What is the income goal for your business that you’re planning to meet this year? Are you sure that you will hit that mark? Renting out a property comes with its risks and you don’t have a guarantee that money will flow to your account as often as you might think.
So, how can you improve your chances of enjoying the freedom of having a regular passive income? You may be reading this trying to figure out “Is Airbnb profitable?” “Is it the best, most profitable option of your passive income ideas?” In short, making money with Airbnb has been the answer to many property owners, but it does require certain guidelines.
Let’s lay it out for you so you can make the best decision for long- or short-term rentals in the coming months.
A Comparison: Traditional vs Airbnb Rentals
One option you may consider is to stick to traditional rental properties. Continuous monthly income sounds better than hoping that there are enough vacationers to fill up your Airbnb schedule. Traditional rentals also make sense for some individuals who don’t have the time or resources to tend to matters such as cleaning between bookings.
While these are valid matters to consider, an Airbnb property has many other benefits. Firstly, you can feel more assured of receiving your Airbnb income, since the platform requires upfront payments. Also, you can ask daily rates that are higher than many traditional rental rates, resulting in a higher passive revenue as long as you have many bookings during the year.
Making money with Airbnb is also a smart decision since short-term rental inquiries are increasing all the time.
Finally, you can circumvent some of the challenges of an Airbnb rental if you improve your management skills. Let’s discuss how to make money with Airbnb the right way.
5 Tips to Optimize Your Airbnb Income
If you decide on Airbnb income as your method of reaching your revenue goals, here’s how to get it right.
- Prepare for the Holiday Season
Careful planning can both simplify the rental process, as well as improve the image your visitors have of you and your property. This, of course, will lead to referrals and higher Airbnb income.
Make sure you do all repairs and maintenance before anyone arrives, so they don’t question the condition of your property. Also purchase supplies ahead of time. If you buy in bulk when there’s a sale, you’ll see how you save money on monthly expenses.
- Calculate Carefully
If you’re planning a new venture, don’t simply think Airbnb income will work for you because it works for a friend. You need to consider aspects such as insurance and property taxes as well as your mortgage. This will be unique to your scenario, so make sure your budget can handle the additional expenses while you still pay off your new investment property.
Also take into consideration expenses such as utility fees and the cleaning fee when you determine your unit’s rental rate.
- Improve Your Marketing Strategy
Whether Airbnb income can result in beneficial passive revenue streams is often determined by how busy your booking schedule will be. If you’re in a popular tourist area, you’re likely to make enough money and hit your rental income goals, but it’s never a given.
Luckily, there’s a lot you can do to improve your chances of having guests most weeks in a year. You just need to stand out from the million other listings. For starters, reevaluate your marketing and improve your descriptions to represent your unit in the best light. Also use quality photographs for your Airbnb listings so potential customers know what they’re paying for.
Get smart with advertising and use the latest tools, such as social media, since that’s where people spend much of their time online.
- Outsource Management and Use Software
If you’re hesitant about having an Airbnb listing because it requires more administration than traditional rentals, simply turn to modern resources. Vacation rental software, such as iGMS, simplifies bookings, and communication with clients. You’ll also find vacation rental companies in most cities, thanks to the industry becoming so popular.
- Automate as Much as Possible
Another way you can save yourself time and impress your guests is to streamline processes. Instead of waiting for your guests to arrive in the dead of night, leave keys in a lockbox or use key exchange services.
Many guests also appreciate a welcome book with all the necessary information. If visitors are tired from traveling, they may not be in the mood to listen to an Airbnb host or an agent giving them a lengthy briefing. This makes life simpler for you and means that you don’t have to pay someone to welcome guests if you can’t do it yourself. All these savings affect how much you’ll make in passive income during the next 12 months.
Final Thoughts
Having an Airbnb business can be the smartest plan you’ve had this year. Simply make sure you manage it correctly from the start. By asking the right occupancy rates and saving a few dollars each month, you’ll love what happens to your bank account in due course.
