- How much can you earn from renting out? Who is the short-term rental provider?
- How much can I earn with Airbnb?
- Isn’t it better to rent an apartment to one family for a long time to keep it in good condition?
- Do you intend to rent an apartment yourself or trust an agent?
- Why do you need an Airbnb agent when you can rent out an apartment yourself?
- How much does an agent earn for renting an apartment?
- How about complaints from housemates about changing tenants frequently?
- What conditions should the apartment meet?
- Often the terms of a mortgage or lease do not allow renting out housing for short-term rent…
- What is Airbnb?
- What does it mean to be a master in Airbnb?
- What is the Protection against Property Damage under the Host Guarantee Program?
- How do I become an Airbnb host?
- What do Airbnb guests provide before booking?
- Airbnb Guest Requirements
- How do I determine the rental fees?
- Can Airbnb help set prices?
How much can you earn from renting out? Who is the short-term rental provider?
In terms of renting out their home, people are divided into two categories. The first category includes homeowners who do not permanently reside in it all year round. For example, a family has an apartment in London, but they only come there for the summer. The rest of the time the housing is empty. In such a situation, renting out the property for a long time is excluded. But the same money can be obtained through short-term rentals.
Another category includes people for whom housing is the main place of residence. But a couple of times a year they leave their apartments: they go on long vacations or frequent business trips. For these people, a short-term rental through Airbnb or other similar service providers is a good way to compensate rent or get extra money to pay off a loan.
How much can I earn with Airbnb?
As a rule, the average occupancy of housing for rent is 22-25 calendar days per month. You can fill the apartment with tenants daily. But in practice, this is not the best solution. There is a question of the quality of accommodation and servicing of tenants.
Constant renting out of an apartment implies its increased wear and tear. Yes, and the surrender process takes place at the last moment and the first people come across at a reduced price. Still, it is advisable to carefully select the settlers and not lower your price bar. The final financial result will be optimal.
For example, in London, the rental value depends on the area and location in the city. A two-room apartment away from the center, but next to the metro or DLR will cost £100. For the same apartment closer to the center and in the area of tourist excursions, the fee will be £120. An apartment in the center will bring a daily income of £150 — 160. This is a great budget increase that covers a long-term lease or loan.
Isn’t it better to rent an apartment to one family for a long time to keep it in good condition?
Not! Short-term rentals keep the house tidy. Tourists who rented an apartment do not sit in it, but are constantly absent and only return to spend the night. And they hardly cook. They only drink tea or coffee in the morning.
Airbnb has developed a good rating system based on travel history and reviews. The agency has compiled a “risky” category of guests. These are groups of young non-family people of the same sex. Therefore, filtering them out as potential tenants is easy.
Also, there are some limiting factors: the minimum rental period based on the days of the week. For example, Friday night rentals are only possible together with Thursday or Saturday and Sunday; obligatory pledge; verified identity card, etc.
Do you intend to rent an apartment yourself or trust an agent?
You can independently conduct correspondence with guests, meet them at a convenient time, check the condition of the apartment, and solve pressing problems. Or you can hire a specialist agent.
The agent places ads on the Airbnb website and other specialized sites, takes care of an attractive presentation of the apartment and selects applications from guests. He is responsible for the profitability of the apartment and ensuring the safety of the property. If the apartment is rented permanently, then the agent independently ensures the availability of bed linen and other necessary household items.
Why do you need an Airbnb agent when you can rent out an apartment yourself?
You can do this on your own if you live in the neighborhood. But in real life, it will be another job for you. It’s like with a car: you can change oils and filters on your own by studying instructions and visiting auto forums. But usually, there is no time for this. And you go to the service station. That is, you delegate responsibilities to professionals.
The same applies to housing concerns. You can independently solve all pressing problems or hire a specialist who, for a reasonable fee, will take care of all the issues. The agent works on a percentage of profits without prepayment and is directly interested in the result.
The agent will help you to correctly determine the rental value. Airbnb has an Estimated Average Costing program. But keep in mind that for a company, the main factor is the number of transactions, not the duration of the rent. Therefore, you should not always trust the program’s calculations.
How much does an agent earn for renting an apartment?
The bottom line on the market is about 15%. If the landlord is permanent, then the rate can be reduced to 13-14%.
How about complaints from housemates about changing tenants frequently?
People in terms of communication usually keep their distance and do not pry into other people’s business. In general, the neighbors are okay with the fact that the owner rents out an apartment from time to time. There are no formal restrictions legally, except for the “90 days rule”. This rule theoretically applies to rent permits for a maximum of 90 calendar days per year.
In practice, the number of days is hardly tracked in any way, and short-term rentals are becoming an increasingly popular type of business. There are no housing offices, janitors, and grandmothers near the entrances. If everything is organized correctly, there will be no negative public response.
