How to Start an Airbnb

in
Tucson, AZ
Level 10
87,093 Views

So you are thinking about starting an Airbnb? Not sure what to do or where to turn? Here are some time-tested ideas, suggestions and step-by-step instructions to answer your questions and make starting your new business easier. Although the following tips and suggestions are geared toward someone who is in the very beginning stages of starting an Airbnb, anyone should be able to gain a tip or two and it could even help a seasoned host increase their bookings and please more guests.

 

My Experience

 

I had a house I decided to convert from a long term to short term rental. My first year’s income as a short term rental was more than double what I would have earned from monthly renting the house. This experiment sold me on the viability of the Airbnb business. We all want to make money so here is how to make money using Airbnb!     

 

Research

 

The first item to accomplish when you are thinking about starting a short term rental business is to research rentals around you. Go onto Airbnb, enter your city in the search bar but don’t enter any dates so you will get more representation of what is available in your area. Filter the results to what you are offering, whether it is an entire house or room. Read many (yes, many) of the descriptions and think about what you could offer that would be different from other people. Think about it this way, “Why should someone book with me instead of somewhere else?” Whatever it is that separates you from other people will be your “hook” to draw guests.

 

During my research phase I booked a suite at a nice hotel for a night. I took notice of the items the kitchen was stocked with and general furnishings. This experience gave me a good idea of what guests would expect when visiting my own house.

While you are on the Airbnb website, take time to read the guest’s comments on other people’s listings. By doing this you can get an idea of mistakes others have made and learn from them. You will also get ideas for things you would like to offer your guests thus creating even stronger hooks.

 

Another aspect you will need to research are local laws and rules in your area. Some municipalities and home owner associations forbid personal rentals or forbid renting for less than thirty days. Some rules limit the number of times you can rent in a year. You may be required to purchase a business license and register to collect taxes. I strongly encourage you to stay above the law when running your business. Failure to comply with regulations may incur serious fines and even jail time.

 

Start a Business

 

As with any business, you should also incorporate and operate minimally as a Limited Liability Corporation (LLC) to help protect you and your assets should you be sued. It is not a bad idea to consult with an accountant to make sure you can take advantage of as many tax deductions as possible. A rental attorney may be able to advise you on laws in your state that also affect short term rentals. In some areas hosts are considered landlords and must treat guests according to state tenant law. Open up a bank account in your business’ name so you can accept direct deposits from Airbnb.

 

Determining Price

 

As you review listings on Airbnb, take note of nightly charges for similar listings around you. Calculate the average nightly price for comparable spaces. This should be your starting point when setting your rate. Obviously if you list too high you will get fewer bookings. If you want fewer reservations, go for it. You can maximize your bookings and income by changing your prices to meet supply and demand.

 

Hosts who list their digs too low hurt themselves by losing money. Furthermore, pricing too low drags the price of listings around them down which ultimately hurts the entire community. Some new hosts will initially lower their price to get some reviews under their belt. There is nothing wrong with this strategy, just be sure to raise your price after a few reviews so you do not keep losing money.

 

One other tip to mention while discussing price is quality. If you intend to furnish your house with cheap furniture and mattresses then don’t expect to be able to charge high prices without getting poor reviews. The higher the nightly rate, the higher expectations your guests will have. If you paid the price for a 5-star hotel you would expect 5-star service. Your guests, and rightly so, will expect the same.

 

Airbnb offers hosts price suggestions based on expected travel patterns. This can be found beside your calendar in your administration panel. Some people have found this to be very helpful in determining price. Play with this feature and, over time, you will be able to get a feel for your market and will be able to set your rates competitively. Don’t be afraid to change your rates daily to keep your house rented.

 

What is Your Why?

 

Before we go further let’s determine your WHY or purpose in starting an Airbnb business. Operating a short term rental properly takes time and effort. Some people desire to simply make a few extra dollars on the side. Some people desire a full-time business for the income. Each of these purposes will determine how much effort and time you will need to devote to your business and, to an extent, how much your start-up costs will be.

