If you're considering leasing your property in the short-term rental market, you might have some questions in mind as a first-time host. We understand any questions or concerns you may have. Real estate is, after all, once of the most valuable assets to invest in. In this article, we'll tackle some of the most frequently asked questions by people like you, who may be looking to enter the short-term rental market.
How much will I earn?
Getting an estimate on how much you will earn from your property varies from case to case. If you have a studio or a 1-bedroom apartment, your rate may be less than those who are renting out entire homes. You can take a look at different factors including checking how much other properties similar to yours within the same area are charging on Airbnb. You can also take a look at the availability in their calendar to see if their asking rate is working well for them. An example of a great resource to monitor occupancy is Airdna. We also have an article about building a business case for your Airbnb where we dive into this point more extensively.
Who will rent my property?
Those who are relatively new in the short-term rental market may not have had the chance to meet different guests yet. Many property owners who haven't listed on Airbnb may think that only holiday goers book short-term rentals. While those who are looking to take a vacation are part of the clientele, it's also worth noting that the pool of potential guests is much bigger than that. Some opt to stay in short-term rentals because they're having their current home renovated or are looking to move and discovering the neighbourhood first to see how they like it. Remote workers also seek Airbnbs when their own homes are not suited as a work environment. These examples and many more make up the different use cases for short-term rentals.
How do I make my property stand-out?
Since we've talked about the different types of guests that stay in short-term rentals, you might be asking what's the best way to attract them. The first step is to take a look at your property and find out the potential groups of guests it will most likely appeal to. If you have a spacious home with a large backyard, it would be more sensible to position your property as a family home. If your property is a condominium unit in the heart of a bustling city, presenting it as an ideal space for business travellers and work-from-home employees would be a better fit. It's also important that your photos are always up to date and professional-grade as Airbnb did a study and found out that listings with great photos see up to 40% increase in revenue.
How much time and energy will it take?
Guests who stay at short-term rentals might have some questions to their hosts during odd hours and since the turnover will be every couple of days or so, it just follows that there is a responsibility of the host to be present. Changing linens every so often, making sure the essentials are stocked and being open to guest communications, are just some of the things an Airbnb host juggles every day. Of course, you can still enjoy all the financial benefits of short-term rentals, hassle-free. Opt to sign up with a property management service that will not only take care of all these things for you but also boost your property's performance.
If I decide to use a property management service, what should I look out for?
There's no question that short-term rentals are lucrative especially now that it has become the choice of accommodation over the past year. Hotels are more crowded and put guests at a higher risk of being exposed to others while short-term rentals allow them to have a getaway while still observing social distancing. Given how attractive the returns are, but how it might take up more time to manage, property owners are now turning to property management services.
Should you decide to sign up with a property management provider, one of the first questions you should ask is if the host assigned to you is a local of that area. Guests may have some questions once they arrive and you want someone who is knowledgeable and can point them in the right direction should they need to acquire basic goods or explore local spots. Another thing you should look out for is whether they've managed successful Airbnbs before. Hosts who have a large portfolio and a team to back them will know more about the rates and marketing most effective for your property. Should you need help reviewing the property management document presented to you, we've also outlined what you should look for in an Airbnb management contract when you're about to finalize the agreement.
The short-term rental market is different from traditional rental arrangements in several ways. We hope we've helped answer some of the questions you have in mind during your decision-making process. Schedule a call with us and we'll be happy to answer any additional questions you may have when it comes to short-term rentals.
information on Airbnb rentals management see here.