With up to 70% off retail prices on the new, second-hand, gently used consignment furniture. We offer top-quality discounted furniture, accessories, and lighting.
Why We're the Best Option
With Modern Resale, you can spend less money but still get top-quality furniture, accessories, lighting, from famous brands like , Minotti,and Cassina and much more for your real estate investing. You can upgrade your decorations without breaking the bank.
How to Do It Without Spending a Fortune
You do not need to upgrade everything in your room. Knowing exactly what to upgrade can save you a lot of money.
Swap New Flooring
Average Cost:$1,500-$4,500
Benefit to Renters:
- Easy to clean
- They have health benefits
- Increased efficiency
Description
Quality flooring gives your vacation rental new life. If you have an outdated floor, your house will also look and feel that way. You can throw a carpet or a rug into your rental properties, but that won't be a permanent solution. The ultimate solution is updating your floors.
If you want your Airbnb guests to feel comfortable, unique, and good about your rental investment, a good floor will do the trick. Your new guests might even be willing to pay higher because your flooring and the entire house are attractive.
How to Do It Without Spending a Fortune
Flooring is expensive, and it can use up a large amount of your remodel budget. But there are alternatives where you won't have to go overboard on your budget. You can use laminate flooring. It is an innovative, durable choice for Airbnb rentals that are designed for family vacations. The floor is also suitable for children and pets.
More Storage Space
Average Cost:$60-$180
Benefit to Renters:
- Store belongings for guests
- Declutter your space
- It can be a transition between homes
- You can store seasonal items
Description
Creating more storage space in the vacation rental is an excellent way of securing your guest's belongings.
Having a storage space could come in handy for short-term or long-term travelers who need a place to store goods and other valuable items such as watches, jewelry, and computers.
How to Do It Without Spending a Fortune
You can easily create more space for storage without using a lot of money. You can clear up a room and safely secure it to be used as storage space.
Paint Cabinets and Walls
Average Cost:$75-$300
Benefit to Renters:
- Eco friendly
- A vibrant look
- Minimal disruptions
Description
Painting walls and cabinets is a sure way to give your house an appealing look and add more value to your Airbnb rental. A simple repainting can give your home a fresh feeling, not to mention add some personality. It provides your short term rentals a whole new look.
How to Do It Without Spending a Fortune
Consider painting the place yourself. If you're not handy, be sure to shop around and receive multiple quotes from service providers before picking the best one.
Update the Bathroom Tile
Average Cost:$860-$2,600
Benefit to Renters:
- Modern and stylish
- A wide range of designs
- Long-lasting
- Easy to maintain and clean
- Water-resistant
Description
After having a long and busy day traveling, you want to hop in the shower and unwind. But having a dingy bathroom can be unappealing.
Updating your bathroom tiles and offering an excellent bathroom to your new guests can be heartwarming and welcoming. No one wants to spend a vacation in a house that has a dirty or outdated bathroom.
How to Do It Without Spending a Fortune
Remodeling your bathroom can be expensive, but you can always come up with an excellent design without spending too much money. Remember, failing to renovate the space is even more costly as no guests will be willing to book your property. Do some market research to see what other real estate investors are doing around you.
Create an Accent Wall
Average Cost:$2,800-$7,500
Benefit to Renters:
- Adds more color to your room
- They liven up the space
Description
Paint can bring a stale room back to life. An accent wall adds more personality. The best part? You do not have to paint all the walls. You only need to paint one. You can also use wallpaper if you do not want to paint your walls at all. Bring life to the wall by adding a piece of art or shelving.
How to Do It Without Spending a Fortune
You have a few options here that don't cost an arm and a leg. You can create an accent wall from trimmed wood or use pine boards to make different geometric shapes. Just be creative, and you will achieve a beautiful design.
Build a Coffee Nook
Average Cost:$1,500-$5,000
Benefit to Renters:
- Who doesn't love coffee?
- Saves money
- It adds a homey feel
Description
Chances are that your guests will take a cup or two to kick start their day. Have a coffee nook in your property to allow coffee lovers to access it without a hassle. When they are happy, you are happy too!
How to Do It Without Spending a Fortune
You can buy a coffee maker and find a good spot in your kitchen where you can set up a coffee bar. Add a set of nice glassware or a fancy carafe to spice things up.
Add Lighting
Average Cost:$75-$300
Benefit to Renters:
- It adds ambiance
- Adds value to your home
- Enhances your home space
Description
Lighting brightens up any space. Poor lighting can dull your wall color or decorations. Find out what color will be good for your home. Good lighting, on the other hand, makes them glow. Your space becomes brighter and more beautiful. Go the extra mile and redo your outdoor lighting too. Outdoor lighting is excellent for making your landscape features glow at night.
How to Do It Without Spending a Fortune
This project is simple! You can change a bulb, add a lamp, or use colored bulbs. This will not cost much, and your guests will love the results.
The Bottom Line
You can get high returns from your Airbnb investment if you give your guests the comfort they deserve. There are different ways to make your guests happy, but upgrading your space is on the top of the list. Modern Resale offers great pricing on lighting and furniture. The good thing is that upgrading your Airbnb doesn't have to be a hassle. You don't need to spend a fortune on your rental properties either.
Just have a clear budget on what you want and how much you are willing to spend and embark on the project.You'll always save with Modern Resales great pricing on lighting and furniture. Take a look at this Airbnb that is filled with Modern Resales furniture.
