Owning a rental property is a great way to generate income. This holds true whether you prefer to sign long-term leases or short-term ones.
If you're going to rent out your income property on a short-term basis, you may opt to list it on a site like Airbnb. Doing so is a great way to make it easy for guests to find you.
But remember, your goal as a real estate investor is to make money. And if you mismanage your property or your listing, you might fail in that regard. With that in mind, here are some things you should never do if you're going to maintain a short-term rental.
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1. Mislead guests in your listing
There's nothing wrong with talking up your rental property's best features in a listing. But if you flat-out lie about your space, it could get you into trouble. If your home only comfortably sleeps four people, don't try to pass the 20-year-old futon in your basement off as a fifth bed. That just isn't OK.
2. Skimp on amenities
You don't necessarily have to go out and invest in the highest-end sheets and towels for your rental property. But leaving your guests with two measly rolls of toilet paper and a single bottle of hand soap that's mostly empty is really not going to cut it. Being cheap with amenities might save you a touch of money in the near term but cost you in the long run.
3. Go light on cleaning
In today's COVID-19-centric world, nothing turns people off like dirty surfaces. If you do a bare-bones cleaning job, your guests might abandon their plans and demand an instant refund. And really, who could blame them?
4. Ignore what guests are saying
The feedback you get from guests on your Airbnb listing is information you should take to heart. In some cases, a few minor adjustments on your part could result in an uptick in bookings. So if your last seven guests have commented on your painfully slow washing machine, it may be time for an upgrade.
5. Pass up opportunities to score repeat guests
Guests who have a great experience at your rental are guests worth keeping in touch with. Reach out to repeat guests and consider offering them incentives to come stay at your place again. It's a potentially easy way to increase your bookings.
6. Overprice your rental
It's natural to want to make as much money as possible on your rental home. But if you get too greedy, you'll turn guests off. If the average comparable Airbnb in your area goes for $300 a night during the peak season, don't push it by asking for $400. You're better off collecting a lower rate than having your property sit vacant.
7. Underprice your rental
Just as it's important to not ask too much money for your rental, you also want to avoid pricing it too low. Spend some time scoping out similar listings so you get that number just right.
Owning a short-term rental could pave the way to a world of profit. Just do your best to steer clear of these mistakes, especially if you're new to the world of Airbnb.
