Listing a property on Airbnb can be a great way to earn extra income, especially if you have an additional room or vacation home that you’re not using all the time.
Airbnb and other platforms make it easy for homeowners to rent out their properties to travelers looking for a more authentic travel experience. These sites offer a range of features to make the process of renting out your home as smooth as possible.
But there are also potential drawbacks to consider, including the time and effort required to manage the property. In this article, we will take a closer look at the pros and cons of listing a property on Airbnb.
How Airbnb works in a nutshell?
Airbnb is an online vacation rental platform that allows property owners to rent out their properties to travelers. Property owners create a listing for their property on the platform, including photos, a description, and details about the amenities and services they offer.
Travelers can then search for and book properties through the Airbnb website or app. When a booking is made, Airbnb handles the payment process and sends the booking information to both the property owner and the traveler, including the location and contact details for the property.
Airbnb also offers a range of services to property owners, including Host Protection Insurance, which offers up to $1 million of coverage against third-party claims of bodily injury or property damage, and Host Guarantee, which offers up to $1 million in coverage for damages.
Pros of hosting on Airbnb
There are several pros to hosting on Airbnb:
1. Passive income
Airbnb can be a good passive income opportunity for some people, particularly if they own a property in a popular vacation destination or a city with high demand for short-term rentals. By listing their property on Airbnb, they can earn money by renting it out to travelers on a short-term basis.
Here are a few things to consider before deciding whether Airbnb is a good passive income opportunity for you – the location where you live, the condition of the property, and the time to maintain the property.
2. Flexibility to work
Airbnb allows property owners to set their own availability and pricing, giving them control over when and how often their property is rented out. Hence it can be a great passive income stream if you have full-time work.
3. More rental opportunities
Airbnb is a popular platform with millions of users, so by listing your rental on the site, you’ll be able to reach a large and diverse group of potential guests. By using the features and tools available on Airbnb, you can make your rental more visible and attractive to potential guests, which can help you get more bookings.
4. Security measures
Airbnb takes the security of its users very seriously and has implemented several measures to protect both hosts and guests. For hosts, Airbnb provides a secure platform for listing properties, as well as a messaging platform to communicate with guests and use the platform’s payment system to safely accept payment.
5. Impact on the local economy
Airbnb can bring tourists and travelers to your local community, which can help stimulate the local economy. These visitors may spend money at local restaurants, shops, and other businesses, helping to create jobs and support the local community.
Cons of hosting on Airbnb
“They left the house a mess,” Muskin Rathner (Airbnb host from Cleveland) says. “There was human feces on our laundry. They sprayed Silly String all over the place. I don’t care about Silly String, but can you pick it up? It left stains, oddly.”
There are several potential drawbacks to hosting on Airbnb like this, including:
1. Regulatory issues
Depending on your property location, there may be laws or regulations that prohibit or limit short-term rentals, or that require you to obtain special licenses or permits. It is your responsibility to ensure that you are complying with all relevant laws and regulations.
2. Property damages
Hosting on Airbnb carries some financial risks, such as the possibility of property damage, theft, or accidents. You may need to purchase additional insurance to protect yourself and your property.
3. High commission fee
Airbnb typically maintains a commission fee between 14% and 20% of each booking, plus other fees.
“I do think Airbnb has a place in my business to bring me clients, and I’m happy to pay them a percentage,” Greenawalt (Airbnb host) said. “But if people find me organically, I can make a little bit more money on my direct booking.”
4. Have to put more effort
Hosting on Airbnb requires time and effort to manage the listing, communicate with guests, and prepare the space for each new guest. You will also need to be available to greet guests and handle any issues.
5. Reputation at stake
As a host, it is important to maintain a positive reputation by providing a clean, comfortable, and well-maintained space for your guests. If you receive a negative review or have a high cancellation rate, it could negatively impact your ability to book future reservations.
Airbnb hosts are creating their own websites to promote and book their properties directly. By creating a website, hosts have more control over the booking process and may be able to save on commission fees charged by Airbnb or other vacation rental platforms.
Why shouldn’t you create your own Airbnb alternative?
Why not? We say you should create your own rental websites to get more direct bookings to your rentals. Having a website can make your rental business look more professional and legitimate.
A website can be a great marketing tool for your rental properties. You can use it to showcase the features and amenities of your rentals, as well as provide information about the local area.
Also, you have control over the information that is presented about your rentals and avoid paying hefty commissions to third-party sites.
You now know the pros and cons of renting your property on Airbnb or any other vacation rental property. You might have this question – how can I create a rental website like Airbnb?
Here’s the answer 👇
At Appkodes, we offer Airbnb clone a readymade Airbnb-like app that you can use and customize based on your brand to get started with your business.
Wanna need more help? WhatsApp us now.