 

Daily Operations

 

After determining your why, you will need to figure out HOW you intend to operate your business. In most instances someone will need to meet the guest and provide keys and orientation. There are some very successful rentals that are fully automatic; however, most guests like to be greeted on arrival. 

 

The guest area will need cleaned after every guest. Inquiries will need to be answered in a timely fashion. Guest’s problems or concerns during their stay will need to be address right away. In every instance, either you must be available or you will need to hire someone to do the job for you.

 

Take time to map out how your business will operate before you spend any money getting your space ready. It is quite possible to have your first guest within hours or days of your listing appearing on the Airbnb website so all of the operational details must be settled in advance. If you will be using a cleaning service your contracts should already be in place prior to going live with your listing.

 

Start-up Costs

 

Just like any new business there will be start-up costs. Your level of commitment will dictate how often you will rent your location and help you determine how much you should spend to start this business. If you only want to rent occasionally then you will not want to put a lot of money into start-up costs as it will take longer to recoup your expenditure. Someone who desires to rent full-time should take more care in the quality of furnishings as they will get more wear and tear and you do not want to continually spend your profits replacing furnishings all the time.

 

If you already have a home that is fully furnished then you can start your short term with minimal cash outlay, but you should still review your furniture to make sure it looks nice and matches the overall decor. You will live or die by guest reviews, therefore it is important that you do not provide your guests with obvious reasons to give you lower ratings.  

 

Start-up costs may also be affected by the condition of your property. Look around your house (inside and out) for safety hazards. Your guests will be unfamiliar with your house and may be accessing it after dark, so common blemishes like broken sidewalks, loose paving stones or twists in a walkway and inadequate lighting can cause problems. Peeling paint will cause lower than necessary ratings and is an easy thing to fix. Plants and flowers always bring a fresh look to property.

 

Many people rent their guest bedroom and the mattress in that room is often a hand-me-down or purchased cheap. Double check to make sure it is comfortable. Remember, your guests are ultimately renting from you for a place to sleep. The mattress is extremely important. I have read numerous guest reviews of people complaining about the mattress at their host’s house. This ought never to be!

 

Starting Fresh

 

Obviously a completely empty house is going to cost quite a bit to get furnished. Again, starting up almost any business can be expensive. Be very careful as you make your purchases or you can easily spend close to $15,000 USD outfitting a simple three bedroom home. Remember, every dollar you spend must be recouped before you can make a profit. If you really research your purchases and take advantage of yard sales or second-hand furniture stores you should be able to nicely and completely furnish a one-bedroom, one-bathroom home for around $5,000. Add $200 to that amount for each additional bathroom and $950 for each additional bedroom. These amounts do not include extra rooms such as offices or bonus rooms.

 

Decorating Your Home

 

No one wants to stay in a boring pad. Spend a few extra dollars to decorate each room with a picture or nice framed poster. Fill an empty corner with a real-looking artificial plant. Authentic looking plants can be expensive but they are well worth the effort in livening up an otherwise dead room. Stay away from real plants unless you have a very green thumb as well as a way of watering them regularly. You can’t expect your guests who have booked for a week to water and take care of your plants.

Be selective when choosing paint colors. Many hosts love to decorate based on their own character, but some guests will overlook your house if it has wild colors or weird décor. Keep everything tasteful to the majority of your guests and you will have more bookings. Throw rugs are relatively cheap decorations that can really give a room a finishing touch.

 

Purchase room darkening curtains. Your guests will probably not keep your schedule and may need to sleep during the day. They will appreciate being able to block out sunlight.

 

Personal Space

 

There are special considerations if you are renting out rooms in your own home. Having strangers in your house is something you will probably need to make adjustments for. The more rules you expect a guest to obey- the fewer bookings you will get. You should abide by the same rules you place on your guests. Be ready to have quiet times to fit your guest’s schedule, not yours. Observe a decent dress code when in shared spaces. Not everyone likes to see a shirtless man no matter how toned the body may be.  

 

Be prepared to keep pets away from guests until you know the guest is comfortable with them. It is best to keep pets out of guest’s rooms. I once saw a listing with a picture of a cat on the guest’s bed. Sorry, but that room is not for me. 

