Real Estate Investor Magazine South Africa May 2016 | Page 32

LETTING

How
To
Make
Money
With
Airbnb
Weighing up the Risks & Rewards for extra income
BY DREW HOOK

D

oes your 9-to-5 paycheck leave much to
be desired? Are you trying to pay down a
mountain of debt as quickly as possible? The
peer-to-peer short-term rental service Airbnb might
be the solution to your problems. Here’s what you
need to know about the risks and rewards of renting
out all or part of your home through this service.

How to List

You decide when to make your space available and at
what price. Listing is free, and you can individually
approve potential guests. In setting your price, you’ll
want to consider the going rate in your area by looking
at competing listings. You’ll want to consider the costs
of hosting – including cleaning, higher utility bills,
taxes and Airbnb’s host fee, which is 3% for payment
processing. Your guests pay Airbnb’s 6% to 12%
booking fees. Make sure you understand Airbnb’s
hosting standards for listing accuracy, communication
with guests, keeping your reservation commitments,
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MAY 2016 SA Real Estate Investor

cleaning your place for each guest and providing basic
amenities such as soap and toilet paper.
You’ll want to clean and declutter your space before
you photograph it to present it in the best possible
light. When describing your place, think about what
makes it unique, and try to consider it from an outof-town visitor’s perspective. Is your place within
walking distance of public transit? Is it located near
great restaurants, nightlife or cultural activities?
What amenities can you offer: wireless Internet, a
fully stocked kitchen, cable television, an outdoor
patio? Your listing will be displayed on Airbnb’s
website, and you can also cross-promote it through
social media or your own website.

Personal Safety

Is it safe to rent out your home to a stranger? If you’re
renting out your home when you won’t be there, you’re
certainly not at risk of physical violence. However,
you’ll want to find a safe place to store anything of
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