Although the current economy may be sluggish and not as fluid as it was in our parents' generation, we must acknowledge that the avenues for making money today are much easier and more flexible than in the past. The technology that has transformed the world has created vast opportunities for ordinary people to turn their ideas into assets as easily as flipping their palms. All it takes is passion and keeping up with technology to become a millionaire.

                  One of the new ways to make money that older generations may not understand is converting a home or vacant room into an easy income stream by renting it out to travelers through a platform called Airbnb. This website allows anyone in the world to advertise their accommodations as an option for travelers without any cost.

But hold on, any business comes with risks, especially Airbnb, which is a new business model that currently lacks specific legal regulations. Therefore, before considering making money through Airbnb, thorough research is essential.

                  1. Ask Yourself Clearly: The first question before applying to join the Airbnb network is when your room will be ready for rent and what price you have in mind. Although advertising on the website is free, to prevent your listing from becoming a weak point that no one is interested in, you need to do your homework. Study your competitors to find a suitable price that covers wear and tear and maintenance costs before and after guests stay. Importantly, when you add the fees that Airbnb will charge guests, the price must still be reasonable. Regardless of how much you charge, Airbnb will add a fee of 6-12%, and when guests pay, they will also incur an additional 3% payment processing fee.

                 

Once you have a price in mind, it’s time to sell. The first tip to promote your rental to catch travelers' attention is to have attractive photos and provide complete information. Clearly state the location and describe the highlights of your accommodation in detail, such as how far it is from the BTS or MRT stations, what restaurants, shopping centers, and important places are nearby, and don’t forget to mention the amenities you provide in the room.

                  2. Ensure Your Room is Ready to Make Money: Before deciding to transform a room you bought or rented for living into a rental for profit, you must ensure you have permission from relevant parties to avoid future problems.

                  3. Safety Comes Before Money: When considering renting your space to strangers, the biggest concern is safety. No one can guarantee 100% safety, but the advantage of Airbnb is that the decision to rent is solely up to the property owner. For those who are still unsure, you might start by renting to guests who have verified their identity with a driver's license or passport through Airbnb. At least you will have some knowledge of who they are. The rest is up to the property owner to safeguard their valuables by keeping them secure or relocating them elsewhere.

                  4. Study the Coverage Thoroughly: According to Airbnb's policy, they provide property owners with coverage of up to $1,000,000 for property damage caused by guests. However, this coverage does not include cash and securities, such as collectibles, rare artwork, jewelry, pets, or personal liability, as well as damages due to wear and tear. Property owners must understand that this guarantee program is not an insurance policy and does not replace the rental insurance policy. Therefore, if you plan to convert your room into a rental, you should thoroughly inquire about your own property insurance conditions to ensure it covers damages that may occur while the room is being rented.

                  5. Benefits Must Be Clear: After passing through all four points, it’s time for property owners to look forward to the payment terms. Airbnb will process payments to property owners within 24 hours, but the speed at which the host receives the money depends on the chosen payment method, usually not exceeding 15 business days.

If everything goes according to plan, it should end happily. However, if you are a negligent property owner, you might end up losing more than gaining. Airbnb has a refund policy for guests if the host cancels at the last minute before check-in, if the guest arrives and cannot access the accommodation, if the accommodation does not match the listing, or if it is not clean or lacks the amenities or items specified by the host. In such cases, the host may be responsible for refunding the payment.

Source: www.bltbangkok.com , www.th.airbnb.com, www.investopedia.com

 Article by: TerraBKK Knowledge Base

TerraBKK Find Good Homes, Value for Money, Affordable Prices