Top 3 Reasons to Start Hosting With AirBnb
Airbnb started out back in 2008 as an online lodging marketplace and has effectively become one of the biggest competitors for hotels around.
The beauty of Airbnb is that any homeowner can turn their property into a mini motel. You don’t need much to get started either, except for a little bit of capital.
The sharing economy is still quite young, though with the number of side hustlers growing every day, Airbnb offers homeowners a way to make a bit of extra cash on the side.
Let’s look at the top 3 reasons why you might consider hosting with Airbnb.
High Potential For Revenue
When you look at the monthly revenue that comes from a standard Airbnb minus cleaning costs, mortgage, supply costs, and other factors, it looks pretty positive.
Compare the potential of a short-term rental to that of long-term rental and you can see that short-term rental yield revenue that is significantly higher. If you know how to operate an Airbnb business correctly, you’ll be able to bring in far more than you would be able to with a traditional, long-term lease.
Less Damage and Property Wear
Short-term rentals result in significantly less property damage and wear over time compared to traditional, long-term leases. The reason for this is that you are in a constant state of turning your property over to the next person.
Any damage that is done during one short-term stay should be identified immediately. You can then sort out the cost of that damage with the last guest. Plus, guests don’t stay nearly long enough to inflict serious or sustained property damage. Just think about bathrooms that acquire mold because tenants don’t utilize vents or floors that gain an extra layer of grime because tenants never mop.
Small damage is settled between the short-term renter and the host using the Host Guarantee feature that comes with the Airbnb platform.
Lower Variance Revenue
One of the biggest misconceptions of becoming an Airbnb host is that there is a lot of risks involved, especially in the first few months when you’re trying to break even.
The thing is, short-term rentals have a much lower variance compared to traditional, long-term leases. Think about it this way. The average renter is not going to fluctuate throughout the year if your listing is priced correctly.
If you are using a traditional lease and you are unable to rent out your property for even a month, you are losing out on a ton of income. If you can’t book out your Airbnb for a month, you might only lose out on around 10% of your revenue, which isn’t the end of the world.
We hope that this article has convinced you that becoming an Airbnb host might just be the best decision you ever made with your property. The sharing economy is one that will continue to grow as time moves forward and the best time to get in is now.
If you have any other questions regarding property rental or Airbnb, make sure to get in touch with us here at National Cash Offer.