This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703-244-6115 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How do I rent out part of my home as an Airbnb?
Answer: Renting out part of your home on Airbnb or any of the other short-term rental websites is a great way to earn extra income, especially if you live in an area that is walkable, or close to a metro. If you own a home in Northern Virginia or D.C., and it’s close to public transportation, it’s very likely that your home will be popular with tourists.
Last February, I decided to rent out part of our home in Old Town on Airbnb and I’ve learned a lot over the past six months. Our team has also helped buyers, who are specifically looking to buy a home with a space that could easily be rented out. It’s ideal when there is a separate entrance and the space is partitioned off from your own personal living space. However, there are some hosts that have guests share part of their own living space.
For the purposes of this article, I will just speak to what I know, which is renting out an entirely separate private space in your home.
Here are my top tips to help you get started.
1. Check Out the Local Regulations
Before listing your space, look up the local guidelines for short-term rentals. Most of the local jurisdictions do require that you apply for a permit. Some do have a grace period, but it’s best to set this up in advance, so that you don’t receive a violation notice or fine.
2. Call Your Homeowners Insurance Provider
Most homeowners insurance policies do not cover short term rentals, which I did not realize at the time. Luckily, a friend that rents her property out, let me know that we needed a separate rider for short term rentals. Call your insurance provider to be sure that you are properly covered for liability, theft, fire and any other coverages that they recommend.
3. Lean on Other Short-Term Rental Hosts
I have been fortunate to have three friends that were already hosting through Airbnb.This allowed me to ask questions throughout the setup process. Even more importantly, it was helpful to get their advice during and after a guest’s stay, whenever there has been an issue. There are also several Airbnb Host Communities on Facebook, where you can ask questions or give advice.
4. Prepare Your Space
It’s important to look at your space in the eyes of a potential guest. I would recommend bringing in someone else to help set up the space. Ask a friend that has great design taste, or have a stager set up the space. We can give your recommendations for professional stagers. This step is worth the expense and will assure that your photos look great, and that the space is attractive and comfortable for your guests.
Some of the most important things are:
- Cleanliness: Make sure that the space is spotless before each guest arrives. Hire a cleaning service if needed.
- Comfort: Provide comfortable furniture, quality bedding, towels, toiletries, and kitchenware.
- Safety: Install smoke detectors, carbon monoxide detectors, and secure locks. Make sure the space is safe and up to code.
- Personal Touches: Consider adding some small personal touches like fresh flowers, local guidebooks, bottles of water, a few snacks and maybe a welcome note to make guests feel at home. It’s also helpful to have several choices of phone charging cords available to your guests.
5. Set a Competitive Price
My first step was to go onto Airbnb and search for listings in my own neighborhood, to get an idea of the size and amenities of other properties nearby. It’s good to set your initial price slightly lower than the competition, to attract guests quickly and to start getting reviews. After a few visitors, and some 5* reviews, you can reassess and increase the price if it makes sense to do so. You can also rely on Airbnb to guide you on pricing.
6. Create an Attractive Listing
First impressions are so important! Make sure that your listing has a great description, starting with the title. Create a catchy one line description that captures attention. Make sure that all of the best features of your space are described well. And very importantly, use high-quality photographs. It may be worth hiring a professional photographer if possible.
7. Establish Clear House Rules
To avoid misunderstandings and ensure a smooth experience, establish clear house rules. These might include check-in and check-out times, noise restrictions, and guidelines for using shared spaces. Communicate these rules clearly in your listing and in your communications with guests. I have found that this is a work in progress, and I’ve had to add some rules along the way. We have an older home, so when someone takes a one hour shower it’s not a good thing. I’ve had to state in the rules that guests are requested to keep their showers to a maximum of 20 minutes. We also have several steps up to the private apartment, and some guests were letting their children run up and down the stairs unattended. I don’t want anyone to get hurt, so I have decided not to allow children.
8. Communicate Effectively with Guests
Good communication and ease of access are important to a successful Airbnb experience. Respond to inquiries promptly and be available via text to answer any questions your guests may have before and during their stay. Provide detailed instructions for check-in and check-out, and be available during those times in case anything comes up. I have found that it’s important to have two means of access to our apartment. We have a push key lock on the door, but if that fails, there’s also a combination lock box nearby with a key in it.
9. Be a Hospitable Host, But Not Intrusive
Making your guests feel welcome can lead to positive reviews and repeat bookings. Send a warm greeting via text and let them know that if they need anything, to reach out. Be respectful of their privacy, as most guests don’t want a lot of interaction with the host.
10. Maintain a High Standard
Keep an eye out for any wear and tear in your Airbnb space. Get a handyman in promptly if you need to fix things. Keep several sets of sheets and towels, and get rid of them as they look worn out. Regularly update your listing to reflect any changes or improvements.
11. Solicit and Respond to Feedback
Guest reviews are crucial to your success on Airbnb. After each stay, as you thank them for their visit, ask guests to leave a review. Take any feedback seriously and use it to improve your offering. Respond to reviews — both positive and negative — in a professional and courteous manner. And keep in mind, some people will never be happy with everything. Just do your best!
Conclusion
Renting out part of your home on Airbnb can be a profitable and fun venture if done correctly. By understanding local regulations, preparing your space thoughtfully, and being a hospitable and communicative host, you can create a positive experience for both yourself and your guests.
Just keep in mind, what do you like when you enter a rental or hotel room when you travel. Chances are, your guests will care about the same things — cleanliness, comfort and nice touches! With these tips in mind, you’ll be well on your way to becoming a successful Airbnb host. And don’t hesitate to reach out if you ever need any advice!
Hope Peele is a licensed real estate agent with McEnearney Associates, Inc. in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703-244-6115.
If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703.549.9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
