Airbnb Hosting Guide: A Step-by-Step Playbook for Beginners

Eager to learn how to become a great host on Airbnb and set your business up for success? From choosing the best property for renting out to improving your ranking in the search results, read our comprehensive Airbnb hosting guide as it covers all the aspects of a thriving vacation rental business.

Key Takeaways

• To become an Airbnb host, start by analyzing the competition and make sure you know your numbers and the legal side of the business.
• Don’t skimp when creating and publishing your Airbnb listing. You have only a few seconds to convince the Airbnb website users.
• Create systems like cleaning checklists and automate repetitive tasks before they become a burden and exhaust you.

With over 5 million registered Airbnb hosts and 9+ million listings around the world, it’s definitely become harder to compete in the Airbnb business, especially for new hosts. When starting with short-term renting, you want to make sure you cover everything.

To stand out as a beginner, follow our step-by-step process to guide you from property prep and listing creation to pricing and guest communication. iGMS has created this ultimate Airbnb hosting guide so you can get off on the right foot. Let’s dive right in.

What to Do Before You Start an Airbnb

Before you rent out your property to guests, you will need to do a fair bit of planning and research. Find out what steps you should follow first below:

1. Decide on the location and property

Ask yourself the following questions when you begin to look at potential properties to invest in:

• What kind of property do I want to rent out? (a house, cottage, apartment, etc.)
• Is the area surrounding the property a safe place for guests to stay in?
• What attractions can be found near the property that will be a drawcard for guests?
• Does the property’s location attract much foot traffic throughout the year?
• How many competitors are in the property’s surrounding area?

Evaluate the earning potential of your target property. These hosting calculators can help assess the viability of an investment property.

2. Research your competition

Research your competitors before taking the plunge of starting your own Airbnb business. Your area might be filled with properties that are just like yours, in which case you need to hone in and define what will set you apart from the competition. Consider these points:

• Who are my competitors? (Hot tip: you can filter out properties on Airbnb by your area to find your competitors or use software tools such as AirDNA and Mashvisor to get more in-depth data on them)
• What do my competitors offer in terms of property and amenities?
• What do my competitors charge in terms of pricing and rate per night?
• What unique selling points can I offer to stand out?

3. Learn short-term rental laws and regulations

Many cities and countries have imposed restrictions and even bans on vacation rentals, which directly impacts hosts looking to set up their businesses there. To avoid paying hefty penalties or fines, make sure your property adheres to the regulations and laws of your city or state:

• What city or state do I want to operate my Airbnb business in?
• What regulations apply to my city or state?
• What state or federal tax am I required to pay?
• What expenses (if any) can I write off as tax-exempt business expenses?

Discover all the ins and outs of Airbnb regulations for your business

4. Consider fees and estimate expenses

Think about the fees and expenses necessary to maintain their house. Aside from vacation rental and state-applicable taxes, you will also need to pay a hosting fee to Airbnb every time a guest books your home.

On top of this, there are a certain amount of one-off and fixed expenses you will need to pay for property maintenance. Here are some questions to answer when estimating your expenses:

• Do you need to make any renovations to the property to increase its appeal?
• Do you need to make any repairs to ensure it’s in perfect working condition?
• Do you need to buy new furniture or appliances for your Airbnb?
• How will you handle the cleaning of the property between each reservation?
• How will you handle repairs and maintenance between each reservation?

Get an in-depth walkthrough of how to make a successful vacation rental investment

5. Research your target audience

Define and research your ideal type of guest. There are a number of questions you can ask that will help you do this:

• What is the size and type of your Airbnb? (Is it a house or an apartment? How many bedrooms and bathrooms does it have?)
• How many people can you comfortably host in your space?
• Where is it located? (Is it in the suburbs, near a beach, in the middle of the city?)
• Who lives in the surrounding community? (Is it mostly families, students, working professionals, etc.?)

Once you have jotted down answers to these questions, you can begin to conceptualize the kind of guests that your house will most appeal to.

• Decide if you will cater to families with kids

If you decide to cater to families with children, take note that you will need to take extra precautions to ensure your space is safe for children, especially those who are under three years old.

