This past week I've spent time doing chores at home and thinking. The recession is already here and this is the time wealth will exchange hands again. What we DON'T want to do is survive through the recession, but THRIVE through it. Many people are in good shape after the last 2.5 years because they took more control of their income by starting a business. If we are still smiling after the pandemic, we can definitely grow through this coming recession.
With that being said, I wanted to start sharing more ideas on how to create additional streams of income which leads me to the AirBnb business. The short term rental business continues to become more and more popular as people want space and unique experiences, not a old, stale hotel. Therefore, check out these my 10 steps to the AirBnb game:
Decide on a Budget
Many people want to dive into the Airbnb Business quickly, so they rent instead of buying. On the other hand, some people believe renting is a waste of money and always choose to buy. This is one of the first decisions to make after making the decision to get in the short term rental business. Get pre-qualified for a bank statement loan to buy real estate without using the income reported on your tax returns.
Visit them, look at security, front desk, access, etc. Then decide on a condo, apartment or house. Many airbnb business owners want to start small to keep costs low. However, certain areas like Florida, Myrtle Beach, or anywhere near water will likely sell itself. Therefore the size doesn't matter.
You want locations with 70+ walk score. The walk score indicates if the property is in a walking or driving area. The scores range from 10 to 100 with 100 being the best. Higher walk scores tend to be more desirable areas for guests because they are close to entertainment, shopping, and restaurants.
Research electronic lockboxes and explore how guests can automatically check in and out
THIS IS CRITICAL If choosing an apartment building or condo. You want your guest to minimize any possible hassle and give them easy accessibility.
Airbnb Laws and Regulations for your area
With Airbnb continuing to be more popular, some cities are trying to add more rules as hotel owners and people in family neighborhoods continue to bring flaws to light.
Explore cleaning companies
Hiring professional cleaning companies continues to be the biggest sore spot for AirBnb owners. Many even created their own cleaning company to have more control and direct contact to workers. This gives AirBnb owners yet another stream of income for themselves.
If renting a property to use for the AirBnb business, ask for a corporate lease and DO NOT SAY AIRBNB. The easiest way to get a property owner to say Yes to your AirBnb business is to really create a business. Get an LLC, business checking account, and a virtual business address. The business address and phone are one of the most common reasons people get denied for business credit. Set yourself up for success!!! Avoid using your cell phone number as your business number. You can get a phone number from Ring Central or 7 day FREE trial with Grasshopper. You can direct the calls to your cell phone. Make sure to have a different number to look more professional. Finally, one example of renting a property on a corporate lease is a REALTOR renting the property for their investor clients who come into town.
Shop for the Airbnb furnishings using business credit cards
so you'll earn money while spending. Have you ever heard of turning credit into cash? Establishing business credit is one of the biggest secrets to new business owners. Getting the property in your business name and using business credit cards to shop is a game changer! It's also an additional stream of income believe it or not. For instance, if you use your debit card to buy bedroom linens, it's just money gone. However if you use your American Express business credit card to buy bedroom furnishings, you can ear a few hundred dollars. American Express Business is my favorite but if you are still building credit, apply for Capital One Credit Card.
Choose a theme
Themes help your AirBnb will stand out. Special themes are what makes AirBnb's special. Popular themes are movie theater with each guest receiving popcorn to pop, or a tropical island theme with a wall painted like a beach. Additionally, traveling nurses is popular in this day, you can learn what they like and have it in your unit (i.e. bottle of wine and chocolate). Furthermore, having a theme can help reduce the riff raff.
You'd be surprised what a difference professional photos make. When posting your listing on AirBnb and vrbo.com. DON'T skip the professional photographer. Pictures will really make or break your AirBnb business. Professional pictures make it easy to get lots of bookings.
Did I miss anything? Please Comment if there is something I missed something or if you found the steps helpful. I would really appreciate the feedback! Also, be sure to check out my full list of business resources. Thanks for your time and for reading about my 10 Steps to Start an Airbnb Business.
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