So You Want to Turn Your Rental Property into an Airbnb (A Two-Part Series)
Listing your rental property on Airbnb can be incredibly tempting: you can increase the money you earn exponentially and make more doing short term, several-day stays than doing a yearly lease with monthly rent. In data analyzed by Earnest, the average Airbnb host makes around $924 a month (with the median being around $440)
Almost half of the Airbnb hosts that were analyzed made more than $500 a month. That money can easily pay for mortgage and maintenance costs.
However, there are a few steps and hoops you’ll have to jump through before you can turn your rental property into an Airbnb. With new regulations and laws being passed all of the time, it can be difficult to keep up. Here are a few pointers, tips, and tricks to think about if you are interested.
Figure out your location.
The first step before anything else is to consider if your rental property is in a desirable location. Desirability means that more people will want to stay at your place, thus generating enough visitors to fill in the gaps. You’ll want to try and fill your Airbnb on as many days as possible so you can generate the most income.
Ask yourself these questions: Does your area get a lot of tourists? Is it in a location that has people traveling for business or work? (For example, in the Bay Area, a lot of companies fly in interviewees, workers from other companies, or free-standing consultants. This means they’re actively looking at staying in the area for a few days and they are price checking between hotels and Airbnb listings.) Is the neighborhood your property is located in attractive? Do you have an HOA?
If your neighborhood doesn’t attract a lot of visitors, it might be best to consider renting out long term instead of trying to force a lot of short-term visitors. This business model only works if you can find a demand that outpaces a steady, long-term tenant.
Look at the logistics.
You’ll need to look at your local city and state laws to see if you qualify and are allowed to rent out your rental property short term. In some cities, residents are worried about not having adequate housing for those who live and work in the area, causing them to heavily push for anti-short-term-rental laws. Sort through the legal aspects to ensure you are legally allowed to rent out your property. The last thing you want is to have to pay fines for accidental violations.
Have impeccable photos.
When scrolling through vast quantities of Airbnb listings, renters are looking at each property for milliseconds. You need to make your listing stand out. Consider hiring a professional photographer for your listing photos in order to capture the most flattering angle. You’ll need to accomplish two things: showing the property in an attractive light, but also spotlighting the various amenities you have that sets you apart from the competition.
Have something unique be the focus of your property. Don’t pretend you’re just a hotel: have some fun with it! Your guests will enjoy any themes your home revolves around. For example, this Airbnb home is themed around a popular movie franchise by Studio Ghibli. It’s working, as the listing has hundreds of positive reviews.
