Renting on AirBnB to repay your mortgage faster

May 16, 2016

If you’ve been around long enough, you’ve probably heard of the successful site, AirBnB takes the middle man (or in this case, the hotel) out of the equation and allows users to rent homes while they are traveling. AirBnB is a different experience for a few reasons. The prices are normally much cheaper than hotels. Travelers are able to customize the experience they want down to the slightest details. AirBnB also allows users to connect and meet with people in a completely different setting. AirBnB is also perfect for a homeowner that is looking to repay their mortgage at a faster rate. In order to do this, keep a few of these tips in mind.

1. Keep the rental in immaculate condition.
No one wants to experience a long day of travelling only to arrive at their host site and find that it’s dirty and unkempt. One of the most inviting parts of staying at a hotel is the understanding that the hotel is kept clean and in good condition. Even if it means hiring a cleaning service to take care of the chores, make sure the rental is kept clean or this can greatly affect the reviews people leave and impact the income you receive.

2. Display great photos on AirBnB.
In most cases, a professional photographer isn’t vital. A really good lens on a smartphone can do the trick. However, try not to include too much editing and make the place look completely different than what it is. Give potential users an honest yet enticing visual experience of what they’d get if they choose to stay at your host site.

3. Take out taxes.
As the money adds up, it may be tempting to take the whole amount and put it straight toward the mortgage. Don’t forget that it is important to take out the correct amount for taxes each time. Don’t wait until the last minute to take out taxes and be left to scramble everywhere for extra cash. Do the due diligence after each transaction.

4. Take a small percentage of profit for upkeep.
AirBNB rentals are considered an investment. As you are paying off your mortgage quickly, the AirBnB process is a business for you. As a result, the best way to get a business to grow and get more customers is through investing a small portion back into the business for upkeep. In this case, take a small percentage of the profits and use it to purchase a better and more comfortable bed. Another option might involve hiring an interior decorator to enhance the space and make it look more presentable. These small tips can make a major difference in the long run. Use a mortgage calculator to get a realistic sense of what should go towards paying down the mortgage each month. After that, consider using a portion to increase the opportunities to get more users into your AirBnB site.