Things you should know before becoming an Airbnb host

In 2008, Airbnb changed the landscape of the rental industry forever.

For some, it has helped them pave a new career path; for others, it has given them a good money-earning pastime. While for entrepreneurs, it has opened up new business opportunities  to address the needs of this new market – one such example is professional Airbnb management services company, GuestReady.

Know and understand local laws on short term rentals

First and foremost, it is important to note the new regulations recently put in place regarding short term rentals in Singapore – stating that it is illegal for homeowners to rent out entire apartments for less than six months. This also limits the number of unrelated tenants in a private apartment to six (down from eight previously). Permission from the Urban Redevelopment Authority (URA) is needed before renting our your home in the short term. The new law aims to mitigate the growing number of complaints regarding short term rentals and are considering other ways and processes to allow this in the future.

Aside from these new restrictions, if you still want to become an Airbnb host and dabble in the short-term rental market, here are some tips you should know beforehand:

Financial benefits of becoming an Airbnb host: Making extra income

Before you get carried away, we need to put it out there: earning a sizeable profit is not a guarantee.

The income you make on Airbnb could be dependent on a few factors like the location of your property, proximity to local attractions, convenience to travel about, accommodation space you provide and additional little, extra things you provide guests.

Nonetheless, if you operate and manage your apartment/ home properly and wisely, then you can walk away with a good amount of additional cash. More homeowners are turning to Airbnb because of its larger monetary benefits; top performing Airbnb properties fetched approximately $3,400 for studio units and $10,000 for units with four or more bedrooms monthly. This is between 31 – 84 percent more revenue compared to a typical long-term rental contract. However, to earn that additional stack of extra cash, you must understand that success in this business involves practising responsible hosting habits, understanding the needs of your guests and great communication.

Besides these financial benefits, there are other incentives to becoming an Airbnb host:

Meet new people

When we ask Airbnb hosts what the most rewarding thing about hosting is, most would mention the interesting guests they meet and welcome into their home.

The guest horror stories may be what you hear or read about most often but don’t let that discourage or deter you. Those make the headlines because there are only very few of those extreme cases. The guests Airbnb hosts meet could become regulars or for others, lasting friends. We know that the difference between Airbnb and other traditional property renting companies is the care that hosts put into their home and for the comfort of their guests.

As a host, you chat with your guests to learn what they need (or want), getting to know a bit about them in the process. When guests share stories (and they usually do), hosts get to learn firsthand about other cultures as well as gain new perspective and insights. Remember, you will be hosting guests that come from very different cultures and with varying lifestyles so you need to cater your homes to their diverse needs.

Personal Growth – learn new skills

Being a successful Airbnb host is a business itself. If you are totally new to this, then it will be a very exciting experience.

You’ll develop new skills in marketing, customer or guest services, communication, negotiation and finance. Ultimately, how you handle each of these aspects will have an effect on how successful you are as a host. Also, outside of being an Airbnb host, you never know when these newfound skills will become handy!

Get connected to other hosts and renters

Airbnb is not just an online marketplace for apartments, it’s more commonly seen as a community. Since it started, the community has grown exponentially and has shown the world how immensely popular it has become by the sheer number signing up and using its features.

For guests, it gives access to a database of tens of thousands of homes internationally. For those who wish to become hosts, creating a listing on Airbnb automatically makes you visible to millions of users browsing and booking apartments through the site. Getting access to a huge audience which leads to easier marketing processes for your property is a definite plus. People also see this business opportunity as an interesting and more enjoyable way to make additional money.

Make your Airbnb listing stand out

Successful Airbnb properties entail a lot of responsibilities. You need to regularly update your listing, conceptualise new marketing ideas to make your listing more attractive to potential guests, manage guest queries and other forms of communication, such as exchange keys and check-in guests.

All this requires great time and effort. But, if you get all the above moving like a well-oiled machine, then your hard work will definitely reap the rewards. On the other hand, GuestReady can also handle all these for you while you enjoy the benefits of Airbnb hosting, hassle-free.

Pricing techniques and updates

One of the most challenging part of being a host on Airbnb (or for any property for that matter) is setting the right price for any potential takers. You have to keep yourself up-to-date with market trends, seasonalities, events, pricing techniques (especially for first timers!), etc.

For example:

• If your listing is new and you priced it too high or similar to other more established listings within your area, then you might not get bookings since you have no reviews to back up your price.
• If you price it the same throughout the year (no adjustments during weekends or city festivities) then you will be losing out on potentially more earnings.

These factors are important to take note of when setting your price, either to maximize your occupancy rate or increase your earnings. It’s a load of information to take in, but setting the price right and updating it regularly could lead to both short term and long term gains.

Safety of Guests and Property

We go back to the fact that you don’t really know your guests. These are travellers from all over the world; most of them are awesome but you can’t avoid getting startled by one or two…

That is why it is important to communicate with your guests before you agree to them booking your place. At least this initial conversation will give you an idea of what kind of individuals or group of people you’re inviting into your home. You’ll also learn any special requests or needs they may have to better prepare for their visit.

Property damage may be a risk to an Airbnb host but most transactions happen without incident. Moreover, Airbnb has a Host Guarantee Program and Host Insurance Plan that protects anyone with a listing.

But, do not let these deter you.

Airbnb is a really perfect option (or solution) to benefit from your temporarily empty apartments and although there might be downsides, you need not worry as GuestReady will be able to alleviate almost all the above responsibilities for you.

GuestReady focuses on Airbnb property management services that covers the full spectrum from managing your listing to key exchanges with guests. Now, you can enjoy the benefits of Airbnb hosting without the hassle of it all.

Check out other rental related articles here:9 steps to take when you’re renting out a room for the first time and Tenant’s guide to the Letter of Intent

Find the rental home of your dreams today at Singapore’s largest property portal 99.co!