Airbnb has recently become quite a popular way to make money. Many people open up a spare couple of bedrooms or living areas and allow them to be rented using Airbnb. (Generally rented for a few days at a time.) While doing this may sound simple, there are several tips of advice that you should follow before beginning.
1. Get approval
The initial approval process can take some time as there are many different approvals that may need to happen depending on where you live, and what kind of building you live in. If you do not own the building or home, you must first seek the permission of the property owner. You will also need to get the approval of local authorities. Depending on the city that you live in, you may need to obtain a license or registration in order to be able to legally rent out the area you have designated for Airbnb. Airbnb has different locations and the requirements that go with them listed on their website.
2. Consider insurance
Whether setting up a room, or you are preparing your entire home for Airbnb, you should consider getting the necessary insurance to protect your home. Depending on the insurance that you currently have, you may need to get additional coverage to protect yourself in the case of stolen or damaged property due to the renters. Airbnb does provide insurance as well, but only for certain instances. You will want to review their policy and conditions before assuming that the insurance provided will be sufficient.
3. Know your competition
Depending on the area that you live in, you may have many other places nearby that will compete with your service. Do research and find out if there are many other properties near your location that are also available for short term rent. Make sure to match their price if your unit is similar to theirs. It may be wise to start your unit off fairly cheap until you have generated a fair number of customers. The more customers that you have, the more reviews you can get. As the number of positive reviews accumulates, people will be more likely to decide to stay at your unit.
4. Remember taxes
As you begin to do business, you will need to remember that it all needs to be reported on your taxes. Keep records of the number of nights you have people stay, as well as your expenses. Depending on where you live, there may be different stipulations regarding taxes. Airbnb lays out the details on their website regarding specific locations.
Conclusion
Airbnb can be a great way to make extra money if you have excess living space. If you are considering Airbnb, remember to get approval, get insurance, know your competition, and remember taxes. Following this tips will assist you as you begin your Airbnb experience!
