Make Money While You're Away: A Beginner's Guide to Hosting Your Home on Airbnb and Vrbo
Getting Started with Airbnb and Vrbo Hosting
Renting out your extra space on sites like Airbnb and Vrbo has become increasingly popular in recent years. The rise of the sharing economy has enabled everyday homeowners to earn extra income by hosting travelers in their homes. Whether you have an extra bedroom, a mother-in-law suite, or even a backyard cottage, you may be able to rent it out for short term stays.
Airbnb and Vrbo hosting provides a number of advantages over traditional rentals. You can set your own rates, house rules, and availability. You also get to choose exactly when and how often you want to host guests. It's a flexible way to offset your housing costs and meet interesting people from around the world.
However, hosting through Airbnb and Vrbo also comes with its challenges. You'll need to manage reservations, communicate with guests, clean between stays, and maintain your space. There are also legal considerations depending on where you live. Successful hosting requires preparation, systems, and commitment.
This guide will walk you through the key steps to get started hosting your home on Airbnb and Vrbo. I'll cover evaluating your space, setting up your listing, pricing competitively, getting bookings, welcoming guests, and growing your business as a short-term rental host. Whether you're considering casual hosting or wanting to run a full-time business, use this guide to help launch your Airbnb or Vrbo short term home rental.
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Deciding What to Rent Out
One of the first decisions you'll need to make when getting started with short-term rentals is what exactly you want to rent out. The main options are:
Whole home - This involves renting out your entire house or apartment while you are away or have a secondary vacation home. This allows guests to have the full space to themselves. It requires full trust and confidence in your guests.
Private room - With this option you rent out one or more bedrooms in your primary home while you continue living there. This allows you to interact with guests but requires sharing common spaces. It's less disruptive than renting an entire home.
Shared room - This involves renting out extra beds or space within a bedroom you continue using. It provides the most limited privacy but is an easy way to monetize extra space.
Some key factors to consider when deciding what to rent:
Your comfort level with having strangers in your home and sharing space or giving them full access
How much space you realistically have available to dedicate to guests
Your personal living situation and schedule - will you be around to interact with guests?
Whether you want rental income to be supplemental or a major source of earnings
Local regulations, taxes, and rules on short term rentals for different accommodation types
Expected demand, pricing, and earnings potential for different rental options in your area
Try to find the right balance between space, comfort, income goals, and your own lifestyle when deciding what type of short term rental works for you. Start conservatively until you get experience hosting.
Preparing Your Space
Before welcoming your first guests, you'll want to make sure your space is clean, comfortable, and ready for visitors. This involves cleaning, staging, purchasing supplies, and setting house rules.
Cleaning - Give your entire home a deep clean before listing it online. This includes washing linens, scrubbing bathrooms, dusting, vacuuming, mopping floors, cleaning windows, and more. Make sure to clean places guests will interact with like remote controls, light switches, door handles, etc.
Staging - Declutter your space and store away personal items and valuables. Stage each room like a hotel or model home, with décor that appeals to a wide audience. Make beds with fresh linens and set out clean towels in the bathroom. I strongly recommend considering plain White linens. White linens scream cleanliness to your guests. The uniformity of linens also keeps it easier to manage. (To bring the ambiance to life with colors and textures while maintaining the simplicity and perceived cleanliness of white linens, consider decorative pillows, window coverings, and rugs)
Supplies - Stock up on extra toilet paper, paper towels, tissues, soap, shampoo, coffee, snacks, water bottles, and other essentials. Consider providing small travel-sized toiletries as well.
House Rules - Create a list of rules for guests covering things like checking in/out times, parking, garbage procedures, pet policies, noise restrictions, and more. Print these rules out and display them prominently within your rental space. It’s also a good idea to have this printed in your guest book.
Safety - Check that all appliances, electronics, smoke detectors, carbon monoxide detectors, and fire extinguishers are in good working order. Remove tripping hazards and anything dangerous. I recommend switching out the batteries in all the detectors every six months when you change the door lock batteries (if running smart locks).
