Many hosts agree: making money is the biggest challenge you will ever encounter on BnB. The second is maintaining the revenue stream. Once you have the property and the listing, the actual work begins.
Before you can focus on continuous revenue, you should first establish your Airbnb as the top accommodation option for guests. From there, you can make improvements that will help grow your income. From making renovations to offering useful services, it is possible to increase your Airbnb income significantly.
A little reminder: it will take a lot of hard work. But with some creativity and well-informed decisions, your dedication will surely pay off.
So, how do you improve your earnings? The following steps will get you more out of your Airbnb:
- Make the property more desirable.
First things first, your home is the key to your short term rental income. Therefore, you have to put in extra effort to make it the most sought-after accommodation option available. You can spend a ton of money, but you can also go the moderate route. No simple touch-up will go unnoticed.
For instance, you can add a fresh coat of paint, install new cabinets and doors, and switch new appliances with the older ones. These efforts are guaranteed to make your home more appealing.
Bigger improvements, such as adding disabled access, installing new floors, and renovating an entire bedroom or bathroom, will keep the guests coming. Make sure you highlight these changes in your listing so that potential guests will know about them.
- Make the property more desirable.
- Mind the building ratings.
Every business always has several issues to face. In the case of BnB’s, some people have complained that residential properties are unfit for short-term accommodation. One reason is that the guests are unfamiliar with the place and the building itself. Therefore, they are exposed to potential hazards, including health risks.
As a response to these complaints, the Holiday Rental Industry Association (HRIA) published the Holiday Rental Code of Conduct in 2012. The Australian Building Codes Board also investigated the concerns to figure out whether those criticisms had merit. The main concern was on the renters’ health and safety.
The investigation’s outcome showed that Class 2 buildings were the most significant problems, particularly on fire risk. Class 2 buildings include two or more units designed for sole occupancy in a separate dwelling.
To ensure safety, the New South Wales government released a paper in 2017, which tackled different ways to have a practical approach for holiday letting in the state.
As the host, it is your responsibility to stay updated with these rules and regulations. Short-term letting in Australia mostly unregulated, which has its benefits. However, more and more guests educate themselves about Airbnb before they book. They know their rights and the hosts’ duties. Therefore, it is also your job to make sure that you abide by these rules. This way, your income will not be affected, and guests will be happy about the property as well.
- Offer top-notch services.
One of the best things about being in the Airbnb sector is that it allows you to be creative. You can personalise how you present your accommodation, which includes the services and other features you offer.
There are so many options here, ranging from simple to lavish. You can provide tokens, which travellers will be happy to receive. Small, cheap ones can be for free, but you can have better souvenirs that guests can purchase.
You can also earn with your hobbies or skills. For instance, if you are an artist, you can showcase your paint to get some extra income. However, you may want to avoid putting price tags to your work. You can simply mention it to your listing or visitors’ manual and wait for a guest to enquire.
Airport transfers and parking are two of the most desirable services. Surveys revealed the top features that guests want, which included free parking, pet-friendliness, privacy, uniqueness, and of course, airport transfers.
Other services you can offer that will increase your earnings are:
- Cooking classes
- Laundry or dry cleaning
- Tickets to upcoming local activities
- Reservations for restaurants
- Local tours
You can provide some of the services above for free. However, you can earn more if you charge a little, especially if they are hard to obtain, such as exclusive passes to concerts.
- Market the local experience.
Many guests look forward to experiencing what your city offers. It is what makes your Airbnb unique. Create these experiences by considering the interests of your guests first. For example, you can introduce foodies to the best restaurants in your town. For fans of wine and beer, encourage them to try the top distilleries and breweries around. For families with kids, give them a list of the best family-friendly attractions.
It is the best time to demonstrate your in-depth knowledge of the area. You can also provide a guidebook, which has updated details about local activities and other hotspots. These pieces of information will help make their stay memorable, giving you a chance to earn rave reviews from your guests. Of course, it also means more profits for you.
- Mind the building ratings.
- Promote your property relentlessly.
Your job of advertising your home to potential renters does not stop at posting the listing on Airbnb. Maximising your booking will help increase your net revenue and one way to achieve it is through advertising. Take advantage of different platforms, including social media and forums.
One thing in common between the top Airbnb hosts is that they do not rely solely on Airbnb to gain traffic to their listings. The trick is to make sure that your listing is visible over the web. Some of the potential renters may not have used Airbnb before. Therefore, you should be open to using other ways for them to book your property.
When you promote your listing across the web, you do not entirely rely on Airbnb to get bookings. As a result, your revenue will surely increase.
- Be wise during low season.
Peak seasons are usually the time when Airbnb properties thrive. When it is over, what are you going to do? The thought of guest numbers going down can be discouraging. However, you can still keep your profitability up even during low season.
Some methods you can apply are the following:
- Create a marketing strategy that can help you boost your bookings even on low seasons. As mentioned above, you should market the property religiously to make sure it is exposed online and via word of mouth.
