RUNNING AN AIR BNB: ALL THE THINGS
Photos in this post by Tess Leopold
So for those who don’t know…
… and I don’t know how you couldn’t because I harp on and on about it, Nick and I own an Airbnb called Grounds Of Cabarita (@groundsofcabarita). We originally renovated the house for us to live in but after lots of enquiries on Instagram about staying at the house, we decided to give Airbnb a whirl!!! More about that story here…
The house has absolutely taken off, especially since relaunching it post Poppy in November last year, and now it is so busy that we are unable to live at the house at all (good problem to have)!!
Anyway, I get asked a lot from people on instagram and via email for tips on how to get started, whether it is worthwhile etc. So I thought I would put all the FAQs in one space!
Our top tips:
Get yourself an incredible cleaner (in my opinion the most important tip!!)
Amanda is my guardian angel haha
We have two complete sets of linen, she takes home the dirty linen and washes it (I pay her by load) and brings back the clean washing to swap them over
Having two sets of linen/towels mean that we can have guests check out and check in on the same day
Keep your house as low maintenance as possible
Provide AT LEAST the bare necessities- olive oil, shampoo, conditioner etc.
We also leave a care package in the fridge of a bottle of champagne or wine, a four pack of Balter beer, Blackboard biodegradable coffee pods, fresh eggs from our chooks and free coffee cards to Tucker Casuarina
Have instagrammable touches
But like all things in houses, don’t let aesthetics get in the way of functionality
Have check out times early enough and check in times late enough that there’s ample time to clean in between (for example our check out time is by 10am and our check in time is after 3pm)
“Collaborate with influencers”- but be smart!!
The word ‘collaborate’ makes my skin crawl but personalities with followings that align with your houses aesthetic and location can be a great way to get your name out there
Make sure you are very specific about what you expect from the relationship (i.e. how many posts) otherwise you may be let down
Pick the time wisely- i.e. mid week during a quiet month
Get good photographs, but make sure they are realistic and truthful
Have at least a two night minimum, we just don’t feel its worth the effort for one night!
Checking in- I find it easiest to have a pin code or key box so that guests can check themselves in. I find most guests prefer not to do awkward pleasantries on check in (I know I feel this way after travelling) and if they are running late you don't have to wait around for them!
Give guests lots of good local recommendations!
We have ours on our website and link guests to it when they book their stay so they can start planning their trip!
Put together a good house manual!
We have ours on the iPad that we leave for guests. This house manual has information on WiFi, how to use each appliance, garbage collection days etc.
Think about your audience
For example our house is often booked by young families so we offer a highchair and a portacot on request
However, if you feel your house is going to attract people more on business trips then consider a desk etc.
Your Questions answered
Has AirBnB been a better financial choice than renting it out?
For us, yes definitely! Financially we make a lot more from Airbnb than we would’ve if we had a permanent tenant in the house. In saying this, it is a lot more effort too!! And if the house wasn’t always busy it would be something to reconsider and weigh up!
Do AirBnB take a big cut?
No, they take a small one! Airbnb take a small service fee of approximately 3%. Guests also get charged a service fee from 1-20% depending on stay length, cost of stay etc.
Where do you live when you’ve got house guests?
We no longer live in the house at all! Our house is now permanently available to Airbnb. We are currently renting (off my parents) in Casuarina while we await the build of our new home (stay tuned for updates).
Before we had Poppy and when the house was not as popular as it is now, Nick and I would move in and out (mainly on weekends) and go camping or take small trips interstate. This was really fun and a great way to explore more places but was inconvenient at times when I was rocking up to work straight from a camp site. I feel this now with Poppy would be less sustainable!
Do you get to take a bond? Does damage worry you?
No we do not take a bond but Airbnb has a host guarentee that they will cover damages of up to $1,000,000.
Damage doesn’t worry me too much and we have been super lucky with our guests thus far. Generally guests leave the house in immaculate condition, much better than I feel they would leave a hotel room. We have general wear and tear to the house, which is to be expected! Especially as we have a very “family friendly” home so lots of kids come to stay.
If there is an issue with a guest’s stay though, the process is that you first discuss it with the guest through Airbnb’s Resolution Centre and if you can’t come to an agreement then Airbnb gets involved. We have never had to do this though.
Funny story, however, when we stayed for Poppy’s first birthday party, Nick shattered the pool gate, so that was the most damage ever caused and it was from us being drunk idiots!!
What do you do with personal belongings when the house is booked out?
When we used to move in and out from the house we had a lock on both of our wardrobes so we could lock away clothes we weren’t taking with us and other than that we just did a massive clean out of most of our possessions! It was actually really therapeutic!! We also had a lockable shed out the back that we kept our camping gear, surfboards etc. in.
Now that we no longer live in the house it is purely set up for rental, but with some nice personal touches!! We have one wardrobe locked that we keep spare linen and towels etc in. and we have one cupboard locked in the kitchen that has spare champagne/beer/coffee for future guest care packages.
How do you know how much to charge guests?
So when considering the price you need to think about nightly price, cleaning fee, then the fact a service fee is charged to the guest and then taxes as well.
You then have to consider if you want to do Price Tips or customise your own prices. Price tip is when Airbnb calculates based on your house and the demand/availability in the area the “right” price per night at your house. We do not use price tip as we feel it is usually a fair bit less than what we charge but if you are just getting started it may be a way to go.
If you are moving in and out of the house around guests, make sure you set the price high enough to cover for your effort, accommodation costs for you and the cost of likely having to eat out etc. while you are not home.
You are also able to have differing prices on weekdays to weekends. For example: on weeknights our house is $450/night and on weekends it is $650. This obviously reflects the greater demand for holiday accommodation on weekends. On top of this I also go ahead in the calendar and change holiday periods (such as Easter, Christmas etc.) to be higher prices again.
People who travel using Airbnbs are used to paying cleaning fees so it is something that you should use as a host. It is a flat rate fee that the guest pays to cover cleaning. Because our clean is quite involved (cleaning a three bedroom house, scooping/vacuuming pool if needed, gernying patio if needed, 3x king bed linen and towels being changed and washed) we pay approximately $200, but charge our guests a $150 cleaning fee.
Do you have a professional cleaner or do you do the cleaning yourselves?
As discussed above we definitely have a cleaner!! She is the most important cog in the wheel of our Airbnb! She can completely flip the house for guests when we are away! (More info above).
Do you pay tax on your Airbnb earnings?
This is quite a confusing area and I would definitely recommend speaking to an accountant about it. But yes, we pay income tax on it. The tax/GST changes depending on how much the house is earning and whether it is an investment property or primary place of residency. But yeah that’s all out of my league to explain, sorry!!
If you have any questions please comment below!
Thanks for reading along,
