High ROI Investments For Your Airbnb
Airbnb has disrupted the hospitality market and provided an entrepreneurial outlet for property owners everywhere.
While short-term rentals may be a new frontier, image is still everything. If a picture is worth a thousand words, then you have 999 opportunities to lie.
Many of us have bought something online, responded to an ad for an apartment or a house, or met up with a potential paramour from a dating app, only to find that we had been catfished.
Among the worst things an Airbnb host can do is catfish their guests with alluring photos that mask disappointing, sparse accommodations.
When high expectations are not met, negative reviews are sure to follow. That’s why it’s critical to invest strategically in your Airbnb.
Now, I can hear many of you asking, “But… there are so many options, how do I best direct my investments?”
The answer is simple: Invest in upgrades with the highest return on investment (ROI).
Airbnb tracks guests’ searches. It’s their business to know what they want and connect them to it.
With these insights in mind, this article covers 5 high ROI investments you can make to get the most out of your Airbnb.
1. Create an Experiential Stay
There may have been a time when travelers booked Airbnbs because they offered a cheap alternative to a hotel, but that time is over.
Airbnb guests want an experience. Don’t believe me? Check out these stats:
77% want to experience their destination like a local (iProperty Management)
58% of millennials factor a property’s “social media worthiness” into their booking decision (iProperty Management)
2,574 Airbnb guests stayed in castles, 1,032 in treehouses, and 121 in windmills in 2019 (iProperty Management)
You don’t have to turn your Airbnb into a Disney wonderland, but you should use interior design to create an atmosphere worth sharing.
Interior design can be expensive, but even a few chic items can make a space feel unique.
Aside from having a cozy, photo-worthy space, you can also leave local guides and hype activities in the area: golf, hiking, fishing, gambling, local cuisine, museums, etc.
Remember, you aren’t just selling accommodation, but an experience.
2. Allow and Optimize for Pets
This may be controversial…
You can’t blame an Airbnb host for not wanting pets on their property, but if you can make it work, you’ll likely get more bookings.
Airbnb has seen a 95% increase in searches filtering for wifi, kitchens, and pets since the start of the pandemic (Airbnb)
“Pets” has consistently been one of the top five most-searched amenities (Airbnb)
Long-term stay searches for accommodations that accept pets have jumped 128% (Airbnb)
If you decide to host pets, you should definitely invest in a cleaning service, add a cleaning fee, and a pet deposit, and when you're buying furniture, rugs, and carpet, consider that cats and dogs don’t always make it to the toilet. Also, make sure to highlight pet-friendly features like large yards, nearby parks, and hiking trails.
3. Invest in Quality Kitchen Basics
Individuals are increasingly pairing work with travel, digital nomadism is on the rise, and remote work is becoming a common reality. In short, the demand for long-term Airbnbs is high and these guests are not going to eat out three times a day.
“Kitchens” places number 4 in most-search amenities for long-term stays (Airbnb)
You don’t need to run out and buy an air fryer and a crockpot (but if you do, advertise it). However, providing utensils, pots, pans, and dishware is a simple, but huge plus for both short-term and long-term guests.
Updated appliances like ovens, microwaves, coffee machines, dishwashers, etc. are also a great selling point.
Don’t forget to mention any nearby grocery stores and specialty markets.
4. Have an Office Area
As mentioned above, more and more guests are working during their Airbnb stays.
One third of travelers said that following the pandemic, they want to live somewhere else while working remotely (Airbnb survey)
Stays with laptop-friendly workspaces have increased by 73% (Airbnb)
400,000 companies now manage travel for their employees through Airbnb (iProperty Management)
This makes a strong wifi connection, a functional desk, and a comfortable office area important selling points. This may be where working guests are spending most of their time.
Make sure you have all your bases covered! Check out our essential supply checklist for all furnished rentals.
5. Outdoor Amenities and Communal Spaces
This is especially important if you are in an area that attracts people looking to enjoy great weather, or outdoor activities like golf and hiking.
Pools have recently ranked as the second most searched amenity (Airbnb)
Now, digging a pool is probably too big of an investment, but a sauna, a fire pit, a barbeque, a ping-pong table, some outdoor games, a little landscaping and some nice lawn chairs, might be just enough to inspire guests.
Summary
As an Airbnb host, you are running your business. Therefore, you must learn to recognize the difference between an expense and an investment. Investments, like those advised in this article, result in a return. In contrast, expenses (i.e. property taxes), do not.
If you are having trouble deciding between giving your Airbnb a fresh paint job versus buying a new couch, consider which one would have the higher ROI. In other words, which one would attract more guests, and lead to more bookings.
Airbnb can be a lucrative side-hustle or a full-time job. The difference between building a source of passive income and working dozens of extra hours a week is simple—guidance.
Reach out to us to schedule a consultation for your space setup.
Hello, World!