Generate extra income with your property and Airbnb


June 24, 2020

Acquiring a property can bring you benefits. From becoming a safe way to fight against inflation, secure your savings and even become a source of extra income.

In recent years, renting a home has become a more viable option for those who decide not to settle in one place, especially when there are job opportunities and leisure that make people decide to migrate to other cities, states or countries.

There are also those who prefer the experiences that travel gives them and make it part of their lifestyle, deciding to live in different places for certain periods of time.

These nomadic modalities have increased in recent years, thanks to the existence of organizations such as couch surfing whose mission is to -through free accommodation among subscribers- make a cultural exchange.

But not only nomads are looking for experiences. Millennials, for example, are interested in enjoying and traveling than in having children.

However, traveling is not always accessible or comfortable for everyone. Some people are just looking for a place to bathe and sleep peacefully and without being surrounded by many people as in the hostels.

That is why it is not surprising that platforms such as Airbnb are positioning themselves as the favorites for those who want to travel and have a different experience than when staying in a hotel.

This advantage is something that you should take advantage of if you are thinking of renting your property.

There are many ways to make money with airbnb, but the most obvious is to be a host. The goal of being a host is to advertise your property through a daily rent. Believe it or not, it is becoming a productive option for those who have real estate that they are not using at all.

For example, in moving from Canada to Mexico in an easy way we already explained it to you. There are foreigners - like Canadians - who prefer to invest in Tulum for their retirement, especially when the low temperatures in their country begin to become dangerous. For them, it is an option to rent their property the rest of the time they do not use it, this is a new way to make their property generate income that can be used to improve their lifestyle or save that money to use as part of their retirement.

Banner of real estate developments in Tulum.

Generate extra income with your property and Airbnb

Even though it sounds very good and attractive to hear this, the reality is that not everyone knows how to start to rent a property, the Internet may seem an enormous place and not all websites that we find can seem safe and reliable.

Fortunately, with Airbnb, being a host is no longer a problem, since you can advertise your property with the assurance that it will be positioned.

Now we will tell you everything you need to know to generate income with your property on this platform.

How does Airbnb work?

The first thing you should be asking is what Airbnb is and how it works. Well, as you can imagine it is a service -although they call themselves a community- where you can advertise and book accommodation, from complete spaces -like an apartment- to a shared space where guests sleep in a common area with other guests.

So you can rent anywhere in the world; of course, depending on the availability and guidelines of each country. For example, Airbnb does not have access to North Korea.

This app has the advantage of offering a different type of hosting service in different parts of the world, this makes Airbnb more attractive for those who want to have an experience beyond just staying in a hotel. Not only can it be cheaper, but it can also even be more comfortable and interesting since they can enjoy the place where they stay in a different way.

Generate extra income with your property and Airbnb
Airbnb has become a new way to experience the cities and places where guests stay. It is also an excellent way to make your real estate investment.

How much does it cost to be a host?

Actually, using the app or the platform does not have any cost but although the Airbnb service -which consists of publishing ads about your property- may seem free, the platform takes a commission of 3% for each hosting you generate.

This is automatically deducted and may vary depending on certain regulations in the countries, but usually it is 3% commission.

What are the types of hosting?

Airbnb is divided into three categories: the entire property - it can be house or apartment -, private rooms, and shared rooms. As the name indicates, each type of hosting is related to the privacy and space that guests have to be inside the property they are renting.

Also, it is important to keep in mind that as a host you can define the number of people that can be accommodated in your property. This also influences the guest's decision. Perhaps for a couple or a guest who travel alone, it feels comfortable being in a private room, but for a family that wants to spend more time in one place, this can be uncomfortable.

One of the reasons why guests also choose hosting on Airbnb is that they can be from large houses to apartments or studios. This allows guests more freedom to enjoy their stay.

That is why luxury apartments and condominiums that are located in tourist areas have become popular among real estate investors who want to diversify their investments.

For example, many foreigners come to Mexico to enjoy our natural beauties, in things to do in Tulum we mentioned the existence of elements such as the Sian Ka'an protected natural reserve that is becoming one of the main tourist attractions of the place. That's why while staying in a hotel can appeal certain types of users, experiences in places like Tulum where nature and the Mayan jungle are an essential part of the atmosphere of the place, being surrounded by many people and tourists can break the charm of the experience.

Being a guest on an Airbnb gives them not only the freedom to enjoy the property as they want but also the assurance that they can be comfortable.

For this reason, it is very important to be clear what type of hosting you offer and the conditions of the property: the number of guests that can be accommodated, mention all the information and services of the property, for example, if it has internet, fire detector, the number of rooms and number of beds available, etc.

The more information you put on your income, the more security you offer to your guests.

