Published:
August 4, 2021

Best tips for renting your property on Airbnb and VRBO

You and your owning group are renting a property and you’ve chosen to utilize either Airbnb or VRBO - the two most popular short-term rental marketplaces out there. Both are great options, so let’s take a look at the listing processes for each.

Airbnb

Like all things Airbnb, registering your property for rent is streamlined and easy. First thing’s first - head over to Airbnb’s website. If you’re not already signed up as a customer, go ahead and do - filling out all the pertinent info.

Setup

When your account is finished and ready to go, click on “Become a host” (it’s in the top right corner of the page). Airbnb will guide through an easy to navigate series of pages where you’ll specify what kind of property you’re registering. You’ll choose a property type ( like an apartment, house, unique space, etc.), then get more specific: what kind of apartment or house or unique stay exactly? And is the rental the entire property or a single room?

You’ll enter the address - confirming its location on Airbnb’s map, then enter how many guests, beds, bedrooms, and bathrooms your unit has. You’ll pick which amenities you can offer - hot tubs are always a plus - then set up your listing page with things like photos and written descriptions and rules listing.

Local regulations to consider

However, before you even consider heading over to Airbnb’s website, make sure you’re familiar with local laws in regards to renting - different cities have different laws. Airbnb will take care of calculating any applicable taxes, so there’s no need to sweat the numbers and percentages.

Pricing

You’ll also want to do your research before setting your prices. Figure out what fees you’ll need to charge - fees like cleaning - and take a look at other local airbnb rentals to get a sense of the local rental economy. It’s important to price your rental competitively while still maximizing its profit potential - you’ll need to take into account high-traffic seasons and holidays

Cancellation policy

Your next big decision is your cancellation policy. You’ll be dealing with cancellations more often than you might realize. Airbnb gives you the options between a flexible, moderate, and strict cancellation policy. Flexible means a full refund for cancellations up to 24 hours before a reservation. The strict policy means only a refund of the cleaning fee as long as you cancel within 48 hours of making the reservation and 14 days before your reservation starts.

A moderate policy you can cancel for free up to five days before the reservation, minus the first night and service fee. This decision is about optics as much as security. The strict policy might seem like the most appealing option for hosts, but can turn off potential customers, whereas you may run into some frustrating cancelation situations with the flexible option despite your listing being that much more attractive.

Become a Superhost

Finally, you’ll want to get that Superhost status ASAP. Here are the criteria:

  • Complete at least 10 trips OR complete three reservations that total at least 100 nights
  • Maintain a 90% response rate or higher
  • Maintain a 1% cancellation rate (one cancellation per 100 reservations) or lower, exceptions made for those that fall under Airbnb’s Extenuating Circumstances policy
  • Maintain a 4.8 overall rating (this rating looks at the past 365 days of reviews, based on the date the guest left a review, not the date the guest checked out)

Being Superhost means that your property will get search result priority, come with the trustworth badge, and earn you special Superhost exclusive rewards.

VRBO

Setup

Signing up to be a host through VRBO is just as easy. Sign up over on VRBO’s website - like with Airbnb, you’ll have to already be a member. VRBO has a nifty feature that will estimate your rental’s potential yearly earnings before you register - a number that is based on the top 10% of properties similar to your’s. After that VRBO will run you through the sign-up process.

You’ll verify your property’s location and then select any applicable amenities, fill out how many bedrooms, how many can be accommodated, and how many bathrooms there are in the property. Once you’re through with that step, you’ll then designate any rules you want applied - things like whether or not pets, smoking, events, and children are allowed and if you’d like to limit potential renters by age.

Then you’ll add at least six photos of your property - it’s more than worth it to invest in professional-looking photos -  and secure your account via your phone number. Once you’ve entered your form of payment, VRBO will prompt you to choose whether it’s more convenient for you to select which dates you’d like to make your propter available for rent, or select which dates you’d like to make your property unavailable. This choice depends entirely on if your rental is more a “sometimes” thing - like if it’s still your primary residence - or more of a secondary residence that will be available for rent during the majority of the year.

Local regulations to consider

VRBO will then give you the option to check out any applicable local laws - a feature that is not only convenient, but gives hosts the opportunity to better understand the entire process in more detail.

Pricing

Next you’ll decide on your rental’s pricing. You’ll choose your preferred currency, your nightly rate, and set a minimum number of nights that renters must reserve. You can then decide whether or not to offer a 20% discount to your first three guests - which could be a great way to quickly get some renters for your new property. VRBO will then calculate any applicable taxes, after which you can set added-on fees for things like cleaning and pets. After that, you’re set! You’ll publish your listing and VRBO will notify you when a reservation has been requested!

Become a Premier Host

Like Airbnb’s Superhost program, you’ll want to be invited to VRBO’s Premier Host program as quickly as possible. It’s essentially the same exact program as Superhost, with expedited 24-hour customer service thrown in to boot.

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Nestment, Inc. does not guarantee and is in no way responsible for the accuracy of information provided in this blog post. All information is provided “AS IS” and with all faults. Data presented here may not reflect all real estate activity in the market.  While the information on this site is about legal and tax issues, it is not intended as legal or tax advice or as a substitute for the particularized advice of your own attorney and tax professional.