Here we share our Airbnb hosting pros and cons guide including the reasons for and against, why it’s worth becoming a host, and how much should be charged for your rental.
Travel has become a commodity that almost anyone can pay for today and with the world opening up, even homes have started opening their doors to opportunities.
And that’s how Airbnb was able to establish its market and connect to homeowners willing to rent their properties for the short-term stay of tourists.
With over 4 million lodging listings across 65,000 cities within 191 countries, Airbnb, in its 14 offices, was able to track more than 260 million check-ins worldwide with London, New York, and Paris leading the destinations.
Are you also thinking about renting out your own property to Airbnb? To decide whether you can reap the benefits of the app more than the hassles that come with it, weigh the pros and cons of registering your home to the app.
Airbnb Hosting Pros
Airbnb is a good opportunity for many homeowners around the world. Hosts benefit from several advantages that make Airbnb a tempting offer.
Potential Extra Money & Income
Money is always a good motivator and Airbnb offers an incredible chance to earn extra money. Airbnb gives you the power to market your property in the best way possible, setting your own price and adjusting it as needed and wanted.
You will have the control to strategize in terms of price, changing it during holidays and peak seasons. This can be a good way to generate additional revenue for homeowners.
How much do Airbnb hosts make?: The income that Airbnb hosts earn depends on several factors, including the condition and location of the property. Positive reviews can even affect how guests view your property.
Airbnb hosts can make an average of $924 every month with the majority of hosts earning around $400 monthly. This means depending on the price of the property and its appeal to guests and tourists you could earn as low as $99 per month or as high as over $2000 per month on average depending on your area.
Convenience & Flexibility of the App
The Airbnb app offers hosts flexibility in many ways when renting out their properties. Here are several factors you can adjust with your property rental.
The property you are renting out can easily be tagged as unavailable whenever needed. You have the control to block dates on the calendar whenever you are not available for these dates or you have family and friends coming over. In case your property needs repair or renovation, you can also use this feature to your advantage.
The price of your property rental can also be easily adjusted. You can adjust the prices for different reasons, including the following:
• Completed renovation and improvement in the property
• Change in the seasons (Peak and downtime)
• Marketing strategy and promos
Proper Screening of Guests
Compared to normal guests in hotels and lodges, Airbnb gives you the chance to screen and review guests to protect yourself. You have the prerogative to approve the guests you deem trustworthy enough to use your property.
Airbnb offers insurance in the form of a safety net in case guests damage your property and something horrible happens. Your property is insured by Airbnb’s Host Guarantee Program.
This program offers up to $1 million as damage protection for the property, which may or may not include artwork, pets, jewelry, expensive types of furniture styles, and even cash.
Convenient & Easy Management
The Airbnb app is easy to use and convenient for the hosts. Airbnb does a lot of work and makes sure that hosts are assisted in any way possible, which include the following:
• Easy syncing of your personal calendar with your listing
• Affordable advertising of your property
• Built-in booking management
• Built-in payment system
• Easy and simple communication between hosts and guests
Good Potential Return on Investment
With the travel industry on the rise and the growing property rental market, being in Airbnb is a good opportunity to invest in. The quicker you establish a good reputation for your property, the more established you will be in the app.
Cultural Exposure and Experiences
Having guests to rent on your property will open you up to new experiences and expose you to different cultures. Different people all over the world can serve as your guests and you will be able to meet and have fun with interesting people.
Airbnb Hosting Cons
If you really want to know what you’re in for when registering for Airbnb, here are the disadvantages and challenges you might face.
Possible Property Damage
Opening your home to guests means that you also open your property to possible damages. While this might be the biggest risk in joining Airbnb, your property is insured but only for up to $1 million.
Hosting Is Difficult
Airbnb hosting takes work and effort, which will demand your energy and time. While the app offers an enormous convenience, you will still need to do something for your investment, including:
• Responding to guest queries
• Maintaining high-quality aesthetics in the property
• Clean up after the guests leave
Like some investments and ventures, being an Airbnb host also means there are uncertainties. First, the income is not fixed monthly since it depends on your property’s performance. Your income can be sporadic and unpredictable, especially with low and peak seasons.
There are also unforeseen circumstances that come with inviting guests (strangers) to your home for a couple of days. Guests can cause problems, even with thorough screening, like clogged bathrooms, broken appliances, or discovering water damage under kitchen cabinets.
Being an Airbnb host means you have less freedom, especially when it comes to your personal time. From checking in and checking out guests to cleaning up right after your guests’ stay, you need to give your time to host them. You will also need to open your lines as much time as possible in order to communicate with guests.
Can be Subjected to Bad Reviews
As the saying goes, you can’t please anyone. This also goes with being an Airbnb host and renting your property out.
Expect the possibility of being subjected to bad reviews but take them as a challenge to improve your services or find the best ways to add value to your home rental property.
Certain Areas are Banning Airbnb Properties
There are many areas where due to numerous complaints from the people in the neighborhoods, police activity and disruptions that local politicians have decided to limit Airbnb use. This could mean that in the future a property purchased as an Airbnb may be limited which is a risk.
Is It Worth Being An Airbnb Host?
With the pros and cons of being an Airbnb host, is the work worth the benefits you can get from it? If you want extra earnings and have an idle property somewhere, this is definitely worth a shot.
Before you go ahead and register though, make sure you have the time, energy, and resources to be an outstanding Airbnb host. Read more about our Airbnb host checklist to see some of the amenities an essential items needed to be a successful rental host.
How Much Does Airbnb Charge Hosts
If you need more information before deciding on being an Airbnb host, learn about the charges that you need to deal with. Check out these charges and decide if you can live with them or you don’t want to deal with them.
The flat service fee of Airbnb is 3% of the booking subtotal (nightly rate+cleaning fee+additional guest fee). Guests would be responsible for 14% of the booking subtotal.
The flat service fee is used by Airbnb to help hosts with their transactions, from the 24/7 customer support to Airbnb’s Host Guarantee Program.
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