As an Airbnb host, it is essential to save money in your business where you can because travel is cyclical. While travel does happen year-round, tourism season is between June – August in the Northern Hemisphere. The main contributing factors to this time of year being the most traveled are due to the weather and summer break. The warm weather encourages people to leave their home base and relax somewhere else, whether that’s lying on a beach or exploring a new city. And summer break allows families and college students an easier opportunity to travel. Because tourism is seasonal, the income received from operating an Airbnb is not in a constant flow. And incidents such as maintenance problems or guest damages can be seriously damaging. So, let’s take a look at different ways to save money as an Airbnb host and why it is important.
Screen your guests
Screening your guests ahead of time could be a way to save money as an Airbnb host. This is because when you conduct guest screenings, you have an opportunity to learn a little bit more about the guests staying at your property. A large, incoming group of younger people could be more inclined to throw a party. It’s true that they might not be coming to throw a party. Still, they might want to let lose and could accidentally damage your property. If you know ahead of time what incoming guests are more likely to be rowdy, you can get ahead of potential damages by requiring a damage deposit.
When you charge a damage deposit, you help to offset the risks of a rowdy group. In the worst case, you have some extra cash to cover the cost of the damages. In the best case, you return the group’s damage deposit in full because no guest damages were left behind.
Stay on top of maintenance
If your property is not regularly maintained, minor maintenance issues could turn into large and expensive repairs that need to be made. Minor maintenance issues can arise very quickly, and while they might be small and not an inconvenience at the time, this could soon change if the problem is left unattended. What might be a small cost to fix now will only cost you more in the future. This is why staying on top of your property’s maintenance is essential. And how you can save money as an Airbnb host.
Implement a minimum-night policy
When you implement a minimum-night policy, you ensure that you will make a minimum amount of money to cover necessary expenses and make a profit. If you were to let a last-minute guest stay only one night, you would still have to pay for the apartment to be cleaned after the fact. The amount profited off of a one-night stay will vary. This, of course, depends on your nightly rate. But the fact of the matter is that Airbnb hosts are guaranteed to profit more if a minimum-night policy is implemented. And when you profit more, you can save more.
Check out the competition
Knowing what your competition charges for their nightly stays is always important. Of course, different properties have different qualities and amenities to offer. However, if you are not aware of the average prices in your location, you could be undervaluing your property. And when you undervalue your property, you lose out on potential profit. It’s important to know your property’s strengths. When you market these strengths, you can compete better and offer your property for a higher price. This is why it is also important to make sure your Airbnb stands out.
Prevent guest damages
The best thing you can do as an Airbnb host to save money is to prevent guest damages. Whether it’s from indoor smoking, excessive noise, or unwarranted parties, guest damages can seriously cost you. Indoor smoking can cause damage to your property’s paint, walls, linens, and more. Further, the smell of smoke sticks to everything and requires specialized and more expensive cleaning materials. Excessive noise and unwarranted parties can cause neighbor complaints. Over time, these complaints can result in negative relationships with your community members or building managers, depending on your property type.
The best way to prevent guest damage is with Alertify, a 100% privacy-safe room monitor that monitors indoor smoking and noise decibel levels. If excessive noise or indoor smoking is detected from your property, you will receive alerts in real-time so you can get ahead of severe damages. When you receive a violation notification, you can contact your guests right away to control the situation. With Alertify, Airbnb hosts can access live and historical data through the online dashboard and can integrate Alertify with various PMSs. Save money as an Airbnb host, and prevent what you can’t predict with Alertify today.