Setting Up Business with Airbnb?
Mar 23rd, 2015, 10:37 AM
#1
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Setting Up Business with Airbnb?
I live in a touristed area in Michigan and am thinking of renting out a spare room via Airbnb - What kind of venting of their places do they do - anyone have any knowledge of the process and anything of use to know? I have no contact them yet as I have not decided on doing this just launching a feasibility 'study' with my first stop on Fodor's as usual!
Thanks for any advice, warnings, etc.
Thanks for any advice, warnings, etc.
Mar 23rd, 2015, 11:07 AM
#2
In my experience, there is no vetting, as such. They'll send someone to take pictures at no cost (see the host section of the website) or you can take them and post them yourself. Until there are reports of blatant foul play, they rely on your own description of what you offer, and what you don't if you wish to include it and also the reviews of visitors, once you've had bookings.
What else, specifically, would you like to know?
What else, specifically, would you like to know?
Mar 23rd, 2015, 11:22 AM
#3
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Madame - merci bien. Does breakfast have to be included or access to a kitchen - well what you said pretty much tells me what I want to know - it's all up to me - thanks now I will take a look at the official site.
anyone with actual encounters with airbnb clients in their domicile?
Thanks again.
anyone with actual encounters with airbnb clients in their domicile?
Thanks again.
Mar 23rd, 2015, 12:25 PM
#5
Yes, I'm am Airbnb host. I offer what I describe as "limited" kitchen use - fridge and microwave. I don't offer a full breakfast but do provide a sort of continental, coffee or tea and good toast. People seem to like it.
I've been pleasantly surprised by the people who stay with me. I now realize it's a sort of self-selecting group, a more adventuresome crowd who pretty much know what to expect or, in the case of first timers, are open and friendly and want to try something new, all good.
I think the quality of pictures you show is important. I had the company photographer do mine and when I made some changes, had her come back at my expense to redo. Even better this time. You can play with the wording of your listing whenever you choose, as you learn what works and what needs clarifying.
Also, a thing that's important to me, and likely to you, we can mark any days, weeks, months we choose as "unavailable" so we can leave it and forget it and have our own adventures.
Here's my listing: https://www.airbnb.com/rooms/1208779
I've been pleasantly surprised by the people who stay with me. I now realize it's a sort of self-selecting group, a more adventuresome crowd who pretty much know what to expect or, in the case of first timers, are open and friendly and want to try something new, all good.
I think the quality of pictures you show is important. I had the company photographer do mine and when I made some changes, had her come back at my expense to redo. Even better this time. You can play with the wording of your listing whenever you choose, as you learn what works and what needs clarifying.
Also, a thing that's important to me, and likely to you, we can mark any days, weeks, months we choose as "unavailable" so we can leave it and forget it and have our own adventures.
Here's my listing: https://www.airbnb.com/rooms/1208779
Mar 23rd, 2015, 12:33 PM
#6
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Thanks Madame! - very helpful and tells me about all I need to know - do you usually rent by the week - what would you charge say for a one night stand (for the room, not you!) - Or do you find week-long stays are more usual.
Again thanks!
curious - do you get many foreigners or mainly Americans?
Again thanks!
curious - do you get many foreigners or mainly Americans?
Mar 23rd, 2015, 01:09 PM
#7
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Mme Perdu, I wish I had known about your airbnb. We would have booked the room. We stayed at Outside Inn instead.
Next time
.
Pal, if you go ahead do let us know. I almost certainly won't be making use of your spare room but it is good for others to know.
Next time
.Pal, if you go ahead do let us know. I almost certainly won't be making use of your spare room but it is good for others to know.
Mar 23rd, 2015, 01:43 PM
#8
Hetismij2, the Outside Inn is a good location and looks cute from the street. Yes, please, next time! That would be fun.
Most of my guests are for 1 or 2 nights. Occasionally a week. While the shorter stays are a bit more work, I actually prefer them. A week can seem very long sometimes. The price at the top of the listing is the price per night for 1-6 nights. The weekly price lower on the page kicks in for 7+.
If you have a request for more than a week, as host you have the option of offering a "special" price, an additional discount, taking the longer stay into account. Any booking, for how long and for how much, or even who, is completely up to you. You relinquish some of that control if you select the "instant book" feature for your listing (the little lightening bolt you see on some listings). I tried it but prefer to have a bit of information before I say yes. But I rarely say no.
