Setting up an Airbnb? Here’s what you need to know

BY HELEN RIDDELL

If you have a property you’re looking to rent as a holiday home or short-term rental, then renting it through airbnb can provide you with a substantial regular income.

Airbnb was launched in 2008 by Brian Chesky and Joe Gebbia, who, struggling to meet the rent on their apartment in San Francisco decided to rent out space in it to people who needed cheap overnight accommodation while visiting the city.

They set up an air mattress in their living room for guests, and provided them with a cooked breakfast in the morning. The rest is history.

Airbnb accommodation includes everything from a room in the host’s home, a caravan or chalet, or an entire home which can accommodate multiple occupants.

Before you start

If you’re thinking of renting a property through airbnb, there are a number of things to be aware of.

Most importantly before you even list a property in Ireland to rent for short-term lets, you may need to get planning permission from your local authority or apply for an exemption.

This also applies if you are renting a room in your property for short-term lets.

A short-term let is classified as renting out your property or a room in your property for people to stay there for less than 14 days at a time.

In 2019 the Residential Tenancies Act updated its regulations which meant that airbnb hosts in Ireland, are subject to new rules, particularly if you live in a rent pressure zone.

Think business

Once you have obtained planning permission, no matter how big or small your airbnb venture is, by thinking of it as a business and creating a business plan, it will help you identify any potential expenditures and how much income you need to generate from lettings to cover this, and create a profit.

List all possible overheads such as insurance, cleaning, utilities and maintenance costs and any complimentary welcome gifts for guests.

Rates, and ratings

When working out what to charge for your property, check out other similar properties on airbnb in your area.

The airbnb website does have a tool which can help you determine a rate.

When you first launch your property online it’s also worth considering lowering the rate for the first few bookings to entice guests to stay with you as a new and as yet unreviewed host.

To get established on the platform, ratings from guests are key.

Unique and unusual characteristics

Some people like to use airbnb properties in order to stay in unique or quirky properties, if your property has some unusual characteristics, then be sure to feature them in your advertising and make them a selling point to stand out from other airbnb areas in the area, if you have great scenic views from the property include them in the online photo gallery.

Insurance

It’s vital you’re fully insured before renting out your property.

Make sure you have full public liability insurance, buildings and contents insurance and it’s also worth covering for any potential cancellations and homecare emergency insurance.

Be prepared

You’ll need to decide whether you plan to be there in person to handover the key to your guests and show them around the property or leave a key in a lockbox with a detailed guide to the property.

A lock box for keys is one option if you don’t plan on being around to let guests into the property.

The same when your guests are checking out, leave clear instructions on where they are to leave the key, do you need them to strip laundry off beds, take a metre reading etc.

When your guests have left you’ll need to arrange for the property to be thoroughly cleaned and all laundry changed for the next guests, and if it’s a busy time of year, work out how long this changeover time will take you before you can let the next guests check-in.

If you’re not going to be doing the cleaning yourself, then ensure you hire a reputable local cleaner who won’t let you down.

Leave clear instructions regarding waste disposal for your guests, and separate containers for any recyclable waste.

Inevitably there will be times when things go wrong, the boiler breaks down, there’s a leak, the guests lock themselves out, you’ll need to leave an emergency contact number for your guests and it’s worth having a good local tradesperson on standby for any such eventualities.

As an airbnb host you want your guests to leave good reviews, which in turn will lead to more bookings, think about creating a welcome pack with a list of local amenities, restaurants and the local grocery store, and also leaving some basic groceries for them, such as tea, coffee and milk and biscuits.

Communication

Communication is key to building a reputation as a good Airbnb host, from receiving the initial booking enquiry through every step of the visit, and aftercare, checking in with your guests that they enjoyed their stay.

By ensuring your airbnb venture is legally compliant, maintained to a good standard and creating a good relationship with your guests, it can easily become a profitable second income.