You earnings are only one of the many benefits of being an Airbnb host and if you want to maximize your earnings, there are several steps you can take. We’re going to focus on hosts that are intending to become hosts – whether for a part of their home or intending to rent/buy a place for Airbnb purposes – as well as hosts that are currently hosting.
First, consider the location and size of your property. Properties in popular tourist destinations and city centers tend to have higher demand and higher nightly rates, so if you have a property in a prime location, you may be able to earn more. Additionally, larger properties, such as entire homes or apartments, tend to have higher occupancy rates and higher nightly rates than smaller properties, such as private rooms. However, you will have to weigh the cost of these properties in relation to your budget and financing capabilities if you are intending to purchase it. In cities where the cost to purchase is completely out of proportion to the rental income, I prefer to rent those properties and sublet them.
Second, consider the amenities and features you offer. Airbnb guests are often looking for unique and memorable experiences, so if you have special amenities or features, such as a hot tub, a pool, or a stunning view, you may be able to charge a higher rate for your listing. I tend to only take listings that have some sort of wow factor – as I like my properties to sell themselves and my Superhost status and reviews to sell me as a close second. Additionally, offering basic amenities, such as clean linen and towels, a well-equipped kitchen, and fast Wi-Fi, can also help increase your occupancy and nightly rate.
Third, consider the price you set for your listing. Pricing your property competitively can help attract guests and increase your occupancy rate, but setting your price too low can also limit your earnings. To determine the right price for your listing, consider the market demand and prices for similar properties in your area, as well as the amenities and features you offer. When you launch, price yourself under the competition to lock in those bookings and get some great reviews. This will set you up for success on the Airbnb platform.
Once you have the above in place, the next steps to maximising your income are as follows:
Firstly, to become and remain a Superhost. This will by far serve you the best. I’ve seen figures ranging from 22-60% in increased revenue between Superhosts and regular hosts. I’ve been one for the last decade and my places currently run at 90%+ occupancy at great rates, so I’m all for it. And the only way to be a Superhost, is to give great service and put your guest, and not your profits, first. This strategy continues to serve my pockets well and it’s a win-win for both me and my guests.
Secondly, start increasing that occupancy rate. There are many ways to do this, from taking direct bookings, to listing on other platforms and some other magic that will make the algorithm favour you more. But focus on getting it higher over time.
Thirdly, offer your guests more services. Some hosts charge for early and late checkouts (I don’t for early checkouts, but I do for late checkouts where I cannot accept another booking) and others provide services for their guests, like stocking up the pantry and fridge so they arrive to a home ready to live in as opposed to having to hit the grocery store on arrival. There are a myriad of ways to make extra revenue in the hosting game and you need to decide which ones are worth your time and which ones are simply not worth the effort.
Lastly, the final way to maximise your total earnings, is to get more properties. This usually comes with more admin and effort, but there are tried and tested ways to reduce this to only a few hours a week, whilst still keeping most of the profits.
There you have it! A number of ways for you to maximise your earnings as a future or current host.
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