5 Easy Steps to Starting an Airbnb

5 Easy Steps to Starting an Airbnb

It’s no secret that Airbnb has exploded in popularity. It makes it easy, and often more affordable, for guests to find accommodation in cities and towns across the world. More importantly, if you own a property, it can be the perfect way to generate a passive income.

But how do you get started? In this post, we’ll answer this question by looking at the five easy steps you can follow to start an Airbnb.

What is Airbnb?
Before looking at how you can start an Airbnb, let’s first recap what Airbnb is. At its core, Airbnb is an online marketplace that aims to connect you, a property owner, with people looking for accommodation in specific locations. Because it’s, typically, more affordable, Airbnb has become a popular alternative to hotels.

Why You Should Start Your Own Airbnb Business?
The next question we need to answer before looking at how you can start an Airbnb is: Why should you start an Airbnb business? Well, there are actually several benefits you’ll enjoy.
  • Earn Additional Income
    Obviously, one of the main benefits of starting your own Airbnb business is that you’ll get income from the land you already own. Depending on your circumstances, you can then use this money to supplement your income or, for instance, pay off the property.
  • List For Free on Airbnb
    Another benefit of the platform is that it’s entirely free to sign up and list your property. You’ll only pay a fee once you get a booking from the platform.
  • Complete Control Over Listing
    When listing your property on Airbnb, you’ll have complete control over your listing. As such, you put what you want in the listing, and rent out your property when you want to.
  • Host Protection Insurance
    Airbnb provides extensive insurance that protects you in the event that a guest is injured when staying at your property or when guests cause damage to your property. This, combined with the fact that you don’t need to pay any fees for listing your property on Airbnb, makes it an almost zero-risk investment.
Steps to Starting an Airbnb
We’ve now seen what Airbnb is and why you should consider starting your own Airbnb business, so let’s look at the steps you’ll follow to do so.
  1. Get Relevant Permissions
    Every Australian State and Territory has different rules and regulations when it comes to running an Airbnb business. This means that you’ll likely need to comply with some rules and requirements when starting and running your business, and you’ll need to know what these rules and regulations are before you get started. Moreover, it’s important to keep in mind that, when it’s necessary to obtain permits, there will be some costs involved.
  2. Find and Prepare Your Airbnb Space
    The next step is finding your Airbnb space. Now, this could be anything from a room in your home, an outbuilding on your property, or even a dedicated small home that you build on land you own. Once you know what you’ll rent out, you should prepare the space based on your requirements and what your customers want.
  3. Work Out How Much to Charge
    The next step is figuring out how much you’ll charge. To do this, you’ll consider other properties in the market, the type of audience you want to attract, and if they can afford it. Keep in mind, though, that, as mentioned earlier, you’ll pay a fee when someone makes a booking, so you’ll need to factor this into your price.
  4. Create a Compelling Listing
    Once you have your space, and you’ve prepared it, you should create a compelling and engaging listing. As mentioned earlier, you have complete control over your listing, so you can provide any information you like, but the aim of the listing is to convince customers to make a booking.
  5. Boost Your Profits
    You can also boost your profits by providing add-ons in your listing to make it more attractive. Another way to increase your profits is by ensuring that you maintain a high host ranking on the platform, which will ensure more future bookings.

Other Things to Consider Before Listing on Airbnb
Finally, before listing your space on Airbnb, there are some other things you’ll need to consider.

You’ll need to implement the necessary measures to ensure your guests’ safety. This will not only ensure higher ratings, but also limits your risks.

As mentioned earlier, Airbnb does provide some insurance that can cover you if something goes wrong. However, in some cases this might not be enough, so you’ll need to make sure that you’re properly insured.

Tax Implications
As we’ve mentioned earlier, running an Airbnb is a great way to generate additional income. This also means that you’ll need to pay taxes on any income you earn.

No matter how well you run your property, there will always be instances where guests cancel or are dissatisfied. In these cases, you’ll often have to refund their money. In turn, you’ll need to ensure that you have money available to do this.

The Bottom Line
There you go, now you know that running an Airbnb business can be a good way to generate a passive income by using property you own. More importantly, you know the steps you’ll need to follow to start an Airbnb.