Comforts - Provide extra pillows, blankets, hangers, iron, hair dryer, etc. Set the thermostat at a comfortable temperature.
Keys - Have an organized system for distributing and collecting keys or access codes. Provide guests with clear instructions on how to check-in. I recommend using WiFi capable smartlocks. This allows you to manage door codes for your guests remotely. I have been happy with the Schlage Encode Smartlock. I create a code for each booking, and delete it after checkout. I also have a code for admin, housekeeping, and a backup code I could give to a guest if an issue arises with their code. The Schlage app is nicely setup and allows me to see the status of the doors in real-time. You can also have it send alerts which can be nice for knowing when your guest checks in to ensure everything goes smoothly.
Cleaning Supplies - Furnish cleaning supplies like disinfecting wipes under the kitchen sink or in a closet so guests can tidy up after themselves if desired.
Preparing your home thoroughly ahead of time will help ensure a smooth hosting experience and great reviews from your first guests. A clean, inviting, and well-stocked space encourages future bookings.
Pricing Your Listing
One of the most important parts of preparing your Airbnb or Vrbo listing is determining how to price it. You'll want to price your listing competitively compared to similar rentals in your area, while still covering your costs and making a profit. Here are some tips:
Research prices for comparable listings in your area by searching on Airbnb and Vrbo. Consider location, size, amenities offered, and time of year when comparing. Aim to price your listing competitively based on this research.
Factor in your costs like cleaning fees, utilities, supplies, and any HOA or rental fees. Make sure your nightly rate covers these costs and provides you a reasonable profit margin. Consider your time investment too.
Dynamic pricing allows you to charge more during peak seasons and less during slower months. Higher prices on weekends and holidays can maximize revenue. Though it sounds great, the general consensus is to steer away from the built in dynamic pricing tools and instead consider Pricelabs for a dynamic pricing strategy. Pricelabs is a robust software that uses detailed data and algorithms focused on maximizing your bookings and earning potential.
Offer weekly or monthly discounts to encourage longer bookings and fill gaps in your calendar. This provides guests a deal and steady income for you.
Additional fees to consider: cleaning fees, extra guest charges, security deposits, cancellation policies. Balance maximizing revenue with remaining competitive.
Periodically reassess your pricing based on seasonal demand shifts, occupancy rates, and new data on comparable listings. Adjust as needed.
The key is finding the optimal price that keeps your listing full, covers your costs, yet remains reasonable for guests. Start on the lower end as a new host, monitor booking rates and feedback, then adjust pricing over time as you gain experience.
Writing Your Listing
A compelling listing is crucial for getting bookings on Airbnb and Vrbo. You'll want to include great photos, a detailed description of your space, a list of amenities, and clear house rules.
Photos - Great photos are one of the most important parts of your listing. Have a professional photographer take photos that highlight the best features of your space. Get wide shots to showcase the entire room as well as close-ups of important details like your kitchen or bathroom. Photos should be well-lit and free of clutter. Your cover photo may be the most important part of your listing. Don’t be afraid to change it out a bit in the beginning until you find what works. If you aren’t getting a lot of insights or bookings, try changing it.
Description - Write a detailed description of your rental that helps guests understand exactly what your space is like. Mention the number of bedrooms, bathrooms, and common spaces. List the size of the unit and note any special features like scenic views or anything that may set you apart from others in your area. Don't exaggerate or make false claims. Be upfront about any quirks or inconveniences like street noise. Tip: Check similar listings in your area for ideas and spruce it up from there!
Amenities - Include a comprehensive list of amenities so guests know what to expect. Note things like kitchen appliances, entertainment systems, wifi, parking, linens, toiletries, or laundry facilities. Only list amenities that will actually be available for guests to use.
House Rules - Set clear house rules and policies around things like smoking, pets, parties, checkout times, etc. This sets expectations for guests and avoids misunderstandings later. Be firm but fair. Consider your neighbors and your own preferences.
