What to consider before listing your home on Airbnb

While you may think renting out your apartment or spare room is the secret to how you’ll be able to roll around in a Scrooge McDuck-style pool of money, the reality is that there’s a lot that goes into opening your home up to guests (and raking in that cold, hard cash.)

Luckily, we’ve plotted out four steps you should take before opening your home to Airbnb guests.

First things first though, you should take some time to make sure you want to open up your home to Airbnb guests. The extra money will certainly be nice, but do you want the responsibility of managing a rental and cleaning up after guests? If you’re renting out your spare room, are you prepared to have strangers in and out of your home every third night?

Still on board? Great! You’ve earned the valuable insights and considerations that we’ve put together for all soon-to-be Airbnb Hosts.

1. Know the rules

   Living in a condo is great—you get all the amenities you could dream of without having to actually maintain them. But with that comes a set of rules you need to follow. Many condo buildings don’t allow for short-term rentals through platforms such as Airbnb, so be sure that everything’s approved before putting up a space for rent.

   In addition to condo regulations, cities can also have rules around length of stay for short-term rentals, as well as different taxes related to making money out of your home. Do your research to find out if you’re in the clear. If it’s allowed, you’re one step closer to turning your home into an Airbnb.

2. Ongoing costs

   It’s easy to start daydreaming about that pool of cash, but don’t get ahead of yourself just yet. There are costs associated with renting out your home you need to take into consideration.

   You may want to update some of the accessories in your home, such as bedding, towels, and kitchenware (plates, glasses, etc.), as well as updating your home insurance to factor in additional guests. You’ll also need to plan for cleaning, whether that means cleaning on your own or hiring somebody to manage that for you.

3. Strategic pricing

   When first starting out, you should consider pricing your rental slightly below the average price for your area to attract more people. Once you’ve built up a solid reputation with glowing reviews, you can increase your pricing to better reflect your rental’s true value.

4. Preparing for guests

   By now, you’ve checked the rules, planned for cleaning, priced your listing just right, and bought new bed sheets with a thread count higher than the average credit score. Now it’s time to prepare for your first guest.

   If you’ve travelled and stayed in hotels before, you know the process: Check in, go to your suite, scour the room for the Wi-Fi info, and start looking for restaurants and things to do. As a host, you have an opportunity to give your guests an extra-special experience.

   By taking the time to put together a welcome package with house rules, contact or emergency info, Wi-Fi network name and password, a few of your favourite local hangouts and recommendations, as well as plenty of toiletries and towels, you’re giving yourself a head start on that five-star review.

Article submitted by Ratehub.ca

Ratehub.ca is a website that compares mortgage rates, credit cards, high-interest savings accounts, chequing accounts, and insurance with the goal to empower Canadians to search smarter and save money.