Airbnb was started by two designers, Brian Chesky and Joe Gebbia, back in 2008. After moving from New York to San Francisco, Brian and Joe were brainstorming ways to earn a little extra cash.

They decided to buy a few airbeds, put them on the floor of their apartment, and offer a more affordable hotel alternative.

Their first site was called “AirBed & Breakfast.” Fast forward a couple of years and some startup funding – and Airbnb.com was born. Airbnb is now one of the largest online communities and platforms for hosts and travelers looking to lease/book anything from overnight stays to long-term rentals.

You’ll find properties in more than 191 countries and 81,000 cities worldwide, and it’s estimated the platform has more than 150 million users.

To get started on Airbnb as a host, you first need to sign up and create an account.

Once you have an account, you can create a listing with all the details about your property. From renting a spare room to a holiday home, the more pictures and details you add to your listing, the more chance you’ll have of receiving a booking. Keep in mind, you’ll want to research your local market to identify how to price your listing. Click here to view average rental prices in your market.

One of the key things you have control over is whether or not you allow potential guests to make bookings instantaneously or if you want to review bookings before hosting them.

As the property owner, you also have full control over the dates on which your property is available and how much you’re charging. It’s up to you to put some clear procedures in place regarding how guests gain access to the property. Include guidelines on what you expect from them during their stay and any other special instructions you think are necessary.

You can communicate freely with guests through Airbnb’s platform. There is also an option to escalate any issues to Airbnb’s support staff.

Keep in mind that much of Airbnb’s algorithm is driven by their review system. You want guests to leave you a positive review, so always be honest, answer questions as quickly as you can, and remember the golden rule of sales; the customer is always right!

Airbnb offers two types of fees; host-only and shared host and guest fees. Here’s how much you can expect to pay with each of these fees structures:

Host-Only Fees

This is a relatively new fee option that was introduced in 2020. Any new accounts default to this fee structure, and older Airbnb hosts can opt to change to it. The host-only fee typically ranges from 14%-16%. It’s mandatory for some hotels and hosts, and the percentage you’ll pay depends on when you signed up for an account.

Shared Host and Guest Fees

This is the model Airbnb has traditionally operated on. Hosts are subject to a fee of 3% or more, calculated on factors such as booking length and the total value of the booking.

The guest pays the remainder of the fee, somewhere in the region of 13%, on top of their booking total.

With fees of 3% on their shared hosting model, it’s not hard to return a good ROI using Airbnb.

It’s estimated that, on average, hosts make about $924 per month using Airbnb. Obviously, many factors can affect that, but seeing $900+ as an average gives you an idea of how profitable renting property on Airbnb can be. See what people are earning in your market.

Renting out properties on Airbnb comes with some good and some bad. Obviously, you’re potentially dealing with people from all over the world, so you’re going to get a mix of experiences.

Here are some of the things you can expect as a host and some tips to help you protect yourself and have the best possible experience:

Answering questions

If you put yourself in the shoes of a traveler visiting a new place, you’re likely going to have some questions. So, as a host, you need to be prepared to answer questions. In peak season or if you have a popular destination, this can become time-consuming. You must answer questions quickly, so it’s a good idea to build a FAQ list as you go along.

Document everything before and after a guest

Unfortunately, disputes from guests will happen from time-to-time. The best way to protect yourself is to take pictures, video footage, and notes of your property before and after a guest stays.

This can prove to be a life-saver if a guest claims there was damage when they arrived or if something goes missing. Disputes can become tricky when it’s your word against theirs. Photographic or video evidence will go a long way.

Landlord duties

Using Airbnb is often the first experience someone has as a landlord. You need to carry out certain duties as a landlord, especially if you want your guests to leave positive reviews. Some of the things you’ll need to consider include:

How and hand over and collect keys to the property

Making sure the property is clean and tidy.

Checking you’re acting within your local laws regarding letting properties

Leaving instructions for guests, such as using the heating system, important contact numbers, etc.