Getting Bookings
The key to getting bookings is increasing the visibility of your listing and making it as appealing as possible to potential guests. Here are some tips:
Ways to Boost Visibility
Optimize your listing with relevant keywords guests may search for. Include your location, property type, amenities offered, etc.
Utilize all photo slots - professional photos sell. Show off the spaces and amenities.
Set competitive nightly rates based on local market research. Offer weekly/monthly discounts.
Maintain a high response rate to inquiries and requests. Respond promptly.
Ask guests to leave 5-star reviews after a stay. Reviews boost search placement.
Promote your listing on social media and other channels to drive traffic.
Responding to Inquiries
Respond to all inquiries within 24 hours. Faster responses improve your placement in search.
Be friendly and informative. Provide details about your space, amenities, policies, etc.
Be flexible on dates if possible. Offer discounts on open days if needed.
Don't share contact info outside of platform messaging until booking is confirmed.
Screening Guests
When listing your property you have the option of accepting instant booking or evaluating the booking request. Instant booking offers better chances of getting bookings. With instant booking off however, you have the ability to screen your guests prior to accepting the booking. Instant booking may be better suited for entire home rentals while the option to screen guests pairs nicely with shared space rentals. Here are some considerations when screening guests:
Review guest profiles carefully before approving a booking.
Decline requests from brand new guests with no reviews if uncomfortable.
Ask questions to guests you're uncertain about. Get a feel for their needs.
Confirm guests agree to house rules and cancellation policy before booking.
Reserving Dates
Block reservation dates on calendar immediately after booking and payment.
Avoid overbooking - double check dates before accepting multiple bookings.
Reserve buffer days between bookings for cleaning/prep if needed.
Set auto-pricing higher on dates that commonly book out quickly.
If you have multiple listings, or you are listing in multiple places such as Airbnb, and Vrbo, consider third party apps such as Host Tools to manage your calendars and avoid double bookings.
Welcoming Guests
The check-in process is one of the most important parts of hosting on Airbnb and Vrbo. You want to make your guests feel welcome from the moment they arrive.
Create a guidebook for your listing with information about the property, local attractions, restaurants, wifi password, etc. You can create your guestbook digitally and send it to guests after they book. I also offer a printed version of my guestbook that i leave on the dining room table for guest to reference throughout there stay. Tip: Etsy has some great options If you need help or inspiration with your welcome book!
Be available for check-in if possible or provide detailed instructions if guests will be self-checking in. Make sure the property is cleaned and stocked with essentials like toiletries, towels, and linens. I send my guests a welcome message on the morning of check-in that includes their door code.
Welcome guests personally if you can and give them a tour of the space. If you can't be there, leave a nice note and small welcome gift like a bottle of wine or snacks.
Pay attention to details that make guests feel at home like making up the beds, setting out fresh flowers, providing bottled water and coffee.
Make sure guests know how to reach you if any issues come up during their stay. Be responsive in addressing questions or concerns.
After check-out, take time to clean the property thoroughly again before the next guests. Wash all linens, towels, refresh bathroom supplies, take out trash, etc.
Leave a short review for the guest and respond professionally if they leave any review for you. Reviews help build up your reputation on the platform.
Focusing on the check-in experience and providing a clean, comfortable, and hospitable stay will lead to happy guests and great reviews!
Managing Your Listing
When you host on Airbnb or Vrbo, it's important to actively manage your listing to ensure a smooth and positive experience for both you and your guests. Here are some tips:
Monitor your calendar regularly. Keep an eye on upcoming reservations and blocking off any dates where your space will be unavailable. Reach out to guests before their stay to coordinate check-in times and share access instructions.
Communicate with guests. Be responsive to any messages from potential or booked guests. Provide recommendations for local attractions and restaurants. Check in with guests during their stay to ensure everything is going well.
