How to Start an Airbnb Business in 2023: 10 Simple Steps
With more than 150 million users booking over 1 billion stays in nearly every country, Airbnb has absolutely revolutionized the short-term business. It's no wonder Airbnb has helped so many people make so much money!
If you're a successful professional, dedicating long days and nights to your full-time job, investing in an Airbnb property for rent can be your path out of physical and financial exhaustion!
As a luxury short-term rental specialist, I've devoted invaluable time and resources to hard-working professionals, entrepreneurs, and mothers just like you. If you're considering starting an Airbnb business, you’re in good hands.
Your Successful Airbnb Business Begins Today
My courses, training, and Luxury Short-Term Rental Academy provide you with the tools, knowledge, and confidence to embark on your new journey. Enjoy a life of full freedom and remove yourself from the chokeholds of crazy work schedules, crushing debt, and endless what-ifs.
Starting an Airbnb business in 2023 doesn't have to be difficult. The following steps will get you right where you want to go, on your way to a powerful, lasting, new income stream.
Let's cover some crucial fundamentals and then get into the 10 steps for starting your own Airbnb business in 2023.
Becoming an Airbnb Host: What’s in it For You?
Sometimes working hard is nothing compared to working smart. Why would you continue to wear yourself ragged, making less than you want and deserve, when there's a much easier way to generate income WITHOUT trading time for money?
As an Airbnb host, you don't have to be some kind of real estate mastermind or expert in business structure. In fact, I've worked with over 40 professionals with limited (or zero!) experience in short-term rentals, and guess what? Many of them are now enjoying lucrative Airbnb income.
There are endless benefits to investing in a luxury short-term rental, here are just four.
Ideal for Vacation Rentals
Airbnb provides the homestay experience that guests crave. Unlike a hotel or motel, Airbnb residences often provide more amenities, more space, more familiarity, and a more comfortable home-away-from-home vibe. Guests staying for longer periods will often save money over traditional hotels and motels.
It's a win-win!
You Name the Price
Is your property a vacation rental or a place used for business travelers? Is it an apartment, part of a house like a den or upstairs, or an entire luxury property? How is the location? What's the market like and how competitive does it get? Is your Airbnb business going to be located in a hotspot for vacationers and tourists?
Charge Optional Fees
Listing is free. You just have to pay a flat service fee of 3% of the subtotal, which is the nightly cost plus any additional fees you charge. Just remember, the subtotal doesn’t factor in Airbnb fees and taxes.
Even so, you can always make a nice little extra amount off those optional fees you charge. I urge all Airbnb hosts to truly understand the value of their property. If you're renting out luxury short-term rentals, it's completely reasonable to charge guests for cleaning, pets, and extra guests.
Depending on the property and short-term rental tenants, an Airbnb host may even require a security deposit.
You and Your Airbnb Rental Are COVERED
Airbnb covers your short-term rental space and property for up to $3 million in damages. Obviously, we all hope this never happens, and it's always important to screen prospective renters, but hey, not everything is predictable. Sometimes, renters are a little rough, there's wear-and-tear on the property, a guest decides to have a little too much to drink, and, well…
The good news is, Airbnb is looking out for you! Visit the Airbnb site online and learn about various protections, including $1 million in liability insurance in case the guest gets injured or has damaged or stolen items.
In short, making money from an Airbnb listing is pretty awesome! So, let's get right into it. Here are the 10 simple (for the most part) steps to starting a flourishing Airbnb business in 2023 and turning on that good ol' cash flow.
Airbnb Rentals Made Easy - 10 Simple Steps for Your New Business
As it turns out, you don't even have to be an owner to start Airbnb hosting. If you don't have the money or financial backing to make a down payment and regular mortgage payments, or simply don't want to be that involved, you still have options.
Wondering how to start an Airbnb business without owning a house? If you're not directly invested as the property owner, there are various ways you can still turn a continuous profit.
You Don't Have to Own Airbnb Rentals to Make Money
You can elect to be a property manager, you can 'house sit' by living in a part of the property while renting out the other parts, or you can persuade a landlord to sublet your furnished rental space through Airbnb. This is similar to ‘rental arbitrage,' which is where you rent long-term and then re-rent short-term to Airbnb guests.
