Real Estate by Nick Abbadessa
Nick Abbadessa
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Airbnb – A profitable trend

You probably have heard about the Uber of vacation rentals, the Airbnb. In fact, if you are like the growing trend, you may have even considered setting one up in your home and/or renting one out. Airbnb, and the like, are part of the “sharing economy.” It’s an opportunity for one to stay in someone’s home or spare room while on a trip, as opposed to lodging in a hotel. Additionally, it can be a profitable investment for homeowners as they host out their home (when away) or a spare rooms to paying guests.

How is an Airbnb relevant to our blog? Well, an increasing number of homeowners are:

1) Selling their current homes to purchase either a larger home allowing for Airbnb hosting, or
2) Moving to a more “Airbnb friendly location” to increase the number of potential guests, or
3) Creating a “Test My Home Before You Buy” experience, where home sellers list their home on Airbnb and allow folks to rent it out and get a feel for the place before they decide to purchase it.

Whatever your reasoning may be, if you’re considering listing your home on Airbnb, here are a few tips to keep in mind:

1) Take note on profits as opposed to just revenue
You can have an Airbnb pretty much anywhere in the world. So if you are trying to purchase a larger home and turn part of it into an Airbnb or use your current home, take note of your returns. Some locations may be more popular, but they also come with higher costs in terms of home insurance, maintenance, taxes, purchase price, etc… Other locations are less popular, but due to the reduced all around costs, the returns are higher. A great way to check how much you can potentially earn as a host, try out the  Airbnb Earnings Estimator. In La Verne, CA for instance, if you rent out a private room to two guests a month, that’s a monthly potential of $826. If rent to 4 guests, that number jumps up to $1,036. Play with the tool and find out how much you can earn.

2) Check your city regulations and HOA restrictions
Luckily, when owning a home, the regulations and restriction are few in respect to hosting an Airbnb. To prevent fines and suits, however, it’s best to check with the city and HOA to make sure all is done in the up and up.

3) Embrace being a host and pull in the reviews
A big part of acquiring guests in this business is the profile you present online, the personal touches you provide guests, the customer service you offer, and your ability to obtain reviews. Accordingly, once you realize that this can be a profitable business and it is legal in your neighborhood to host an Airbnb, next you should set up the business. Create a super clean space, with such personal touches as an updated or a themed décor, and freebies including a basket of toiletry, a bottle of water, and/or a bottle of wine. Then, look at your competition. What amenities are they providing? A private bathroom? Fully stocked fridge? Pool? Hot tub? Wi-Fi? TV? Are they pet friendly? What can you provide that will make your guests feel welcome and at home? How can you stand out from your neighbors? Taking note of these and then create an online profile with this info and amazing pictures presenting the details.

Just like a listing, the first impression is everything. One study indicates that using professional quality photos can increase bookings by 39% and subsequently revenue! Once online, make sure to respond to every inquiry within 24 hours and upon check-out, remind your guests the importance of leaving reviews. Perhaps enter them into a raffle for a free stay in the future. The more reviews you receive, the better your profile, and the more leads you shall obtain.

FAQs:
What is my expected earning as a host on Airbnb?
An Airbnb can be profitable, but the amount you can charge can vary greatly based on your property size, the number of amenities you provide, and the location (i.e. proximity to popular destinations such as the Ontario Convention Center). If you list a room for $60 per night, which can vary based on if it’s the holiday season or summer, you can earn as much as $840 a month for renting it out 14 days of the month.

How can I list my home on Airbnb?
1. Create an account with Airbnb
2. Create an Airbnb listing – Don’t forget to include an appealing description with high-quality photos and lots of natural light.
3. Start receiving bookings.

There you have it. If you’ve considered listing your home as an Airbnb, purchasing a new home to invest in this business, or listing your space while it’s on the market so potential home buyers can test your home first, make sure to create a welcoming space where guests feel at home! Additionally, if possible, try to make your space available during high demanding periods and seasons.

Hope this helps and if you need any help listing or buying a new home, please don’t hesitate to reach out.

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About Nick Abbadessa

Picture of Nick Abbadessa

Nick Abbadessa

Realtor, BA, Cert. Luxury Home Specialist

nick@soldbynick.com

626-269-2751626-269-2751 main

RE/MAX Masters Realty

1030 Bonita Ave. La Verne, CA 91750 | BRE#01398872 |Office BRE#01064901

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Nick's overall ability to identify what his client is looking for in his/her home is second to none. He is very knowledgeable in all aspects of the home buying/selling process. If you’re looking for a real estate agent that is honest, knowledgeable, and... (more)

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