From understanding the states’ guidelines for short-term renting and setting up your apartment for rent, there are a couple of things to know before you start Airbnb business. Homeowners in the United States can make a regular income from renting out their homes as Airbnb hosts, but it comes with a lot of time and commitment.
In this article, you will find out just what it takes to become an Airbnb host in the U.S. and how you can get started.
First, What is Airbnb Hosting and Why Should You Care?
Air Bed and Breakfast or Airbnb for short is the brainchild of Brian Chesky and Joe Gebbia; two industrial engineers that came up with a smart home rental idea. The concept of Airbnb involves property listing by homeowners looking to become Airbnb hosts and the renters who would book the property for a short stay.
Through the Airbnb app, property listing, booking, and management can be done on the go. If you are looking to become a host, you probably want to know how this works in the U.S.
According to Airbnb, prospective Hosts should be committed to what it calls “Responsible Hosting.” The requirements for this include but are not limited to:
- Ensuring that the listed property is safe for the guests, throughout their stay.
- Compliance with Airbnb’s 5-step cleaning process that includes cleanliness based on the recommendations of the US Centers for Disease Control and Prevention (CDC) & the US Occupational Safety and Health Administration (OSHA).
Steps to Starting Your Airbnb Business in the U.S.
Although you have a decent property to let, it will be worthwhile if you understand how to start Airbnb business according to prevailing standards in the U.S. This is how to go about it:
1. Find out if You are Permitted to become an Airbnb Host
The first step is to confirm your eligibility to become an Airbnb in the United States. Aside from meeting most of the Airbnb requirements, you also want to make sure that your homeowners’ association or co-op board permits you to let the property.
If you are a tenant, seek permission from your landlord before putting your property up for lease on the Airbnb website.
2. Become Familiar with Local Laws
Whether you are leasing your property or co-operative apartment, the chances are that the local laws may be against you. This is why you must become familiar with these laws to know what you are permitted to do and what you are restricted from doing as far as Airbnb rental is concerned.
Airbnb already highlighted in its General Info on “Regulations and Standards” that “some cities have laws that restrict your ability to host paying guests for short periods.”
Local laws on short-term rentals vary by state and city levels and are determined by other factors, such as:
- Taxation policies
- Licensing before listing a property as an Airbnb host.
- Landlord-tenant laws
3. Find an Ideal Market
One of the best tips to help you start an Airbnb business is to find an ideal market. Since this is a short-term rental, you are likely looking for:
- Guests who are on vacation or on a business trip.
In addition, make sure you check the influx of such persons into your Airbnb property’s location. Go back in time to check the number of your targeted guests that come in every month so you can have an idea of the market availability.
4. Prepare Your Property on Time
The best time to start Airbnb business was yesterday but another time to do that is today. Your best strategy is to prepare the property ahead of time. Of course, this is after you have done a bit of market research and confirmed that the demand is there.
Here are a few tips to get you started with fixing your property before the lease:
- Establish the maximum safe occupancy limits, in line with the guidelines of the local government.
- Make sure the property can serve the desired purpose, which could be for meetings, parties, lodging, or photoshoot sessions.
- Make clear markings of exits, especially during emergencies like fire outbreaks.
- Provide supplies, such as luxury toiletries and first aid kits.
5. List Your Property
Now, it is time to put your Airbnb property on the market and open it up for bidding by prospective guests. This can be easily done via the Airbnb app.
A quick one – try to attach several pictures of the property, as your prospective guests want to see what the property looks like before placing a call across to you for further inquiries.
A good Airbnb property listing should include:
- Accessibility Information: Provide accurate information on how prospective guests can locate the property.
- Amenities: Guests are not only paying for accommodation; they are also paying for the experience that comes with the lodging. For this reason, add the amenities you are offering at the property.
Should You Start an Airbnb Business in the U.S.?
Starting an Airbnb business can be capital-intensive, especially when you are converting a property from rent to lease. Take note of the costs, the thriving population of your targeted guests in the location, and local laws and guidelines before taking a shot at it. Airbnb rental is awesome and for a country like the United States, the benefits are so many.
Be sure to prepare the property, and offer the best service, and with the guests trusting your service, there is no limit to the patronage you will enjoy in the coming years. To ensure you foresee the future of the business, create a rental business plan.