How to Set up an Airbnb: A Step-By-Step Guide
Are you looking for an extra way to make some money this summer? One way to do that is to set up either your primary residence or holiday property (such as a cottage) as an Airbnb!
The key to running a successful Airbnb is to make sure you take the time to set things up properly – and of course, have the right Airbnb insurance! Follow these steps to set yourself up for Airbnb success:
- Take a look at what kind of competition you’re facing.
- Make sure you know the short-term rental laws and regulations for your area.
- Determine what you’ll need to charge to make a profit.
- Decide who your target market will be.
- Make sure you take into account things like time commitment and Airbnb insurance.
And once you’re ready to go, talk to us at Archway Insurance to ensure you get the right Airbnb insurance coverage!
Take a Look at What Kind of Competition You’re Facing
As with any business, it’s important to avoid market saturation! Before you put a lot of work into setting up a place for Airbnb, do a little research and learn the following:
- What are other properties around you listed on Airbnb?
- What kind of amenities do those properties offer?
- What is being charged for a rental property (both in-season and off-season)?
If you determine that there’s a lot of competition in your area, that doesn’t mean you can’t still set up your property as an Airbnb – it just means you need to be sure to have a unique selling point for your property!
Make Sure You Know the Short-Term Rental Laws and Regulations for Your Area
The last thing you want to do is run afoul of any local laws or regulations for short-term rentals and lose all your rental profits by having to pay fees.
It’s essential that you know any short-term rental laws and regulations for your area and that you abide by them. Not sure where to start? Contact your City Hall and ask them for guidance on learning more about local rules and regulations.
Determine What You’ll Need to Charge to Make a Profit
As with any business, the goal you have in setting up an Airbnb is to make a profit! You don’t want to put a lot of time and effort into attracting people to your house or vacation property just to lose money. These are some expenses you should account for when determining what to charge:
- Any fees you’ll have to pay to Airbnb.
- Any services you’ll have to pay for to keep your rental property in good shape – for example, a cleaning service.
- The cost of Airbnb insurance.
- Any additional repairs and maintenance required due to increased usage of your property.
Decide Who Your Target Market Will Be
Another thing you’ll have to think about is who you want your target market to be. Are you thinking of attracting families with children, or do you want older guests, who may be quieter and more laid-back?
The type of amenities you can offer – such as a pool – can definitely impact who is attracted to your Airbnb. But you may not want the hassle of dealing with certain types of guests (such as those who may throw parties or want to bring their pets), so be sure to market yourself accordingly.
Don’t Forget About the Time Commitment Required – and Airbnb Insurance
As with all small businesses, running an Airbnb takes time! You’ll need to make sure you have enough time to keep up with bookings, promote your Airbnb, keep it clean, and deal with any issues that arise from dealing with people who book your property.
You also need to make sure you’ve got the right insurance coverage in place! Airbnb provides some basic coverage, but it’s essential to buy private Airbnb insurance as well, so you have all the coverage you need.
How can Archway Insurance help me with Airbnb insurance?
At Archway Insurance, we sell a large variety of insurance, including auto insurance, property insurance, and travel insurance.
The Airbnb company does provide some coverage for liability and protection for damages done by guests. But it can be time-consuming and challenging to pursue a claim with them.
If you’re thinking of setting up your home or vacation property as an Airbnb rental, it’s vital that you know about private Airbnb insurance. Standard home insurance generally doesn’t provide coverage if you’re using your home as an Airbnb.
We can sell you private Airbnb insurance that builds on your existing home insurance policy to cover anything that’s not covered by the insurance Airbnb provides. We can help you efficiently pursue a claim so you can get back into business quickly!
It Pays to Be Prepared When You’re Setting Up an Airbnb
More and more people are looking for accommodation options that aren’t hotels, which is why Airbnb is so popular. We’ve provided a step-by-step guide to help you get set up! You need to:
- Familiarize yourself with who else is renting out properties.
- Make sure you abide by short-term rental laws and regulations.
- Do the math, so you know what you need to charge.
- Determine who you want to market your property to.
- Don’t forget about the time commitment and Airbnb insurance.
At Archway Insurance, we’re insurance brokers who will shop around to get the best price on Airbnb insurance for you. We’ll work with our insurance partners to find the right coverage for you so you can focus on renting out your home or cottage while having peace of mind that you’ve got the right Airbnb insurance in place!
Contact Us to Learn More About Airbnb Insurance
Airbnb can be a great way to make money, but it’s essential to have the right Airbnb insurance. We’re here for all of your insurance needs in New Brunswick, Nova Scotia, and PEI! You can call us at 1-833-536-0529 or contact us online to learn more about how we can help you with Airbnb insurance.