5 Things You Must Know To Maximize Your Short Term Rental Revenue
Maximizing Airbnb revenue is critical for the success of property owners. Below are 5 tips to create a steady and predictable rental revenue:
A Quick Introduction to AirBnb
Thousands of investors rent an extra bedroom or even an entire home to travelers on AirBnb. The steps to list your house on Airbnb for short term renting is simple:
- Sign-up – Create a free Airbnb account
- Make a great listing – Describe your properties attributes such as number of bedroom, bathroom, unique amenities (pool, hot tub, location). Airbnb helps you through the process
- Set your price – Daily rate, monthly rates are critical to set properly. Read How much Money Can I earn on Airbnb to estimate properly
- Review – Review guest and only accept good ones
- Prepare – Thoroughly clean and inspect your property before guests arrive
- Welcome your guest – Send a welcome email, including rules of the house
- Get paid – After your guest leave, then you are automatically paid by Airbnb!
For more tips read: How to Get Started with AirBnb
Tip #1: Set a competitive Price
Setting a competitive price is the most important factor in maximizing your Airbnb revenue. To determine a good price for your listing, you can use Airbnb’s price calculator. However, in my opinion they are designed to maximize their revenue not yours.
I use PriceLab to maximize my Airbnb revenue and occupancy rates. It uses data analysis and algorithms to recommend the optimal price for a host’s listing based on factors such as:
- Location
- Property type
- Amenities –
- Seasonality
- Your base price
PriceLabs also offers features such as price automation and calendar synchronization to save hosts time and make the most of their listing
Setting a competitive price increases my booking rate and maximize Airbnb income.
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Tip #2: Adjust pricing based on seasonality and market conditions
Tools such as Pricelabs and Airdnd allow you to look at future prices and occupancy rates for your neighborhood.
In the example below, you can see an increase in pricing starting in May and lasting until early September.
Maximizing pricing requires you to balance occupancy and price. If you price too high, you may suffer lower. However, too low of a price and you may not make any profit.
Tip #3: Create an enticing listing
Airbnb is a visual marketplace for guests seeking a fun, cost effective place to stay. To entice a guest to stay at your place, use high-quality photos and a detailed description:
To make high-quality photos for your Airbnb listing, here are a few tips:
- Use at least a 6-megapixel camera: Most smartphone cameras are fine, but a digital camera will typically produce higher quality photos.
- Pay attention to lighting: Make sure the room is well-lit and avoid using flash, as it can create harsh shadows.
- Edit your photos: Use photo editing software to adjust the brightness, contrast, and saturation of your photos.
- Include multiple photos: Airbnb recommends including at least 10 photos of your space. Be sure to include photos of all of the main areas of your listing, as well as any unique features or amenities.
- Use a wide angle lens: A wide angle lens can help make small spaces look larger and more inviting.
Make sure to include all of the amenities and features of your listing in the description.
High-quality photos and a detailed description can help your listing stand out and attract more bookings.
Tip #4: Become an Airbnb Superhost
Airbnb offers a “superhost” designation to hosts who consistently receive high ratings from guests. Becoming a superhost helps you attract more bookings and get higher prices for your listing.
The requirements to become a Superhost are:
- A high overall rating: Superhosts must have an average rating of 4.8 or higher across all of their listings.
- Receiving positive reviews: Superhosts must have at least a 90% positive review rate.
- Responding quickly to inquiries and reservations: Superhosts must have a response rate of 90% or higher, and a reservation acceptance rate of 80% or higher.
- Low cancellation rate: Superhosts must have a cancellation rate of less than 5%.
- At least 10 stays or experiences in the past year: Superhosts must have hosted at least 10 stays or experiences in the past year.
Becoming a Super Host on Airbnb will change your life. Your property will stand out in a crowded marketplace, attract more bookings, and you’ll earn more money.
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Tip #5: Know your competition
Wondering why your aren’t getting much interest in your AirBnB listing as in previous years? There could be a number of reasons for fewer bookings including market saturation and pricing pressures.
Make sure that you are charging a price that is in line with similar listings in your area. You can use Airbnb’s price calculator to help determine a good price for your listing.
Closing thoughts on Maximizing AirBnb Revenue
AirBnb is a great way to generate income from a spare room or a vacation property. However, knowing how much income you can generate from your listing is critical for the success before starting. Monitoring competition is also important to maxize your revenue.
Read Next: How to Get Started With AirBnb
Bonus: Learn the exact strategies and techniques to Build an Airbnb Empire without owning property🏠
