7 Key Points of Renting Through Airbnb
We all know that renting through Airbnb has become very popular recently. Airbnb currently has over 12.7 million listings available.
Airbnb’s marketplace design is predominantly peer-to-peer, meaning no third parties are involved in the interaction between buyers and sellers. To give you an idea, examples of peer-to-peer startups are Uber and eBay.
Still, just like any other business, having your property listed on Airbnb comes with both pros and cons. We will see the three points in favour and the three against renting your home through Airbnb.
Advantages of renting through Airbnb
As an Airbnb host, you have complete control over how much you’d like to charge and when you want your space to be available. The size of an Airbnb rental, the quality of the booking space and the location can determine the potential for Airbnb owners to earn consistent annual income.
Even though, in some cases, an owner must be physically present on their property, most of the income they generate is passive income. Airbnb owners can approve their tenants from anywhere once their rental site is up and running. Some exceptions may apply, but as a general rule, the ease that Airbnb gives is to manage everything from anywhere in the world.
Another benefit of managing a property through Airbnb is the ability to pre-screen all tenants. In this way, the owner could reject the tenant who does not meet the determined profile.
Also, unlike traditional tenant rental models, owners of Airbnb rentals don’t have to put all their trust in a single long-term tenant. Business owners on Airbnb receive income from a variety of different clients, so each tenant pays only a tiny part of the total income. In this way, if a tenant cancels a reservation at the last moment, it affects you much less than the owner of a traditional rental.
Another advantage of operating a business through Airbnb is the quality of the space. In a traditional lease, property maintenance can be very challenging for landlords with long-established tenants.
Since Airbnb homeowners don’t usually host long-term tenants, they usually have more access to their property. In this way, they can maintain the quality of their property and carry out the necessary reforms easily and without waiting. And this, of course, impacts the number of reservations and satisfaction of the tenants in general.
In a traditional rental model, you receive your rent payment at the beginning of the month. But what happens when your tenant stops paying you? You must initiate an eviction procedure. In addition, with the latest Anti-eviction law, things are significantly complicated in Spain.
You don’t have this problem if you rent through Airbnb. The platform retains the tenant’s money and pays you later for the reservation. You do not have to deal with legal procedures or lawyers, so the tenant leaves the house and pays you what he owes you.
Disadvantages of Renting Through Airbnb
One of the main disadvantages of renting your property through Airbnb is that business owners must deal with property damage on their own. Although Airbnb claims to cover owners $1 million for property damage, certain refunds are not guaranteed. Cash, art, and jewellery are not among the items covered by insurance offered by Airbnb.
We recommend you to read AirCover, which is like the Host Damage Protection Policy.
Dissatisfied Tenant Reviews
If you’re an Airbnb owner, we encourage you to take each and every review very seriously. Helpful and positive reviews can sometimes boost a property’s success on Airbnb. However, negative reviews have the potential to ruin you if not handled well.
Lack of Foresight
Another potential disadvantage for Airbnb homeowners could be a lack of foresight. The success of renting your property on Airbnb depends on whether or not there is a regular flow of clients.
That is, you must always be prepared for the unpredictable nature of your potential clients’ reservations. That is not the case in the traditional rental model, where you receive your rent payment at the beginning of each month.
Suppose you want to reap the benefits and avoid the pitfalls of owning an Airbnb business. In that case, it’s critical to consider all factors and evaluate each before making a decision.
Airbnb’s peer-to-peer business model gives Airbnb hosts much freedom and flexibility. Even so, this type of business is not for everyone, and you have to analyze all the advantages and disadvantages from the personal perspective of each one.
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