Airbnb business has been growing rapidly in the past few years. Airbnb hosts are always looking to grow their empire and make more profits. There’s plenty of ways for you to turn your short-term rental business into a multi-million dollar business.
Here are a few ways you can grow your already existing rental-
1. Go beyond Airbnb-
The most efficient way to grow your short term rental is by ensuring that you are listing your property on more than one platform. There’s a lot more to short term rentals than Airbnb.
Listing your property on multiple platforms such as Expedia, Bookings.com, etc will ensure that you drive maximum traffic to your listing. You can maximize profits by getting bookings from more than one platform.
Although managing bookings on multiple platforms can be a little overbearing, hosts prefer handing this job over to a property management company to ensure no booking has been missed.
2. Think like a Hotelier-
It is essential that you research on what works for your area, tourism trends in your industry and plans accordingly. If you are savvy enough, you could be ready and waiting for your guest when the busy season kicks in.
Be strategic in picking properties with high potential for pleasing guests. The place you provide must also be clean and safe at all times. You must treat the place like it were your own personal hotel.
3. Optimize Pricing-
A good way to maximize profits is by changing your prices. It is important that you don’t stick to one price for the entire year. Start with some research on the prices for similar Airbnb units in your area and price your condo accordingly.
It is important that you change pricing depending on the market demand. This may be an asset if you live in an area with dramatic changes in tourist traffic.
4. Automation is key-
Why should you automate your Airbnb?
Instead of working for 20 hours a day on your Airbnb property, you would only be spending 2, it will also help generate a systematic procedure.
Automation will help in-
A. Easy Channel Management:
Having listings on multiple channels can be difficult to handle, automation makes it super simple to handle. Keep all your channels instantly updated with your prices and availability.
B. Schedule Housekeepers and Inventory:
Automation will also make it easier for you to schedule housekeeper after every guest. Cleaning schedules could be registered after each guest leaves, to ensure a perfect stay for your guest. It will also help keep a track of the inventory, so you never run out on essential items.
C. Communication and messages:
Automation will definitely take you a long way when it comes to communications. It is essential that good Airbnb hosts reply promptly to the guest.
Most Successful businesses automate their process in order to make it more systematic.
Once you have automated your Airbnb you can consider investing in a second property for short term rental.
3 ways Airbnb Hosts can scale their business:
1. Rental Arbitrage-
Rental Arbitrage basically means investing in properties just to rent them out. Usually, hosts take a lease on a property that is in the long term rental market and then list the property as a vacation/short term rental.
Example- You rent a condo and pay $2100 per month for it. Then you rent this condo as a vacation rental and earn close to $3000-$4000 per month.
Even after deducting expenses such as cleaning, inventory, etc. Owners can earn almost $1000 in profits and more, depending on the property.
The best way to practice this is by having both the properties close to each other as it will help reduce cost.
Many hosts don’t tell their landlords that they are putting the property up in the short term rental market. We don’t suggest this practice as it could lead to eviction and sleepless nights with the anxiety of getting caught.
One of the best ways to reach out to landlords is by being clear from the right beginning.
Now, you may think most landlords will not agree to this but it is essential that you inform them about your guest vetting process and the insurance protection that they will have for their property.
Assure them that you are a business professional and that they would be getting their monthly rent on time.
Another good way to approach the landlords would be offering them a higher monthly rent than they are asking for. Maybe a $100 or $200 to entice them to agree. The second option could be keeping the rent the same and offering the landlord a certain percentage of the profit.
2. Buy your own property-
Another way to scale your business is by purchasing your own condo or cottage. In this case it is important to know the short term rental regulations, as some condos don’t allow it.
It’s best to find those that allow short term rentals and then invest in them. Some jurisdictions also allow one person to have just one short term rental, thus it is important to educate yourself about the rules and regulations.
Once everything is in place you can start your short term business. Best ways to scale to a 3rd property is to save all earnings from the 2nd property and invest it in purchasing the third one.
This process may seem a little complicated, I recommend talking to our partner company Global Guesting, as the initial consultation is free.
3. Partner with Family and Friends-
The third way to scale your Airbnb is by getting in touch with family and friends who have condos and basements that they would like to rent.
You can work out a deal that would work best for both of you such as, offering a certain percentage for their property.
You can be in charge of managing the bookings and the property and then share the profits with the property owner.
This will work efficiently as long as you have a system in place to run the listing.
These are some ways to automate and scale your Airbnb empire into a multi-billion business.
You can do each of these manually or hire a property management company like Global Guesting as they have all the software to make automation easier for you and in turn increase occupancy and profits so you can focus on scaling your Airbnb empire.