If you’ve got any interest in the short-term rental property sector, you’ve no doubt heard of Airbnb. For those who are just starting out, here is a detailed overview of the platform, what it does and how you can utilize it to expand your prospects.
What is Airbnb?
Launched in 2008, Airbnb is an online platform where people can list or rent properties for short-term use. Be it an entire home, a spare bedroom or even a sofa, anyone looking to earn some profit can promote their space on Airbnb.
How Does Airbnb Work?
Travelers can browse the site for the accommodation that’s right for them by applying a number of filters to narrow their searches. Filters include basic factors like location, available dates and guest capacity as well as more particular preferences regarding amenities, facilities, property type, house rules and more.
Once guests have found a property that suits their needs, they can send the host an inquiry (unless Instant Book is enabled, in which case they can reserve the rental on the spot) with any questions they may have about the space or simply expressing that they’d like to rent it.
Hosts have 24 hours to either accept or reject booking requests. If a request is accepted or ignored, the calendar dates of the reservation in question will be automatically blocked for that property.
Is Airbnb Safe?
Though, of course, renting your properties to strangers always comes with a little risk, utilizing a reputable site like Airbnb comes with certain guarantees. All profiles are verified and if the host prefers, guests can be required to provide government-issued IDs in order to make a booking.
Further, in the event of damage to a rental property, the Airbnb Host Guarantee enables hosts to file a claim with Airbnb and collect up to one million dollars in compensation.
How do Payments Work?
Listing on Airbnb is completely free and the site is only paid when a booking is made. Though Airbnb offers hosts price suggestions based on their properties’ unique profiles, hosts can price their properties however they see fit.
For every reservation, Airbnb receives a commission of 3% from hosts (though this can vary slightly depending on specific circumstances). They also charge a guest service fee, but this is paid by the guest rather than the host.
All payments are made through a secure payment processor.
Should You List on Airbnb?
The numbers speak for themselves. With over half a billion guests hosted and $65 billion dollars earned by hosts since its launch, Airbnb is definitely a channel to list on for any property manager serious about reaching more travelers and increasing profit.