Airbnb has only been with us since 2008, but over the last few years, it’s turned over half a million people into entrepreneurs. The concept of renting out space through Airbnb is relatively straightforward, but setting yourself up for success requires a little more work.
We don’t think that creating an Airbnb business needs to be daunting, and we’re here to help. We’ve supported over 250,000 people to form a business and provided answers, guidance and support to transform them into entrepreneurs. We’ll guide you through what you need to know to start your Airbnb venture and get it off the ground.
From validating your business and doing the research to filing your paperwork and running your business, this guide will help you out.
Read on for some insight into creating your own Airbnb business and becoming an entrepreneur. In this guide we will cover:
Before deciding to start an Airbnb business, it’s important to understand the skills and approach you’re likely to need.
Here are some of the typical tasks you’ll be performing for your Airbnb business on a daily basis.
The following skills will be very useful in your role as an Airbnb small business owner.
Airbnb customers, commonly known as guests, are looking for:
When it comes to starting an Airbnb business, you want to make sure that your property and listings are unique, so you can attract customers. You can do this by highlighting certain aspects in your listings:
Getting started in an Airbnb business is easy, but becoming a success is harder. Before committing too much time, energy and money into your new Airbnb business, it’s important to test the marketplace.
You might not think you need a business plan for your Airbnb business—after all, if you’re getting guests through Airbnb, and they’re paying, you don’t need a business plan, right? Wrong.
You need to define how you’re going to run your Airbnb business, market your property, get sales, make a profit and grow. This can only come about through creating a watertight business plan. It will help you get your thinking in order and show your commitment to your Airbnb business.
You will also need to look at financial projections for your Airbnb business. What are your expected booking revenues? How much is it costing you to buy and maintain the property? What is your profitability? How much money will you keep in the business to grow it? How much will you pay yourself and others?
Business plans do vary slightly, but they should all cover the following areas:
Now that you have all the background information for your Airbnb business, it’s time to make it into a reality. That starts by choosing the right structure or “legal entity” for your business. In the US, there are five main business structures. They are:
This is the "default" business structure and is what your Airbnb business will be if you decide not to create a more formal structure. We don't recommend this type of business as it doesn't give you the legal protections you need
This is a type of business that is formed when two or more people work together without creating a more formal business entity. Like a sole proprietorship, it may not give you all the protections your Airbnb business may need.
The Limited Liability Company (LLC) is ideal for most Airbnb businesses. An LLC is easy and inexpensive to setup, and has the least administrative requirements of any formal business entity.
This is a more complex type of business and isn't generally recommended for smaller organizations, like an Airbnb business
These are the largest and most complex types of businesses and are typically far more than the average entrepreneur or Airbnb business owner will need
Once you've legally created your bar or club business you’ll need to get some other things in place.
You can almost certainly administer your Airbnb business from home. This is great as it reduces your office costs considerably. Don't forget that if you work from home, you can write off part of your utility and housing costs against your taxes.
It’s likely that the only equipment you will need to run your Airbnb business is a computer, laptop, tablet or smartphone. Of course, you’ll also need to have supplies on hand for your properties.
The right software and processes will make running your Airbnb business much easier. See our list of the best apps and software at the end of this guide.
You probably don’t need to hire any employees to help run your Airbnb business, but you’ll likely want to contract with cleaners, maintenance crews or a handyman.
You will need a separate business bank account for your Airbnb business. You might also want to consider a business credit card. Additionally, you will also need to keep careful bookkeeping records and file business and personal taxes. Here at Incfile we can even help you file your taxes
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