Airbnb has enabled millions of people from around the globe to find a perfect place to stay for their vacation or trip, and it proves to be a lucrative platform for homeowners.
Growing a vacation rental business requires a great amount of time, patience, and effort -- it's not for everyone. However, services like Airbnb can help you out with your listing. So, what are the pros and cons of posting a listing on Airbnb?
What is Airbnb
If you’re not yet familiar with the company, Airbnb is an online platform that facilitates rental bookings, which primarily are home stays for vacation hospitality experience, as well as other tourism activities. Simply put, they help people who are seeking short-term rentals connect with hosts or homeowners operating in the vacation rental market.
Top 10 Pros of Airbnb
Money is the primary driving force behind people who get into this line of business. By becoming an Airbnb host, you earn extra income that you can use to travel somewhere, which you might not normally be able to afford. It’s all up to you how you use the revenue generated from your Airbnb business.
Guests Don’t Use the Rooms That Much
Most guests are mainly visiting a family or friend, are on vacation, attending a job interview or seminar, or some sort of event. They usually spend most of their time outside.
You Get to Meet Interesting People
The vacation rental business can attract guests that come from all corners of the world, with a story or two to share, making a lot of friends along the way. This surely is one of the pros of Airbnb.
Be Part of a Growing Market
According to experts and current trends, the earlier you join the short-term rental market, the quicker you can establish your business. The vacation rental market is likely to keep growing.
As long as there’s no confirmed reservation, you can always block off your calendar and save the room for your family or friends when they come for a visit.
Airbnb Does the Heavy Lifting
Airbnb provides you with all the necessary processes to grow your business, such as its ready-built system for handling your bookings and payment, and low-cost advertising via its website. It’s easier for you rather than doing it independently.
Airbnb Insurance Policies
You can have peace of mind that your property is insured by Airbnb against any damages that may have been caused by your guests.
Guests are Reviewed
Knowing a thing or two about your guests can provide you the ease of knowing the kind of people you’re allowing to stay in your property. This is possible by reading reviews about them on Airbnb, unlike hotels where guests are strangers.
Learn New Skills
Homeowners can pick up a lot of new skills by being an Airbnb host in areas like customer service, negotiations, finance, communications, listing optimization, and management.
Less risk is encountered in short-term Airbnb rentals, given the nature of the business of dealing with multiple tenants for a shorter period of time. On the other hand, the long-term rental can present a number of problems like paying for legal fees for eviction if tenants can’t pay.
Cons of Airbnb (Top 10)
Being an Airbnb host does bring plenty of opportunities. However, just like in any business venture, challenges can also present themselves.
Although adjusting your rates with the season is useful, a lot of factors can affect your income from your Airbnb rental business. And one of the drawbacks to short-term rentals is that there’s no guarantee of filling your entire calendar.
A fully-furnished Airbnb rental can greatly increase the number of bookings, but that also means shelling out money from your pocket to purchase furniture, not to mention replacing the worn-out pieces of furniture.
Confusing Laws and Regulations
Navigating the local laws and regulations are some of the biggest headaches for real estate investors in different places. It’s vital to first research Airbnb regulations before choosing an area to operate your rental business.
Managing your Airbnb rental business usually requires a lot of time and work, like juggling your calendar, scheduling cleanings, occasional repairs, answering guests’ inquiries, doing the laundry, and more.
One of the common disadvantages of being an Airbnb host is having damages to your property. Although most stays can be damage-free, there is always potential for property damage.
Being a host on Airbnb, which is an online service, means having the possibility of receiving bad reviews every now and then.
You expect guests to be respectful of your Airbnb property, which is why you include house rules. Unfortunately, some guests may break these rules and can be difficult to deal with.
There are instances when you have to cancel a reservation for some urgent reason, and that will result in a penalty from Airbnb. They may either withhold a payout or have your calendar blocked, among others.
Your reputation as an Airbnb host largely plays a role in the success of your rental business. You can attract more bookings by having higher ratings from past guests. However, if you’re just starting out on Airbnb, it will take time for success to come your way because you will have to set up your property and build up your reputation over time.
Limited Social Choices
Cleaning your property after guests’ stay can sometimes get in the way of your social commitments. Your friends invite you out for lunch, but you have a scheduled cleaning at that particular time. It’s one of the cons of Airbnb.
If you’re patient and willing to do the work, being a host on Airbnb can prove to be very lucrative. But also keep in mind that it’s not easy to be successful. You should be ready to face the challenges that come with it.