Since its inception in 2008, Airbnb has seen phenomenal expansion. More than 5 million postings are already available on the home-sharing website all around the globe, the vast majority of which are single-family homes and investment properties. If you have been considering adding your house to the site, doing so can be a good idea since it allows you to increase your yearly income while using a property you already own.
However, there are certain disadvantages associated with becoming a host on Airbnb. Be sure to carefully consider the benefits and drawbacks of hosting guests in your home and the benefits and drawbacks of hosting guests via Airbnb before making any rash decisions.
Benefits of Renting Out Your Property Through Airbnb
Listing your house on the Airbnb website may bring in more revenue, which is likely the primary advantage of doing so. In addition, the website gives you the authority to choose your own prices and modify them in any way you see proper. There is also a program called "Smart Pricing" that considers the area's demand and may assist you in determining the appropriate total.
There are no expensive sign-up fees or monthly dues to pay to become a member of the site; in addition, listing your house on the website is free of charge. You create a listing, decide on a price, and then other people may stay at your property.
Additionally, hosting on Airbnb provides a great deal of freedom. You are not forced to be a host at all times, and you have the freedom to choose the days of the week on which you will make yourself available to possible visitors. You can also synchronize your listing with an already existing calendar to ensure that it corresponds with how you personally want to spend your time. You also can set your own house rules and decide how much (or how little) of your home you want other people to share with them. You may share the full house with someone, simply a single bedroom or the garage apartment, whichever works best for your circumstances.
Drawbacks of Sharing Your Home on Airbnb
Naturally, renting out your space on Airbnb has a few negatives you should be aware of. To begin, it's possible that you need more coverage for your house. It's possible that you want it to safeguard you against the possibility of damage or theft (at the hands of your Airbnb visitors), or in certain instances, your homeowner's insurance policy may mandate that you have it. At the absolute least, you should inform your insurance company that you will be holding an event.
There is also the possibility that you will violate the regulations of your local municipality as well as the rules of your homeowner's association. The practice of short-term rentals, as well as the use of properties for what the HOA regards as commercial purposes, is often prohibited by HOAs. In addition, several places, such as New York, have prohibited or placed stringent limitations on rentals for a limited period. In other places, such as Las Vegas, you need to get a license before you may use your house for this purpose.
Lastly, one must also take into account the associated expenditures. You will be responsible for paying a service charge for each visitor you book, in addition to the costs related to the cleaning and maintenance of the house. This cost is often somewhere around 3 percent.
What We Like
- It does not cost anything to market your house.
- You can choose your prices.
- There is some leeway in the scheduling.
- You can make price adjustments as necessary.
- It caters to a very large clientele.
- You can evaluate visitors and make comments.
- There is a limited amount of protection against damage is provided.
- The Superhost program may assist you in increasing both your earnings and the number of visitors you have.
What We Don't Like
You may need supplemental insurance to safeguard yourself,
Home-sharing is permitted in some but not all HOAs.
It's possible that your municipality or county won't let you.
- Hosts pay a service fee for every booking
There are several alternative platforms to Airbnb that you might use to market your property if you find that Airbnb does not work for you. One of the most prominent is VRBO, which has a site called HomeAway.com as a partner. Other options include:
- Booking.com
- Vacasa
- FlipKey
- Homestay
- Wimdu
- Inclusive
