How much can you make from renting out your place on Airbnb? This blog post can tell you how to find the answer. Here, you will also find the best tips for a successful short-term rental.
Airbnb Pricing Tips and Techniques: A Quick Beginner's Guide
1 - Determine Market Value
The first step to setting a fair Airbnb price for your short-term rental is to figure out how much comparable properties rent for on a long-term basis. Search for properties in your neighborhood (or slightly beyond) that match your short-term rental in size, location, and amenities. Then, check what they rent for on a long-term basis. Some property managers will provide a rent estimate, while others will require an official rental application to be filled out.
Do this with several comparable properties to determine a price range for your place.
2 - Find Your Geographical Competition
Once you know what other properties in your neighborhood rent for on a long-term basis, you can determine how much you can afford to charge for your short-term rental. For example, if similar properties in your neighborhood rent for $2,000 a month on a long-term basis, you can afford to charge up to $2,000 a week (roughly $14,000 a month) for a similar property.
3 - Price Higher During Peak Season
If you are hoping to make the most money, then you'll want to price your short-term rental higher during the peak season (a.k.a. summertime, holidays, and special occasions). Peak season pricing is stressful and challenging, but it's how you make the most out of your rental property.
4 - Be Mindful of Extra Fees
The pricing above will give you a ballpark number for your property. However, if you want to be more precise, be mindful of extra charges like cleaning or key deposit fees. Some hosts include these fees in their prices, while others don't. Check with your property manager or host to see if he or she charges additional fees and, if so, how much they are.
5 - Price Based on Demand
If you are trying to maximize profit, then you'll want to price your short-term rental based on demand. People demand places to stay more overall during peak times, like holidays and travel seasons. For example, you can expect to charge more during June than you can during April.
6 - Be a Superhost
Airbnb Superhosts are people who hold an especially high rating and lead a particularly desirable listing. To be a Superhost, you'll need to be extra diligent with your Airbnb property. You'll need to keep it sparkling and clean, and you'll want to be especially responsive to your guests.
Airbnb Superhosts earn a higher commission than other hosts. This is true for Airbnb and other services that allow you to rent out your property for a short period of time. So, to make the most money off your short-term rental, you'll want to be a Superhost.
Conclusion
As you can see from the information provided above, you can make a lot of money from a short-term rental. It all comes down to the market value of the property and how much you charge for it. Use this information to price your short-term rental accurately. Then, you can earn big bucks from your Airbnb listing!
Should you be looking to learn more about how to maximize your Airbnb's earnings, click the link below to join the next free training event and go into detail on how hosts can increase their earnings by up to 389%! Get great Airbnb host tips today!