Learn more about how to create an impeccable family-friendly vacation rental

• Consider making your property pet-friendly

Offering a pet-friendly Airbnb brings both challenges and benefits to hosts. You’ll need to decide if you feel the additional income you can earn is worth the extra cleaning and maintenance. Keep in mind that you can cover the costs of hosting a guest with pets by having them pay a pet fee.

Access the pros and cons of pet-friendly short-term rentals and learn how to get your property ready for pets

• Target domestic travelers

Amenities that make your Airbnb more appealing to remote workers, and local travelers include:

• An office space for remote workers and digital nomads.
• Offer fast and free Wi-Fi.
• A comfy outdoor area.
• A free parking spot.

Learn how to market your vacation rental property to domestic travelers

6. Draw up your business plan

A comprehensive business plan will help you define your short and long-term goals, and potential roadblocks, as well as specify the resources you need and where you currently fall short in them. A good place to start would be to think over these points:

• What goals do I want to achieve with my Airbnb business?
• By when do I want to achieve these goals (try to be realistic with timelines)?
• How will I manage my day-to-day operations?
• What tools and resources will I use for my management?
• What USPs do I have that set me apart from my competitors?
• What are the KPIs I should monitor to ensure my business’ health?
• What do I envision for the company in 5 years?

Get a step-by-step breakdown of how to write a vacation rental business plan

7. Get vacation rental insurance

Although it’s not mandatory to have specialized insurance for your home, it’s highly recommended for hosts to get it. If you are looking for basic coverage when you host, Airbnb does provide Host Guarantee protection for covering some assets.

However, this host guarantee cover is limited and does not apply to items that go missing from your space, as well as external situations, for example, damage from extreme weather.

Additionally, standard property insurance generally does not cover vacation rentals as short-term renting is considered a business. Keep these questions in mind:

• Is my home in an area that experiences extreme weather (such as blizzards, hurricanes, etc.)?
• Am I planning to rent out my property for the entire year or only part of the year?
• Are there any high-value items in my home, for example, expensive artwork or furniture?

Get an understanding of why it’s important to have vacation rental insurance for your business

Preparing Your House For Airbnb Guests

Once you’ve decided that hosting on Airbnb is the right choice for you, you can start preparing and sprucing up your space to welcome your first guest.

1. Furnish your rental

Before you make any style decisions, remember that you’re styling your space for your prospective guests and not you personally.

When deciding on how to best furnish your Airbnb, take into account the following points:

1. Your property’s location (you can use inspiration for your property’s interior design by looking at its surroundings)
2. Your target guest (for example, if you cater to digital nomads, don’t forget to arrange a comfy working area)
3. An atmosphere that you would like to create.
4. Practicality and comfort (purchase high-quality items that will provide a decent level of comfort to your guests).

Learn how to furnish your vacation rental home for a definitive guest experience

2. Add amenities and supplies to your rental

A vacation rental that offers more amenities and supplies for guests is more likely to enjoy consistent bookings. Here are a few hacks to help you get started:

• Play to the strengths of your property (if you have outdoor space, you could provide barbeque facilities or a fire pit. If you have an apartment in the city, a balcony can be a perfect addition for that extra special touch)
• Smaller amenities can make a difference (a smart TV, high-speed Wi-Fi, an espresso machine, etc.)
• Don’t forget about supplies for each room (it can be helpful to work from a checklist).

Get inside information on stocking the very best vacation rental supplies

3. Clean your rental

Before listing on Airbnb, you need to make sure your house is spick and span for your guests. It also looks unprofessional to have an Airbnb that doesn’t offer hotel-grade cleanliness.

Having a spotlessly cleaning listing will help attract more bookings and lead to a successful Airbnb listing. Create a cleaning checklist to standardize the process and stay competitive.

Aside from deciding how you will handle cleanings, you also need to decide if you will charge guests a cleaning fee or not. There’s no right or wrong answer when it comes to maintenance-related fees, as each host’s property is unique.

If you eventually hire cleaners, expect to pay $90–$148 to clean a one-bedroom apartment.

Dive into vacation rental cleaning for keeping your property sparkling clean

How to Create Your Airbnb Listing

With your business plan set up and your rental in immaculate condition, you’re free to start the exciting process of creating your first Airbnb listing! However, there’s more to creating a listing than you might initially think. If you’re aiming to rank higher in Airbnb’s SERP results, there are a few steps you should complete to improve your chances.