 

A big question for many people is the location of the bathroom and if they will be expected to share it with other people. Explain in your listing the bathroom situation. If the bath is shared then everyone must coordinate planning, amount of hot water for showers and the length of time the room may be tied up by someone else.

 

Determine how shared spaces will be utilized. If a living room is part of the shared space then be prepared for your guests to use your TV in that room to watch their favorite shows. You may end staying in another room such as your own bedroom more often. On the reverse side, don’t get upset if guests choose to be antisocial and stay in their own room. Some people are not very talkative or may just want a place to crash. In my experience many of our guests have driven several hours before arriving and are tired and want to sleep, not stay up and talk.  Be clear in your desciption of which rooms are shared space.

 

One more piece of advice about shared space. If you don’t want a guest to use- move it out of the shared area. This includes toothbrushes and razors. Also understand that not everyone is like you. Their hygiene standards may be different. How they live will definitely be different. Expect guests to play the radio or TV too loud. They may not take off their shoes at the door and may even put their feet on your furniture. They don’t mean to be rude; it may be that that is just how they are used to living and don’t realize it is impolite. Cultures vary by country and regions of countries. Living with strangers requires lots of patience and understanding.

 

Additional Costs to Consider

 

Just like any business you will have additional and recurring expenses that must be deducted from your income to determine your net profit. In most situations your guests will expect some modern conveniences such as internet and TV. If you do not plan on having these in your home then you MUST disclose that in your listing description or expect upset guests, poor comments and lower ratings. Many monthly TV and internet subscriptions cost $20 to $50 in the United States.

 

Expect your water and electric bills to increase exponentially with the number of people now staying in your home. You will find yourself washing linens and towels frequently.

 

Another factor to consider, especially for people renting their entire homes as a full-time business, is the mortgage costs, house insurance, property taxes and normal wear and tear on the property.

 

Add together the estimated utilities, TV and internet costs, mortgage (if necessary), insurance, taxes and license charges along with routine supplies like cleaners and anything you will provide to your guests like snacks, water or wine. Compare this amount to your estimated expected earnings to make sure your nightly charge is high enough to cover the expenses.

 

Let’s Get Started

 

So far we’ve discussed why you want to start a short term rental business and what it takes to start your listing- a welcoming, well-furnished space that guests can relax in. The next topic to discuss is how to get the business rolling.

 

After you have furnished the house and everything is ready to go it’s time to take pictures and post your listing on Airbnb. Let’s start with pictures. The easiest way to get good pictures is to use Airbnb’s professional photographers. You can see if one is available in your area by going to airbnb.com/photography. It can take about two weeks to get your pictures, though.

 

If a photographer is not available then you can easily do it yourself. Here are a few tips:

  • Take your pictures during the day to take full advantage of natural light. Open all of the curtains and turn all of the lights on in the entire home before you start.
  • Stand in a corner and take shots across the room to get the widest angles possible.
  • Turn TVs off so they will not distract from the home.
  • Take lots of pictures from many angles so you can select the best ones.
  • Set the dining room table with a couple place settings.
  • Make sure your pictures are honest and reflective of the actual rental so the guest gets what they see.
  • Edit your pictures to brighten up any dark ones.
  • Post many pictures in your listing. It is better to have too many pictures than not enough.
  • Use clear, sharp pictures. discard blurry ones.
  • Take pictures horizontally or landscape mode. Vertically oriented pictures do not look good on the Airbnb website.
  • Make sure your pictures are at least 1024x683 pixels. If you are not sure of the size, just use big ones.
  • Take pictures of both the exterior and interior of your home.
  • Focus on amenities that will make your home appealing to a guest.
  • Use your very best picture for your main photo.

Your Listing

 

When you create your listing choose a title that answers your potential guest’s questions.  Is it a room, couch, trailer, hammock or entire house? Mention if it is close to a tourist destination or well-known landmark. Easy on or off an interstate may get you overnighters who simply need an alternative to a hotel for a night while travelling.

 

Airbnb only allows 500 characters in your summary description. Use the space wisely to sell your house. Think about your amenities and your hook. Paint a picture of your digs for the guest.  Time spent developing a good title and quality summary is time well-spent.

