These days, everyone is looking for ways to stream multiple sources of income and some are turning to Airbnb as an additional stream… and understandably so.
According to reuters.com, there are over 150 million Airbnb users worldwide with over 800 million stays. In addition to that, there are four million hosts worldwide. So what does that mean? It means that there are four million people in the world right now leveraging off the popular accommodation site!
But it should also be mentioned that the company founders didn’t start the company without taking into consideration the potential concerns that may arise from hosts. Everything from earning potential to property damage, Airbnb has done very well to cover all bases in protecting its hosts from any type of potential calamity.
Whether you’re new to hosting or considering investing in an Airbnb property, take a look at Airbnb’s built-in safeguards for hosts and potential hosts.
- The Airbnb calculator
- Guest identification
- House rules
- Property damage
- Host Protection Insurance
- Guest reviews
- 24/7 support
SafeGuards For Airbnb Investors
The Airbnb calculator is a safeguard for potential hosts considering investing in an Airbnb property to determine if a property will be profitable before actually buying a property. With this calculator, you can analyze your potential earning on any type of property based on key components like the street address, number of guests, expenses, and the number of bedrooms and bathrooms.
With this safeguard in place, you’ll be able to prevent yourself from investing in a property that doesn’t make you any money.
In order for guests to book a stay at your property, Airbnb requires that they provide this information before booking:
- Date of birth
- Full name
- Payment information
- Email address
- Phone number
- Government ID (optional for the host’s requirements)
This information doesn’t tell you the type of person a guest is or if they’re going to treat your property with respect, but it is a safeguard to hosts to let them legally know who they’re letting stay in their property.
Airbnb encourages hosts to set their own house rules because, well, it’s your house! Upon listing your house rules, guests must first agree to them before they can book your property. Things like number of guests, smoking inside your property, check-out procedures, and pet restrictions are all rules you want to make potential guests aware of and agree to before they can book your property. If any of your rules are violated, you must also make them aware of any fees that will come with those violations.
Damage to one’s property is one of the biggest initial concerns of most Airbnb hosts, and understandably so. There’s no guarantee that someone will love and care for your property as much as you do, therefore, Airbnb provides all hosts with Host Guarantee. This coverage is free and provides property damage protection up to $1,000,000.
Because your Airbnb property is legally viewed as a business, you’ll need to have the same precautions in place just as any other business would. That reason alone is why Airbnb provides hosts with Host Protection Insurance. This insurance coverage is provided to hosts in the event that damage or injury happens on their property.
For instance, if a guest falls on your property or slips in the bathtub, you’re protected against those types of unforeseeable accidents.
As mentioned earlier, the guest identification requirements are a sure-fire way to know who you’re potentially letting stay in your property legally, but it doesn’t tell you who you’re actually doing business with. As a safeguard, Airbnb has made it a point to incorporate user profiles and reviews to help hosts get to know potential guests… This just added peace of mind.
With this, you can go to guest profiles to see reviews from previous hosts of where they stayed. This is great because most people think that only hosts get reviews from guests about how the property looked and amenities and features, etc. But no, guests can also get reviews from previous hosts to let other hosts know what type of guest they are and whether or not you should let particular guests stay in your property.
If you stumble upon a potential guest interested in your property but see that they have nothing but bad reviews from previous hosts, you feel assured knowing that the review came from a real guest visit, and if they didn’t care for previous hosts properties, they probably won’t treat yours well either, and you have the right to not book them.
The biggest safeguard Airbnb has for hosts is its all-day, everyday support for hosts no matter what the situation is. Everything from refunds and booking assistance to insurance claims and the Host Guarantee, Airbnb’s team is there to help you throughout your entire hosting journey.
Investing in an Airbnb property isn’t one of those overrated investment options that come with lots of risks. In fact, Airbnb sees to it that it’s not a high risk with all the safeguards it has in place for its hosts. But it is a great way to generate an additional source of income.
From the 24/7 support to the Airbnb calculator, Airbnb goes above and beyond for its host to not only safeguard the host but also potential investment opportunities.
*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.