1. Publish your Airbnb listing

Creating an Airbnb listing is completely free but does require a bit of logical planning. The simplest way to do it is to follow the steps listed below:

Include an eye-catching title

Your listing will need a title that will jump out and catch the attention of guests browsing Airbnb’s search results. Here are some tips for writing a knockout title:

• Don’t mention your home’s basic features (such as a 2-bedroom apartment), instead, feature its key selling points (a 2-bedroom apartment with stunning seaside views)
• Update your title to mention any new renovations or upgrades
• You can also update your title to include any current packages or specials you might be running
• Use abbreviations to shorten words and optimize the character count of your title
• Don’t go over the 50-character limit, or your title will be cut off in the search results.

Get the full how-to for writing winning Airbnb tiles for your listings 

Add photos to your listing

Your pictures must look professional and attractive. Here are some quick tips for striking photos:

• Shoot from a corner to ensure your space doesn’t look small or cramped in the pictures.
• Take interior as well as exterior photos of your property.
• If you’re not a professional photographer or don’t have the tools, consider hiring one. It’s worthwhile ensuring that your Airbnb listings have high-quality photos that make an impact.
• Use free online editing tools to add more color and contrast to your pictures, but don’t go overboard with saturation and contrast; otherwise, they may look unrealistic.

Learn how to take great Airbnb photos for your vacation rental listing

Write a listing description

Airbnb’s photos and a listing description work hand in hand to generate guest reservations.

Your listing description is your chance to market and sell your rental to your target audience. Here are some ways you can write a winning description:

• Use memorable and engaging language in your description (instead of writing “nice,” “beautiful,” or “comfortable,” write “delightful,” “gorgeous” or “cozy”)
• Mention your home’s unique selling points, for example, having an indoor pool or space for outdoor dining. You can also mention nearby tourist attractions, such as walking distance to the beach, or around the corner from the metro station.
• Describe the kind of experience your space offers to guests (perhaps, your Airbnb is a writer’s retreat or an artist’s haven, a lover’s getaway, or a fully-equipped space for business travelers. Keep your target guest in mind here)
• To encourage more bookings, remember not to make your listing description sound like too much of an advert (avoid hard-selling jargon like “special offer — don’t miss out!” or “book now before it’s too late!”)

Get verified

To reduce the possibility of fraud and scams, Airbnb has introduced an ID verification process for both hosts and guests. It ensures that everyone is who they say they are by providing ID verification to prove it. Providing an ID to get verified is not mandatory, however, it’s highly recommended to do this if you are planning to host on Airbnb.

Getting verified has a number of benefits for you as a host. The most important is receiving a “Verified ID” badge on your profile, which sends a signal to potential guests that you are credible and trustworthy. This, in turn, helps to attract more reservations as guests feel comfortable knowing they are booking with a verified Airbnb host.

Get to grips with how to verify your Airbnb host profile

Follow this step-by-step guide for how to create an outstanding Airbnb listing

2. Set up your Airbnb host profile and account

Having a host profile is beneficial for several reasons. Firstly, it signals to Airbnb that you are a legitimate host who is active on the platform.

Secondly, having a detailed Airbnb host profile also shows potential guests that you are an honest and trustworthy person. If a guest finds your listing on Airbnb, they are likely going to look up your host profile to gauge whether it’s a scam or not.

Some things you can do include:

• Adding a recent photo of yourself
• Writing about yourself in your profile description
• Mention some of your hobbies and interests to personalize your profile

Discover how to write an outstanding Airbnb profile

3. Price your vacation rental

Finding the perfect price can be a balancing act. Hosts who price their rental too low may attract irresponsible or unsavory guests. Hosts who price it too high will likely drive target guests toward your competitors.

Airbnb has its own in-house pricing service. However, Airbnb’s pricing recommendations tend to be slightly lower than other dynamic pricing services.

Even if you have just started on Airbnb and have only just started accepting guests, explore the idea of dynamic pricing and how you can adjust rates during high and low seasons.

At the same time, make sure the price you select for your booking fee covers all your operating costs and still allows you to generate a profit. Some Airbnb profile pricing strategies you can implement include the following:

• Decide whether you want to opt for more bookings at a lower rate per night or fewer bookings at a premium rate (your Airbnb’s type and location influence the rate).
• Implement a dynamic pricing strategy using the pricing tools.
• Closely monitor your competitors to keep track of their price adjustments.

