Pros and Cons of Airbnb Hosting that are crucial to your Rental Business (2024)

FAQs

What are the pros and cons of hosting Airbnb? ›

Added Fees: Like hotels, Airbnb imposes a number of additional fees. For each booking, both guests and hosts pay a service fee to Airbnb, which can be steep. Banks or credit card issuers may also add fees, if applicable. Taxes: Hosts and guests in some countries may be subject to a value-added tax (VAT).

One of the biggest advantages of being an Airbnb host is flexibility. You can use your spare space to get extra income on your terms. You can set your pricing and adjust it as you see fit during peak seasons.

Depending on the plan you decide to use, you can expect Airbnb to take a percentage of 3% or 15%. When setting your short term rental rate make sure you calculate the total for your guests including all of the associated fees so that you can ensure your Airbnb remains competitive with current market rates.

How does Airbnb work for homeowners? Property owners host guests who find their listing on the Airbnb platform. After check-in, hosts get paid, less a percentage of the nightly rental rate and cleaning fee. It's a solid way to make extra cash if you're willing to supervise bookings and cleaning.

In short: absolutely. Looking forward, the vacation rental industry is predicted to grow even more in the upcoming years. Hosting can be a profitable business with proper prep work and an understanding of how to budget your start-up costs.

What are the red flags for Airbnb guests? ›

Red Flags to Watch Out For When Screening Your Guests

Incomplete profiles. Poor or no reviews. Last-minute bookings. Evasive or inconsistent communication.

Airbnb doesn't have a loyalty program, which means there are no “points” to earn or promotional bonuses to stack. It leaves pricing up to hosts, which makes sense, but this approach means that finding a deal for any given trip requires a combination of intense searching and luck.

Hosting guests through Airbnb can give continuous income but can also be time-consuming due to the various responsibilities involved. This includes cleaning and maintenance, communication with guests, paying for professional photos annually, managing reservations, and dealing with issues that may arise.

Vrbo is commonly considered the biggest Airbnb competitor. It has over 2 million listings and vacation rentals in 190 countries. And because Vrbo is part of the parent brand Expedia Group, listing on Vrbo enables you to tap into this brand's 112+ million monthly unique visitors.

If you're letting guests into your home, there are also other considerations such as physical safety and property damage that you may want to think about too. However, with some simple precautions, Airbnb should generally be considered as a safe activity for many hosts.

Success is not guaranteed, but it's clear that some hosts can make decent money from the platform. So generating an Airbnb hosting income stream could be a potentially lucrative venture, although it may not give you the same stability as being a landlord.

1. Higher Potential Returns. Airbnb rentals often have the potential for higher short-term rental income compared to traditional long-term leases. The flexibility to adjust pricing based on demand allows hosts to capitalize on peak seasons and events.