- Lowering your minimum stay requirement can also help increase bookings and revenue. During busy months, two-night reservations are the most frequent minimums. When bookings get rarer, you can drop it to a one-night stay.
- You can also offer rebates. It may seem counterintuitive, but discounts are a way to increase your profits. Be strategic, however. For instance, you can only give out discounts to those who choose to stay longer than the minimum. It would help attract guests who plan to stay for an extended period.
- Choose to lower your rates. Again, this method may appear contradicting to your income goals. How can you earn when your nightly rates are lower than usual? The trick here is to decrease pricing during weekdays. It allows you to stand out from your competition. Instead of having vacancies, your home will have guests – which, of course, mean profits.
If there are any exciting activities in your area, you can also highlight them to appeal to more tourists.
- Price your home correctly.
Just like with marketing your home and gaining guests during off-seasons, you also need to be strategic when it comes to pricing. Nothing turns guests off faster than an Airbnb that charges more than what is necessary. They also compare prices, and they usually look at the most affordable ones.
However, it does not mean you have to sacrifice your income to get guests to book your property. The technique lies in pricing the accommodation correctly, which consists of the following:
- You start by studying the prices of the top listings in your town. See the average cost that attracts people.
- While extra charges will increase your revenue, they are not appealing to guests. You should not overcharge for services, such as cleaning.
- Eliminate the one-size-fits-all strategy for pricing Airbnb. Having one price does seem easy. It is also the most convenient method that property owners use. However, you could easily miss the chance to increase your overall income with this strategy. Some factors, including your location, can determine the times of the year when your property will flourish. Take advantage of those periods and customise your prices according to the influx of travellers in your area.
- Understand that demand for weekend stays is higher than weekday accommodation. You can increase the costs for Saturday and Sunday (even Friday) bookings. You do not have to worry about your Airbnb getting booked because of the price change. When there are local events, such as sports and shows, you can also hike the price up. If you know that business people are travelling to your area for a conference, you may want to increase your rental costs as well.
- Another pricing strategy is to charge less and offering discounts. It may look like you are intentionally lowering your revenue, but you get more out of your Airbnb. Guests will like to stay longer in your property, thanks to these discounts.
Your pricing strategy impacts your income, as well as the reviews you get from your guests. You can also broaden your audience. If you have set-in-stone pricing, it may be challenging to acquire different types of guests. For instance, you target mostly businesspeople. When you offer discounts, other groups, including those on a budget, may even book your home.
- Make booking easy.
A guest may have liked your listing and decided to book a room for a few nights. Unfortunately, it took longer to process the request, so moving to another option was the next best thing. Making money on Airbnb begins when the guests book your property. However, if they have difficulty in finding your rental, they certainly can’t book.
The secret is to optimise your listing with the right keywords and title. This way, when they search for their location and Airbnb, your property will appear in the results.
You may also want to list your property all-year-round. Some hosts prefer to list their homes at specific dates, such as when there is a huge event in town. While there is nothing wrong with it, they miss the chance of maximising the earnings potential of their property. If your home is vacant throughout the year, take the opportunity to earn from it. Your Airbnb is on the list while others may have decided to stop renting their homes out for a while. It gives you the opening you need to be recognised by new guests.
- Take your reviews seriously.
Another big mistake that property owners or hosts often make is underestimating their reviews from previous guests. Always encourage them to leave reviews, so you get a clue on what to improve on.
Sure, no one wants to read negative reviews, but they will give you a hint on what you lack at this time. Of course, you should not just focus on the negative ones. You should also read about the positive things that your guests say. They will tell you which part of your hosting made the experience memorable for them. You can either improve on them or leave them how they are, depending on the specific situation.
Anyone in the BnB business will have negative reviews at a certain point. They should not discourage you; instead, use them as an inspiration to do better next time.
One thing to remember is that you cannot please everyone. Some cases may be impossible for you to accommodate. Some guests will complain about a particular experience, but others will say they are fine with it. You can easily get confused. Nevertheless, you should dig deeper into these negative reviews so that you can identify the real issues.
- Promote your property relentlessly.
- Hire real property management professionals.
Property management is a considerable part of Airbnb. This sector is similar to real estate investing where you try your best to boost your income and gain a good return on your investment. You can also purchase multiple properties for the sole purpose of renting them out over a short period.
Property managers are professionals who will be responsible for increasing revenue. They will do what they do best, from improving your occupancy rate to changing the prices accordingly. You do not need to oversee your Airbnb because they will do it for you. This way, you have more time with your family or even have another job.
Hiring a property manager is preferred by those who do not want to host full-time. You could be out of the city or country frequently, so you may not have enough time in your hands. Managing an Airbnb requires your full attention; otherwise, it will not thrive. You cannot run your short-term letting business if you are often out of town.
The best thing to do is to have a reliable professional do all the necessary work for you. The property manager will handle guest enquiries, bookings, and even repairs or improvements.
At Your SuperHost, we’re the experts in property management. With years of experience running successful BnB properties, we can help you increase your revenue and make your property is working for you, contact us today!