Only 10% of Real Estate Agent Succeed not Quitting Airbnb
Ever wonder why someone would discontinue renting out their homes on Airbnb given how popular the site has been for so long? But is there already a drop in the number of active hosts who advertise their properties on Airbnb?
If not, why would they give up on Airbnb after having the potential to earn so much money? We won’t get sucked by the hype, so here are 10 things to watch out for if you want to continue hosting your rentals on Airbnb.
There are ten things you should be aware of:
Taking too Long to Reach Profitability
This next Point goes together with the previous one. A major reason people stop hosting is not being able to break even and pay their mortgage before venturing into Airbnb you as a host must calculate how long it will take you to break even and start making profits.
You use your Capital to lease furnish and make repairs, you have to know how long it will be before you regain what you’ve spent. If you can’t break even you’ll just have to either quit or run at a loss. You could start from pricing to know how long it will be. Using a website you can get an estimate of how long it would take and if your lease period will allow for profits.
Immediate Repairs
We start with the reason in the host control, though mostly temporary repairs to Airbnb homes can take a lot of time and will surely affect your booking calendar. Forcing you to stop hosting as repairs are going on, it’s a wise move because it is better to sacrifice those few days weeks or even months making repairs then to strain the home over that period.
In the long run the house deteriorates and so does the number of bookings and reviews, it will also affect your pricing if you don’t repair it as nobody will pay the normal price for a deteriorating rental. This is one of the major reasons people stop hosting temporarily to get repairs done.
Restricting Hosting to Nearby Homes
Your prices depend on the particular area and season you are in if you have no clue what the price and occupancy rates in your ZIP code or your area are then you cannot gauge how much profit you could be making.
The more your area of residence allows for good prices the quicker you get to break even and make profits. If you don’t familiarize yourself with other price rates in various neighboring areas you might as well run at a loss or not make as much as you should during certain seasons. In the long run it all comes crashing down when you limit your hosting to one particular area forever and always.
Punishing Visitors who Violate the Events and Party Policy
Now all the previous reasons were based on the hosts now let’s talk about the reasons based on the guests.
Airbnb has an event and party policy guests must comply with them, they get financially fined if such a policy is broken but if the event was let’s say a rave and some parts of your housing units are destroyed by the guests or whoever took part in the event you’ll have to spend a ton of money on repairs.
I’d advise that for Furnishing your homes do not spend too much if the unit gets damaged by a guest it will still require a lot to repair. Most people stop hosting because guests damage their units and with their financial status they can’t afford repairs and replacements.
READ : Tips for a Successful Airbnb Host at 40
Serious Individual Illness
Another major reason that stems from the host as a host if you have a serious illness be it contagious or life-threatening it is safer for you to stop accepting bookings if you have no one to host and manage in your place. Airbnb is a lucrative Niche but it requires a lot of time and commitment.
If you can’t afford to be stressed or if it’s contagious for the safety of you and your guests it’s best that you suspend hosting till you’re fully recuperated. Giving guests illnesses to take home won’t leave you a good review now would it.
Too many negative reviews
Speaking of reviews another reason why people stop hosting is the rate of bad reviews they get getting bad reviews can be very discouraging for Airbnb hosts now this might not be enough to discourage you and make you quit.
But it has made plenty of others give up for those who have strong mental fortitude even if you don’t get discouraged by the low reviews when you have so many low reviews and you find yourself in the bottom one percent of Airbnb reviews your host account might just be closed. Then you lose the power to host your home or any other space on Airbnb.
Not Being Able to Make Mortgage Payments
If you’re renting a space to host on Airbnb this is something you should pay attention to, most people have to quit Airbnb and run at a loss because they weren’t able to make enough money to pay their mortgage for the hosting home.
Venturing into Airbnb you have to be ready to make enough to offset the mortgage and still make profit for whatever time frame you leased for a month, six months a year or two make sure to factor in your mortgage or you’ll end up paying for it using your money and running at a loss.
Having an Event in a Congested Area
Still relating to the area if you start hosting on Airbnb and you start with your home in a saturated area you might likely be headed to a quick end as most people would not go for newbies.
When there are hosts with loads of good reviews. The Marketplace place might not be accepting and you end up getting little or no bookings at all. It’s not only starters who have issues in such areas experience hosts also do as well.
In a highly crowded area the number of bookings you get in a day or a week can be overwhelming and lead to a lot of cancellations. Which is another reason why most people quit to help with this get yourself a channel manager so you can plan your schedules and calendar to accommodate most of the bookings you possibly can.
If your schedule isn’t in order you might as well end up flustered and have no choice but to cancel bookings and get bad reviews. Not to mention no bookings and too many cancellations can both result in your Hosting account being blocked.
Overstaying visitors who don’t pay
Hosting guests who decide to overstay and do not pay for the overtime can be frustrating. Aside from being frustrated they actually waste your time as well as your money because they distort your calendars.
Having such guests can force you to stop hosting both temporarily and permanently, in the sense that you’ll have to stop accepting bookings till you can get them to leave after losing time and money. If your schedule is tight and important for your financial balance the guests overstaying can stall your journey even leading to a crash.