Learn about effective Airbnb pricing strategies to boost your earnings

4. Set your house rules

When it comes to Airbnb house rules, the best policy for hosts is to be open and honest with guests. Before you start accepting bookings from your first guests, you need to decide on the ground rules for your listing.

Including your rules in your listing description is ideal, as it can prevent misunderstandings down the line. You should also place a copy of your house rules in your property. Some commonplace rules many Airbnb hosts are related to:

• Check-in and check-out times for guests
• Breakages and damages
• Noise levels
• Cleaning and general cleanliness
• Parties and extra guests
• Safety

Discover how to write vacation rental house rules for your guests

5. Choose your cancellation policy

It’s important to choose a cancellation policy that’s in line with your management strategy, as well as the kind of stays you offer.

If you opt for the Flexible cancellation policy, you can potentially earn more reservations, but the downside is that guests can cancel for free up to 24 hours before their booking begins.

Using the Moderate policy protects hosts against last-minute cancellations. However, with this policy, a cancellation rebate will still be lower than the booking fee.

The Strict policy does not allow guests to cancel less than a week in advance without forfeiting their full booking fee. This will help you to attract more serious guests, but it can also result in far fewer reservations than if you had the Moderate or Flexible policy.

If you allow long-term stays, it makes sense to have the long-term cancellation policy.

Take a closer look at how Airbnb cancellation policies work

6. Arrange your check-in and check-out times

You should clearly state your guests’ check-in and checkout times in their booking confirmation email and the house rules of your short-term rentals. 

Also, leave clear instructions for guests regarding their checkout. The easiest way is by sending an automated checkout reminder with the help of iGMS, a day before leaving.

Get a full understanding of how Airbnb self-check-in works and how to set it up 

How to Attract and Maintain Constant Bookings

Your Airbnb listing is what will attract initial bookings, but you need to do a bit more work to receive repeat and consistent bookings.

1. Automate routine tasks

Whether you're interested in remote property management or simply want to better use your time, property management automation is for you.

For instance, iGMS is a vacation rental software that uses automation to help hosts run their businesses on autopilot. With iGMS, you can:

• Synchronize reservations across the top vacation rental platforms to prevent double bookings
• Automate your messaging for an immaculate response rate and organize your messages within a single inbox
• Create review templates and time reviews to go out according to triggers
• Manage cleaning and maintenance tasks remotely and track their completion
• Receive payouts and create invoices in minutes via Stripe integration
• Manage direct bookings through the direct booking widget
• Use integrations with dynamic pricing tools to set competitive prices for your properties.

2. Improve your listing’s ranking

The listings that occupy the first page are far more likely to get booked than the Airbnb listings on the third or fourth page. Some important things that can help your Airbnb ranking are:

• Keeping your Airbnb calendar up to date
• Updating your prices frequently
• Respond promptly to messages from Airbnb guests
• Enable Instant Book on your Airbnb account
• Obtaining as many 5-star reviews as possible

Improve your listings’ rankings by diving into Airbnb SEO best practices

3. Promote your listing

To take your visibility one step further and reach an even wider audience beyond Airbnb, you need a cohesive marketing strategy on your side.

Harness a multi-approach marketing strategy, to bring results for your short-term rentals.

Find out how to craft your own Airbnb marketing strategy

List on multiple platforms

Listing on multiple platforms means fewer calendar gaps and more bookings. AirDNA data shows cross-listed properties average 58.1% occupancy, compared to 53.9% for Airbnb-only and 51.8% for Vrbo-only listings.

Online travel agencies, or OTAs, are platforms like Airbnb. But Airbnb isn’t the only one. Other major players include Vrbo and Booking.com, and you can list on both at the same time.

Be careful to avoid double bookings, though. Managing multiple platforms requires a channel manager that automatically updates your availability (unless you want to spend hours updating calendars manually, and even then, it’s error-prone). iGMS’s channel manager automatically blocks off dates on Booking.com and Vrbo when a booking comes in on Airbnb, and vice versa.

Post on social media

Using social media is a great way for hosts to expand their audience reach and attract more reservations. But not all platforms perform equally well in terms of short-term rental marketing. Platforms, such as Instagram and Pinterest, tend to perform better due to their visual nature.

