We are pretty sure that whenever the subject of Airbnb rentals is brought up, you also hear the term Airbnb occupancy rate. We are also sure that you are wondering what it is and how it affects the short-term rental business. Let us tell you then!
What is Airbnb occupancy rate?
Airbnb occupancy rate is the ratio of your property’s occupied days compared to the days when it is available. Obviously, the higher the rate, the better cash flow. Therefore, your goal is to sustain high Airbnb occupancy rate throughout the year.
Related: 4 Don’ts for Airbnb Occupancy Rates
Tips for sustaining high Airbnb occupancy rate
Location, location, location. We cannot stress enough how important that is not only for Airbnb rentals but also any other real estate investment properties. Make sure that when first buying an Airbnb rental property, you pick the right location. City centers, landscapes, amenities, and access to transportation are keys to the perfect location in real estate investing.
However, this does not mean that you are always going to find the perfect location. If you are not located in a landscape or the city center, then make sure there are amenities and transportation available. If you can’t find a rental property in your state, try out of state real estate investing. Find a city with the most Airbnb occupancy rate and invest there. You can always hire people to take care of your investment properties, so you will not worry about managing your property.
Pricing is the main factor why many people prefer to reserve Airbnb instead of hotels. Therefore, what you need to do is set an appropriate price for your rental property. The lower the price, the higher the Airbnb occupancy rate you are able to maintain. However, make sure the price is enough to cover all your rental expenses. Otherwise, what’s the point?
Know that there are different seasons in which your property is going to be reserved more. So, you can use that to your advantage and charge more during high seasons and less during low seasons. This will help you attract more Airbnb guests to your property at all times of the year.
Related: The Airbnb Profitability Calculator: The Best Friend of the Short-term Rentals Investor
#3. Your words
Your words, or description, are the first impression for potential Airbnb guests. A property description plays a major role in reservations. Make your property more appealing and make sure to use the right words. Instead of writing solid facts, use words that describe the experience of staying at your property.
So, for example, instead of saying “An apartment with two bedrooms”, you should say “A cosy two bedroom apartment with an outstanding view of the sea”.
The photos you post when listing your property will give a physical sense of it. So, make sure you have some professional photos taken of your Airbnb rental property. This will make it more appealing and, as a result, increase your Airbnb occupancy rate.
A good host is every guest’s favourite. Once you leave a good impression of yourself as an Airbnb host, you will get better occupancy rate. Hospitality will improve your ratings and Airbnb guest reviews as well as having your guests recommend you to others.
#6. Property management
Proper property management is key to sustaining a high Airbnb occupancy rate. This includes taking care of your property, as well as keeping it clean and maintained. If you do not have the time to do so, hire someone to do it for you.
#7. Become a super host
A super host is a new feature at Airbnb. It is basically a badge that is shown at the bottom of your listing that appears to users. The super host title is based on specific criteria: first, hosting at least 10 times; second, completing all reservations without cancelling; third, having 5 star ratings on 80% of your reviews; and finally, maintaining at least 90% of response rate. If you manage to fulfill these criteria, sustaining a high Airbnb occupancy rate will be a piece of cake.
#8. Make offers and stay in touch
In order for you to have a high Airbnb occupancy rate, you should have something to offer. Make special offers such as a free meal. You can even give a discount for customers. However, do not forget to stay in touch with these customers as they are the ones to keep your business rolling. Make sure to contact them whenever you have an offer. This will also help you attract new guests via recommendations from previous ones.
#9. Stay up-to-date with your Airbnb state laws
When starting an investing business, you will have to deal with the legal aspect. Keep in mind that your goal is to make money. Therefore, the last thing you want is to break the law which will cost you your whole business as a result. The good news isthat Airbnb provides a legal summary to its hosts of Airbnb regulations in their area. A good idea would be keeping up with that, especially if you are new to Airbnb rentals.
Related: Don’t Invest in Short-term Rentals Here: The Places with the Worst Airbnb Legal Issues
All in all, sometimes, it is hard to work all these tips out. Thus, you should do your best to apply some of them. For instance, if your Airbnb rental’s location is not perfect, do not worry. Find whatever is popular in your area and brag about that! If your area is popular for its festivals and celebrations, go ahead and brag about it. If it is popular for its food, then mention that as well. Or if it is popular for its nightlife, then you have got yourself something to talk about.
Really, it should not be that hard. However, it takes the right person with the right marketing skills, and you will be able to sustain high Airbnb occupancy rate for your property.
Moreover, if you are looking for the best real estate properties with the best locations, you have come to the right place. Mashvisor is the lead when it comes to buying Airbnb rental properties, including for Airbnb purposes. It does not stop here, with Mashvisor you can learn all it takes to become a real estate investor. So, why waste your time looking somewhere else, get all you want and need directly from us.