(This column originally appeared in the Inquirer)
Are you thinking of making a few extra bucks by being an Airbnb host? You aren’t alone.
Philadelphia had more than 5,000 Airbnb listings at the beginning of this month, according to short-term rental data tracker Airbtics. A typical short-term rental is booked for 215 nights and generates about $22,000 each year.
Hosting an Airbnb not only provides additional income but offers the opportunity to be an entrepreneur while potentially keeping your day job.
But, like any business, it can be challenging and competitive, so here’s some advice from a few successful local hosts.
Be serious
The most successful Airbnb hosts focus on customer service, do their best to anticipate their guests’ needs, and personalize the experience as much as possible.
Julie Seda, an Airbnb host who lists a property in Washington Square, said you cannot think of an Airbnb as just offering what you have in your home. It’s a business and should be treated as one.
“You have to think of your Airbnb as what you would love to see in the most luxurious hotel you can provide within your budget,” Seda said. “I used a decoration consultant who is experienced in successful Airbnbs and high-end Airbnbs … because a good host makes sure that everything is in place.”
Cleanliness and comfort
Ryan Sciolla, a “superhost” with three properties in the Philadelphia area, said he cleans his house “every day on checkout and check-in” because it’s “critical that my house is in perfect condition for the next guest.”
According to many successful hosts, cleanliness and comfort are among the top priorities of all guests. They invest in quality sheets, thoughtful furniture placement, and frequent, thorough cleanings of their units. It’s also recommended to pay the extra for professional cleaners.
“When we first started out, we were cleaning the places ourselves,” said Sam Reed, an Airbnb host of a highly rated West Philadelphia unit near St. Joseph’s University. “If you’re not on top of that, it could become really bad.”
Be transparent and communicate
Guests just want the facts, and they don’t want surprises. When people use an Airbnb, they should know the pros and cons in advance. It’s important for listings to be clear and honest about the property, the neighborhood, any specific rules, or other things that may impact a guest’s stay. This builds trust and reduces potential misunderstandings.
Both Reed and Seda said it’s important to be realistic and not “oversell.”
“The best advice I can give someone starting a new Airbnb is to be as transparent as you can about any shortcoming,” Seda said. “Most times they tell me they appreciate me telling them.”
Think long-term
Any successful business owner will tell you that your best source of future revenues is your returning customers, and it’s no different hosting an Airbnb.
“My first guest comes back every year,” said Seda. “That’s another thing about Airbnbs — you develop those relationships.”
Reed positions his listing for repeat business from recurring academic and medical travel visitors.
“You really have to ideate and think about who are your ideal guests,” he said. “In Philadelphia, we have a lot of medical schools and universities, so our listing is called ‘private room’ … and I make my price point suitable for those folks.”
Be realistic about pricing
Sciolla says he gets “$10,000 a month” for his Airbnb. But he works hard to nurture those repeat customers. Both Reed and Seda acknowledge that you may think your Airbnb is the best in town, but you’re still going to have competition, and most people will be comparing your listing with others that are similar.
“Some people overprice [their] space because they think it’s the right amount, but it’s not,” said Reed. “Look at the comparables.”
Keep emotions out of pricing decisions, and let the market dictate what makes the most sense.
Vet your guests
Airbnb reviews go both ways.
Look carefully at your guests before confirming a booking. Be picky about the guests you will accept. Be careful about first-time customers and lean toward those that have a favorable history with other Airbnb hosts.
Money shouldn’t be your sole driver. It’s sometimes better not to accept guests if there’s too much risk or potential headaches.
Find trusted partners
Seda has a network of people she’s met over years who provide critical support for her properties.
“Having a handyman I trust and a husband who’s an architect gives me peace of mind,” she said. “You’ve got to develop those relationships.”
Learn from your mistakes
I’ve had many successful customer projects in my business — and more than a few failures. The important thing is to learn.
The good news is that Airbnb gives you the opportunity to learn by collecting guest reviews. Pay attention to them, accept feedback, make changes, never argue, and be positive. People understand that sometimes there are swings and misses. Even a poor guest review is an opportunity to improve your property.
For Seda, a guest comment taught her the value of investing in a good mattress. Reed simply learned the value of good customer service.
“We learned to be proactive, and if there’s an issue, it’s better to offer a refund than to be defensive,” he said. “You have to be empathetic. You have to put yourself in the space of somebody coming into your home. How would you want that environment situated?”
Lean into Philly
The best local Airbnb hosts highlight all the advantages of their neighborhoods and what makes Philly special.
Seda, for example, enjoys pointing out how her Trinity-style home is part of the city’s distinct architecture.
“Because trinities are very particular to Philadelphia, that is part of the history that I tell my guests,” she said, “and most people find a house with so much character was a unique bonus to choosing an Airbnb in Philly.”