Most of my guests are for 1 or 2 nights. Occasionally a week. While the shorter stays are a bit more work, I actually prefer them. A week can seem very long sometimes. The price at the top of the listing is the price per night for 1-6 nights. The weekly price lower on the page kicks in for 7+.
If you have a request for more than a week, as host you have the option of offering a "special" price, an additional discount, taking the longer stay into account. Any booking, for how long and for how much, or even who, is completely up to you. You relinquish some of that control if you select the "instant book" feature for your listing (the little lightening bolt you see on some listings). I tried it but prefer to have a bit of information before I say yes. But I rarely say no.
Mar 23rd, 2015, 02:04 PM
#9
"If you have a request for more than a week,..."
To be more precise, you can offer a discount anytime, it doesn't have to be a particular number of nights. You're offered that possibility for any request, although most don't ask for a short stay. I recently was asked if I could rent the room for $800 for a month but it was a moot point as there were other stipulations that didn't appeal to me. So I just avoided the rate issue and addressed the others. My point, while the site can take some getting used to, your options are pretty much wide open.
To be more precise, you can offer a discount anytime, it doesn't have to be a particular number of nights. You're offered that possibility for any request, although most don't ask for a short stay. I recently was asked if I could rent the room for $800 for a month but it was a moot point as there were other stipulations that didn't appeal to me. So I just avoided the rate issue and addressed the others. My point, while the site can take some getting used to, your options are pretty much wide open.
Mar 23rd, 2015, 03:05 PM
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Again thanks a ton Madame Lost!
One thing and I have not gone to the official site yet - how does Airbnb get paid - payments go thru them or from the client?
Thanks again and if I know folks heading your way yes I'll recommend they investigate your place - sure to a warm welcome IME!
One thing and I have not gone to the official site yet - how does Airbnb get paid - payments go thru them or from the client?
Thanks again and if I know folks heading your way yes I'll recommend they investigate your place - sure to a warm welcome IME!
Mar 23rd, 2015, 03:20 PM
#12
Thanks, flap. I have fun with it all, house & Airbnb.
PQ, guests pay through the site as soon as they make a confirmed reservation. They must have a credit card on file to book. Airbnb adds their commission to the bill at the time of booking and a small commission (3% if I recall) is deducted from the payout to the host, made by direct deposit in most cases, the day after the guest checks in. It's always gone perfectly smoothly for me.
If a guest cancels prior to check-in, charge to the guest and payout to the host is dependent on the cancellation policy chosen by the host. Some hosts allow cancellation at no charge until just before check-in time. In my case, I've chosen a "moderate" cancellation" policy, allowing full refund until 5 days prior. See the website for all possible choices.
As a guest, on the rare occasions I've had to cancel a booking when traveling, the refund has been immediate. They really are excellent where payouts and refunds are concerned.
In general, the only difficulties I've encountered are when there's a booking difficulty, usually for first-time users of the site and sorting it out can be convoluted. But for the most part, being a host has been trouble free and I recommend it.
Still Lost
PQ, guests pay through the site as soon as they make a confirmed reservation. They must have a credit card on file to book. Airbnb adds their commission to the bill at the time of booking and a small commission (3% if I recall) is deducted from the payout to the host, made by direct deposit in most cases, the day after the guest checks in. It's always gone perfectly smoothly for me.
If a guest cancels prior to check-in, charge to the guest and payout to the host is dependent on the cancellation policy chosen by the host. Some hosts allow cancellation at no charge until just before check-in time. In my case, I've chosen a "moderate" cancellation" policy, allowing full refund until 5 days prior. See the website for all possible choices.
As a guest, on the rare occasions I've had to cancel a booking when traveling, the refund has been immediate. They really are excellent where payouts and refunds are concerned.
In general, the only difficulties I've encountered are when there's a booking difficulty, usually for first-time users of the site and sorting it out can be convoluted. But for the most part, being a host has been trouble free and I recommend it.
Still Lost
Mar 23rd, 2015, 05:53 PM
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I think you really need to check out any of your municipal zoning ordinances before you proceed any further. For example any rentals in my small village must have an inspection and Certificate of Occupancy issued for any and each rental.( I live in a very desirable Shore community.) This takes time and would be a real problem for short term rentals. The municipality will issue fines if the ordinance is not adhered to.
Mar 24th, 2015, 03:38 AM
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I know people who are having good experiences both as renters and customers of AirBnB.
A lot depends on your personality, and Mme Perdu clearly has the right kind. A lot depends on you location and the property itself.
