As the holiday season approaches, many home-owners are keen to find extra ways to earn some much-needed additional income.
And with much media about Airbnb, there are an increasing number of property owners exploring their options.
But before you jump into what can be very murky waters, it’s important to understand the risks – as well as the potential benefits.
If you are considering letting strangers into your home, taking steps to protect your most valuable financial asset – your home or investment property – is critical.
Extra Income Opportunity
In San Francisco, Airbnb statistics reveal that around 56% of hosts claim to use the additional income to pay towards mortgage debt or rent.
If you’re hoping to do the same, try these practical tips:
1. Clear Communication
Be honest. If your swimming pool is really a small spa, it’s important to make that clear.
And your convenient washer and dryer? If they’re really in a shared laundry at your apartment complex, it’s vital that your listing reflects the truth. Not only will it help attract the right tenant, it will also help make your temporary tenant feel happy in your home. If they are happy to be there, they are more likely to look after your property.
2. The Ideal Hotel Host
Hosting an Airbnb home takes some care.
And for good reviews that will keep others coming back? Don’t skimp on essential amenities.
Without Wifi, these days, your home doesn’t stand a chance. Be prepared to provide the password so visitors to your home can access their online worlds – even easier to post your property a positive review.
Offering fresh towels is also vital.
Car spaces and free parking is another bonus for would-be holidayers in your home.
Other specific offerings, such as an ironing board, can help make that business trip to your city or town run smoothly for your guest – after all, nobody likes being out and about with crumpled clothing.
3. Time is Money
If this is an important income stream for you, treat it like a business and run it professionally. By managing your calendar well, you can keep vacancies to a minimum – and that means more guests and more money for your mortgage. Potential guests get very frustrated if they see calendars that haven’t been properly updated. Invest the time in maintaining yours for the best possible Airbnb success. It’s not just manners – it’s marketing. The less guests you decline, the higher up on the Airbnb search listing your property will appear.
Remember – Airbnb isn’t for everyone. Before considering offering your own home as a potential rental, become a tenant to someone else’s Airbnb listing to see how they do it. Also, it’s smart to talk to your accountant about tax implications – and some advice from a professional insurance specialist will make sure you’re property protected.
If you need advice for a personal loan, home loan, business or commercial loan, self-managed super fund loan, or an investment home loan, speak to a broker at Lending Specialists. We have a wealth of experience under our belt and a robust network to connect you to the right industry professional for the loan you need.