Do you have unused property lying around? Is it just sitting there unused? Then learn how to make a profit out of it using the internet! Turn your vacation home or any other property into a profit machine if you're still not using it.
What is Airbnb?
Airbnb is a privately held company stationed in San Francisco. It's operations spread around the globe which is focused on hospitality service via the online marketplace.
It was launched in 2009, with little growth but has since grown into a $2.6 billion dollar revenue company. From 21,000 guests a year it has now grown to 6 million a year. Its operations also span to 90 different countries with over 800,000 properties listed on their website.
DO TAKE NOTE that it does not involve real estate listings or host events. It acts as a broker that receives commissions for every booking made.
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How it Works
Airbnb is an online marketplace which has its own website (airbnb.com). It let's property owners advertise their property to guests who are planning on vacations or looking for a place to stay. Gone are the days where you have to look at brochures, tv ads, or colleagues feedback. You can check out a property with just using the internet.
In exchange for letting owners advertise and make their transactions in Airbnb, Airbnb takes 3% commission off of every booking from the hosts and around 6% to 12% from the guests.
The site has different categories to choose from. You can enter specific details or search a broad list of properties. It can vary to being in a specific location, must consist a pool, or a heater, or any other stuff you need. There are also photos of the property so you can have knowledge of what you'll be renting.
It's popular today and is up to date with technology. People nowadays rely on the internet to get access to information and Airbnb offers customers easy booking and security. One thing why people tend to prefer it is that prices are really low compared to local hotels. Especially when you want to stay in a popular location where hotel prices tend to be high.
As a host, you can also charge extra for amenities like a pool, extra bed, jacuzzi, and other stuff. This will add more to your income.
Because of low prices, tourists very often prefer to book locally. Majority of the reason is that you get more local knowledge and be able to ask more about the place their staying as locals have more knowledge of the place. It's also easy to book so long as you have a verified profile.
Also, the added benefits are that guests can contact the hosts and can ask questions regarding the property. Or you can contact in advance if pets are allowed, or is their internet, and other stuff that you feel that may concern the hosts. Having the option to contact the hosts adds to the reason why most people prefer booking via Airbnb aside from its low prices.
There's also an option for guests to be left alone. Usually, this happens in property rentals that are built for secluded vacations or romantic getaways. They'll usually stay a great distance away in order for guests to enjoy private time.
As a host, you'll also oftentimes be asked to give a tour of the property and its nearby landmarks so make sure that you're knowledgeable of the area (This can also help with your communication skills if you're planning to be a real estate agent).
If Airbnb is not up to your liking, there are other alternative websites that offer the same services. You can check out:
Helps in Paying Off that Mortgage
Instead of just letting your property remain stagnant without giving back profit in return, and adding to your finances with taxes and mortgages, you can make a profit out of it. Take for example if you rent out your property at $120 a night and you get about 7 days of booking per month. You'll earn about $10,080 a year. That's a great increase in your income.
It's also a great option if you're retired and have a large property or multiple properties. It gives you added income while you're already retired. You can use it to buy more properties or improve your properties, or just spend it for yourself. Not only does it give you profit but it helps ease the stress of having to pay off that mortgage.
What if you don't have a property yet? Airbnb is also catering to tourists experience. So if you're place is known as a tourist spot then
Why It's Getting Success
Airbnb didn't start successfully at first. It was launched in 2009, the majority of the people were still relying on traditional ways for their vacation and hospitality needs. But when the information technology was gradually becoming more reliant with the internet that was when it started to kick in.
Airbnb gets its success from low prices compared to traditional hotels. The site also contains not the hotel-type of rooms but a variety of differently designed rooms which because of the different hosts. There's even an earth-dome for you to rent out. This makes guests feel that they have the option to choose from. Some rentals provide you with complete privacy, others offer private beaches or an isolated cabin near a forest. These things are what makes Airbnb attractive and pleasing for guests.
You also get to contact the hosts, so anything that you worry about can be addressed before you make your booking. There's also the customer review system. Nowadays, guests like to look at reviews of other guests who've had experience the property themselves. It keeps hosts motivated to offer good service and maintain quality rentals to gain more popularity and attract more guests. Don't worry you can reply back to those slandering and troll comments as hosts are allowed to give their responses also.
What To Do As A Host
As a host, you're in full control of the availability, price, and rules of your property. Airbnb simply acts as a medium for you as the host and the guests.
An added benefit to being a host is that Airbnb gives hosts security by having a $1 million property damage insurance and a $1 million insurance for accidents.
You also don't have to worry about trolls or pranksters booking your property as Airbnb requires guests to verify their identity such as government I.D, confirmed the mobile number, and email. If you're still unsure of your guests you can require them to get feedback from other hosts which they have visited.
All you need to do is to keep your guests satisfied. If you don't want the hassle of having to tend to the guests, you can state in your property list that guests will be left alone. Which really makes it comfortable for you as a host as you have the flexibility on how to operate your property. If you're not on retirement and on a job maybe you can consider help from your relatives should they need a job.
At this day and age, people are given more information because of the internet. Traditional ways of doing things have been replaced with new and convenient methods. Having to advertise your rental property on the internet is less of a hassle compared to traditional methods.
Additionally, you get to have coverage of property damage and accident insurance in exchange for a commission from Airbnb. Turn your unused property into a profitable one without having to do much and you'll get more funds for your retirement.