 

The worst thing for a host is guests who arrive to discover that the listing does not match the pad. Write a detailed description that is factual and honest. If the house or neighborhood has a blemish that would potentially affect a guest then put it in there. Add something in all of the areas Airbnb offers in the listing section of the administration panel.  

 

Greeting guests

 

Congratulations! You’ve made it this far. Now it’s time to welcome your guests. You don’t have to go overboard in your welcome. Try to keep the orientation to less than five minutes. Hit the basics- keys, beds, bathroom, thermostat, any special rules or offerings, and then answer any questions they may have. Be personable and welcoming but don’t overstay your own welcome!

 

We have lots of foreign guests so we have a notebook with instructions on just about everything in the house, even operation of the TV remotes along with maps to common destinations like the closest grocery store, restaurants and work-out facilities. We also repeat the house rules in case they did not read them on the Airbnb website.

 

Go out of your way from minute one. People who tell us they are passing through on their honeymoon get rose petals on their bed. Guests from foreign countries are given a state flag to take home as a memento. Small children are provided with a basket of toys to keep them occupied. The parents are offered family friendly videos. Everyone gets a personalized thank you note and mints on a sterling silver tray placed on their bed.

 

It is not necessary to have snacks and gifts for your guests, although many people do. Staples like coffee are somewhat expected, though. Some hosts have water in the fridge, some ice cream, others provide a bottle of wine, and some provide earplugs to aid sleeping in noisy neighborhoods. We keep ramen noodles, a few quick meals and popcorn in a cabinet.  

 

Let’s Go!

 

There you have it, a basic primer to starting your own Airbnb. Do your research, make your house welcoming, your listing inviting and honest, then sit back and enjoy meeting people from all around the world!

 

Appendix:

 

I have developed a list of items that should be included in a short term rental focusing on items the guests will need. I have not included any large appliances under the assumption that those items will already be present. Do you need everything on this list? Probably not but I’ve tried to make it as comprehensive as possible.

 

BEDROOM

 

comfortable mattress
bed frame
dresser
nightstand
alarm clock
lamp for nightstand
headboard (will protect the wall paint)
sheet set (two sets per bed)
comforter set (one per bed plus one spare)
pillows (4 per bed)
pillow cases (one per pillow plus equal spares)
blankets (2 per bed)
trash can
Minimum 32” TV
TV wall mount (for liability mount TVs so they cannot fall over)
Multi-outlet by nightstand for charging cellphones
door mirror
box fan
clothes hangers (12)
 waterproof mattress cover (You will be glad you did!)

 

MISCELLANEOUS

 

broom/dustpan
iron
iron board
room darkening curtains
spray air freshener in bathroom
box tissues
mop
mop bucket
vacuum cleaner
laundry soap (if offering laundry facilities)
reading materials/magazines on a variety of topics for both males and females
BBQ grill (gas or charcoal)
BBQ briquets

 

BATHROOM

 

shower curtain
towels (2 per guest allowed plus 3 or 4 extra)
washcloths (2 per guest allowed plus 1 or 2 extra)
hand towel (at least 2)
toilet cleaner
toilet plunger
hand soap
conditioner
shampoo
toilet paper
toothbrush holder
hair dryer
non-slip shower mat
shower curtain liner
non-slip floor mat
trash can

 

CLEANING SUPPLIES

 

disposable cleaning gloves
cleaning rags
glass cleaner
disinfectant bathroom cleaner
toilet brush
oven cleaner
general purpose cleaner
furniture polish
floor cleaner
carpet cleaner

 

LIVING ROOM

 

sofa/chairs
fake plants
lamps
internet router
shelf or stand for electronics listed above
TV to fit the room size (think 40+ inches)
TV wall mount (for liability mount TVs so they cannot fall over)
DVD player
wall décor

 