It can still be worthwhile to create a page for your Airbnb listing on Facebook, as you can still market it on targeted Facebook groups and use hashtags to find the right viewers for your Airbnb hosting business content.

Partner with local businesses and companies in your area. You can partner with these companies and offer a special discount if guests book with them via your promotion.

Create your own business website for direct bookings

A website is important because you receive reservations via direct bookings and avoid Airbnb fees. It also helps to legitimize your business as an Airbnb host and make it look more professional.

The website must include a payment processor to safely process online payments. iGMS lets you create a direct-booking website using templates, and you can start accepting direct bookings right away.

4. Offer discounts and special packages

During your low season or if you are experiencing a prolonged quiet period, a way to encourage more reservations is to offer discounts and limited special packages.

However, they should not be the driving force behind your revenue. If you find you are not receiving many bookings throughout the year (especially during your high season),  you may need to take another look at your pricing strategy.

Some common examples of discounts used by Airbnb hosts include:

• Weekday discounts
• Holiday discounts (Valentine’s Day, Easter, etc.)
• Low-season special offers

How to Become an Outstanding Host

In the Airbnb business, it’s not enough to be a good host; you need to become an outstanding host to elevate the guest experience:

1. Be responsive to guest messages

Responding quickly to any messages and inquiries that come in leaves a good impression on guests. The faster you respond to a guest’s message, the more likely they are to book with you than if you responded a day later. The easiest way to automate responses is with iGMS message automation.

Maintaining a high response rate on Airbnb signals that you are an active host on the platform, which improves your rankings and helps you to obtain Superhost status.

Learn how to create an Airbnb message strategy to perfect your guest communication

2. Create a vacation rental welcome book

Create a welcome book for your guests. A welcome book is a comprehensive handheld guide to your property that will help your guests navigate it during their vacation. It contains information that is useful and relevant to guests, such as:

• A welcome note from you as their host
• Check-in and checkout instructions
• A detailed list of house rules for your property
• General dos and don’ts when at your house
• Instructions for using appliances
• Your phone number, your security company’s phone number, and other emergency contacts
• A list of recommended local attractions with up-to-date prices.

Follow this guide for how to create a vacation rental welcome book for your guests

3. Get more five-star reviews

Guests place a high value on the reviews and feedback of past guests. Because of this, the reviews that host’s collect on Airbnb can have a big impact on whether or not a guest decides to book with them.

If you do receive a bad review, make sure you publicly respond to it. Let the guest know you have taken note of their feedback and thank them for taking the time to let you know. This signals to past and future guests that you do care about their guest experience and are dedicated to improving your service.

A great way to encourage guests to write a positive review for you is to write one for them first. It can also act as a reminder if guests have forgotten to leave you a review. iGMS can help you automate this review process.

Get pro tips on how to write stellar Airbnb reviews for your guests

4. Achieve Superhost status

Becoming an Airbnb Superhost is a sure way to attract more reservations and repeat guests. There are certain criteria you can begin working on:

• Host at least ten trips throughout a year (keeping Instant Book activated can help you achieve this faster)
• Maintain a 90% or higher response rate
• Have a cancellation rate of 1% or lower
• Obtain a host rating of at least 4.8 or higher
• Have 80% of your reviews be 5-star reviews

After becoming an Airbnb Superhost, you will receive a Superhost badge that Airbnb adds to your listings and profile.

Explore the ins and outs of Airbnb Superhost status and how to achieve it

5. Never stop learning

There is always something more to learn from other hosts. The vacation rental industry is always evolving, and new trends replace old ones at the drop of a hat.

If you want to be exceptional at Airbnb rentals, you have to be willing to keep an open mind and commit to lifelong learning. Many hosts fail to do this and Airbnb users notice when listings fall behind and start to fail to attract guests.

Compile resources on vacation rental management, like YouTube channels and blogs, to stay up to date.

Be ahead of the curve by checking out the top property management blogs and vacation rental hosting forums 

Conclusion

Great Airbnb hosting takes time and effort to master, but with consistent work and dedication, anyone can also get repeat bookings.

Don't hesitate to employ automation to avoid hassle. Vacation rental software has become an irreplaceable helper that saves time on property management and keeps your business under control.

If you haven’t tried automating your vacation rental business yet, it’s high time you did (as this is what your competitors are already doing!).