Arrange for cleanings between guests. Whether you handle cleanings yourself or hire professional cleaners, make sure your space is fresh for each new arrival. Change the sheets, towels, restock amenities, take out trash, and do a general tidy.
Collect reviews from guests. After a stay, gently ask the guest to leave an honest review on Airbnb or Vrbo. Positive reviews will help attract more bookings in the future. Address any critiques or issues mentioned privately with the guest.
Update your calendar and listing. Based on guest feedback or your own observations, make any needed improvements to your space. Update your listing with new photos and details that accurately represent what guests can expect.
Respond to inquiries and booking requests promptly. The faster you reply to booking inquiries and reservation requests, the more likely you are to secure that booking before the dates get snatched up by another host.
Proactively managing your Airbnb or Vrbo listing takes effort but pays off through more bookings, better reviews, and happier repeat guests over time.
Taxes and Regulations
Renting out your property on Airbnb or Vrbo comes with some important tax and legal considerations. Here are the key things to know:
Occupancy Taxes
Many cities and states charge occupancy taxes on short-term rentals. These are taxes that your guests pay on top of the nightly rate. As the host, you are responsible for collecting and remitting these taxes. Failure to do so can result in fines or penalties. Look up the local laws to understand occupancy tax rates in your area.
Business Licenses
Some areas require hosts to obtain a business license in order to legally rent out their property short-term. Check with your local municipality to see if you need one and how to apply. Costs vary but are generally affordable.
Zoning Laws
Not all properties are zoned for short-term rentals, so check the zoning designation for your home. If short-term rentals are not allowed, you may be prohibited from listing on Airbnb and Vrbo. Some areas limit short-term rentals to a certain number of days per year.
Insurance
Standard homeowners or renters insurance likely won't cover short-term rental activity. Look into getting a policy that specifically allows short-term rentals. This will protect you in case guests are injured on your property. An umbrella liability policy can provide additional coverage.
Taxes
The income you earn from short-term rentals is taxable. Save receipts for all expenses and track income carefully. Deduct any expenses associated with hosting. Talk to an accountant or tax professional to understand how to report your rental income and expenses.
Following local laws and regulations will help ensure you host legally and avoid issues down the road. Do your due diligence before listing your property.
Growing Your Business
Once you've established your first successful Airbnb or Vrbo listing, you may want to consider expanding your short-term rental business. Here are some tips for growing as a host:
Focus on Superhost Status
Providing excellent service and responding quickly to guest needs is key. Maintaining a high response rate, review score, and booking rate will help you achieve and retain Superhost status on Airbnb or Premiere Host on Vrbo. This lends credibility with potential guests. These status’s come with additional benefits that differ per platform but both translate to an increase in bookings which can also allow for some increase in pricing.
Expand to Multiple Listings
If you have additional bedrooms, a guest house, or investment properties, consider listing them as well. Having multiple listings helps ensure occupancy if one listing is booked or unavailable. It also allows you to experiment with different pricing, amenities, and areas. Manage your listings through a single Airbnb or Vrbo account.
Consider Automation
Expanding to Multiple Listings is a big step that can require more of your time and focus to manage. This is the point where you really want to consider the aforementioned Pricelabs and Host Tools services. Pricelabs allows you to automate your pricing strategies across all your listings. Host Tools will put all of your management needs in one convenient place like managing your bookings, syncing your calendars, coordinating cleanings, managing locks, and can even automate messaging.
Create a Business Entity
As your rental income grows, forming an LLC or corporation can provide tax and legal benefits by separating liabilities. Consult an accountant or attorney to understand the implications. You may need to update your rental agreements and insurance.
Hire a Property Manager
For hosts with multiple properties or limited availability, working with a property management company can be helpful. They can handle cleaning, maintenance, messaging guests, and more—for a percentage fee. Vet companies thoroughly though to find one experienced with short-term rentals.
With attention to customer service, marketing, and a growth strategy, you can build a successful short-term rental business over time. The key is providing outstanding experiences that keep guests coming back.
