Last updated on July 26th, 2022
Although international travel may still be in flux, the surge in domestic travel continues. According to recent tourism reports, up to 80% of local rentals are getting booked months in advance as tourists embrace staycations. To take advantage of these opportunities, rental hosts don’t need massive capital. In fact, with an Airbnb business, hosts can start a successful rental property with a minimal budget.
For budding Airbnb hosts with a limited budget, here are the basic steps—from ideation to execution—to start your rental business:
Choose the right location
On a limited budget, you’ll first want to work with the existing assets you have. One of the primary Airbnb components that can immediately turn the tide in your favour is location. If your Airbnb is in a popular tourist area, you’re more likely to improve your ROI. According to landlord surveys, some of the most profitable Airbnb locations in the UK include cities like Cardiff. Here, homeowners can make up to 86% more than the average rental income. Thus, if you’ve already got an existing property, check if it’s in a profitable area. Otherwise, if you want to be a rental host without buying property, opt for rental arbitrage instead. In this way, you still earn sub-lease payments that get you closer to becoming an Airbnb millionaire.
Create a business plan
To be sure that every expenditure counts, that your efforts are legally compliant and that you will have a profitable Airbnb endeavour, it’s best to have a business plan. With this, you have a clear roadmap that can mitigate vulnerabilities and strengthen business longevity. The most important part of this business plan will be creating a budget. You need to know how much you need to make in order to be profitable, as well as plan for ongoing costs, such as toiletries, batteries, and lightbulbs, and hidden costs such as breakages. If you are unsure, investing in a financial planner will impact your budget, but will save you in the long run.
Develop your aesthetics
Once you’ve got your property and business plan sorted, you’ll want to concentrate on the creative aspect. And you can do this without breaking the bank. As much as your guests will be choosing your Airbnb based on location, they’ll also want to choose the most comfortable-looking one. To do this, you don’t need to spend an arm and a leg on renovations. Rather, be clever with how you’ve decorated your property. If you’ve got a great view, emphasise them with window treatments. If you’re low on room, use mirrors to create an illusion of space. Don’t hesitate to add homey details, either. Throw pillows, wall decor, and rugs can make a space more inviting for weary travellers. As an added bonus, stock your property for every guest. Include a rule book with emergency numbers for their reference. To make a good impression, leave a simple but meaningful gift basket. It’s these thoughtful small budget details that will give your property the “wow factor” from competitors. If successful, you may even score repeat guests.
Harness social strategies
Last but not the least, you’ll want to promote your Airbnb. One of the most affordable yet effective mediums for this is social media. This way, instead of waiting for would-be guests to find your listing on the Airbnb website, your listing will be coming to them via their feeds. First you will need to do some market research. Fortunately, social media is the world’s largest pool for market research and you can use it find consumer trends, such as the tourist demographic of your location, to make your Airbnb more attractive. You will also be able to use social media to measure client satisfaction. In order to reach more potential customers you will need to research social media advertising strategies online. This will show you the basics of posting and advertising your listings on social media, as well as creating content such as blog posts and videos to drive more traffic to your listing.
To summarise, you don’t need a lot of money to begin your Airbnb business. By working with the assets you have and investing in the right efforts, soon you’ll be enjoying a smooth-sailing and profitable rental business.