If you want to start a business in rental real estate by renting out your property, you must carefully prepare the house for the reception of guests. Many online rental platforms have their own real estate requirements, so you must carefully study them and also consider ways to optimize routine processes.
You can find a lot of useful information about managing Airbnb on this blog.
Let’s talk about all the stages of preparing a home for a vacation rental.
Requirements of online platforms for real estate
Each online real estate rental platform puts forward several requirements for renting real estate. It’s necessary to ensure high-quality services and guests’ comfort.
If you rent out your housing, the rules are essential. They include:
High level of cleanliness. For example, Airbnb offers hosts a 5-step cleaning algorithm. You can do it yourself or use the services of a cleaning service.
- Availability of necessary consumables: bath accessories, bed linen, pillows, blankets, toilet paper, soap, paper towels, etc. You can buy cheap toilet paper and other cleaning products in bulk to save money long term.
- Non-discrimination policy towards guests. You cannot refuse to rent to clients because of their race, nationality, gender, or religion. The only exception is if you plan to live in the same area as your customers, you can specify that you only plan to host guests of the same gender.
More stringent requirements may apply to hotels: for example, equipment for people with limited mobility, high-quality photographs of premises, availability of declared additional services, etc. But the price in hotels, as a rule, is higher than in guest houses.
Local legal requirements
One of the essential conditions for starting a successful rental business is compliance with the legal norms of local legislation.
As an Airbnb host, you must understand the laws of your city, province, and country.
Many jurisdictions require you to apply for and obtain a license to open a business. Contact your local jurisdiction for instructions on how to do this. In addition, requirements may apply to:
- Design and maintenance of buildings, as well as housing conditions. Some counties require a safety check.
- Zoning of premises. Many municipalities have rules governing how a home can be zoned to accommodate guests.
You should also study the local taxation system. In some jurisdictions, Airbnb automatically collects and remits certain taxes on your behalf, but in some cases, the owner must manually calculate the tax.
Please consult your local lawyer for all the details in the law that can play a significant role in the success of your business.
Real estate insurance
Damage caused by guests is one of the most critical risk factors in the rental business. This is especially true for short-term rental properties. Many hosts insure their homes to provide compensation in the event of force majeure. In addition, online platforms offer additional proprietary guarantees for both parties to the transaction.
For example, Airbnb has an “AirCover for hosts” designed to protect hosts from unforeseen situations while hosting guests. This insurance covers:
- Damage to home or other property due to the fault of the client.
- Additional cleaning costs due to guest misbehavior.
- Lost revenue in forced cancellation due to damage caused by the customer.
It is important to note that AirCover for Hosts cannot replace basic individual property insurance. Therefore, you should sign an agreement with an insurance agency in advance: this will help you avoid unexpected losses and protect your business. For more information, you can get a free quote from many insurance companies in advance so that you know what kind of rate you might be paying, and what any potential coverage will include.
How to prepare for receiving guests: cleaning, purchasing consumables, and other nuances
How to prepare for the reception of guests: cleaning, purchasing supplies, and other nuances
Cleanliness is the key not only to the comfort of guests but also to their health. Therefore, many online platforms offer their cleaning format. For example, Airbnb requires a guest to carry out a 5-step cleaning after the departure of customers. It includes:
- Preparation: airing the room, disinfecting hands, reading the instructions for cleaning products.
- Cleaning: At this step, you should sweep or vacuum the floor, wipe off dust, wash towels and bed linen, and clean glass and mirrors.
- Disinfection: Apply disinfectants to the surface, and let it dry.
- Final quality check cleaning. Carefully review all hard-to-reach places and eliminate any flaws. The presence of dust and dirt is unacceptable.
- Completion: cleaning equipment, and disposing of disposable supplies. Also, prepare everything you need for the next cleaning.
To ensure timely preparation for the arrival of guests, take care of purchasing the necessary consumables in advance: cleaning products, bath accessories (soap, toilet paper, paper towels, shampoo), disposable slippers, bed linen, etc.
To save time, you can order cleaning services from professionals: this will not only free up time for other things but also ensure a higher quality of cleaning. Specialists use professional equipment and household chemicals.
Guide and rules of conduct for guests
Having rules of conduct for guests can make it much easier for you to communicate with them. These recommendations must not be discriminatory and are aimed at the comfort of each of your customers.
Also, a guide posted on your account will be a plus. It will help tourists better navigate your city and discover many interesting and authentic places. When compiling a guide, follow these simple rules:
- Write only your impressions. General phrases will never replace personal experience. Tell us about cozy cafes, interesting places nearby, architectural monuments, and natural attractions. But at the same time, remember that the guide is tied to an account, not a specific property.
- Writing in simple words inspires more confidence. Write the text as if you are talking to an old friend.
- Update your manual regularly. Irrelevant information has no value.
Careful preparation will help you build a successful real estate rental business and generate a steady income. Study the intricacies of the real estate market in your region, analyze the competition, make your home as comfortable and authentic as possible, and success will not be long in coming! Good luck!
