Airbnb: the advantages and disadvantages of being a host

Are you thinking of listing your investment property on Airbnb or another platform like LekkeSlaap? This is not a decision you should take lightly. Yes, you can make extra money but you could also face challenges with renters that don’t follow the rules. In this article we go through the advantages and disadvantages of listing your property so that when you open your doors to the public, you are prepared for every eventuality.

Advantage: You can earn more than you would with long-term letting

Instead of pricing your property per month, you price it per night – which can give you more income. You can also increase your price when demand in the area is higher, such as long weekends, holidays or when there are local events.

Disadvantage: You’ll be charged fees

Airbnb charges a host service fee, and if you use a full-service management company, you will also need to pay them a fee. It’s also good to know that your guest must pay Airbnb a fee when they book your property. This fee could put your guest off booking your property, especially when there are other platforms that don’t charge guests these fees.

Advantage: Flexibility

You get to pick and choose your hosting dates, which gives you flexibility and control. This means that you can use the place yourself at your chosen times during the year, or have a break from hosting if you are taking a trip overseas.

Disadvantage: Bookings aren’t guaranteed

When you have a long-term tenant for a fixed period, you know how much money to expect and when you will receive payments. Airbnb, on the other hand, doesn’t give you a guarantee of continuous income.

Advantage: You decide how involved you would like to be

You can choose to do all the work, like the cleaning and washing to welcoming guests when they check-in. If you can’t because of work commitments or you don’t live close to the property, you can take a hands-off approach by using a company that offers full-service management for a percentage of your earnings. The choice is yours!

Disadvantage: Not all guests are good guests

Airbnb has a two-way reviewing feature so most of the regular guests will be polite, considerate and clean. Unfortunately there will always be the exception to the rule. You need to prepare yourself for guests who damage furniture or behave badly. It’s a good idea to get a deposit so that you can cover yourself for these types of expenses. It’s also a good idea to make sure your content and building insurance covers short-term letting.

Advantage: You can check your guests out before they arrive

With the two-way review process, guests review properties and hosts review the guests. This means that when you get a booking, you can look at the reviews other hosts have given your potential guests and then decide whether to commit. All you need to do is turn off the “instant booking” feature.

And finally, hosting an Airbnb property will require your time and energy. It can be a lot of work if you decide to do the admin and cleaning yourself. Just remember that no matter how perfect your property is, sometimes things go wrong. If you establish good communication with all your guests and you are responsive to their needs and complaints, you can turn any complaint into a compliment!