We revamped one of our most popular blogs! In this post, we're going back to the ground floor and tackling the basics of earning income from your rental property - specifically, how to make money as a host.

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johnmakrojohnmakro
3 months ago

Good article. Making money on Airbnb, as with any business, can be broadly split into two categories: finding clients (guests) and delivering the value proposition (a positive vacationed experience).

Finding guests requires an understanding of the following:

  • Airbnb algorithms that show your listings to potential guests
  • Attractive photos and descriptions
  • Response time and positive communication with potential guests
  • Accurately portraying the service you offer at a realistic price level
  • Offering guests stays at low prices in order to attract your first bookings (and reviews!)
  • Patience to allow the time your profile needs to grow

Delivering the service requires:

  • Providing everything as detailed in the listing
  • Having a totally clean property
  • Welcoming guests in a friendly manner
  • Responding to problems and being flexible

Once you can do these together, the positive reviews start coming in! This is when occupancy increases and when you can start charging a little more, perhaps building upon and improving the service a little more, and making more money. Alternatively, consider using a local vacation rental management firm that can manage everything mentioned above for you.

SeanConwaySeanConway
3 months ago

Thanks for the comment Andrew! We've definitely noticed that the properties and owners with the most 5 star reviews aren't owners with multi-million dollar properties. A 5 star review is earned from a property and owner meeting the expectations as displayed in the listing on Airbnb or HomeAway, etc.

dannydanny
3 months ago

Brilliant comment @johnmakro, this should be a blog post in itself. You clearly have a good grasp on the business of vacation rentals.

In regards to delivering the service, instead of simply meeting requirements described in the listing, going above and beyond can lead to repeat bookings. I few ways I can think to do this are:

  • Guest communication (emails, texts) before, during & after the stay offering goodies, tips & more (this opens the door to communication in the future).
  • Welcoming guests with a bottle of wine & chocolates
  • Sending an automated postcard (photo of holiday home) after the guest have left, with a personalised message

I also saw another post another post on Smarthosts about this: Create Unforgettable Impressions on Your Renters.

dannydanny
3 months ago

Great article @SeanConway, easy to understand for beginners.

On another note, I was flabbergasted to hear that 30-40% of people said they wouldn't have travelled if it weren't for Airbnb! That was back in 2015. I wonder what the statistics are now?

I think I'll have to post that as a separate article!

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