If you own a rental property, you have choices: You could rent out your home on a long-term basis or take your chances with a short-term rental.
You may decide that the latter works better for you for a number of reasons, including getting flexibility to use your rental from time to time. And if you're going to position your property as a short-term rental, it pays to list it on sites like Airbnb.
In fact, being an Airbnb host could end up scoring you a fair amount of passive income. But if you want to maximize your profits, here are some things you shouldn't do.
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1. Include minimal photographs in your listing
There's often a degree of uncertainty that comes into play when guests look at booking a short-term rental. With a hotel room, you often know what you're getting, especially if it's a well-known chain. With a private rental, it's harder to make that call.
That's why it's so important to load your listing with ample photos. That will give guests a better sense of what they're signing up for.
2. Ignore guest reviews
Guests who stay at your rental may leave feedback that's both positive and negative. And it's important to take both types of feedback to heart equally.
If you're applauded for having a short-term rental that's loaded with area guides and local restaurant menus, boost that collection. If you're criticized for not having enough kitchen utensils, invest in some. Doing so could spell the difference between securing a steady income stream or not.
3. Skimp on cleaning
An unkempt home can be a real turnoff. And presenting guests with one could cause a world of issues. For one thing, your guests might demand a refund on the spot. They're also likely to leave negative reviews that send other guests running the other way.
If you currently outsource your cleaning to a service, it wouldn't hurt to check in every so often and make sure the work is up to par. And if you receive feedback to the contrary, take it seriously -- don't just assume that the service you've hired is doing the job it claims to be doing.
4. Be cheap with amenities
Your rental home should feel like a vacation spot for the people staying in it. But if you're cheap with amenities, you might lose repeat guests -- and future ones.
It pays to invest in amenities like fluffy towels, nice soaps, and comfortable bedding. Also, make sure your rental is well stocked with supplies. Nothing turns guests off like having to run out to the store mid-vacation to refill toilet paper.
5. Be slow to respond
As an Airbnb host, it's on you to address the needs of your guests. Unfortunately, that may, to a degree, mean being tethered to your phone during periods when you know you have renters. But it's important to respond quickly when guests reach out needing help.
On a positive note, if you are quick to respond, that's something guests are likely to mention when they review your rental. And that could help drive more guests your way.
Listing a rental property on Airbnb is one of the most lucrative moves you might make as a real estate investor. Just be sure to avoid these blunders if you're going that route.
