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Start A Profitable Airbnb Business - The Ultimate Guide - Startup Business Bureau
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Start A Profitable Airbnb Business – The Ultimate Guide

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Have you ever heard about Airbnb? Do you know and it can turn your accommodation into a profitable business? Today we are going to explore all about Airbnb, its services, using the procedure, terms and conditions, and how to use it.

What Is Airbnb?

It is a rapidly growing platform that allows its users to list spare places like rooms, houses for rental purposes to earn a handsome amount. Airbnb is providing its services in almost 6500+ cities all over the globe. There are many reasons for its growth and increasing users which we will describe ahead.

How To Use Airbnb To Rent Out Property?

If you are new and don’t really know about the procedure to use Airbnb as a host. The first step is to get yourself registered as a host. The registration will require the basic information of the host like name contact details etc. Filling up the form of registration can take only two minutes.

When you become its member now you can post the rental property. Use the following things to list the property.

  • Post good quality photos
  • Location of property
  • Availability period
  • Price
  • Details about room, washrooms, beds, etc
  • Facilities available in such rental property
  • Parking details

These mentioned details are necessary as many guests use such kinds of filters to find a suitable place for rent. 

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Fee & Taxation Structure In Airbnb

Well, Airbnb charges some fees to use its services. It charges from both ends, the host and the guests have to pay the service fee. But the fee structure is different for both of the parties.

Host Fee

A host has to pay a 3 percent fee on each transaction, meaning if you do a 100 dollar transaction air BnB will charge 3 dollars as a service fee.

Guest Fee

The rate of fee is a bit high as compared to the hosting fee. A guest will have to pay around 6 to 12 booking fees. 

Similarly, Airbnb also charges taxes but these taxes depend upon the location, territorial jurisdiction where the property is to be rented out. Taxation rates vary as different states have different taxation charges.

Is Renting The Place Admissible?

It depends on the location where you are residing or renting out the place. Therefore we suggest you do a confirmation check before using Airbnb host services. Because in most countries and cities the government does not allow the renting or set specific conditions while renting the property. 

Similarly, if you are living in an apartment, check if you have the permission of subletting such an apartment or not. In many cases, the landlords or apartment society does not allow to sublet the property without prior permission.

Why Travelers Prefer Airbnb For Rentals?

Airbnb got much fame due to the first preference of the traveler. They give it as the first priority over hotels, hostels, and motels due to many reasons.

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Low Cost

The first reason for Air BnB fame is the low cost. The fee does not exceed more than 10 percent. But if we use property dealers, the cost of getting rental property may exceed over 40 percent. 

Easy To Find

The use of Airbnb is very much handy. Travelers can access the services with a phone application. So whenever a traveler wants to find a place to rent he can access it in minutes.

Third-Party Contract

In Airbnb, the contract is not only with both parties but it also includes this contract. This will help to solve the matters in case of any dispute or misunderstanding.

Trustable

One of the key features of Airbnb is the trust factor. There is no chance of any fraud or loss in these services because it uses a proper scrutiny method to register its users.

What Are The Financial Expectations Working As Host?

You can earn a handsome amount while working as a host on Airbnb. But it requires great patience and effort in this business. When you rent a property you will have to deal with the guests and manage the property like maintenance. Similarly the earning depends upon the location because every place has a different value of renting.

Frequently Asked Questions (FAQ)

What Is Airbnb?

It is a rapidly growing platform that allows its users to list spare places like rooms, houses for rental purposes to earn a handsome amount. Airbnb is providing its services in almost 6500+ cities all over the globe.

Why Travelers Prefer Airbnb For Rentals?

Airbnb got much fame due to the first preference of the traveler. They give it as the first priority over hotels, hostels, and motels due to many reasons.

  • Low cost
  • Easy to find
  • Third-party contract
  • Trustable

What fees does Airbnb charge?

Airbnb charges some fees to use its services. A host has to pay a 3 percent fee on each transaction, meaning if you do a 100 dollar transaction air BnB will charge 3 dollars as a service fee. But the rate of the fee is a bit high as compared to the hosting fee. A guest will have to pay around 6 to 12 booking fees.

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