But some depends on other issues:
Are you insured against damage by a tenant or damage TO a tenant like a slip and fall in the shower? Do you need commercial insurance?
Is it permitted in your community? This can be the municipality as SusieQQ notes, it can be a homeowners or condo association, or it can be a coop board. Yes, rules against short term rentals can be enforced, but if you are uninsured or underinsured AND illegal, you are placing yourself at huge risk. This is worse since your entire net worth is at hazard.
How do you deal with illegal activity? This is easier to monitor if you are doing a few rooms in your own house, but in my own neighborhood in Nantucket, one house was rented to a family but actually occupied by their college age son and thirteen of his closest friends with predictable results. A block away, a bunch of 30-something Bros, all respectably employed and on island for a wedding party, tore the railings and floorboards off the deck to build a backyard bonfire.
All that said, when we remodeled our house, we designed it with a two-room and bath suite in case we ever wanted or needed to rent, and I would be inclined to use AirBnB of the current options.
A lot depends on your personality, and Mme Perdu clearly has the right kind. A lot depends on you location and the property itself.
But some depends on other issues:
Are you insured against damage by a tenant or damage TO a tenant like a slip and fall in the shower? Do you need commercial insurance?
Is it permitted in your community? This can be the municipality as SusieQQ notes, it can be a homeowners or condo association, or it can be a coop board. Yes, rules against short term rentals can be enforced, but if you are uninsured or underinsured AND illegal, you are placing yourself at huge risk. This is worse since your entire net worth is at hazard.
How do you deal with illegal activity? This is easier to monitor if you are doing a few rooms in your own house, but in my own neighborhood in Nantucket, one house was rented to a family but actually occupied by their college age son and thirteen of his closest friends with predictable results. A block away, a bunch of 30-something Bros, all respectably employed and on island for a wedding party, tore the railings and floorboards off the deck to build a backyard bonfire.
All that said, when we remodeled our house, we designed it with a two-room and bath suite in case we ever wanted or needed to rent, and I would be inclined to use AirBnB of the current options.
Mar 26th, 2015, 08:29 AM
#17
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Are you insured against damage by a tenant or damage TO a tenant like a slip and fall in the shower? Do you need commercial insurance?>
aribnb site says they cover any such liability in an umbrella policy - stressing the hosts have no liability that will not be covered by their policy - but a good question to ask.
aribnb site says they cover any such liability in an umbrella policy - stressing the hosts have no liability that will not be covered by their policy - but a good question to ask.
Mar 27th, 2015, 01:48 AM
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Airbnb's site says . . .
What are the limits of the umbrella policy?
Does it apply in your jurisdiction?
Is it primary insurance or does it only pick up when your homeowners insurance doesn't?
Does it apply if you or the guest is negligent? Alcohol impaired? Participating in an illegal activity?
Being an airbnb host is a business venture. As with any new business venture, I would want to consult a lawyer in my jurisdiction before starting out. Some jurisdictions are much riskier than others. It's your net worth at risk.
What are the limits of the umbrella policy?
Does it apply in your jurisdiction?
Is it primary insurance or does it only pick up when your homeowners insurance doesn't?
Does it apply if you or the guest is negligent? Alcohol impaired? Participating in an illegal activity?
Being an airbnb host is a business venture. As with any new business venture, I would want to consult a lawyer in my jurisdiction before starting out. Some jurisdictions are much riskier than others. It's your net worth at risk.
Mar 27th, 2015, 04:26 AM
#19
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MmePerdu - what did you do if anything about liability concernes Ackislander raises? Or did you just jump in - seems a salient point - I do have an umbrella policy for a million bucks covering me in liability cases but have to check the fine print I guess.
Mar 27th, 2015, 08:56 AM
#20
I hadn't made any changes to my insurance and am glad the company now provides $1,000,000 liability insurance, in addition to my own.
https://www.airbnb.com/support/article/937
They've realized that commercial liability insurance is beyond the reach of many hosts who aren't running a full-time business, and added this to the host coverage that was instituted early in the game. They received terrible publicity when a host's home was trashed and are apparently not waiting for a liability case to hurt them too.
https://www.airbnb.com/support/article/937
They've realized that commercial liability insurance is beyond the reach of many hosts who aren't running a full-time business, and added this to the host coverage that was instituted early in the game. They received terrible publicity when a host's home was trashed and are apparently not waiting for a liability case to hurt them too.
