Airbnb in Windsor and other towns throughout Essex County has become more and more popular. Renting out your house on a peer-to-peer marketplace like Airbnb may seem like an easy way to earn extra cash, but being prepared is the key to success. Make sure you’re ready to handle the worst case scenario so you can maximize your profitability and minimize your risk along the way.
Know Your Options
While Airbnb is certainly a great place to start, there are a decent number of other options that you may want to consider listing with as well. Each uses a different process and focuses on different aspects of the consumer so do your research in advance.
Understand The Legalities
More often than not, the websites you want to list your property on don’t have any hyper local policies. Take the time to brush up on local laws to ensure that you don’t cut any corners and open yourself up to lawsuits or fines. Better to be safe than sorry!
Factor In Time Commitments
HomeAway estimates that people with a vacation home spend an average of 8.4 hours every week trying to market and manage it. In some cases you’ll have just a few hours between a departure and arrival to turn over the space. You can use a reliable cleaning service to help you out but keep mind that it’ll eat into your profits. Going the more affordable DIY route, means that you’ll need to have flexibility in your schedule to complete the task. Plus, don’t forget that you’ll have to stay connected to your phone and email to answer inquiries about the space and answer questions for current guests.
Consider Ongoing Expenses
You’ll definitely have lots of start-up costs at the beginning, but the real expenses come in the form of an ongoing stream of consumables (think soap, cleaning supplies, and toilet paper) plus covering the cost of rising utility bills. Save money and time by buying items in bulk and take the time to analyze an appropriate cleaning fee to offset some of those costs.
Just because you can name your price within the market, doesn’t mean that anything goes. Make sure to check local competition as well as nearby hotels and hostels to get a sense of the price range in your area. Over time, pay attention to your occupancy rate. If you’re always at 100 percent occupancy, your price may be too low.
Have you ever rated your property on a peer-to-peer marketplace like Airbnb? Share your stories and tips with us in the comments below!