Until 2020 short term rentals was one easy way to make good returns into which many people got via running the business of Airbnbs without actually owning any landed property!
Airbnb has shown to generate about 250% more income as opposed to usual leasing, as per Travelandleisure.
Sadly things are not quite the way they used to be! As stated by Towards Data Science Airbnb hosts have lost an average USD 16500 in the year 2020, although this is mainly due to Covid 19, butis a loss and the rebound may yet take some time to recover.
Here are some great action able measures to make money via an Airbnb without actually owning any real estate!Don’t believe me? Well, here’s why you should listen to me!
I started with just a couple of Airbnbs almost a decade ago, and today I am a partner in a company operating over 100+ Airbnb's across two countries. Success from the business has also helped me start an innovative technology company that enables Airbnb hosts to generate wealth merely from their rental business.
5 key takeaways to generate revenue from Airbnb without actually owning any property
#1 Why only Airbnb?
Airbnb is undisputedly one of the best travel portal sites, but, is it the only one? Well, no! As a host you should be open to various sources of getting bookings by setting up your property on other online travel websites like Booking.com Homeaway, Tripadvisor etc. This not only ensures adiverse web presence but, also ensures that you get the maximum number of bookings.
Not all potential visitor suse AirBNB to make bookings and might be able to reach out to you via other major platforms too. So, you should understand that Airbnb only commands a fraction of the booking market. Using other booking platforms and marketing thoroughly via social media channels will certainly help amplify your bookings,and keep your cash register ringing!
#2 Study your target audience!
One major highlight of targeting the right audience is to study the segment dynamics! Some locations have a year round tourist footfall while others favor a seasonal demand. If your property is at a place that attracts seasonal visitors, play dynamic! Go ahead in constructing a space that can be converted to an office space in the off season, while a guest house/ hotel during peak season. Property selection is vital and you cannot select the property first then see who will be your target client. Actually, it's the other way round. So, on the basis of your clientele, you have to decide on the type of property, the service, the décor and everything else!
Airbnb Hosts shell out about 10%-20% commission to various online traveling portals, but then it is crucial to charge your guests true, not whatever you think are right! One way to get along well with this aspect is to study various other properties in your locality so as to provide a fair deal of the services offered.
#3 Be Different!
To gain consideration and survive in the long run, learn to separate yourself from the struggle!
For an instance, openup something in a classy and posh neighborhood, ensuring your rental remains to be lower than what the current market rate offers, which can widely be accomplished by working on cost cutting mechanisms.
While considering setting up a high rental property, then the probable returns must be studied in the given locality. Not all regions support high-paying customers and many times are even known for affordable residence options. Hence, such a risk of investing in high rental properties should only be worthy if it attracts easy returns.
A few must do’s to establish your Airbnb brand
A) Be Professional:Always under-promise and over-deliver. If you can have your guests’ rate you well you will always have an assured stream of income. Be specific in your service and make your guests happy.
B) Personalized experience:Hosts who highlight the features of their location, such as nearby activities and types of experiences that the guest could have there, are likely to gain more attention than those who simply list the property details.
C) Be Prompt:Responding quickly is essential for creating the best experience for your guests and can also reduce the chances of potential guests booking somewhere else.
#4 Adapt to Post-CovidWorld
Post Covid-19 pandemic, home-stay business is going to flourish on account of reduced disposable income and need for individual space and privacy.
Consumers' main focus while making future bookings is going to be flexibility. As the assurance of getting through a successful trip is going to be lower than ever, therefore,cancellation policies will have to be improved with offers like free cancellations and related amendments.
Records from Phocus Wire demonstrates that the average booking length has actually gone up, whereas the number of bookings has gone down. So longer term bookings are more likely to happen in the post-covid world, wherein flexible pricing and relaxed cancellation policy will be the key to business gains!
#5 Technology for cost-cutting
As has been discussed,to master cost-cutting and efficiency, powerful technology tools should be utilized to the max. In order to do that you must embrace technology and use its martly!
A multi-dimensional Property management System and a direct booking website that lets your guestbook direct can really prove to be essential to building up the business of your dreams! According to the balance smb, cutting manpower costs in a vacation rental business is one of the keys to success.
Therefore, with an efficient management software, tasks like ordering, up selling and handling guest grievance scan be automated giving you the freedom to enjoy the things you really like doing.
There are numerous firms offering tailor made products and services for new and upcoming hosts.Make sure to understand what you are getting into, partnering with a solid tech company can make or break your business. That’s the reason I started Nodal Direct, a travel technology company that will help you build a successful Airbnb business without actually owning any property!