Letting your home on Airbnb: four vital tips
Category Newsletter: Article
When it comes to generating a secondary or even primary income, an increasing number of people are choosing to invest in homes, most specifically sectional-title properties, for buy-to-let purposes.
This trend is rapidly taking hold in South Africa and has become extremely popular in Cape Town, amid the growth of the internet accommodation service - Airbnb. The platform enables people to list or rent short-term lodging for residential properties, with the cost set by the property owner.
Considering that globally there are 3.5 billion web users, with 26.8 million users in South Africa, the success of Airbnb has been phenomenal. Today, it is worth an astonishing R353.4 billion. With a value so incredible and a reach across the globe, including South Africa, homeowners are taking notice.
Tips to consider
As 2017 draws closer, homeowners in Cape Town are planning to let-out their sectional-title home (if permitted by the body corporate) on Airbnb. First-time users on the platform might find this a daunting task, however the following tips will ensure a smooth and successful short-term letting experience:
1. Enable Instant Bookings
When initially getting started on Airbnb, it is normal to feel a little apprehensive as to the type of person that will be entering your home. Therefore, many first time homeowners using the platform, referred to as hosts, will not allow Instant Bookings (immediate confirmation) and will instead allow guests to send a booking enquiry which you can then confirm or alternatively, screen guests via an email exchange before guests are allowed to send a request.
However, by disallowing Instant Bookings, you can lose many bookings to other homes that allow this. So to avoid losing potential bookings, it is recommended that you enable Instant Bookings, and when considering that guests have to firstly, read and agree to the house rules, the screening process becomes unnecessary most of the time. The functionality to cancel a booking if a host is uncomfortable with a guest who has booked directly has also been recently added on the platform, thus adding increased peace of mind.
2. Cancellation policy
Know your cancellation policy. As a host you will have to choose between three types of cancellation policies, depending on your preferences. This includes: A full refund 1 day prior to arrival, a full refund 5 days prior to arrival or a 50% refund up to 1 week prior to arrival.
When choosing a cancellation policy that suits you, remember that Airbnb is the not a go-to-platform for last minute holiday booking options and you needn’t feel bad for implementing a strict policy, especially considering that cancellations close to the date means that you are unlikely to find a replacement guest.
3. Create Ambience
Many guests are booking your home for holiday purposes, so spruce up your place and give it a “holiday vibe”. Guests in Cape Town are there to enjoy the city especially its beaches, keeping this in mind ensure that your home has beach towels, beach chairs and a sun umbrella. Also consider providing, shampoo, conditioner, shower gel and dish washing liquid - all items that are greatly appreciated by guests.
4. Additional Provisions
Finally, ensure that you provide complimentary Wi-Fi and compile a list of activities to do in the host city, including famous and historical sites to visit, the best restaurants to indulge in, adventure activities to dive into and shopping malls to explore. In the case of an emergency, don’t forget to mention the hospitals that are located nearby.
Owing to the Digital Age, the way in which property is marketed is rapidly evolving. Airbnb has allowed homeowners to list their properties to millions of online users and at the click of a button, those looking for accommodation can secure a home for a time-period that suits them, in a preferred location. It is indeed the era of convenience and adapting to new platforms to let-out your home contributes to modernising South Africa’s property industry, whilst generating lucrative income.
A stunning home in Hout Bay is on the market from Coastal Property Group. With picturesque ocean and valley views, it is an ideal buy-to-let investment.
Author: Coastal Property Group
