Pros and Cons of Short Term Rental
The concept of a shared economy has been scoffed at by many, and for many reasons. However, it is undeniable the profit that there is to the average seller and consumer, which is why big businesses hate citizen commerce. All this is to say that there are several pros and cons of hosting in airbnb. Renting your stuff or space out can be risky, but in most cases if you’re wise, the benefits will outweigh the risks.
The first advantage to renting out your space short term is obvious: Extra MONEY! Yep, we all need it. This goes with the rhetorical question: why not make money off of something you already own? This seems like pretty much the ideal money maker—rent your space you’re not using to people who need it. It’s a win-win. You get money, they get a cheap space. This advantage, however, comes closely with the risk of having strangers in your home.
Fortunately, if you’re working through a reputable rental company like Airbnb they offer some insurance, but it is recommended that you should insure your own valuable items such as instruments or jewellery. Another precaution is to keep things out of sight, out of mind when you have guests, and/or get a safe.
The second advantage with its counterpart disadvantage would be competition. Renting your space out is a business like any other and it comes with competitors. While short-term rental management companies have made it easy for thousands of people to create income, this also means that there are so many more people to compete with. This can be a good thing, however.
For example, if you already have amenities such as a hot-tub, nice view, pool, or Wi-Fi and your competitors don’t, people will pay the extra amount for a little bit of luxury. There is a clear flip-side to this though: your competitors are just better than you with more amenities. Not to worry. There are all types of people. Some may be looking for the extra niceties while others are just looking for the absolute cheapest deal, which is maybe what you can offer. Don’t be afraid to lower your prices as this gives you the opportunity to increase bookings.
Community. The risks and benefits this incurs to your community need to be considered. You may have some really great guests come to your neighbourhood or apartment and they’re nice and write good reviews and recommend you to their friends to come back. This can increase your community by expanding your current pool of people. However, the risk to this is that in inviting strangers, you may end up with some people that are not so great staying with you, and your current community might not appreciate it. This being so, carefully screen your guests as much as possible. Be clear in the rules and guidelines for your home and community for mutual respect (ex. no smoking, no pets, curfew time, inviting friends, maximum capacity, etc.).
If you’re looking for suggestions on guest interactions and increasing your bookings, check out the rest of the KozyGuru website for more professional assistance.