7 Things to Consider Before Renting Out Your Home

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If you’ve decided to rent out your home to strangers, in other words, join the Airbnb industry and learn how to become an Airbnb superhost, you absolutely need to get all the research done before you try yourself out in this business. While it can be quite fruitful, and the financial factor can be appealing, it’s best not to rush into the hospitality business without thorough research first.

What do you need to know before you decide to rent your home to strangers, and how you should prepare for it in order to mitigate the potential risks? Keep on reading, because we have all the answers from first hand!

Costs Vs Income

Although this business can be quite lucrative, before deciding to turn your home into a rental property, you have to take into consideration that there will be costs. The foreseen ones and the unforseen ones. That’s why you need a financial plan.

  • Calculate the potential costs. This may include Airbnb cleaning and preparation services, bills, mortgage, taxes and legal fees.
  • Do thorough research on average prices on the market. See what you can get for your rental property, and whether that figure is higher than the costs.
  • Also, consider additional and unforseen costs. This may include repairs, damage done by guests, as well as empty spaces between your bookings.

Have Your Property Inspected

If you’re actually thinking of renting out your second home, then it’s best to have a professional inspect the place. This will aid in avoiding any potential problems and unwanted costs when you actually do open your doors to a constant streaming of guests. If there’s anything that needs to be fixed or handled before the actual renting out takes place, do it. And if it doesn’t seem to work out for you financially, than it might not be the best time to start your Airbnb.

Get to Know the Law

There are definitely certain legal aspects that you need to consider before turning your home into an Airbnb. Hire a professional to do this for you, or get aquainted with the specific law in your area. The better prepared you are, the lesser the chances are that you will get into legal trouble.

The point is, either do it legally, or don’t attempt doing it at all, because in the end you’re going to lose more than you gain.

Is Your Location Desirable?

The fact is, not all locations are going to be desirable for guests.

The first scenario:  Imagine having a empty second home, smack in the middle of a forest, far away from civilization or any interesting sights. Does it really pay off to invest in such a property, when you’re likely to have low occupancy rates due to the location of the property itself?

The second scenario: You’re renting out a space withing your home. Do your guest have to share the bathroom, driveway and kitchen with you? Because if it is so, then the Airbnb itself won’t be too appealing.

What is the State of Your Home?

Since we’re talking about location desirability, we might as well mention the desirability of your home. Here’s a little experiment. Take photographs of the space you want to rent out, and take a look at them from a guest’s perspective. Would you like to stay in such a space? Is it gorgeous on the eye? Does it immediately grab attention of potential guest? Is it a home away from home?

Now, here you have to be really objective. Don’t look at it as your home, but rather an investment. If your home or space isn’t up to average standards, and you have to invest a lot to make it suitable for guests, than you should consider twice before renting it out. Truth be told, every guest wants to stay in a clean, comfortable and spacious unit. They don’t want to be stuck in a small room with broken electrical outlets and a squeeky, broken-down bed.

Prepare to Do Work

And we mean actual work. Although hosting an Airbnb may seem like a dream job for many, it still requires a lot of hard work. From communicating, doing paperwork, photographing your Airbnb, creating a desirable listing and making reservations to doing housework and repairs, you’ll have to do it all.  Opening your doors to visitors isn’t a win on the lottery. But it is quite satisfying, if you do decide to make it your primary source of income.

Do You Have an Emergency Fund?

If not, then there’s no talk of starting an Airbnb. But if you have all of the above things covered, then there’s just one more thing to thinka bout. Do you have an emergency fund stashed away for emergencies that aren’t going to be covered by any kind of insurance? Whatever the amount may be, it’s still better to have a back up plan, because when emergencies do happen, you’ll avoid a lot of stress and hassle if you have stashed away something for days like these.

 

 

 

The key to success is ensuring you’ve done thorough research and developed a plan to prepare yourself for what’s coming. Although, becoming an Airbnb host is a gratifying job, it is a job like any other. And the more success you want, the more work you have to put in.

 

2 thoughts on “7 Things to Consider Before Renting Out Your Home

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