The hobby of landlords for short-term rentals is causing discontent among some officials. On the other hand, many municipalities welcome this. Rentals ensure the redistribution of tourist flows and the injection of tourist money into the local economy.
Finally, the people in the apartment do not change every day. Guests, especially from Australia, America, Asia, usually do not come overnight. They often come for a week or more. After walks or excursions, they leave for other regions, and the rented property remains in proper condition.
What conditions should the apartment meet?
The main thing is its location. It is also desirable that the interior of the apartment be presentable. The more attractive is the better. Excessive luxury is optional. But the integrity and originality of the interior will be an advantage. People choose potential housing for rent from the photo on the site. But the interior in the photo does not always correspond to reality.
Apartments that are rented through an agency for a long time are usually minimally furnished with standard cheap furniture. But this is easy to fix. There are solutions for every budget. Even with a small budget, you can find good furniture, paintings, and other interior items.
It’s good when in reality the apartment looks better than in the photo. But it’s bad if the photo was taken several years ago when everything was new and beautiful, but in fact, everything is already worn out. But this situation is not critical.
People do not rent apartments to spend days in them. And even if the condition of the apartment is not perfect, they will still leave a good review, 4 out of 5 points, if they are given proper attention and good service.
Obligatory availability of the Internet is required. It’s a good idea to have a capsule coffee machine and a couple of universal adapters in your kitchen. Proximity to restaurants, grocery stores, metro, etc. is encouraged. There are no other special requirements.
Often the terms of a mortgage or lease do not allow renting out housing for short-term rent…
You don’t commit a crime if someone lives in your apartment. And regulators don’t have the resources to track and collect evidence against you especially if you carefully and intelligently organize the rental of housing.
Municipalities, administration, and other bodies utmost try to regulate the life of the city. But this is reminiscent of the situation a hundred years ago when the first self-propelled taxis appeared.
Strange rules were issued: a self-propelled driver, seeing a horse, had to pull over to the side of the road, stop, turn off the engine, put on a camouflage cape on the car, let the horse pass, and only then can he continue to move.
If everyone adhered to outdated traditions, we would never see new buildings and modern technical goods in the city. An inclusive economy is a reality. Short-term rentals work and are not insane or risky. It occupies its economic niche in the service market and meets the needs of society. It is very difficult to prohibit doing what is beneficial to everyone.
What is Airbnb?
The global Airbnb community connects people with entertainment and accommodation around the world. The community is driven by registered hosts, which offer travelers a unique opportunity to discover their destination as ordinary residents.
What does it mean to be a master in Airbnb?
If you have additional housing you can make money by sharing it with anyone in the world. You can stay in or outside your home. Hosting is up to you.
Submit your rental offer. Determine the hours, prices, and requirements that you ask guests. After the announcement is published, guests will be able to contact you. You can send them a message with questions before they arrive.
Regardless of the type of accommodation, hosting guests through Airbnb is simple and safe. You have complete control over prices, accommodation rules, and relations with guests. The agency invites guests to accept the House Rules and provides them with an opportunity to read reviews of past rentals.
What is the Protection against Property Damage under the Host Guarantee Program?
To ensure the safety of your home and property, the agency covers all bookings with USD 1 million in property insurance and USD 1 million in accident insurance. 24/7 international customer support
The Host Guarantee does not apply to cash, securities, collectibles, fancy artwork, jewelry, or pets. The program does not cover property damage or property loss due to wear and tear. Find out more about Host guarantees at http://airbnb.com/guarantee.
How do I become an Airbnb host?
Becoming an Airbnb host is easy in most cases. Signing up for Airbnb on the official site www.airbnb.com and creating your ad is always free. Airbnb charges hosts a 3% service fee for each booking to cover operating costs. On Airbnb, you can rent apartments, private rooms, treehouses, castles, and more.
What do Airbnb guests provide before booking?
The agency asks all renters to provide some information on a standard form before they can submit a booking request. This information will help the landlord know who they will be hosting and how to contact the guest.
Airbnb Guest Requirements
- Full name
- E-mail address
- Verified phone number
- Introductory message
- Making house rules
- Payment information
- Copy of ID
How do I determine the rental fees?
You decide what price you want to set for your stay. To help you make a decision, you can search for ads in your city or area that are similar to yours to get an idea of market prices. Additional fees are cleaning fees. You can include this fee in the price per night or add it in the price settings.
If you would like to add additional fees to the price, such as late-day arrivals or pets, please advise guests of these possible fees before they pay for the reservation and payment.
Can Airbnb help set prices?
Airbnb’s smart pricing tool allows you to automatically adjust prices up or down based on changes in demand for a property like yours. Reasonable pricing depends on the type and location of housing, season, demand, and other factors such as developments in the area.