Millions of people have quit their jobs in the Great Resignation and 95% of other workers are thinking about a career change. Startups are on the rise, and they’re opening their doors for you to make some money.
This is why starting an Airbnb business is a good idea.
What Is Airbnb?
Airbnb is a website that allows people to rent out their homes or at least part of it. The company was founded in August of 2008 by two school friends, Brian Chesky and Joe Gebbia, who had trouble paying their bills. They had the brilliant idea of hosting people on air mattresses in their apartment until they started getting full bookings. Now, there are over 1 million listings all over the world!
Airbnb is a global network of people who rent out their extra rooms and homes to strangers. It’s the largest community-based hospitality company in the world, and it’s getting bigger each year.
About 10 years later after its first launch, Airbnb has gone from being just another rental option to being a global phenomenon. The startup now boasts over 5 million registered users and works with almost all the countries in the world, including an extensive list of smaller ones that might not have any international hotel chains at all!
Like Uber, Airbnb has become a great example of what can be done using technology to make your services available globally.
Some people are looking for new jobs, but many are ready to bet on themselves and are starting their own businesses.
The options feel more limitless than ever and the vacation rental landscape is an easy entry point.
Without specific hospitality experience, it can leave you wondering how to start an Airbnb business. Fortunately, it’s easier than you might think.
Here is what you should consider about how to start an Airbnb rental business.
You Don’t Need Property
If you have a space that you can rent on Airbnb, you’re already part of the way there. But you may be wondering how you can get involved in this growing industry if you don’t have a rental space.
Fortunately, Airbnb is open to hosts who don’t own property. You can rent out your primary residence for a few days while you’re away on vacation or even let someone stay for an extended period if you’re looking to make some extra cash.
If you do not own or rent a property on which to host guests, it may seem like starting an Airbnb business is out of reach. However, there are still ways that one can become involved in this industry without owning a space.
Renting out either your personal residence or another location where you’ll be present during the guest’s visit is one option for how to start an Airbnb business without owning a space.
Consider reaching out to friends or family members who do own rental properties that are compatible with Airbnb’s policies, too.
If you’re traveling for business, perhaps your workplace will let you rent the conference room for an evening in exchange for covering any costs associated with cleaning up after the event. You can also consider renting out the commercial property if it falls within Airbnb’s scope of acceptable rentals.
For example, many yoga studios offer air mattresses and are happy to host guests during their evenings to maximize capacity without having to deal with overnight cleaners.
Hosting on Airbnb is Free
While you’ll have set-up costs when starting any kind of business, hosting through Airbnb doesn’t require fees beyond what customers pay for each booking, which is typically 10 percent of the rental cost, along with any applicable taxes. This is a low overhead that can help you get started without worrying about making money immediately.
However, there are other costs to take into account when starting an Airbnb business. You’ll likely have to pay for transportation if you’re renting out your own or someone else’s property, as well as any cleaning supplies or equipment you might need to make your space presentable.
You’ll also want to budget for extra income taxes, especially if you’re renting out space that’s considered commercial property by the tax assessment service in which you live. You may have to pay an additional fee or factor this into the cost of your rentals.
You can run a cleaning business for Airbnb properties. Or you can provide management services for people who want to rent out their spaces, but don’t have the time to handle logistics. There are multiple ways that you can still have a thriving business without owning a rental space.
Getting started with Airbnb can be as simple as posting pictures of your space online. Customers who are looking for places to stay will contact you directly to see if they can rent them. If you’re not familiar with the process, this kind of interaction may take some getting used to at first, but it can be a desirable business model for those who don’t want to maintain a long-term relationship with clients.
Once you have an idea about how much demand there is in your area, take another look at whether or not you have the means necessary to host on Airbnb. If you do, all that’s left is to set up your listing and start promoting yourself! How easy does that sound?
In the following article, we will break down how to start an Airbnb business from scratch as well as give advice on some common traps that first-time entrepreneurs often fall into when trying to jump into this new endeavor.
How To Start An Airbnb Business (From Scratch)
Before you get started, let’s take a minute to break down what an Airbnb business exactly is.
To gain more insight into how to start an Airbnb business, let’s look at a typical transaction.
A traveler will see your listing and rent out your space for a few days or weeks. You will then agree on the cost and that person will pay you directly after they leave. This is different from most other forms of rental services because usually, you’ll have to make sure everything is taken care of before and after each transaction, which can be tedious and not very profitable if you own multiple properties.
The good news is that Airbnb itself has a few tools to help you figure it out, including looking at similar units in your area and finding out about average costs per night. Doing all of the calculations upfronts will help you set up a list of prices that makes sense and attract customers in the long run.
Don’t have lots of experience in the hospitality arena? Airbnb helps new hosts learn what standards their rentals need to meet. They offer a user-friendly space that teaches you how to set up your property just right.
But what if you’ve never run your own business before? There’s a little more to it than what Airbnb can teach you.
You’ll also need to learn how to run a startup business. Business plans, taxes, and figuring out insurance are important parts of running any business.
Airbnb also doesn’t offer much to teach you how to run a rental-adjacent business like cleaning or managing. But the School for Startups can help you answer questions like how to start an Airbnb cleaning business. It can also guide you on how to start an Airbnb management business.
Opportunities Are Growing
It is not too late to get in on the Airbnb action. Quarantining during the COVID-19 pandemic made people anxious to get back to traveling. Many are opting for safer choices like Airbnbs over staying in hotels with large populations.
Additionally, the shift in remote work has also changed areas that people like to live and play. This has opened up even more opportunities for people to start the hospitality business of their dreams.
Make sure you have a plan before starting an Airbnb business to avoid costly mistakes. You do not need to have tons of money or even experience before starting one, but you should know your goals and what you want from them.
Set up a unique listing that tells people about yourself, your space, and how it will benefit them. Show all costs upfront so customers can feel confident in their purchase.
Finally, if you need permits or licenses then go out and get those taken care of first. With the right education and tools, this means becoming successful as an Airbnb host is possible for anyone.
Learn How to Start an Airbnb Business
Starting your first business can feel complicated at first. But anyone can do it with the right attitude and some guidance from the pros.
If you want to learn how to start an Airbnb business, we can help. Contact us today so we can get you started. The business of your dreams will be soaring in no time!