Airbnb Myths You Need to Know
Airbnb hosting has come a long way since the vacation rental company’s inception in 2008. Initially, being an Airbnb host was like the wild wild west.
Guests could easily get away with damaging a property due to the lack of accountability that the platform provided. While issues like that have improved, many homeowners remain apprehensive about using their property as a short-term rental.
In this article, we will debunk three intimidating myths about Airbnb hosting that prevent homeowners from renting out their houses as vacation rentals.
Of course, it’s essential to understand the pros and cons of Airbnb before using any rental service.
No Mortgages
Homeowners don’t need to own their properties free and clear to rent them out on Airbnb. You can owe money on your house via a mortgage and still rent it as a vacation rental. Many homeowners believe that if they have a mortgage on their home, they are stuck and cannot rent it out to short-term guests.
While you can Airbnb your property with a mortgage, there is a partial truth to this myth. Certain mortgages are meant for certain types of occupancy statuses regarding a home.
For example, you and your family may have taken out an owner-occupant mortgage to buy your home. If you move out of that home and rent it on Airbnb, you are no longer an owner-occupant.
In this situation, homeowners can speak with their lender to review options. Sometimes, a mortgage company will allow you to rent the home on Airbnb. Other times, the lender will have you change your loan to fit its current occupancy status.
Speak with your mortgage company regarding any specific questions about your mortgage. Each mortgage can have different rules around what you can and cannot do.
Guests Ruin Furniture
Fortunately, Airbnb has improved the level of accountability for both hosts and guests. In the early days, guests could terrorize a home by damaging the furniture and get away with it by deleting their profiles. Now, Airbnb holds guests accountable for property damage.
To reserve a place to stay on the platform, guests must pay with a credit card. There are terms and services that state they could be held responsible for any damage to the furniture within the unit. Airbnb has a formal mediation process that takes hosts and guests through to resolve any lingering issues.
Gone are the days when guests will come into your Airbnb and completely trash the place. The vacation rental platform also heavily considers the reviews that guests receive from other hosts. There are two sides to every review!
Hosts can deny guests if they have bad reviews. This process has made guests more conscientious of how they treat places where they stay. Being an Airbnb host is safer than in years past, thanks to the current processes set by the platform.
Location Is Everything
Countless homeowners don’t give Airbnb a chance because they don’t believe their property is in a good location. You don’t need an ocean view to attract guests to your Airbnb listing. Especially after the pandemic, many travelers are searching for quiet, hidden places to stay in the mountains far away from bustling downtowns.
As an Airbnb host, you can enhance the appeal of your listing through an enticing theme. Think about what interior design and home style could attract potential travelers to your property.
Consider a unique cabin theme if your house is nestled in the woods. The options are endless, with creative designs you can implement into your home.
Airbnb guests are seeking ‘an experience’ now more than ever before. While being an Airbnb host, it’s important to create a unique experience for travelers and guests. That’s the best way to increase your bookings. Travelers love sharing unique experiences on both social media and through reviews.
Guests will share their positive experiences, which can lead to more bookings. Airbnb hosts don’t need a skyline view to book guests successfully.
Short-term Rental ROI Isn’t Worth It
Homeowners decide against listing their property on Airbnb because they believe the ROI (return on investment) isn’t worth pursuing. While a variety of expenses go into running a vacation rental, such as cleaning fees, permits, and maintenance costs, there are ways to offset them.
Airbnb allows hosts to add fees to the listing instead of absorbing the costs. These add-on costs help create an ROI worth going after. Cleaning fees are likely the largest cost hosts can tack on to their listings.
It’s becoming ‘the norm’ on Airbnb for guests to pay a larger fee for cleaning. In the early days, Airbnb hosts had to eat that cost or try to bake it into the listing price.
The Airbnb platform allows hosts to create a line item for this expense. Guests pay this cost so that hosts don’t have to.
Airbnb Hosting is Easier Than You Think
Whether renting out one room or running a full-scale vacation rental business, Airbnb hosting is easier than it used to be. The platform has processes in place to protect hosts from irresponsible guests.
It’s possible to earn worthwhile returns from being a host by creating an appealing theme for travelers to experience.
Hosts don’t need to be in prime locations to succeed. Airbnb is conscious of expenses increasing, like cleaning fees. They help landlords offset these costs so that hosting on Airbnb continues to make sense financially for homeowners.
Remember there are many myths about doing Airbnb hosting so make sure you do your research locally.