KITCHEN

 

table/chairs
dish soap
dishwasher soap
coffee
creamer
sugar
curtains
dish cloths
dish drainer or towel
hand towels
trash bags
trash can
misc food if desired
food storage containers
dishes (plates, cups, glasses, etc)
cutting board
sharp food prep knife
eating utensils (knives, forks, spoons, steak knives)
misc cooking utensils
plastic whip
bowls
pasta strainer
grater/peeler
can opener
wine bottle opener
beer bottle opener
measuring spoons
pie knife
ice cream scoop
coffee maker
toaster (bread/bagel)
microwave
blender
napkins
napkin holder
basic spices
salt & pepper
décor
pots/pans
cookie sheet

29 Replies

Re: How to Start an Airbnb

in
Menifee, CA
Level 1

i like the detailed informations. i want to sign up to be a host. Does it cost me anything to sign up and advertising my property? What about having my own website? Does the Airbnb provides that also? If so, how much will it cost me?

Re: How to Start an Airbnb

in
Tucson, AZ
Level 10

While Airbnb does not charge an upfront cost, they do take a commission off of your payment as well as charge the guest a fee. The page Airbnb gives you to showcase your listing is also free. You can have your own website, but it is not necessary.

 

As the article states, do your legal research to make sure you can operate legally then read the articles Airbnb posts starting here:

https://www.airbnb.com/hospitality.

 

Good luck. Should you decide to host reply back with the link to your listing. Would love to see it.

Re: How to Start an Airbnb

in
Ridgecrest, CA
Level 1

I would now like to start the process to list my airbnb 

Re: How to Start an Airbnb

in
Tucson, AZ
Level 2

Hi Tim & Holly! I reached out to you about an interview regarding long term v short term rentals here in Tucson.

 

Please reach out to me by email and we can schedule a time and place to meet.

 

**

 

Thanks!

 

**[E-mail address hidden due to safety reasons - Community Center Guidelines]

Re: How to Start an Airbnb

in
Irvine, CA
Level 1

I'm starting my Airbnb buisness soon and I can't thank you enough for this article it's very helpful and has everything I'm looking for. so much appreciation.

 

thank you 

Re: How to Start an Airbnb

in
Tucson, AZ
Level 10

@Reem2:

Thank you. Continue following the community forum as you prepare your home. You will bypass a lot of pitfalls by reading answers posted here by seasoned hosts. Good Luck!

Re: How to Start an Airbnb

in
Walnut Creek, CA
Level 2

Thank you for this article I am looking at places to Air B&B! This such a great inspiration for us new guys!

Re: How to Start an Airbnb

in
Walnut Creek, CA
Level 2

Hello I am in Orange County sometimes do you have your air B&B listed?

Re: How to Start an Airbnb

in
Tucson, AZ
Level 10

Re: How to Start an Airbnb

in
Walnut Creek, CA
Level 2

@Tim-and-Holly0I meant to ask the lady in Irvine lol I haven't figured out this forum yet. Can I ask a favor Tim and possibly send me any articles links tips pointers for starting a air B and B. I been doing a lot of research but still need to learn a lot. My email is [Email hidden] Be cool to meet you guys one day!

Re: How to Start an Airbnb

in
Walnut Creek, CA
Level 2

I have friends in Tucson actually!

Re: How to Start an Airbnb

in
Tucson, AZ
Level 10

@Robin203:

check [Link hidden]

Re: How to Start an Airbnb

in
Walnut Creek, CA
Level 2

@Tim-and-Holly0

 

 Do you guys have a Facebook or a easier way of connecting about Tucson and some general b&b questions? Have about 480k in my pocket. After the closing escrow I want to spend this cash wisely. Please feel free to email me as well if you ever have a moment made trade time in each other's rentals LOL.

[Email hidden]

Re: How to Start an Airbnb

Anonymous
Not applicable

Very helpful information. I started a site and blacked out the first 4 months in order to give me time to finish preparing. I mentioned my airbnb plans to a neighbor. How about a Codes Dept. guy showed up asking questions and told me to take down my site until I have my permit! I thought it would be okay to have a site since its blacked out until my official open date. Why would Codes come by when I'm obviously not started up yet? Any, I digress, this article was very helpful to me. I'm working through how to set the best price for my area in order to determine if it's best to even do an airbnb or go with a long-term rental. 

 

QUESTION: What is the goal for the rqeuired letter to neighbors? Is it to get signed approval or just notification?

 

Thanks again.

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