Are You Cut Out For Owning an Airbnb?

The Airbnb Business is Booming

Owning an Airbnb automatically makes you an Airbnb host. That means there is some tender love and care going on in the real estate business.

Let’s say you buy an investment property and want to rent out a room on Airbnb. What does it take? How does Airbnb even work? Here, we answer all your questions and more.

The Ultimate Guide to Owning an Airbnb-How Airbnb Works

As an Airbnb host, the first step you’re going to take is to register your property. This is where your inner photographer and writer come out. Photos speak a thousand words on the Airbnb website. The description you set for your rental property could either make or break you. Flowery language and pretty pictures are perfect bait for Airbnb guests.

After your Airbnb investment is listed, Airbnb users are able to view it while looking for accommodation in your area. Some criteria Airbnb guests normally use include:

Destination

Dates of availability

Price

Numbers of rooms

Amenities (like some yummy breakfast, or a pet-friendly environment)

Facilities (like parking or some air conditioning to stay cool in the summer weather)

Once your potential Airbnb guests are happy with what they see, they are able to contact you for further information about your Airbnb investment. The cool thing about Airbnb is they have a direct messaging service so you and your Airbnb guest can get to chatting! The Airbnb investment strategy is pretty simple and straightforward. Now onto more details on owning an Airbnb.

When owning an Airbnb, you will have to provide acceptable identification to Airbnb to be able to be an Airbnb host. This allows a sense of trust within the community. Be ready to hear some feedback from your Airbnb guests. These reviews again, can bring you in hundreds of dollars or cost you thousands.

Once your Airbnb guests book your Airbnb investment property, your payments will be withheld until 24 hours after the Airbnb guest arrives. This is in consideration of any issues or changes that may occur during the rental period. Talk about good customer service.

Oh, The Pesky Fees

With every good thing comes a small charge. As for owning an Airbnb, you can expect a 3 percent payment transaction fee. Airbnb guests can expect a booking fee between 6 and 12 percent. You have the right to require a security deposit and can also include a cleaning fee if that is something you will offer.

Oh, and the Pesky Taxes

Check out the Airbnb laws and regulations in your state. You never know if there are state, city, or provincial taxes that have to be applied to guest bookings. Also, there are a good amount of Airbnb rules out there, so read up on them. Each state differs, and the last expense you need as an Airbnb investor is a fine for running into trouble with the law. Follow the rules!

Owning an Airbnb: What it Takes Checklist

Owning an Airbnb is not rocket science, but it does take some intricate thinking and planning. If you are a beginner in real estate thinking of owning an Airbnb, you have to ask yourself some questions that will reflect if you are cut out for the real estate business. So here is a “checklist” that can help you determine if owning an Airbnb is made for you!

You Want to Start a Business

First things first, you have to want to start a business. As an Airbnb investor, you need to have the will to find a way. Drive, passion, and the entrepreneurial spirit are all attributes you should possess to start an Airbnb business.

Yes, Airbnb is a business of its own. The amount of effort, work, time, and planning you need to accomplish a prosperous Airbnb property is considered its own business.

Quick Tip: Knowledge is power here. You need to start up on your Airbnb market research. Get a gist of what the numbers look like in your area. Search up Airbnb marketing techniques that work, and any additional Airbnb data you can use to your advantage.

You Have the Real Estate Investing Tools

Mashvisor is a platform that provides you with property analysis software for all your investing needs. We can give you that Airbnb data, some of which include the Airbnb rental income in your area, along with the projected Airbnb occupancy rates.

A little can go a long way, and getting an idea of what those numbers look like will help you set up a business plan to make the Airbnb rental property work. Using real estate investment tools like an Airbnb profit calculator (that Mashvisor is more than willing to provide you) can make the job a whole lot easier, and more efficient.

Efficiency is key to making it work with your Airbnb business. The more efficient you are, the less time you spend on one task and the more time you have to work on others. Which brings us to our next point: Time.

You Have the Time

We both know time is of the essence in the real estate investing world. It is a world that needs some serious love, care, and affection. And time, can’t forget about time. Being a landlord isn’t necessarily a walk in the park, as there is a good amount of responsibility you’re going to need to juggle. Juggling needs time and skill.

Some of your responsibilities of Airbnb management include:

Managing bookings while responding to your potential Airbnb guests

Making time to meet with your temporary tenant to hand over the keys or collect them

Ensuring your Airbnb rental property is looking good! Clean, prepared, and refreshing appearance for your Airbnb guests arrival.

Handling maintenance issues-plumbing, electric, repairs, and so on

Bing on call 25/8. Yes, 25/8, not 24/7. You need to be available to your guests at all time in case of any issues that could happen with your Airbnb rental property.

Did Ya’ Check ‘Em All?

Our mini checklist is just one of the ways you can judge if you are cut out for owning an Airbnb. There is a lot that goes into owning an Airbnb, and that is nothing new. However, with the right amount of effort, willpower, and Mashvisor real estate analytics, you are on the path to success.

So, find the best places for Airbnb investment, experiment with different Airbnb management techniques, and get the Airbnb reviews of a champion. Because that is what you are, a champ! When it comes to owning an Airbnb, you want to be the best of the best. Prepare to find yourself as one of the most successful real estate investors.

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Are You Cut Out for Owning an Airbnb?