NEW HOST

[Mr--Ansah0]

My name is Frank Ansah and I new to hosing.

I want to know who set prices on airbnb and what are the criteria to set up prices

Where can I find the resources to learn to become bettaer host?

[Guy991]

Hello @Mr--Ansah0 

You asked who sets prices and what the criteria are.

There are four things to consider: location, type of property, amenities, and condition.

But the only one that truly sets the price is the market.

Check other properties around you, both similar and different. Read carefully how they construct their listing descriptions and compare prices.

You can also use a third party app that can give you a projected nightly price report for your property.

And if those options do not work, you can always turn on Airbnb’s smart pricing. Note that this is not the first option I would recommend.

To become a better host, stick with this community. There are so many daily insights about hosting, the good and the bad, and most importantly, the most common pitfalls that new hosts tend to fall into.

One more thing that is very important: define for yourself what the purpose of your hosting is. That is something only you can answer, and it will shape your entire hosting style.

That is really it in a nutshell.

Happy hosting!

[Robin4]

@Mr--Ansah0 

Hello Frank and welcome to the Airbnb Community Centre, I hope your hosting career can be as profitable and fulfilling as it has been for many of us here.

You have asked a perfectly sensible question, and one all new hosts should ask because setting your listing price will determine whether you make money or loose it.

Firstly I am assuming you have approached your local government authority and established that you have local permission to rent or sub-rent your property and established you can insure your property for short term renting.

This is very important Frank because you cannot depend on Airbnb to cover you if something goes wrong! Airbnb are not an insurance company, they do not issue you with a policy for which you pay an annual premium for specified cover....... and they are not your 'Fairy-godmother' to bail you out as many hosts have found out. Make sure you have an insurance policy with a company that covers short term rental properties. More about insurance later!

Next, don't let anyone, including Airbnb, tell you to be the cheapest in your area! You need to establish what sort of return you need on your hosting to actually make money instead of loosing it!

From Airbnb's aspect you will never be cheap enough! They don't care if you make money or lose it, they don't want to let a potential booking escape to another booking platform. So ignore their prompts to be the cheapest in your area.....you set your price, not Airbnb.

I set up an Excel spreadsheet when I started to host, included all my costs including the hidden ones like insurance, local council rates/property tax, anything that actually cost me to have guests in my property.

This one dates back almost a decade now and I have upped some of the figures over the years, but it set me up so that know for every night I hosted how much money I would make, as per this screenshot.....

This figure was rational for me because I don't have a mortgage and don't depend on the income so it works for me, but it might not work for you. Add up all 'your' costs first, set yourself the profit margin you need and that will tell you the amount you need to ask when setting your listing price!

I know I am sounding critical of Airbnb Frank but, over the years I have found them to very good at just two things......sending me guests and paying me. I have never lodged a claim against a guest, it raises too many complications. 

I would suggest, in your listing amount allow to put about $5.00 per hosting night into a dedicated account and use that as a 'damage fund' for any minor damage that guests might do. It builds up quickly and soon reaches a sizeable amount. When minor damage occurs, bed linens ruined, a vase or plates broken, a carpet that needs cleaning from a red wine spill,  don't hassle the guest or Airbnb, just pull the money out of the damage fund, put things right and get on with hosting.

There is still much to be said about being a good competent host but this post is getting a bit lengthy so I will end here. I wish you all the best, try and stay involved with the Community Centre there is much you can learn from here. Hopefully others here will tell you how to  incorporate into your pricing to allow for additional guests beyond your minimum base number, pets, cleaning fees and other additional fees 

All the best.

Cheers........Rob.