Turning Your Property into an Airbnb: Is It Worth It?
Many homeowners get excited about the idea of turning a room in their home or the entire house into an Airbnb, but you should know that there is more to it than just putting an ad out in the paper. You will also need to research the legalities of your state, make necessary upgrades in your home, and consider if the logistics of having an Airbnb is best for your family. Sure, you may make more money, but might there be an easier way?
These are all questions your family must consider before turning the property into an Airbnb. Before going forward, stop, take a good look around your home, crunch the numbers, and decide if this is truly the best option for your situation. Today, we will tell you how to do all of the above.
Consider The Costs
A major consideration that you will need to make before you decide if an Airbnb is worth the effort is the potential costs that you could pay upfront and on a recurring basis.
First, you will need to ensure that your home is safe because if a guest gets hurt while staying over, then you may be on the hook for their medical costs. If you know that parts of your house could cause harm, then you will want to take the time to repair and fix those issues, and that will also cost money that you may not have to spend.
When it comes to Airbnb, it is all about getting a good review so you can continue to have a flow of good customers. If your guests have a bad time or they get hurt, then they will likely give you a negative review, and if you get enough of those, you will stop making money. So, you will want to be proactive.
Look at your home and consider what needs to be fixed and what updates you will need to make the house hospitable to strangers. If you must replace faucets and lights, then consider going with eco-friendly updates like low-flow showerheads and LED lights that often work better than the less sustainable alternatives, and that will save money on the electric bill.
If parts of your house can’t be repaired with simple fixes, then you may have to consider a full remodel. Completely upgrading your space can make a big difference, but it will also cost you a lot upfront. At a minimum, spend some time working on your yard and improving your curb appeal with a freshly cut lawn and well-painted exterior because a picture of the outside of your home may be the first impression that a potential guest may have, and it could impact their decision.
Research The Legalities
Even if your home is in pristine shape, you will still need to think about the legalities of hosting an Airbnb so you don’t end up in hot water. While no state has outright banned the ability to host an Airbnb, some states do make it harder, including Santa Monica, California, where owners must apply for a business license. In Charleston, SC, hosts can only use their full-time primary residence, so consider that if it contradicts with your situation.
You should also consider the steps that you will need to go through to set up your Airbnb in the first place. After you set up the space, you’ll need to photograph your home and then create a listing on the platform that describes the property, how many guests are allowed, if your guests will be allowed to book instantly, the details of your cancellation policy, and more. Make sure you take time to think about all of that because if you don’t follow your own guidelines, then customers could give you bad reviews. Consider setting up a separate phone line to handle your customer inquiries.
You will also need to think about your personal belongings and the costs that you would have to pay if something were to be broken by a guest. If you have a lot of fragile items and electronics and you have a closet or storage locker where you can store them, then you might be in good shape. However, if you can’t secure things away and there is just too much that is breakable in your house, then you may want to reconsider. While Airbnb does offer up to one million dollars in insurance for property damage, you still may not want to take the risk.
Other Ways To Make Money If An Airbnb Won’t Work
While you can crunch the numbers all day long, you also need to think about how hosting an Airbnb will affect your personal life. If you are renting out your entire house, then you can’t be there, so you need to figure out where you will go in those situations. Also, some people are very picky about the house and keeping everything in its place, so even if you rent out a room, you will need to think about whether the money is worth the frustration. If you think about it and it just doesn’t seem like a good idea, then don’t fret, as there are other ways that you can make extra money.
One way that many people make a supplemental income is by investing. Even if you are not a finance whiz, there are many easy ways that you can grow your money, especially for older adults. This might include high-interest savings accounts and investments in fixed annuities, which is a great option because you don’t pay taxes until you decide to cash out.
You can also consider a side gig driving for a food delivery company or working as a freelance writer online. These are great jobs that allow you to make your own hours, and while they won’t always make you rich, they can provide some cash to improve your situation.
As you can see, there are many considerations that you will need to make before turning your property into an Airbnb. Consider these tips, and make the best decision for your home and family.