Before making a final decision to host on Airbnb there are a number of additional issues to consider:

 

Do You Want to Start a Business?

 

Starting an Airbnb business is like starting any business—you need desire, entrepreneurial spirit, and the willingness to put in the effort required, starting with doing the necessary background research and making a business plan.

 

Do You Have the Time?

 

If you are a busy person like us that runs a house painting contractor in Massachusetts and a print on demand shop all across US. Being a landlord here in Philipp can take a great deal of time, particularly for short-term rentals. You will need to: ​

• manage your bookings and respond to communications with potential renters

• arrange to meet guests to hand out or collect keys

• make sure that the property is thoroughly cleaned and prepared for guest arrival, including fresh linens, breakfast supplies (if applicable)

• handle any property maintenance issues such as pest control and plumbing, electrical, and appliance repairs

• be available to your guests on a 24x7 basis in case any issues arise with the property

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Demand: Tourist demand is the determining factor in the popularity and price of rental accommodation. The highest rental return locations are:

in sought-after visitor destinations where hotel prices are high (popular neighborhoods rank higher on Airbnb searches)  

centrally located, close to tourist sites, shops, and public transit

feature scenic views and amenities such as balconies, parking, etc.

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Seasonality: In a northern climate demand for your property will likely fall off dramatically in winter (unless you are renting a ski chalet). Conversely, demand for rental accommodation in warmer southern locations (such as Arizona) drops off heavily in summer.

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What Are Your Financial Goals?

 

Are you looking to make a little money on the side or generate steady income? The financial section of your business plan should reflect the research on the target market and realistic estimates of the potential revenue from renting your property. Income from an Airbnb rental depends on:

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Before you entertain thoughts of quitting your job and making a living by running an Airbnb business make sure you carefully research the income potential of your property by looking at the rental rates and booking frequency for comparable Airbnb listings in your area.

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Additional Costs: Aside from the booking fees that Airbnb charges there are additional costs associated with hosting on Airbnb, including:

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Insurance: Normal homeowner's insurance policies do not cover the use of the premises for business purposes, which includes renting on Airbnb.

 

In the U.S., Canada, U.K., and several other countries Airbnb provides a free Host Protection Insurance program which provides up to $1 million coverage against bodily injury or property damage.

 

If your locale is not covered by Airbnb insurance contact an insurance agent to see about proper coverage. 

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Business Licenses: More and more cities are requiring Airbnb hosts to hold a business license.

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Cleaning and Repair: To keep your Airbnb host rating at a high level you need to maintain your rental property in top shape at all times, which means thorough cleaning between guest visits and regular maintenance. If you need to subcontract cleaning and maintenance tasks the costs will add to your expenses.