First steps to start the Short Term Rental Business (Airbnb)

If you want to start in the short-term rental business and don't know how to get started, whether you want to do it full time or to earn an additional income, I explain step by step everything you need to know so you can get started with the right foot.

Before we begin with the step-by-step process, I want to clarify some doubts you may have. It’s important to emphasize that you don’t need to have a luxury property; you can simply rent out a room within your home. You don’t have to hire someone to manage your properties; it’s something you can do yourself. So keep reading to see that, although you’ll need to dedicate some time at the beginning and you may have to make adjustments or repairs to the space you want to rent, if you follow the steps and tips I have for you, you will do great and you’ll be very successful.

I remember that one of the hardest things for me in the beginning was setting aside fears and doubts to move forward and finally get started. The first property I listed on the Airbnb platform was my beach cottage, “El Guaraguao Beach House,” and when it was finally ready, I thought it looked so beautiful, so new, so much mine, that I almost gave up on the idea of renting it out short-term. I’m glad I didn’t, because it’s now my main source of income. (It wasn’t all easy, but that’s a story I’ll share in another article.)

First Steps to Start a Short-Term Rental Business (Airbnb)

1. Evaluate Your Property

Before diving into the short-term rental world, it’s important to conduct a thorough evaluation of your property. Ask yourself: Is it suitable for this type of business? Consider the location, size, amenities, and overall condition of the property. While it’s not necessary to have a luxury home, it is important that the space is cozy, functional, and in good condition. If necessary, you may need to make improvements such as painting the walls, fixing details, and ensuring everything works properly. Visit the article "Key Aspects to Evaluate Your Property Before Renting Short-Term" for more details.

2. Research Local Laws

Each municipality or city has specific regulations regarding short-term rentals. Some areas require special licenses or permits, while others impose taxes on income generated from these properties. Researching and complying with local laws is an essential step to avoid legal issues in the future. In Puerto Rico, you must apply for a hotel identification number with the tourism company. This requires payment of a bond that you need to obtain from an insurance company, and you may also need to register as a merchant with the Department of Treasury and complete the Room Tax forms every month.

3.List Your Property on the Right Platform

Once you have confirmed that your property is ready and you comply with local laws, the next step is to list it on a platform such as Airbnb, Booking, Vrbo, or Join a Join. Each one has its own audience and features, so it’s important to choose the one that best fits your property and location. My recommendation is to start with Airbnb; its platform has everything you need to get started easily, it is user-friendly, offers 24-hour support, and many other benefits that I explain in my article "The Benefits of Airbnb: Why Start with This Platform?"

4. Prepare your property

Your space should be ready to welcome guests. From furniture to small details, everything counts toward providing a comfortable and memorable experience. Make your property as cozy as possible, paying special attention to cleanliness and continuing with decorative elements and amenities that create the feeling of "being at home."

This is one of the most important points, and I have two recommendations: the first is to prepare the property with your future guests' potential needs in mind, not your own. The second is to be your first guest; give it a try, sleep in the property, use the kitchen, the bathroom, and ensure that the property is truly ready. A fundamental aspect is to make sure everything works correctly: lights, appliances, locks, among others.

5. Set Competitive Prices

When setting prices, don't underestimate the value of your property. Determining the right price for your property can be challenging at first, but researching the competition in your area will help you find a balance between generating income and attracting bookings.

Look at similar properties in your area and analyze their nightly rates, amenities, and location. Airbnb has very useful tools that can help you achieve this. Don’t forget to consider the expenses involved in maintaining the property, cleaning, taxes, and platform fees so you can generate profits. You will be comparing prices, not copying prices that do not reflect the real value and costs of your property.

I will soon write an article about the tools available on the Airbnb platform that simplify the process of comparing properties to easily set competitive prices.

6. Design a Hospitality Strategy

The experience of your guests is the key factor for long-term success in short-term rentals. Hospitality is much more than providing a comfortable place to stay; it’s about making each guest feel welcome and valued from the very beginning.

Make sure to maintain smooth communication before, during, and after the stay. Respond promptly to your potential guests' questions and provide them with all the necessary information to ensure their arrival is straightforward. During their stay, ensure they have everything they need, and after their departure, send a thank-you message. These actions generate positive reviews and encourage your guests to want to return. I'll talk about this in detail in the article, “How to Automate Messages on Airbnb to Save Time and Enhance the Guest Experience” (which will be available soon).

In Conclusion

Starting in the short-term rental business may seem challenging, but with proper planning and following these first steps, you'll be well on your way to becoming a successful host. From the initial evaluation of your property to implementing a hospitality strategy, each stage is crucial for providing a unique and memorable experience for your guests.

Visit the article "Discover the Best-Kept Secrets: Hospitality Hacks for Superhosts."

Remember that being a good host is not just about providing a place to stay, but about creating moments that make people want to come back.

Welcome to the world of short-term rentals!

Thank you for reading! Let me know what you thought of this article. You can also write to me if you have any questions or recommendations for topics of interest.

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With Love,

Iris Andújar

Super Host and Creator of "Entre Anfitriones"