Starting A Successful Short Term Rental Business (Airbnb)
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Today I’m excited to share how to setup a short term rental business on Airbnb and how we earned $93,000 in just over a year as newbies! We have been working on an online course and “how to” guide for months now am I can’t wait to share it with you!
Vacation rentals are a smart way to earn extra income and cover your bills but honestly, the entire short-term rental market is booming.
We bought a fixer-upper in southern New Hampshire two years ago with the goal of launching an Airbnb. We wanted to catch up on retirement savings and enjoy a free vacation place to visit for free a few times a year. Airbnb changed everything for us and today, I’m sharing our journey.
Our goal was to renovate and transform the dated home and solid income source was a journey we’re keen to unpack. Lets take a look at some key factors to starting your own Airbnb and non-negotiable tips that will help you achieve success.
Our Airbnb Starter Kit and course offerings can be found here.
Short-Term Rental Business Strategy
Starting an Airbnb isn’t just about listing a place; it’s about creating a stay that guests rave about.
The process involves more than you’d think—like figuring out local laws and choosing a spot that’s already got some traction as far guests visiting the area.
We wanted an investment property within a 2-hour drive from our primary residence, so it was easy to escape to but not too far.
Remembering back to when we first bought our Airbnb, I was honestly overwhelmed. The fear of legal issues or guests wrecking the place was always at the back of my mind. It kind of scared me to be honest!
Why did we start an Airbnb?
We wanted to purchase an investment property that would essentially pay for itself to help save for retirement.
When you are self employed, you do not have a 401K, short-term rentals and even long-term rentals are two of the best ways to help save money for retirement.
Plus, having a free place to vacation was also high on our priority list.
Our overall goal was to treat our Airbnb like a business and earn enough money to cover the monthly expenses.
Our business model is pretty simple.
The rental income generates enough money to cover all the monthly expenses and over time, the house appreciation increases as well. This is a win win because we save for retirement while not paying a dime to do so.
Identifying Your Target Audience
After picking a location that you like, scope out what kind of travelers will be visiting the area.
For us, our location was full of Summer guests vacationing but Airbnb isn’t just about vacationing. You may have business travelers, students or event attendees.
Look for what draws guests to the area and tweak your space to fit them just right, boosting how often you’re booked.
Nail your online property listing and presence on booking sites like Airbnb and VRBO as well as social media as these combined help drive traffic to your listing.
A great way to attract potential guests is to share everything that your location has to offer.
Short Term Rental Regulations
Before you get too far into your plans, make sure you ensure that you can actually pursue a short term rental business in that area.
We have looked at a handful of properties in the past and towns/states vary with certain rules so do your homework.
If you are in the market for single-family homes in a tourist area, be prepared to act quickly once a home hits the market.
Short term rentals are becoming increasingly popular and they will sell fast!
Setting Up Your Short-Term Rental
When it comes to setting up your rental, drawing on our personal experience, transforming spaces on a budget while not skimping on style is where the magic happens.
We turned our once overlooked property into a highly rated Airbnb through smart, budget-friendly renovations and DIY projects that added unique charm and functionality.
If you are considering starting an Airbnb but worried about guests trashing your home or simply unsure because of the “unknown” download our Airbnb Starter Kit!
Our starter kit covers our entire experience step by step and every single detail that helped us achieve $93,000 in revenue in just over a year. Our Airbnb is more of a seasonal location so our occupancy rate for the entire year is just under 30%!
We have stepped up our marketing efforts during the winter off season and so far, we added a half dozen extra bookings for this past year.
Airbnb Design and Decor
From choosing furniture that combines style and comfort to adding those little touches that make a space feel like home, the way you furnish and decorate your rental can significantly impact its appeal.
If you are looking for decorating ideas, be sure to visit this blog post, how to remodel for an Airbnb.
Highlighting local attractions and amenities can also add to your property’s appeal.
Looking for a Short-Term Rental Startup Checklist?
Grab our Airbnb Starter Kit here.
