Setting the right price

Setting the right price

You need to look through different things to see if it will be profitable when thinking about putting up your property on AirBnB®

Scan the market: you need to know how much similar AirBnB® properties are per night in your area to define your price. A price too high could lead to low occupancy rate but a price too low could attract the wrong kind of visitor to your home. Understand the AirBnB® fee system: AirBnB® is taking a reservation fee of 3% of the price to the owner and 6 to 12% to the visitor.

Calculating your expenses

You also need to think about how much it will cost you to run an AirBnB® business.

Consider local taxes: many cities have a tourist tax. This should be included in your price. Think about the expenses to run your AirBnB®: guests are expecting basic consumables: toilet paper, soap, shampoo, etc. These things add up quickly, even more so because people are eager to steal those. You also need to think about cleaning expenses. Consider getting a co-host: if you do not live near your AirBnB® rental, having someone who will be able to do check-ins and checkouts for you, can be useful.

Improving your ratings

You have set your price and calculated your expenses from running an AirBnB®. Now you need to make sure your occupancy rate is closer to 100% than to 0%. To do so, you need to appear first in suggestion. Think of smaller, added-value details:

Have an exhaustive list of equipment available: owning a Jacuzzi or swimming pool is a great asset, but even mentioning that you provide free Wi-Fi, bathing towels or a hairdryer can be a nice perk to guests Prepare a booklet presenting the neighborhood and also how everything works around the place: it will save you time from answering many questions from guests and they will greatly appreciate being independent almost immediately Answer as quickly as possible to potential guest: the faster you answer, the more trustworthy you appear. Consider downloading the AirBnB® app Encourage your guests to leave a comment: having a lot of positive comments will attract many users of AirBnB®

Protecting yourself from major losses

You have now all the major keys to make money with AirBnB®. However, you should know that letting strangers into your home could lead to major losses. If you want to avoid having a bad experience with AirBnB®, follow our pieces of advice below:

Make sure your activity is legal: does your co-owner association allow this? Can you be a Host in that part of the town Empty your house of all kinds of valuables: not everything is covered by the AirBnB® Host guarantees, and more often than not, limits are quite low. Ask for a security deposit … but understand it is not enough: asking for a deposit is a great way to deter some guests from ravaging your place. Or it was. Now a lot of guests take this as a fee to be real monsters. Moreover, justifying to AirBnB® that guests caused damage is a complicated task: you need to prove that damage happened while they were at home. You are not covered for damage or theft if a guest is not check-in! Have the right insurance: AirBnB® Host Guarantee is not an insurance and relying only on it can cost you a lot. Moreover, basic home insurance doesn’t apply to a home turned profit-making business. Get a quote with APRIL to make sure your business is a profitable one!