How to Start an Airbnb
Airbnb has only been with us since 2008, but over the last few years, it’s turned over a million people into entrepreneurs.
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Creating a Unique Airbnb Business
When it comes to starting an Airbnb business, you want to make sure that your property and listings are unique, so you can attract customers. You can do this by highlighting certain aspects in your listings:
Get a professional to photograph your property, so it’s portrayed in the best way
Invest in making your property look good, with a fresh coat of paint, new furniture and a deep clean
Highlight anything unique about the property, like original features or unusual facilities
Show how close you are to public transport, local points of interest and restaurants
Maintain a listing that gets good reviews from guests and builds trust
Validating Your Airbnb Business
Getting started in an Airbnb business is easy, but becoming a success is harder. Before committing too much time, energy and money into your new Airbnb business, it’s important to test the marketplace.
Identify your Airbnb business’s unique selling points (USPs)
We’ve covered some key points on how to differentiate your listings above, but it’s important to reiterate: If you want your Airbnb business to be a success, you do need to stand out.
Look at who your competitors are in the space
Having competitors is a good thing as it shows there’s a market, but you want to avoid too much competition. Look at how many other hosts are providing accommodation close to your location, and see how they position their listings and prices.
Understand your market
You might want to target your listings to a particular type of guest, so if you know there’s a market, make sure your accommodation reflects what might be of value to them. For example, younger people might want vibrant nightlife and a very modern place to stay, while older people could want more peace and quiet, with natural outside space.
Get involved with business communities and discussion groups
One of the great things about Airbnb business is that there are plenty of great communities and discussion groups. Get involved in them and learn the ins and outs of your chosen market before committing.
Your Airbnb Business Needs a Business Plan
You might not think you need a business plan for your Airbnb business—after all, if you’re getting guests through Airbnb, and they’re paying, you don’t need a business plan, right? Wrong.
Why You Need a Business Plan?
You need to define how you’re going to run your Airbnb business, market your property, get sales, make a profit and grow. This can only come about through creating a watertight business plan. It will help you get your thinking in order and show your commitment to your Airbnb business.
You will also need to look at financial projections for your Airbnb business. What are your expected booking revenues? How much is it costing you to buy and maintain the property? What is your profitability? How much money will you keep in the business to grow it? How much will you pay yourself and others?
Business plans do vary slightly, but they should all cover the following areas:
An executive summary with the most important points from your business plan
Your goals and what you hope to achieve with your Airbnb business
A description of your business, background information and context
A market analysis and likely demand
An overview of how your business is structured
Your business model
How you will market and sell your offerings
Financial projections, revenue and profitability
Appendices
We’ve got the perfect guide to writing your business plan.
Right
Business
Structure
Setting up Your Airbnb Business Operations
Once you've legally created your Airbnb business you’ll need to get some other things in place.
Finance
Location of your Airbnb Business
Equipment for Your Airbnb Business
Employees
Software and Processes
The Complete "Start Your Business" Checklist
A Clear and Comprehensive Guide to Starting Your Business the Right Way
Rules, Regulations, and Licenses for Airbnbs
Even though you’re running an Airbnb business, you can’t escape real-world licenses, permits and regulations. You will need to explore local, state and federal licenses and permits, and we can also help out with researching your business licensing needs.
It’s also very important to consider local zoning laws, ordinances and permits. Some municipalities don’t allow just anyone to set themselves up as an Airbnb host, and if you do, you could be fined. Check with your local and regional authorities what their requirements are for Airbnb hosts.
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Airbnb Taxes
Taxes are a fact of life if you’re in business, and there are various ways you will need to file and pay them. This can include self-employment tax, state income tax and federal income tax. Depending on where and how you’re selling products and services, you may also be liable for sales and use tax.
As a rule of thumb, we recommend keeping back around a third of your earnings to pay your taxes. We can even prepare and file your tax returns for you
Maintaining Your Airbnb Business
There are certain forms and legalities you need to follow to keep your Airbnb business in good standing.
File an Annual Report
Pay estimated taxes
Renew Business Permits and Licenses
File your taxes
Pay payroll and sales taxes
Get Insured
Insurance for Your Airbnb Business
Most Airbnb businesses should have comprehensive business insurance. There are various types.
Workers Compensation Insurance
General Liability Insurance
Home and Auto Insurance
Groups and Forums for Airbnb Owners
Here are some useful places where you can connect with other Airbnb entrepreneurs.
Useful Online Tools for Your Airbnb Business
The right software and apps will make it much easier to run your Airbnb business. Here are our recommendations for some of the best tools out there to make business operations a breeze.
Collaboration
Social Media Management
Communication
Email Marketing
Advertising
Customer Relationship Management (CRM)
Customer Support
Human Resources
Website Development
Analytics
Hiring
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Are You Ready to Start an Airbnb?
If you have an extra room, or a whole property you want to rent out, Airbnb makes it easy. If you can create great listings, build positive reviews, understand your competitors and put together a solid business plan, you will have every chance for success