Airbnb for Profit: What You Need to Do

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If you have a large house, empty apartment, or additional properties, you might be a candidate to host an Airbnb. However, to do it right and make a profit, it will take an investment of time.

But what kind of investment does it take? And can you make a profit renting out your place?

Know Your Local Regulations

Before you even consider hosting an Airbnb, know your city’s regulations. Each municipality is different. And some have stringent rules with high fines if you break them.

For example, in Charleston, South Carolina, an Airbnb must be registered with the city and the owner must declare their home as their primary residence. In addition, the short-term accommodations must be an accessory unit. In other words, the main house cannot be leased as a short-term rental.

There are other regulations, but if they are not followed, there are fines. For example, property owners who do not have a permit can be fined $1,000 per offense. That means for every night they have a renter, they are fined. Other cities have similar laws.

If you’re not up on your regulations, your profits could be cut drastically.

Location Is Critical

Location is critical to your success. You need to own a home in a desirable location. Before marketing your property as an Airbnb, ensure you’re close to spots your guests want to visit.

Let the guests know what the distance to public transportation is. Is it close by? What types of businesses or restaurants are within walking distance? These are important to someone who is vacationing without a vehicle.

Make sure the map on the Airbnb website shows the area around your listing. If you have a great location, you want the public to know about it. That’s a large selling point.

Property in Great Condition

Keep your property in good condition and make it clean, comfortable, and well-maintained. It’s worth investing in high-quality linens, furniture, and appliances to make your guests’ stay as pleasant as possible.

How to Determine Pricing

Determining pricing can be tricky. You don’t want it to high, so you scare people off. But you don’t want to leave money on the table. That’s where your location comes into play. A great location will demand a higher price.

If your property is in pristine condition, it will also be worth it to many renters. And note any amenities that can add to the price. For example, do you have a swimming pool? Are you near the beach? These can add to the price.

Check your competition’s pricing. It'll let you gauge where you should be to stay competitive.

Remember that prices will fluctuate depending on the time of the year. You'll have higher prices during the peak season.

Your listing’s occupancy rate will also affect pricing.

Maximize Revenue with High Occupancy Rate

You’ll need a strong occupancy rate. The occupancy rate is the number of days in the month the Airbnb is booked. And although many factors go into it, generally 28 percent occupancy rate is considered realistic. This contrasts with a 60–75 percent occupancy rate for hotels.

The occupancy rate fluctuates according to the time of the year. If you’re a summer destination, you might hit a higher occupancy rate and vice versa if you’re a winter destination.

Airbnb Marketing Plan Vital

To market your property to potential guests, start with writing a detailed listing. Include all information about the property, including amenities, nearby attractions and location. There’s no such thing as too much information.

Use online platforms like Airbnb, booking.com, and HomeAway to market your property. When you do have guests, encourage reviews. Positive reviews are great for attracting new guests.

Social media like Facebook and Instagram are great for marketing your property. Share photos and information about your property.

And finally, don’t be shy about offering discounts and promotions to attract guests during the off seasons.

Take Clear Pictures

Taking great pictures of your property is vital. They should be high quality. To do this, take photos during the day when there is natural light. Show the best features. This could be your pool for summer guests or a comfy fireplace for winter guests.

Use the best camera you can afford; this is an investment.

And make sure you have every space clean and clutter-free. This will make the pictures look more professional.

Talk to Your Accountant

Check and see if you have any Airbnb taxes that you need to collect for your municipality. That way, you can tack them onto the price of the rent.

Keep in mind that this is a business and should be run that way. So, discuss any tax deductions you can take. You’ll probably have cleaning costs and maintenance costs that can be deducted.

Add Some Income to Your Wallet

You may make a little extra income with your Airbnb, but be warned: you probably won’t get rich. The number of rentals skyrocketed in September 2022 to 1.38 million. That was a 23.2 percent increase year over year.

That means there’s a flood of inventory available. It’s great for consumers and rough on the owners.

But if you have a pristine rental in a desirable location, there are still profits to be made.

The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.