From finding the perfect space to purchasing essential home furnishings like mattresses and sofas, starting an Airbnb can be challenging if you’re unprepared or disorganized. Still, with the average host earning nearly $14 thousand in 2021, it is an investment worth considering. But before you can even think about gaining ratings and increasing your reviews, you must consider the numerous startup costs. We dive into the eight essential costs of starting an Airbnb so you can decide if the venture is right for you. So get ready to unlock those wallets and explore all the hidden fees associated with being an Airbnb host.
When considering the costs of starting an Airbnb, property is one of the biggest expenses. You could purchase a new investment property to serve as your full-time Airbnb space, rent out your home while you’re away on vacation or simply turn a room in your home into an Airbnb. Depending on the route you choose, associated costs will vary — from hefty down payments for purchasing a new property to extra mortgage payments that come with having multiple residences. Considering the potential costs before deciding is essential for successfully launching and managing an Airbnb business or side hustle.
Furnishing an Airbnb property can be one of the most expensive costs to consider when setting up your business. Depending on your listing type, your furniture costs will vary. If you’re renting out a bedroom or two, then buying new bed frames and mattress pads for a quick update on look and comfort may suffice. On the other hand, if you’re offering an entire apartment or condo, you’ll need to furnish it with everything from end tables and a sofa to a dining table and chairs. Shopping around at different stores for durable furniture is essential to create a comfortable space that meets the needs of your guests while also staying within budget.
Other costly items for an Airbnb business are appliances. Depending on the type of listings you offer, many appliances may be necessary to meet the needs of your guests. While some areas require specific safety certifications that can increase costs, other items like refrigerators and ovens are common in almost any property. When purchasing these items, it’s important to get quality appliances that match the look and feel of your space while also abiding by local guidelines and regulations. Finding the right balance between style and safety is crucial when upgrading appliances for an Airbnb rental.
4) Household Amenities
Providing quality linens, towels and toiletries for your Airbnb guests is essential for a successful and comfortable stay — and earning high ratings and ensuring repeat guests. Buying these items in bulk can help reduce costs. It’s important to find long-lasting products that don’t break the bank. It would be best if you also had several backups in case some towels or sheets are ruined or a set of guests use more than the usual amount. While there may be an initial cost for purchasing these amenities, you will recoup your investment by providing guests with a comfortable stay that meets their expectations.
Establishing a theme or aesthetic is essential when decorating an Airbnb. Not only can it help establish the mood and vibe of the space, but it can also attract potential guests who are looking for a specific style when traveling.
For example, if your property is located by the ocean, consider incorporating elements of a seaside cottage or beach theme into your décor. On the other hand, properties in downtown urban areas could benefit from a more modern and chic urban loft look with down bedding pillows in the bedroom and a leather sofa in the living area. By carefully selecting pieces that fit into this vision and style, you create a cohesive and inviting atmosphere that draws guests in and encourages them to leave positive reviews after their stay. However, this does all cost money and should be considered when forming a budget.
6) Cleaning Supplies & Services
Keeping your Airbnb spotless before and after each guest check-in is essential to the success of your business. Having a reliable cleaning service on-call can help ensure that your property stays pristine and ready for use at all times. Not only will this require investing in quality cleaning supplies, but it can also require additional costs for hiring a professional cleaner. While these costs may seem high, they are necessary to provide guests with the best possible experience and keep them returning for future stays.
7) Technology Costs
Investing in modern amenities can help increase your property’s appeal and value regarding technology costs for an Airbnb. Smart TVs, streaming services and high-speed internet are becoming increasingly common in today’s travel market as guests expect instant access to their favorite shows and movies on the go. Although these items have been seen as luxury items in the past, they are now viewed as necessities by many travelers who want to stay connected while away from home.
High-speed internet is also invaluable for allowing access to other popular services like ride-sharing apps or food delivery. Investing in these technologies can be a great way to create a memorable experience for your guests and ensure that your property stands out among the competition.
8) Your Time
Last, one of the most important, yet often overlooked, costs associated with starting an Airbnb is your own time. Being a host requires dedication and can involve a lot of work, from researching multiple markets and pricing structures to staying on top of maintenance and responding to inquiries or reviews. You may also need to plan for times when you will be unavailable to host guests due to trips or vacations. Factor in the time investment needed to successfully run an Airbnb so that you can adjust other costs accordingly and ensure a smooth guest experience.
Final Thoughts on Airbnb Startup Costs
When it comes to starting an Airbnb, there are many associated costs that must be taken into account. However, by considering all of the above points, you can weigh up your options and determine if this is a viable investment for you. With careful planning and preparation, it is possible to run a profitable Airbnb business that is rewarding for both guests and hosts alike.