The travel industry is a great place to invest if you’re looking to diversify your portfolio with some passive income. Instead of renting out a real estate property, you can turn it into an Airbnb that people can book by the night like a hotel.
Airbnb is worth $93 billion as a market because of the luxury and convenience these arrangements offer. If you’re going to jump into becoming an Airbnb host, you must avoid some costly mistakes.
Here are the mistakes you should avoid when starting an Airbnb business.
1. Don’t Choose a Bad Property
Choosing the wrong property is among the biggest Airbnb business mistakes that you can make. People underestimate the work and money that goes into a fixer-upper.
Make sure that any property you choose has high property values that are going to keep appreciating. Select a property that is situated in a popular location and city so that you never have to worry about finding new guests.
Find a property that has an attractive interior and exterior, and with amenities that make people feel pampered and taken care of.
2. Avoid Trying to Manage it Yourself
Another one of the big Airbnb hosting mistakes people make is trying to manage it themselves. You need to treat this venture as a business, which means letting pros help you.
Hire some property management professionals that can keep your property on schedule and communicate with your guests. A property management company will run your listings and collect money so that you don’t have to worry about whether it’s being cared for.
You can research companies like Emperor Management to find out the types of services that are available.
3. Many Hosts Forget to Hire Cleaning Companies
Cleanliness is the most important thing that you need to offer your guests. It’s the one thing that’s completely within your control and can make the biggest difference in a guest’s experience.
Invest a portion of your overhead into getting professional cleaning service. These professionals will quickly come to your property to sweep, mop, vacuum, and clean the bathrooms and surfaces so that your new guests feel comfortable and at home.
Cleaning is even more important than ever now since guests are conscious of sanitary standards and getting rid of bacteria. Among the many tips for starting an Airbnb business, poor cleaning habits can cost you the most.
4. Manage Your Schedule With Impeccability
As an Airbnb host, you’re always competing with the hotels and other hosts in the area. To let money circulate in your business, you’ll need to run it as organized as possible.
This starts with your schedule.
Avoid overbooking or double booking for any dates. Leave some buffer room turn over your properties and to shut it down for maintenance. Managing your schedule lets you deliver the optimal experience to each guest who books with you.
The organization tips you learn by running a successful Airbnb business can also carry over into other parts of entrepreneurship.
5. Keep Track of Your Reviews
Marketing is a huge part of succeeding as an Airbnb host. Word of and referrals are the best marketing that you can get with an Airbnb.
Be transparent about asking your guests for reviews after a stay. Some hosts incentivize guests by offering a cheaper return stay or car service to the airport in exchange for a review.
When you have a constant flow of 5-star reviews, people won’t think twice about booking with you. This lets you rise to the top of the rankings so that you can become a Superhost. The better you do, the more you’ll be rewarded with visibility and premium account features.
Check your reviews regularly so that you can also respond to both positive and negative ones. If a guest leaves a negative review, post publicly that you regret they had a negative experience, and that you’d like to reach out to them to fix things.
Never go back and forth with negative comments. This is another mistake that too many Airbnb hosts, and ruins their reputation.
6. Monitor Prices Regularly
Other Airbnb hosts also miss opportunities to compete because they never check prices. You’ll know more about what price the market dictates when you stay up-to-date with other listings.
The algorithm can teach you things like the average price per night in the area for the past month or other time increments. Learn how to edge out the competition while still getting paid what you’re worth.
Having the right pricing strategy will help you to get profits and build a thriving stream of income. This market research can also help you come up with discounts and promotions that can bring in even more guests.
7. Don’t Forget to Hire Professionals for Help
Work with some professionals that can also help you handle your repair and maintenance work. These professionals will look after your plumbing, landscaping, and other areas of business.
It’s worthwhile to also have a legal professional by your side that can assist you with any disputes or other issues that you have. Hire a marketing company that can also help you bring more visibility to your property through content marketing, search engine optimization (SEO), and social media.
Starting an Airbnb Business That Will Succeed
If you’re starting an Airbnb business, be sure to avoid these mistakes the best that you can. Now that you know which mistakes to avoid, walk the path so that you can reap the rewards.
Browse our other posts to learn more about Airbnbs and real estate investing.