Airbnb has become an enormous disruptor in the hospitality space - short-term rental platforms can be very lucrative. On the one hand, it’s great for a little extra income, but on the other, it requires a lot of time and effort to reap the benefits.
Here are some of the key pros and cons of Airbnb that potential hosts need to be aware of.
Pros of Airbnb
Let’s start with the positives of becoming an Airbnb host. These are the benefits you may find attractive.
Potential for Income
This is the real motivator for hosts. The Airbnb site gives you the power to set your own pricing and adjust it as you see fit during peak seasons. There’s even a “Smart Pricing” tool that takes into account local demand and can help you find the right amount to charge.
For some, being an Airbnb host is their full-time job. For others, it’s a way to generate additional revenue. Listing your home on the site is free so if you just want to try it out, there aren’t any costly sign-up fees.
Host Page Is Helpful
Not everybody can be the perfect host the first time around and it’s easy to compare your offering to others listed locally. However, if you need some guidance or advice, there’s a whole community of hosts who you can talk to.
Airbnb's dedicated host page is a great resource where you can find blogs, articles and groups all dedicated to helping you become a better host.
Fairly Easy to Manage on Your Own
The platform comes with many advantages when it comes to simplifying communication between hosts and guests. It makes the whole process quite enjoyable and you can choose to manage your rental on your own.
The key to successful vacation home marketing through Airbnb is putting in the time to manage, promote and optimize your listing.
Cons of Airbnb
Even though Airbnb has been successful, it’s not always the right choice for an owner looking to rent out a property. Besides the time you need to put in on marketing through Airbnb, you still face some additional challenges if you go down this route.
Hosting Is Hard Work
Being an Airbnb host is a relentless job, demanding your time and energy. You’ll need to be prepared to respond to guest inquiries promptly and you must be available 24/7 at a moment’s notice when you have Airbnb guests staying at your property.
Hosting requires skills in marketing, customer relations, communication and property management. An Airbnb property is likely to be more work-intensive than other available rental avenues, as it's your responsibility to maintain the property to a high standard at all times. Airbnb will hold you to account if they get complaints from guests.
You may be able to save yourself some work by hiring a cleaning service to handle housekeeping, but this would also add to your operating costs.
If you want to impress potential Airbnb guests and fill vacancies, you’ll need to invest some cash to make sure the place looks and feels inviting.
Unforeseen Circumstances Are Yours to Handle
There’s no denying it, inviting numerous guests into your vacation home week after week does open you up to some risk. Even the most experienced hosts can't anticipate some of the hiccups that come with guests. Clogged bathrooms, broken appliances and unruly or unhappy guests are all problems you can expect to face.
Implement a thorough screening process and vet your guests accordingly. Along with doing your best to have a back-up plan, you’ll need to accept that there are certain things you simply can’t prevent..
Not Always Legal
Before listing on Airbnb, you’ll need to check local laws to make sure it’s legal to rent out your property. It may be that you’re required to obtain special permits or licenses, or indeed register your property with the government.
Depending on where you live, your aspiration to own and rent an Airbnb property may never come to light. Many cities are still deciding whether to regulate short-term rentals and the uncertainty makes it a risk to purchase a property with Airbnb rentals in mind.
Airbnb is undeniably one of the best ways to get some bookings for your property . However, there are other ways of owning a vacation home that make renting out a breeze. If you want to enjoy all the benefits of owning a vacation home, but with none of the hassle of repairing and maintaining it, or renting it out you should definitely investigate the condo hotel model.
If that sounds interesting, take a look at our guide to see how it's possible.
Please be aware that government regulations prevent Non-Bermudian home owners from renting out their home without express permission from the Government Ministry.
A non-Bermudian who owns a condo hotel residence (like the ones at Bermudiana Beach) - can rent out short term to both Bermudians and non-Bermudians with a work permit, residential certificate or to any non-Bermudian staying for less than 90 days in Bermuda.
Learn More About Why a Condo Hotel Should Be Your Next Vacation Home Rental Instead of an Airbnb
Renting out your vacation home can be simple. Forget managing guests and looking after your property yourself. Take a look at our guide ‘Why Bermudiana Beach Resort?’ to understand how you could make your life so much easier.
From our relationship with prestigious hospitality giant Hilton to how our condos can potentially make great rental properties, you can find it all in this guide.
Click below to get access and start your journey.