How To Start An Airbnb Business: Simple Steps

You can be pondering over the idea of becoming an Airbnb host and the business model seems nice. You are perhaps of the opinion that there is very little involvement but the business model should generate steady cash flows. Therefore, you could be pondering over the idea of how to start an Airbnb business and it is indeed lucrative. However, as you closely evaluate the business, you will see that there is a need to spend some time & effort.

The answer to this question of how to start an Airbnb business can be given in various stages. There are five steps to go through in the quest to start operations and here is the fine print.

Do you need permission?

This is the first thing you need to check as you seek answers to the question of how to start an Airbnb business. Even if it is your own home, there could be a need to seek permission from the homeowners association in your locality. You must check whether they have imposed any restrictions on short-term rentals. Are you living in a rented property right now? Despite being a rental accommodation, you can still think of starting an Airbnb business, provided there is a clause of sub-letting in your lease.

You are perhaps briefed on the permission that you need and this is the first answer to your question about how to start an Airbnb business.

Find your space and prepare it

Which part of the home do you plan to allocate for the business? This is the next stage to focus on as you seek answers to the question of how to start an Airbnb business. You would perhaps want to allocate a private wing of the home that has its entrance. You will have to invest in the space and here are certain things that can be done.

You can install comforts and some luxury in this space and only this way you can charge premium lease money. You can have a fridge & microwave or perhaps a furnished television area.
You can invest to enhance privacy in the area such as having a wall to close off the room.
The space must have clean sheets & towels and toilet paper.

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Hence, the second stage of the question of how to start an Airbnb business is about doing things to prepare the area and investing a bit in the space.

Set a price

The talk should shift to projected revenues as you discuss how to start an Airbnb business. There is a need to think about three important aspects as you set a price. They are affordability & audience and market. There are certain things to keep in mind as you set a price.

AirBnB will charge a fee and that should amount to 3% of the booking subtotal. The booking rate could be higher if you have a strict cancellation policy.
You could levy an extra charge for any additional services or space for extra guests that you provide.
AirBnB charges the guest before arrival and will send you the money via a method of our choice, but after the guest has checked in.

This is the third part of the answer to your question about how to start an Airbnb business.

List the space

Let us discuss the fourth segment of how to start an Airbnb business. You will have to list the space and in the process need to show some honesty. You can always highlight the special features of your place, but the key will be not to exaggerate. Moreover, you should also not be hiding the problem areas. You can also upload photos to help the guest understand the space better.

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You may need help

This is the fifth guide to follow as you seek answers to the question of how to start an Airbnb business. There could be plenty of other things to do ranging from repairs to requests of the guest on site. There will be a check-in process and the guest may have unforeseen urgent issues. It would be appropriate if you have a co-host or perhaps enlist someone to help you out.

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If you have a co-host, the regulations allow the person to be listed. There is the scope to list three people and you must upgrade them on Airbnb’s Co-host Terms of Service. If you are unable to find a co-host, there is nothing to worry about because plenty of third-party companies will assist. This is the fifth segment of the answer to your question about how to start an Airbnb business.

This is the basic answer to your question about how to start an Airbnb business, but alongside all of this, you need to understand the earnings scope. On average hosts make around $9000 a year, but those numbers could vary. It will depend on how frequently you rent the space and the charge that you levy. You need to present a well-furnished & maintained space and this will allow you to quote higher. It would be better to keep your profit expectations conservative if you are unable to allocate much time.

You are doing business and so there will be taxes to pay. The City might levy a sales tax and the general income tax will be applicable. Hence, while calculating the profits, you need to keep these issues in mind.

There is also the scope for tax deductions and being a shrewd business person, you must miss out on them. All the money you pay for property insurance and repairs comes under tax deductions.

Conclusion:

Despite all the taxation, it is still a lucrative business and you can go ahead with this money-minting idea. You can look to derive lucrative income from this proven hosting business.

FAQ

1: Can I control when to host?

With Airbnb, you get all the flexibility and there will be no issues if you do not host right throughout the year.

2: What legal issues should be considered before hosting on Airbnb?