Positive Reviews
One of the larger portions of our Airbnb Starter Kit shares how attracting your ideal guest from even prior to booking, can help increase your positive reviews.
The art of communication and strategy we have in place to ensure that guests are aware of house rules and are on board is critical to minimizing issues.
The framework we have in place, email sequence and short term rental contract are all key components to increase positive guest reviews.
Vacation Rental Business Financial Blue Print
Is running a short-term rental business profitable?
Absolutely, but it comes down to smart financial planning and strategic pricing.
First, understanding your initial investment, renovation costs, and how to set competitive nightly rates is crucial. I share our breakdown and how we competitively research in our Airbnb Starter Kit.
I always adjust prices based on the season and look for opportunities to make special offers that attract guests.
Second, keeping a close eye on both profits and expenses is key to long-term success. By tracking these diligently, we ensure our rental business remains profitable and sustainable.
Setting Up Your Airbnb As a Business
Protecting your assets and minimizing liability is crucial. This aspect of owning an Airbnb freaked me out – I am a worry wart!
Formalizing your business with the state you live in, can offer peace of mind, separating your personal assets from your business operations.
Typically a limited liability company (LLC) or sole proprietorships will suffice for this type of rental plan.
This setup can also offer tax advantages, making it a worthy consideration for your rental business.
Everything I am sharing is not meant to be business advice but simply questions for you to ask your attorney or accountant.
If you are seriously considering any type of rental property, set it up as a business from the start and consult an attorney and/or accountant.
[convertkit form=6386841]Marketing Strategy
In my opinion, a short-term rental business starts with a great spot, a welcoming design, and unforgettable guest experiences.
It’s all about making your listing shine with stunning photos and stories that draw guests in. Part of your strategy should include not only selling the “experience” but targeting key phrases that boost your listing in the algorithm.
Thankfully, my 12 years of experience writing this blog as a way to show up on google helps with generating traffic to our Airbnb listing!
Listening to feedback from my guests helps me keep making things even better.
I also weave a bit of magic through our marketing, sharing our journey on social media and the blog, which not only boosts our spot’s visibility but connects us with the perfect guests.
Crafting content and special offers with them in mind ensures our rental isn’t just a place to stay, but a favorite destination they’ll return to time and again.
Operational Best Practices for Your Airbnb Business
Operating a short-term rental goes beyond just listing your space.
Mastering guest communication, utilizing rental software for efficiency, and establishing clear house rules are all part of running a smooth operation.
We handle all of our guest communication and property management but I do know several property owners are “hands off” and will hire a rental management company to facilitate all communications and management of cleaners ect.
One issue that I see with property managers is that they don’t typically have a vested interest in your property. Meaning, your property is just a “number” to them and they are not emotionally invested in your property.
I see this first hand with property management companies that handle other short-term rental properties in our area so keep that in mind if you are hiring out for help.
Considering Airbnb But Undecided?
Starting a short-term rental business can seem overwhelming, but it’s really rewarding with the right approach.
From renovating our first property to managing a bustling Airbnb, we’ve turned our journey into a streamlined step by step guide. The guide shares details on targeting the right guests, setting up your space, financial tips, Airbnb hosting tips and operational strategies.
If you’re hesitant about guests damaging your property, unsure where to start, or how to prep a space in your home, our Airbnb starter kit is for you.
More Airbnb Home Posts You May Like
- Airbnb Starter Kit Guide (our step by step guide of everything we do to run a successful Airbnb)
- How to make money with Airbnb (how we make money with Airbnb)
- Best Airbnb checklist for hosting (a quick resource perfect to keep things organized)
- Airbnb smart lock system (the locks we use in our Airbnb)
- Best Airbnb home in New Hampshire (a full tour of our lake house)
Meet Jessica
What started as a hobby, Jessica’s blog now has millions of people visit yearly and while many of the projects and posts look and sound perfect, life hasn’t always been easy. Read Jessica’s story and how overcoming death, divorce and dementia was one of her biggest life lessons to date.
