The short-term rental business has become a prominent way to make extra money, especially to make Airbnb passive income. Whether you’re hiring property management or not, Airbnb allows you to make extra money while guests are staying at your listing. This list is designed to provide suggestions as to how to increase Airbnb passive income. Charging extra fees is one strategy but read how and why you can justify for charging more.
Related: Airbnb Fees Investment Property Owners Should Know About
Cleaning Fee
So maybe this is an obvious or silly suggestion. I have to admit, I used to think cleaning fees were just an excuse to charge more and that everything should be included in the rental price. BUT! . . . the cleaning fee should be considered as part of your salary. The rental rate ideally covers expenses like mortgage, utilities, supplies, and such. The cleaning fee is what you should pay yourself per hour during turnover. The most active role in having an Airbnb investment property is handling turnover, and as an investor, you should pay yourself for this.
Extra Guest Fee
Again . . . I thought this was just another meaningless fee and just charged for the sake of making more money. However, the reality is that another guest consumes more of your supplies. Maybe the mortgage rate, property tax, interest won’t change, but the utility bills go up and the toilet paper roll spins a lot faster. It’s not being anal, it’s maintaining cash flow and keeping the proper balance between effort, resources, and income. Of course when I say balance, i don’t mean, “equal”, because Airbnb passive income should include a profit, not just breaking even.
Now read below what you can provide guests to make them feel they are getting their money’s worth when charging these additional fees.
The Cleaning
Cleaning your property should entail everything from dusting to mopping to washing sheets. Make sure you clean very meticulously, and don’t just “straighten up.” Walk around the property and list every possible task or item that should be taken care of. Creating a routine or checklist will really speed up the process and help prevent costly mistakes, like forgetting to take out the trash.
Related: How To Streamline the Post-Guest Process for Your Investment Rental Property
The Design
Maybe it’s too obvious but after location, design is everything. People look for charm. People look for beautiful settings to stay in. Look at the many tiny Airbnb listings that are so prominent simply because of their design or character. Size isn’t what people are always after.
Using an interior decorator that has experience with Airbnb can go a long way. Sprucing up a room and giving it the right ambiance leads to success and more money. Here’s why: guests acknowledge the extra effort made, understand the value in the listing price, and write positive reviews. Think of it as an investment, the more money put into the listing, the higher the revenue or Airbnb passive income.
The Bedroom
What do you look for in a good night’s sleep? First thing, the mattress, right? Probably one of the best investments you will ever make is a buying a comfortable mattress. Sure, you won’t be the one sleeping on it but it will make a world of difference to your guests. Depending on your Airbnb occupancy rate, if there are gaps between guest stays, that means the mattress won’t wear out as much.
Include extra sleeping gear for extra guests. Maybe not a sleeping bag – it would seem a bit comical to have an orthopedic mattress and then . . . a bag. Something more like a rollaway bed. The extra guest is “paid for” and now taken care of!
The Bathroom
Everyone loves walking in a bathroom that is full of cute amenities that are too pretty to use. However, don’t spend a lot on expensive bubble bath products that could easily be used during one stay. Stock the bathroom with recyclables – like extra washcloths or bathrobes and with supplies that can be bought in large quantities at warehouse prices. If you know there’s an extra guest, put extra. If not, don’t!. Get to a point where you can estimate and budget a guest’s consumption – that includes utilities!
The Kitchen
You definitely want to make guests feel like you care about their comfort and convenience. That’s done by providing everything they could possibly need. Quite frankly, the more you provide, the less you’re bothered. It would be annoying for guests to prepare a meal in the kitchen and then realize there’s no salt, or you being called because of something as simple as salt. Look up the basic kitchen must-haves and that should be adequate for guests’ needs.
Don’t Go Crazy
This list is no way to encourage investors or hosts to charge ridiculous fees in order to increase Airbnb passive income. No! The fees are supposed to legitimately cover expenses. If an extra guest is coming, don’t charge the same or even half the price of the rental rate. Start with something minor like $10. With cleaning, if you think you should be making $100/hour, just know you could be repelling guests. As we’ve mentioned before, always start low then gradually increase prices and fees once the reviews pile up.
Also, by no means does this list suggest state-of-the-art furniture is required to increase Airbnb passive income. You can shop (almost) anywhere, it’s what’s created with the furnishings that counts. Embrace the DIY and saving culture, it has great strategies! Join warehouse clubs in order to buy lots of supplies – surely, you will need and use them.
Important Reminder: All transactions should be completed on Airbnb’s platform. It’s not a good idea to charge extra fees later on because Airbnb guests are recommended to not pay anything except for what is charged on the platform. So if you’re attempted to charge a fee for using the pool, it’s best to think again!
Related: How do I price my Airbnb property?
Finally, don’t forget to use Mashvisor’s optimal strategy data and other information to know how to outperform the rental market and maximize Airbnb passive income!