Are you thinking about listing your property on Airbnb, but not sure how much you could earn?
Estimating your potential earnings is a great way to see if listing your property on Airbnb is right for you. Here are a few factors to consider when estimating your potential earnings from Airbnb:
Where is your property located?
Properties in popular tourist destinations or near major city centres will often have higher demand and can command higher prices. Here are a few indicators that you should be looking for:
- Proximity to tourist attractions
- Proximity to public transit
- Overall safety of the neighbourhood
2. Type of property
What type of property do you have?
Different types of properties can be better or worse suited for Airbnb. For example, a 2-bedroom flat in the Leicester City Centre is going to be more popular (and earn more money) than a 3-bedroom house in Hinckley.
3. Listing price
How much are you planning on listing your property for?
Your nightly listing price is one of the most important factors in determining your potential earnings. In general, properties with higher prices will have higher demand and earn more money. Here are a few best practices to follow when listing prices:
- Start with a competitive price
- Increase your price gradually over time
- Pay attention to demand and adjust your prices accordingly
4. Number of guests
How many guests are you planning on accommodating?
The number of guests you can accommodate will have a big impact on your potential earnings. If you have a 3-bedroom flat in the Leicester City Centre, you could potentially earn more money by listing it for 6 guests instead of 4.
5. Length of stay
How long are your guests planning on staying?
The length of stay is another important factor to consider when estimating your potential earnings from Airbnb. In general, longer stays will result in higher earnings. Here are a few tips to encourage longer stays:
- Offer discounts for longer stays
- Make your listing description clear that you welcome longer stays
- Be flexible with check-in and check-out times
6. Occupancy rate
How often do you plan on renting out your property?
Your occupancy rate is another important factor in determining your potential earnings. If you plan on renting out your property for most of the year, you can expect to earn more money than if you only rent it out for a few weeks.
7. Cleaning fees
How much are you planning on charging for cleaning fees?
Cleaning fees are often charged per night, so they can have a big impact on your potential earnings. If you charge too much, you may deter guests from booking your property. If you charge too little, you may not be able to cover the cost of cleaning between guests.
How many bedrooms and bathrooms does your property have?
Larger properties can accommodate more guests and often charge higher rates.
What type of amenities does your property offer?
Properties with private pools, hot tubs, or other luxury amenities will often charge premium prices. Here are a few best practices when it comes down to amenities at your Airbnb:
- Don’t over promise and under deliver
- Clearly state what amenities are available at your property
- Photos of the amenities (as well as the rest of the property) should be accurate and up-to-date
Is your property located in a place with high demand all year round, or is there a certain time of year when demand is higher?
Properties in locations with high demand all year round can command higher rates, but those with seasonal spikes in demand may be able to charge even more.
How many other Airbnb listings are there in your area?
If there are a lot of listings, you may have to lower your rates to compete. However, if there are very few listings, you may be able to charge more.
Interestingly, if there are no Airbnbs around your area, it is generally an indication that an Airbnb might not work well in that area. So, you’ll need to have a second look at our suggestions here.
Once you’ve considered all of these factors, you should have a good idea of what your potential earnings could be from listing your property on Airbnb. Estimating your potential earnings is a great way to see if listing your property on Airbnb is right for you.
To learn more, get in touch with us today.