How to Start a Successful Airbnb Business Without Owning Property￼
To become a successful Airbnb business, you have to be strategic in your planning. There are several dos and don’ts especially if you intend on subleasing. This article will give clear guidelines on how to become wealthy in the Airbnb business.
Since it was launched in 2008, it has grown to become a quick way to earn some extra cash for people who have gone on vacations and want to use their space as a way of generating income while others have made it a side business.
Whichever the case, Airbnb has become the most used online rental platform. Making everyone want a piece of the business.
Contrary to many beliefs, you do not need to own property to get started. If starting an Airbnb business has been your dream, do not lose hope since you do not own property. There is a way of doing that by subleasing.
Here is how to become an Airbnb owner by subleasing.
How does Subleasing work?
Subleasing is a rental business model that allows you to start an Airbnb without owning a house. The idea behind this model is to use other people’s property to conduct business.
Finding an ideal place may not be as easy as you think. Start by identifying the building best suited for the job, lay out your business proposal to the landlord, and inform them you intend on using the space for Airbnb for a certain period.
If they agree, write an agreement to assist in the operation. Subleasing works like renting space in a mall to put up a shop. The owner gets rent while you get profit from your business. Also, you can learn a few things such as managing a business without owning it.
Benefits and Drawbacks of Subleasing
Every business has its pros and cons. Before venturing into a business, you should analyze them, and if the pros outway the cons, then the business is workable. Let’s look at some of the challenges and benefits experienced in the Airbnb business.
- Low start-up cost. Since you do not have to buy a whole building to start this venture, less capital is required making it cost-effective.
- For the marketing part, not much work is needed since Airbnb will do most of the work.
- It can be a stepping stone to becoming successful in other businesses. Money earned can be invested in other ventures.
- Not every guest is responsible. They can break a few things that may require replacement or fixing. You will be required to take care of the bills.
- From time to time, the bookings may vary.
Now that you have gone through the pros and cons and are willing to proceed, the next step is looking for the property you can rent.
Look for a Budget-Friendly Lease
In most cases, leases will go up to 12 months. Depending on your budget, choose a lease that will not be a burden to you. If you are low on cash, look for a studio apartment, one-bedroom or two bedrooms that will go for $1,500 per month.
After identifying the space, buy some furniture, and necessary equipment. Also, look for beautiful pictures that will make the space appear warm and cozy. Hire a professional to take photos of the space. Why a professional? Since the pictures will be uploaded on the Airbnb website, you will need clear pictures that will attract the guest.
If you are looking for a bigger space, with $ 7,000 and $ 15,000 you can get a good building that has the right space.
What to Look for While Choosing the Ideal building
- The city laws
Though this business is in most places, some cities do not allow its operation. In the US, 97% of the cities will authorize rental services only for short terms. Meaning the other 3% restrict these services in their area. Look for a place that allows the operation of Airbnb.
Use google as your guide to locate the contacts of building owners. Get the information you need regarding the laws of the city
- Quality of the Property
The living standards of a place will play an important role when it comes to pricing. For instance, if you get a place that has the best living conditions, you will set a high price for Airbnb and vice versa.
More importantly, ensure the property is within your means and it has a parking space for one or two cars.
Also, get a place that is fitted with both AC and heat, this will prevent you from having to install them at your cost.
Finally, get a place that is new or does not require renovation. Renovating a place you do not own is not a wise business decision. Instead, use the money to buy the most essential things that the house may require. However, if you are lucky to get a fully furnished apartment, it will be an added advantage.
- The Location of the Property
Before choosing the space, ensure you consider the following:
- Choose a place that is far from train stations and busy roads
- It should not be in corners and congested places
Remember your guests have come to relax and have a good time. They will need a place that is quiet and probably outside busy areas.
Investing in Airbnb can be a life-changing decision, whether you are doing it to earn some extra cash or saving to venture into something else. With the advantages we have seen, you can never go wrong with this business idea. Follow the simple guidelines that have been laid out for you and be the next Airbnb owner.