How to Start an AirBnB Business

Starting an Airbnb business can be a profitable venture if done thoughtfully. However, before getting into the excitement of all the money you can make, we’ll warn you that not all guests are angels.

Our team’s first AirBnB experience connected the homeowner with two sweet teen-to-aged 20 year old girls who over email seemed lovely. They were looking to make recipes together and watch movies after returning home from college - without their parents hanging on them. Seemed normal.

The reality? They boozed all weekend and invited a bunch of young people over to party. You can imagine what the downstairs bathroom smelled like, and when the homeowner returned all the cabinets were open, lights on and fan on. Didn’t feel great.

So with caution, there is potential to make serious money targeting young professionals who travel, families on vacation and folks in between residences. You can either sublet a room, a basement, or an entire property.

Could starting an AirBnB business work for you? Check out the Wealth Elf’s step-by-step guide to help you get started:

Step 1: Research & Plan

Explore Airbnbs in your target area and analyze the competition. What is their pricing, what are the types of listings, amenities and occupancy rates? Next, research local laws, zoning, and short-term rental regulations.

Next in your planning stage, based on your budget and how serious you are about AirBnB’s as a side hustle - consider do you want to be the property owner renting space or rent a property and sublet on AirBnB with your landlord’s permission (less common).

Depending on the returns you can also have someone manage the bookings and invoicing entirely for you which you can explore with local real estate companies.

Step 2: Secure the property

Whether real estate you own or thanks to your landlords’ good graces - you’ll want to ensure your AirBnB is in a good location for travelers (near attractions, public transport, etc). This is especially true if the property is a vacation destination.

Step 3: Prepare the Property for Listing

Unlike long term rentals you’ll want to furnish the space completely. This includes beds, seating, dining, kitchenware, linens - whatever your guest needs - the property is a one stop shop. High-speed internet and smart locks are big pluses for renters and typically listings with an eye for design perform best on the platform.

Clean, modern design lends itself best for bookings as the site is typically used by a younger demographic who want to enjoy a trendy space.

Lastly in the planning stage, make sure your safety & compliance needs are coordinated such as having working smoke detectors, a fire extinguisher and first-aid kit on site. Follow local fire codes and insurance requirements to make sure you’re ready for your first visitor.

Step 4: Create Your Airbnb Listing

Now you’re ready to create your listing! Set your pricing (based on comps of the area) then work on your photos and description.

Make it clear, catchy, and informative and highlight unique features and benefits. Factor in cleaning fees, Airbnb’s service fees then you’re on your way. Set your availability and block off any days the property isn’t available.

Step 5: Prepare for Your Guests

One of our biggest tips here is to automate the process wherever possible. You can use services like Hospitable, Guesy or Smartbnb to streamline messaging services and calendar integration.

Smart locks will save you money long term (vs. making copies and rekeying your lock after they leave). And for cleaning after guests leave, hire reliable support and have a cleaning checklist so you’re spic and span for your next visitor.

Step 6: Guest Communication You could be slammed at work or distracted with the kids, but fast and clear responses are what equates to top reviews.

Ahead of your guests’ arrival send a check in message that outlines everything they need to know from wifi passwords to where the Emergency Kit is. On their day of departure leave all those instructions as well such as what to do with the key to lock up.

Step 7: Recap and Analysis

Once your first few visits are down, get a feel for your comfort level managing guests and opening up your space.

For some, their home is their sacred, private oasis. For others - the AirBnB model can be a lucrative cash cow. The oppprtunity is scalable and can provide incredible growth especially with the rise of third party services that streamline your operations. Give it a try and let us know how it goes on Instagram at @Wealth_Elf