My Image Source: Envato
Airbnb is the leader in short-term rentals. Many people, especially those living in areas that have high tourism, have been able to make a substantial profit by offering their homes or properties for rent through Airbnb. The Airbnb market has gone through some changes post COVID-19. However, short-term rentals are still a profitable way to make money. The following are a few things to consider if you want to build a strong short-term rental empire.
Reasons to Build a Short-Term Rental Empire
There are many reasons to build a short-term rental empire. At the end of the day, they all boil down to making money. Many short-term renters realize that they can earn more income renting their property on a short-term basis than they could with a long-term rental if they offer their property at a price that is the norm in their area.
In fact, it is not uncommon for properties that can maintain a 70 percent occupancy rate to earn 1.5 to two times the going rate for the same property if it was rented traditionally.
Having a successful short-term rental property, such as those featured on Airbnb, does not happen by accident. There are several tactical details that need to be evaluated. These include using professional profile pictures, keeping the calendar up-to-date, and building strong communication with clients.
These tips are important. However, they do not on their own guarantee that your short-term rental will be successful.
Furnishings Are Everything
When people are looking for a short-term rental, they are typically on vacation for leisure or are traveling for business. They want the space they rent to be inviting. For many visitors, this means an apartment or a home that has a modern interior.
People love homes that have large skylight windows. They are attracted to spaces that have an open design.
When it comes to furniture, it should be modern and in good condition. It need not be expensive. There are several places that offer cheap yet quality furnishings. These range from classified ads to online auction houses. It takes a little time and a bit of luck to find the right furniture for your space. However, it’s worth it, especially because it’s going to generate excellent reviews.
While the space should be modern, it should also have a homey feel to it. This includes plants and other small knickknacks that create a cozy environment.
Think about the Needs of Your Guests
Something that is emphasized to new renters when they take an Airbnb course is the importance of making decisions with their guests in mind. For example, larger units might be rented out by families, and families usually want to cook food. There should be kitchen utensils, appropriate seating, and all the basic things a person would need to cook a good meal or open a bottle of wine.
When a guest visits your short-term rental, you want them to feel like the space they are entering is as good as, if not better than, advertised. This means that your space should be bright, especially in the living room and the dining room.
Have a Realistic Approach to Pricing
Most short-term renting platforms, like Airbnb, allow you to set parameters for your rental, including price and minimum booking duration. You may stipulate that customers cannot rent a single night during the weekend but that single night rentals are allowed during the week.
Or you might adjust the minimum length of stay, depending on the season. For example, during high season, you might require guests to book no less than three days. However, in a low season, you might allow them to book one or two days.
Pricing means that you are cognizant of what’s going on in the area. If there is a major event that is happening in a few months, you may up your price slightly knowing that there will be a high demand. If you know that for the upcoming weeks your unit is unoccupied, you might slightly lower your pricing. This could attract people who rent primarily based on price.
Much of your success will depend on your ability to identify your niche group of customers and offer something that is attractive to them. If you are targeting families or if you are targeting couples, then your pricing may be higher than someone targeting solo travelers looking for a cheap experience.
It is possible to build a viable short-term rental empire. You need to do your research, approach pricing realistically, think about the needs of your guests, adequately furnish your apartment, and then identify your niche and work with them.