CAN’T find a long-term tenant for your property? Like thousands of other property owners, you may want to look at Airbnb for a solution to your rental woes.
There’s a high probability you’re trying to find someone who can manage this venture for you because while Airbnb is a household name, you’re clueless about running an Airbnb unit and becoming a host.
Regardless of whether you want to DIY or have someone manage your property for you on Airbnb, this article will provide some context and guidance.
Let’s get started, shall we?
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What makes a desirable Airbnb property?
Owning a property is not a prerequisite for Airbnb success. Your property needs to have certain attributes too that will make it bankable. As much as I would like to tell you that Airbnb is the solution to your vacant investment property, it is not necessarily so.
It boils down to this: travellers must see your property as a solution to their accommodation problems.
For example, visitors to Kuala Lumpur will be interested in KLCC, Batu Caves, KL Tower, Chinatown, Little India, Dataran Merdeka and Bukit Bintang. If your property is far away or does not provide easy access to these attractions, it may be difficult to entice them to book.
Business travellers, on the other hand, may be interested in being close to where their meetings will be and would prize amenities such as a workstation, high-speed internet and a printer. If your unit is isolated from business centres, they may not be interested.
You, therefore, have to evaluate your property honestly. Is it in a location that tourists or business travellers would want to stay? If not, you may struggle to get bookings.
Ideally, your property should have all of the following attributes:
l Has easy access to major tourist attractions
l Located within 500 metres of a public transportation hub – either a LRT, MRT or monorail station
l Located within 500 metres of a thriving shopping mall
l Located near entertainment and recreation centres
l Offers above-average facilities and amenities
If you can check-off these attributes, then you have a good chance of doing well on Airbnb. Otherwise, it is not the end of the world. Read on.
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How can you transform your property into a successful Airbnb listing?
USP is an acronym for unique selling proposition. It means offering something that no one else is offering and doing it well.
A strong USP trumps everything else. Some of the world’s most successful Airbnbs do not have any of the attributes I mentioned above. All they have are amazing USPs.
Finding a good USP will require a significant investment of your time. It is a deliberate process of thinking and innovating to arrive at an offering that makes guests go, “Wow!”
This runs counter to how most Airbnbs are prepared. I call it the “lazy” method – hiring an interior designer to assemble a beautiful but generic design that looks like every other listing and hoping to get fully booked.
A good USP may also require a significant investment in money. The returns will be well worth it.
The most common excuse I hear for a lack of USP is, “there’s nothing unique about my property.” However, upon further probing and brainstorming, a USP usually emerges. The reality is that coming up with a good USP requires effort which makes it a painful process that most people avoid.
If your property does not have the right attributes and you are unable to produce a good USP, Airbnb may not be the best strategy for revenue generation from your property. Still, it is not the end of the world. There are other strategies you can employ such as housing for multiple occupants.
Should you be an Airbnb host?
It is not easy being an Airbnb host. Guests can be very demanding, things can go wrong in your property, mistakes can happen and unforeseen circumstances can occur.
On top of this, there are the operational aspects to deal with such as cleaning, maintenance, guest check-in and check-out, answering inquiries and replenishing room supplies.
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If you’re a busy person, it might be more feasible to find an operator – a company or an individual who will manage your property for a fee. Operators usually use a revenue-sharing model.
A good operator can provide you with income from your property without the headache of managing it. The only downside is you will be sharing a significant portion of your revenue, which means unimpressive income.
Therefore, it is important you decide from the beginning – should you host or should you have someone do the hosting for you?
If you choose to have someone do it for you, be wary of anyone who promises returns that are too good to be true. Such returns may have been possible some years ago but not now. After splitting revenues with your operator, you may find your share to be equivalent to long-term rental rates or lower. However, this may be offset by a regular monthly income as opposed to no income in periods where you do not have a long-term tenant.
This brings us to something often overlooked by hosts – profits. — Courtesy of iProperty.com.my