If this isn't the Airbnb business you envisioned, and you'd rather fully own the property as an investor, you're in a good spot. Owning the rental property has the most upsides, with the potential for a greater profit margin, more customers, more bookings, multiple properties, and rapid growth.
Let's cover the 10 steps that make this all come together!
(1) Determine Your Airbnb Business Budget
Once you've determined your, shall we say, relationship to the short-term rental properties, it's time to crunch some numbers. Depending on whether or not you own the property, you'll face a range of costs. Know all the costs that apply to you and your soon-to-be happy customers.
If you're the Airbnb host and property owner, consider both unexpected, emergency expenses and recurring costs like mortgage interest rates, homeowner's insurance, taxes, maintenance, cleaning services, utilities, and more.
(2) Business Travelers, Vacationers... Know Your Ideal Guests
Be sure to consider your target market, audience, and clientele. Is your Airbnb business aimed toward vacationing families, business travelers, or short-term renters?
Who will drive your business?
Will it be older couples, young professionals, or large families?
Maybe a broody freelance writer in need of nothing but wifi?
Know your guests and their likely habits. What amenities, locations, and features do they want? What average price do they look for in an Airbnb property?
Consult a short-term rental expert if you're unsure about the market.
If certain startup costs and ongoing expenses are too high for you, consider renting out unused rooms in your current residence. You should still ensure the space is fully furnished for guests, of course. And don't try to cut corners on the cleaning! A clean, uncluttered space will pay for itself time and time again.
(3) Give a Snazzy Name to Your Business
Be creative. Too often, Airbnb businesses have boring, overused names like "beach house" or "mountain lodge." The goal is to make your listing stand out from other Airbnb Units.
Don't be just another run-of-the-mill rental. Put your name in the title or spruce it up with some nice adjectives that intimately describe your business, the property, the location, and/or geography. This form of marketing and advertising is free, so make sure to do it well. If anything, your property might command a higher listing price if it's particularly attractive.
Once you start generating revenue and cash flow, your future self will thank you!
(4) Make It Legal, Make It Legitimate
Once you've got your business name figured out, it's time to make it official. So, make it look good on paper. Becoming a legal business entity will offer certain protections and advantages that the poor, lonesome, overlooked individual will never know.
Sob story aside, most people who start an Airbnb company choose the LLC legal entity. This legal entity ensures your personal assets are shielded while also allowing you to put your primary and rental residences under a single LLC.
(5) Get a Permit and/or License for Your Small Business
Often, a vacation rental requires that you have a permit and/or license to operate. Depending on zoning laws, municipalities, HOAs, and other rules and regulations, Airbnb business may be heavily restricted or even prohibited.
Of course, if you've established a business entity for business rentals and are a small business owner, you'll need a business license to operate those business rentals. Pretty logical. Just be sure to register your small business with your local agency. This will help keep you in good standing with all tax collectors who may come your way.
(6) Get Prepared for the IRS - Fun Fun!
Speaking of taxes, few letters are more fearsome than I R S. If you're sick and tired of running afoul of the taxman or giving away too much to the government in general, you'll want to pay special attention to ensuring your taxes are perfectly in line.
As a property owner and business owner, you'll be responsible for real estate taxes, sales tax, and what is known as the hotel tax for your occupancies. While Airbnb itself can collect and pay the occupancy tax for your business, you must have the money when it's time to collect sales tax.
Keep tight records of your business expenses, such as repairs, cleaning supplies, replacements, and other business and property necessities. This will make it much easier when you file for your small business taxes.
(7) Don't Forget Your Business Bank Account
The government will send you a 1099-K form if your Airbnb business made over $20,000 annually, or if you had over 200 transactions through Airbnb's business website. By having a business bank account, you can easily manage all these financial records.
Using these records, you'll be sitting pretty when it comes time to deduct expenses from your taxes. Airbnb fees are deductible, which is great. Seeing as some of these fees reach as high as 20%, you could be deducting some serious expenses!
(8) Get Airbnb Business Insurance
Although Airbnb provides insurance coverage and liability protection, you'll want protection for days your property isn't occupied. This is where homeowners' insurance can save the day. On top of that, business insurance will address other concerns, such as broad insurance.
Broad insurance covers matters of harm or damage to your structure, property, and belongings, as well as harm or damage to the guests and their belongings.