Generate extra income with your property and Airbnb
One of the things that most attract guests to certain apartments or houses is the decoration and the experience they offer. For example, our real estate development Maria, located in Tulum, is designed to combine comfort and nature.

What do I need to be an Airbnb host?

There are some basic guidelines that Airbnb asks you for being a host:

  • High rating: When guests are looking for a place to stay, they are more likely to choose a place with a high rating than a place with a low rating. You just have to be consistent with the quality you offer as a host.
  • Low rate of cancellations: Airbnb has a very strict policy regarding cancellations. That is why it is important that you be very respectful of the reservations of your guests and avoid making cancellations. For Airbnb, the guest experience is very important and a cancellation totally alters the travelers' plans. The more cancellations you make your rating decreases. In addition, you will be sanctioned by the platform, having a fine of 100 USD in your next payment, blocking your calendar so that people cannot book with you and even the suspension of your account.
  • Quick responses: Maintain a response rate, that is to say, that you answer maximum in 24 hours, will also help you get a better rating in your profile.
  • Essential services: Hosting is not just renting your room or apartment. In reality, it is to offer an experience for your guest in which there should be: toilet paper, soap, clean sheets, and at least one towel and one pillow per guest.

Why are photos a very important part of airbnb?

Airbnb is an extremely visual platform. Its main function is not to be a social network of images as it is Instagram, in Airbnb, it is more like "love at first sight".

The photos of the property should reflect the experience you can offer as a host. So you must upload photos that show all the possibilities offered by your property.

No matter how nice your house or apartment is if your photos do not look good, the guests probably cannot appreciate very well the place, or they feel distrust of staying in your property.

Believe it or not, things like lighting and angles can affect the photos you take and make your ad - Because in the end, your Airbnb post is an ad - do not receive the reservations you want or do not allow you to generate the desired income.7

We give you some tips so that your photos do justice to your property:

  1. Be careful about lighting: Lighting is one of the best friends of photographers, in fact, there are those who say that everything in photography is about the management of this.If you want that in your photos it can appreciate the shapes and textures very well, we recommend you to let natural light in and take your photos during the morning or afternoon, so your guests can appreciate your property much better.
  2. Take the photos from the corner: this will allow you to show a wider space of the site, plus you can cover more of your property to show your guests a little more of the essence of your property.
  3. Take pictures of the exterior: The exterior of your property is also part of the experience of staying in your Airbnb, so it is important that you include it in your ad since you can make your guests know more about what your property has and the type of stay they will have.
  4. Do not be afraid to get artistic: Is there something that you love about your property that makes it unique? Take a picture of that. The small details make the difference and more when it comes to a place where you will stay. Do not be afraid to take pictures of your décor or the views offered by your department. This is a plus that is part of the experience that your guests will have.
  5. It is important that you consider the decoration of your property. You do not need to hire a professional decorator. A pillow or decorative piece can make the difference in your property.
Generate extra income with your property and Airbnb
The exterior is also part of the experience of staying in your property. We continue mentioning about our real estate development in Tulum, María. If your apartment or house has amenities such as a pool, gym, or nearby parks, mention it in your ad as well.

What if I do not have time to be a host?

Generating extra income with your property and Airbnb does not mean you have to become a full-time host. There are those who do not have time to be attending to their guests.

In this case, you can have a co-host.

The co-hosts are in charge of doing all these tasks for you, they can even post announcements and talk with your guests to clarify their doubts.

There are those who hire people who are dedicated to manage and promote these properties. This allows the owners of the property to generate income without them worrying about giving the customer service, giving a commission to their co-hosts. There are people who dedicate themselves to being co-hosts in a professional way since this allows them to have a certain freedom and to meet more people around the world.

These co-hosts will take care of everything for you, but you have to pay them a commission. This way you can have your properties generating income, without the need to have a fixed tenant.

Of course, it is advisable that the person you hire to be a co-host is very responsible and trustworthy, although as we already mentioned, there are those who are dedicated to this in a professional manner and have experience managing the stay of guests and the management of advertisements and reservations in Airbnb

We hope this has opened up your prospect about how you can generate extra income with your property in Airbnb. In the end, this is another tool that can work to make your property a fixed source of income and to diversify your investments.

You already know that real estate investment is one of the safest investments you can make, and that makes your money grow. For example, all our real estate developments have the lock off system, so you can separate two areas of your department and manage them at the same time, this will allow you to maximize your investment.

In addition, we have a vacation rental program where we can help you manage your properties in case you are renting them and do not have time to come directly, thus guarantee an income while you dedicate yourself to other activities, work or passions, without having to worry about nothing.

If you want to learn more about investment, you can read our article how to appraise my property?

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