When founders Brian Chesky and Joe Gebbia were roommates, they struggled to make ends meet in paying their rent.
But at a lucky conference event in their town, they thought of something that would change their lives.
They inflated their air mattresses and offered their space for rent as most hotels are full and guests needed a place to stay.
Since then, their simple website has become a multi-billion company offering renting solutions for property owners and guests.
With millions of listings worldwide, Airbnb investing is now one of the most profitable ways to make passive income.
In this article, you can learn about investing in Airbnb to be a successful owner.
Determine What You Need
Most property owners are interested in long-term tenants because they believe they can earn a more stable income.
It can be good for you, but you also have to consider other expenses when renting a place.
You must care for your properties’ insurance, maintenance, taxes, furnishing, and utilities.
And when you talk about furnishing, it is not only the bed, television, and couch and will highly depend on the unit.
You may have to include towels, ovens, lamps, heaters, soaps, and toilet paper, especially if it is a vacation rental.
So when you are immediately diving into the Airbnb investment, you must think of these things first.
But don’t fret because you can still earn a high profit if you make the right decisions in investing.
Related Reading: Best Tools To Run Your Airbnb Business – Find Out Here.
Buy a Property and Flip It
You can buy a property specifically for an Airbnb rental or use your extra properties for rent on the platform.
However, before listing them on the site, you must furnish them and turn them into a liveable space for tenants.
While Airbnb is ideal for short-term bookings, some guests may want to stay longer.
This situation has two sides: first, you have a stable income and fewer logistics to consider.
However, you may earn less than expected because you usually have to offer discounts for long-term bookings.
It is still good because your long-term guests will be familiar with the policies, create bonds, and have a stable income.
Lease a Property
If you don’t have an extra property or have enough budget to buy a property, you can rent a property.
Under the Airbnb Arbitrage, you can sign a lease to the property and allow guests to book it with you.
However, you must be honest with your landlord and tell them what you will do with their property.
Some landlords may not prefer having different people come over and stay, so you must be clear with your intentions.
Many Airbnb owners drive to this path because you only need a little money to pay upfront, like deposit and furnishing.
However, you must also consider the risks when signing a lease because of the legally binding contract.
Managing Other Airbnb Listings
Managing other people’s listings is the least risky path to travel when you want to invest in Airbnb.
It can be an excellent way to master running an Airbnb before buying a property.
You will contact property owners and refer them to Airbnb, where you will manage their listings.
It may include providing a property description, communicating with guests, and cleaning the unit.
You can earn a higher commission if you do everything for the owner.
You can make up to 30% if you provide excellent service for the property owner and guests.
Related Reading: Ways To Make $250 A Day – Explore The Ways Here.
Provide The Best Customer Service
One thing you must know when entering the Airbnb industry is that you are also entering the hospitality industry.
Regarding hospitality, providing exceptional customer service is the most crucial factor to becoming successful.
So when you decide to operate an Airbnb rental, you have to put yourself in the position of the guests.
As a guest, before renting any space, they will have many questions that you have to answer when negotiating.
It is essential to provide them with this information beforehand without needing to ask, as it can leave a good impression.
You can create a guide on your terms and conditions, booking process, etc., and send it to them.
When settling in your unit, you can provide them with a better experience by adding pillows, blankets, and fragrances.
These little things are what guests look for in a rental which gives you better ratings and bookings.
If you are familiar with the Airbnb site, you’ll see properties with the best rankings on top of the search results.
These properties receive consistent ratings from their guests, who receive excellent customer service.
As an Airbnb owner, your goal is to be on top of the results, and you can achieve it by receiving good reviews.
So as much as possible, make everything perfect for your guests because some of them will not hesitate to leave comments.
Use Airbnb Tools
Airbnb tools are helpful solutions that can improve your operations when managing a property listing.
For example, one of the most common tools in the platform is Hospitable, a communication tool.
This tool allows you to have pre-written texts for your guests so that you can provide the necessary information when they prompt your chats.
It can help lessen the questions from your guest because you can give them complete answers from the text.
Hospitable can also help you provide recommendations, check-in/out instructions, feedback, and more during their stay.
When you use this tool, you can decrease the amount of time interacting, which can be a nuisance for some guests.
It can also guarantee increased ratings because of the service and because Smartbnb helped ask for a review.
Related Reading: Best 8 Alternative Investments To Try In 2023 – Read About Them Here.
Final Thoughts on Airbnb Investing
While the past years have been tough for most Airbnb owners, the industry is starting to get back on track with tourism opening again.
More people want to explore and spend a lovely vacation, so Airbnb is slowly returning to the game.
If you are still contemplating investing in Airbnb, now is the best time to get into it.
Whichever way you approach this industry, you can have the potential for high profits if you know how to operate.
There may be challenges, but with the right strategy, you can lessen the risks and heighten success.