A lot of people have tried Airbnb hosting and renting out their property as their side hustle. According to recent survey of 1000 people, about 54% of them are considering renting their own home through a service like Airbnb and 82% of them believe it is a good money strategy.
The Covid-19 pandemic has changed the way travelers view when traveling. Most of them would want to travel with a guarantee of safety. And Airbnb, which offers private lodging, is of course now becoming more attractive to travelers while on vacation.
Becoming an Airbnb host can certainly be a promising investment in the long term. But before you get started, there are a lot of things you should know to take the first step. Read more below.
What is Airbnb?
Airbnb is an online marketplace that has taken a unique approach to lodging. Airbnb connects people who offer their home as a place to stay to people looking to live in a specific location.
On Airbnb, you can find places to vacation with family, friends, or places to rent for an extended period of time. Renting an Airbnb is a great way to explore the city of your dreams in the midst of a pandemic. This is because Airbnb offers a whole house for you to live in, making it more private and safe from outside contacts that are not necessarily safe for health. This can also be an alternative way for those of you who don’t want to stay at a hotel in 2022
Airbnb is also a good cash register for property owners. They can rent out their home, market it on the Airbnb platform, and host guests. However, starting an Airbnb hosting business is not easy. There are many things that you have to pay attention to, prepare for, and face to get the maximum benefit. Read on below to find out more.
Can Anyone Become an Airbnb Owner?
The answer is YES! Anyone can become an Airbnb host.
But to earn a good cash flow to your bank account, becoming an Airbnb host is not easy. In some area, you’ll need to have permission before you build your own Airbnb rental business. So make sure that you get proper permission.
Is Airbnb legal in Bali?
Yes! Airbnb is legal in Bali, there are no laws against using Airbnb in Bali.
According to villa-bali articles, foreigners cannot own land in Indonesia. Foreigners are only allowed to rent out the land over a period and after the time is over, the land will be returned to the owner. The legal process is important if you want to start Airbnb business in Bali. Take as much information that you need because this will save you from headache in the future.
Learn more about the legalities of rental property in Bali, Indonesia
Why is Airbnb in Bali is a Good Investment?
Research data finds that one of the world’s foremost Airbnb landlords earns $15.4 million in one year. This result was obtained by renting out 504 rental properties in Bali.
This is not surprising considering that rental properties like Airbnb are booming and high-demand in Bali. According to AirDNA data, landowners in Bali earn an average of US$41,000 in income per year.
Airbnb is no longer just a community platform connecting property owners and tenants. Globally, it is known that as many as 35 percent of hosts on Airbnb are owned by property management companies.
The property management company provides a wise solution for landlords who cannot manage their own property. Bukit Vista is an Airbnb property manager who has managed 206+ properties in Bali and Jogja for 10 years. As an Airbnb manager, the team will assist you in listing, receiving, pricing strategy, optimizing listings to appear in the top rankings, to hosting guests when you are away or living abroad.
Airbnb Hosting Tips
Hosting on Airbnb is a very profitable investment. You can do it wherever you are and are not bound by office hours. If you’re going to be a host on Airbnb, it’s a good idea to understand the realities before you welcome your first guest. Here are some important details that experts say to keep in mind.
1. Prepare planning and initial costs
The first thing you need to do to start investing in Airbnb is to set up your property. Like a hotel, you need to prepare some facilities for guests.
There are several facilities that Bukit Vista recommends for you to prepare:
- Smart TV
- Wifi
- Towel
- Toiletries
- Kitchen Appliances
In addition to facilities, giving a touch of decoration and new furniture is also necessary for an Airbnb investment. This is useful for giving a unique, comfortable, and aesthetic impression to guests.
Your guests may share their vacation photos at your property on social media. Your property will certainly get exposure for free and more people will know about your property. So, do a strategic initial plan for your property investment in order to provide good benefits for you and your guests.
Related topics: 5 Popular Eco-friendly Products Ideas for Sustainable Rental Villas in Bali
2. Choose The Right Property
Before you start your Airbnb business, choosing the right location is highly important, especially for vacation rental property. There are several factors you need to consider such as which city, which neighborhood, or which type of property will make the most money. The more strategic places and properties you choose, the more bookings you will get.
To make a wise decision, you need to do market research and competitive analysis. Market research is an analysis to help you find customers for your business. Competitive analysis helps you to differentiate your properties and make them unique. If you combine these two analyses, you can take more benefits to expand your Airbnb business.
3. Make Dynamic Pricing
Another Airbnb hosting tip that you should know before starting an Airbnb business is changing your prices on a daily basis. Making dynamic pricing is really important. Here’s why.
There are things happen that could affect the supply and demand of your property’s locations. For example, when the pandemic was happening, the demand in almost all tourist areas decreased significantly. Plus, there is a traveling restriction applied in certain countries for guests to travel abroad. When this happens, you might have to lower your prices
But when the demand is high during high season, you can double it to make it a month. But you also need to analyze your competitor’s prices as well to not lose the potential bookings. Making a pricing strategy might cause you a headache with a requirement of two to three times analysis and take you a ton of hours. You can save your time by talking to an expert and asking them how to create the best pricing strategy.
Do you want to consult with an expert to help you create a better pricing strategy?
4. Ask For Reviews
Once you’ve already started your business, be sure to consistently ask guests for reviews. Reviews are crucial for your property because they help you secure more bookings.
The benefits of reviews include an increase in your property’s rating. The higher your rating, the more bookings you’ll receive. Reviews from previous guests also help potential guests gain an overview of your property and build trust.
Reviews also boost your property’s chances of appearing in the top rankings. Hosts with favorable reviews are given higher priority in Airbnb search results.
Conclusion
After reading these four key points to consider before embarking on your Airbnb business venture, it’s time to pick up your pen and create a plan. While managing an Airbnb business can be a bit challenging, with consistency and the right strategy, you can achieve excellent results.
Don’t miss out on the full potential your property has for securing more bookings. Over 100 luxury villas, guest houses, and homestays have significantly improved their booking rates with the assistance of Bukit Vista. Bukit Vista offers a comprehensive solution for property owners, providing the best and most innovative strategies to optimize your property’s performance.
Learn more about our villa management services