If you have a property manager or other company working on your property or helping your Airbnb business, you may want workers' compensation insurance as well.
(9) Form a Winning Business Model
Whether you have a vacation rental, a short-term rental for business travelers, or just a spot for people to crash for a bit, your Airbnb business model is up to you. You may have various properties, with varying expenses and startup costs, used for widely different reasons and purposes. Your investments may be separated geographically by thousands of miles or only streets apart.
Make sure you know your Airbnb business, inside and out. How much do you expect to make? How are payments received and/or processed? What are the costs? What's the business structure and how do you maximize customer satisfaction through that structure? How do you streamline customer relations through that structure?
Although Step 9 could easily be the first step when you start an Airbnb, it also makes sense where it is. After all, not every Airbnb business will become exactly what was expected or projected. Sometimes, you have to get your hands dirty a little bit, experience the market, go through some growing pains, and get to know the type of guests that rent out your properties.
Think of it as a back-and-forth. You may have a target clientele, but what if you miss the target? What if the people you attract aren't the ones you expected? Do you change your expectations, change your property, or roll with it?
Seek Expertise and Watch Your Profit Margins Explode
These are all questions that an expert rental investor can answer. Better yet, if you contact a top Airbnb rental professional before you start an Airbnb business, you can avoid a lot of the headaches.
In just the past few years, I've helped numerous clients gain a lifetime of insider knowledge about luxury short-term rentals, bringing them wealth and freedom they never thought existed.
I'd love to do the same for you!
(10) List Your Beautiful Property on Airbnb!
Think of your Airbnb listing as your own personal advertising and marketing campaign. How many properties are you listing? Is one primarily a vacation rental and another a suite or flat for visiting business professionals? Is it ideally situated for its proximity to local attractions?
Is the property smack dab on Main Street, tucked away in a quiet niche, nestled in a snow-covered escape, or overlooking a sun-swept private beach? While words in your description can go a long way, a photo speaks a thousand words. Consider hiring a professional photographer to snap mesmerizing pics of your short-term, homestay, or vacation rental.
Elevate Your Airbnb Business with Gorgeous Listings
High-quality photos are one of the biggest selling points. A professional will also help you highlight unique amenities, features, and angles of the property. Is the kitchen sleek and modern with a granite island?
Is there a big cozy hearth or shimmering swimming pool?
Try to treat your listings like business pages. Everything should be fine-tuned to attract clientele. How many bedrooms and bathrooms are there? How many guests can the rental accommodate? Is there high-speed internet? Cable television? Walk-in closets?
What's the pet policy? Is there a smooth check-in process? Are you leveraging social media platforms to increase the visibility of your listings and highlight these selling points?
A Hospitable Host Gets the Most (Money)
No matter what you do, remember to be attentive. Negative reviews can tarnish your reputation and cost you untold profits in the long term. Positive reviews, on the other hand, not only brighten your day but also build your business brand. Nothing beats a good reputation that keeps growing and growing.
At the very least, it could hurt your business. At the very worst, you could face hefty fines and other serious legal consequences. This is why you should always contact a short-term rental specialist with any questions or concerns.
Your Booming Airbnb Business Starts Today
If any of this sounds overwhelming, overly complicated, or exceedingly tedious, you shouldn't worry. It's actually much easier than you think. With proper guidance and expertise at your side, you can quickly get the hang of it and start making consistent income.
In time, you can expand and scale up, improving your properties and boosting your profit margins. In a relatively short period, you can have your Airbnb business running on autopilot.
Trust me, I know! When I first got involved in short-term rentals, I had no idea how much profit potential there could be. Soon, I realized what I was missing. There's a whole life out there waiting, freed from strangling debt, 14-hour shifts, restless stress, and mounting fatigue.
There's a better life out there, and it's ripe for the taking!
With my help, you too can not only master the steps to start an Airbnb business but also turn that business into a source for lucrative, lifelong wealth generation.
If you want to live in luxury, invest in luxury. I’ve created engaging, comprehensive programs, toolkits, and resources specifically designed to help professionals just like you. Leave behind your worries, stop obsessing over what you do and don't know about real estate, and enjoy an education that has worked for people at all experience levels.
Triple your return on investment and build a gleaming legacy. Learn about my sterling services, complete the online form, and let's start crafting your next gem, today.