Visitors with no Background Checks
As a host before people book your home for rent they run a background check on you it’s also very important for you as a host to do the same.
It not only helps you to give the best experience to guests and get reviews but it helps you know how responsible the guests you are letting into your home is, knowing this assures you that the guest might not cause any unnecessary damage or fuss for the time he or she is staying.
Accepting a booking without running any background on who the guests are or what they are like and why their booking can be dangerous to your hosting Journey, your reviews and even your life.
A lot of people have stopped hosting due to Trauma from hosting other guests posting dangerous sick or allergic individuals without knowing who you’re hosting can be dangerous. Imagine hosting someone allergic to fur of any kind and your home is furnished with fur material or someone who’s sick with a contagious illness.
It can be very dangerous for both the guests and you as the host. In the first case the allergy might result in a fatal situation putting you through a lot of stress and issues. For the second it would be harmful to you as you might get infected and have to quit hosting until you have finally recovered. That is if you can fully recover always do your background checks it’s not intruding on privacy it’s you being cautious and safe.
READ : How To Earn $ 3000 on AIRBNB Home AS A Single Mom
The Exact Steps For Real Estate Agent to Making Your Airbnb Buisness Successful:
It can be difficult to stay committed to running your Airbnb business for a full year. After all, it’s not easy finding time for the rentals you have and keeping them in good shape. With this quick guide, you’ll know exactly how to improve your business performance so you don’t quit before you even get started:
Decide Why you Want to Start an Airbnb Business
Before you start your Airbnb journey, you need to decide why. There are many reasons why people choose to run an Airbnb business. Some of them might be:
- Traveling as a full-time professional
- You can earn money by renting out your place for a few days every month.
- It can be a great way to earn extra cash while being flexible with your work schedule.
- Traveling as a part-time professional
- You can earn some extra money from Airbnb by renting out your home while you’re on business trips. It’s great if you’re the one with the only key to the house.
- Hosting a family vacation
- If you’re a family with a large income, you can make extra money by renting out some of your rooms. It’s a smart way to cover your expenses when you are all traveling as a unit.
Create a Solid Rental Listing
Ready your home for guests and put up a solid rental listing. That will put you well ahead of your competition and give you a head start in attracting guests to your Airbnb. Why not try this strategy to make your Airbnb more successful?
Here are some tips that can help you create a solid Airbnb rental listing: – Clean your place before you put up the rental listing
- – A dirty Airbnb place can hurt your reviews and make it difficult for potential guests to find you.
- – Put up a clear and concise Airbnb rental listing
- – Your listing should clearly state your home’s address and any rules and guidelines for your guest.
- – Improve your Airbnb photos – Make sure that your photos are high quality and not blurry. Make sure that your listing and photos have a consistent theme.
- – Establish trustworthy relationships with your guests You never know who your guests will turn out to be. You might end up having wonderful guests who become repeat customers.
So, try to establish trusted relationships with your guests. Reach out to Airbnb hosts who have positive reviews, send them messages and chat to let them know that you’re a genuine guest and interested in visiting them at their place.
Establish Clear Expectations with Your Guests
When your guests book their stay at your place, be clear about your expectations. It will save you and your guests a lot of hassle if you do it right from the beginning.
Here are some expectations that you should have for your guests:
- Make sure that your home is available for booking.
- Make sure that your booking is eligible to be accepted.
- Make sure that your guest is allowed to stay at your home.
- Make sure that your guest returns the keys to you on time.
- Make sure that your guests do not damage your home and damage the furniture.
Utilise Smart Marketing Tactics
When it comes to marketing, you need to be smart and strategic. The benefits of strategic marketing are huge, and you should consider implementing them in your Airbnb business.
Here are some marketing strategies you can use:
- Design Custom-made Stickers
- With custom stickers, you can draw attention to topics that are of interest to tourists.
- Create a Listing with High-quality Photos
- Great Airbnb photos let your guests know what they’re getting into. It also give you a chance to highlight your home’s features or decor.
- Create a Listing that Includes a Message
- Let your guests know why they should stay with you and what they can expect from their stay.
- Host Mixers
- Host mixers are when you invite other Airbnb hosts to your place.
- Use Guest Exclusives
- If you have something exclusive to offer, you can offer a guest exclusive.
- Create an Airbnb Guest Newsletter
- Make your newsletter really detailed and helpful for your guests.
- Use Airbnb for Business
- If you’re using Airbnb for business trips, you can also use it for marketing. You can also use it for collecting reviews and collecting bookings.
Conclusion
Airbnb is a great opportunity to make some extra money and travel while doing it. However, it can also be a challenging business to succeed in. Luckily, there are many tips and strategies available to help you succeed.
The most important thing to remember when starting an Airbnb business is to decide why you want to start one in the first place. Once you have a solid reason for starting an Airbnb business, you’ll be well on your way to a successful Airbnb journey!
Hi, I’m Susanna, a Bachelor of Engineering and founder of Entrepreneurship. With my engineering background and entrepreneurial passion, I have a unique perspective on building successful businesses. Through my career, I’ve worked with brilliant minds in tech and gained valuable experience in product development and marketing strategy.
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