Airbnb is a service that enables people to rent their homes out to others. Since being launched in 2008, the service has grown steadily in popularity as an alternative to hotels. Airbnb has over one million monthly stays according to Angie’s List with rentals available in over 34,000 cities in nearly 200 countries.
Many people are curious about Airbnb, both as an alternative to staying in a hotel when traveling, and as a means of generating income through renting out their own home.
There are a number of advantages to staying in an Airbnb as opposed to a hotel. The obvious one is that Airbnb rentals tend to be cheaper than hotels. But many Airbnb travelers like Airbnb not just because it saves them money, but because it allows them to experience what it’s like to live in a different city or country.
Cooking their own food and cleaning up after themselves, as opposed to being pampered in a hotel, is another part of the whole experience.
So just how does Airbnb work?
Hosting your home on Airbnb requires registering on the website and creating a listing for your rental. Airbnb attains a verified ID from all members through uploading a government-issued ID and connecting with a social media profile. Background checks are not standard, although the company reserves the right to conduct them.
Once your property is listed it will be available to travelers looking for a place to stay. Depending on your preference and how much space you have, you rent out your place while you’re away or stay and act as host.
According to the IRS, hosts who rent out their places fewer than 15 days a year aren’t required to claim any income earned on their taxes.
Airbnb adds taxes and a three percent fee to the listing price for each night a host’s home is booked.
So how does one become an Airbnb guest? Just as it is with renting your home, the first step is to register on airbnb.com. Once you’ve registered, using the service is easy. You just enter the place you want to go in the search bar, plug in your check-in and checkout dates, specify number of guests, and hit “Search.”
Depending on your destination, anywhere from dozens to hundreds of available rentals will come up. You can filter by price range, size, neighborhood, amenities, and property type, depending on whether you’re looking for an apartment, house, or bed & breakfast.
If you like the look of a listing and the price is right, you simply specify how many guests are in your party and hit the “Request to Book” button.
On top of the reservation to cover services, travelers pay a guest service fee of around 6-12%. You may pay using ACH/Direct Deposit, bank transfer, international wire, PayPal, Western Union, checks (U.S. and Canada) and Payoneer.
Airbnb doesn’t perform background checks. However it has its own system of checks and balances in the form of reviews. Guests can review host properties and hosts can review guests. For a host, getting a bad review can make it harder to find guests who will rent in the future.
Meanwhile, for a renter, getting a bad review may make it difficult to find hosts who will be willing to let them into their homes. It’s an honors system of sorts that seems to work out for the most part.
Hosts and guests can also leave each other good reviews.
Airbnb is generally cheaper than staying in a hotel and allows travelers to gain a better sense of what it’s like to live in the places they visit then they might get at a hotel. While some Airbnb hosts rent their properties when they’re away, others remain on the premises and provide personalized services for their guests.
Airbnb gives hosts an opportunity to make extra income and meet travelers from around the world.
We’ve all heard the horror stories about nightmare rentals that turned out to not be what was advertised and nightmare renters who throw parties and destroy someone’s home. Other stories tell of people having things stolen and finding drug paraphernalia upon returning. Although rare, these types of incidents do happen. Airbnb has a Host Guarantee program that can ensure renters for up to $1,000,000.
On the renter side, there are stories of filthy rentals, unaccommodating hosts, and apartments that were already occupied when guests arrived.
And like much of the so-called sharing economy, Airbnb has generated some controversy. In some larger cities like New York and San Francisco, property owners are buying up multiple units simply to rent them out through Airbnb. Critics claim this practice is making it harder for people to find affordable housing in areas like Manhattan. And just as the taxi industry opposes Uber and Lyft, the hotel industry is vehemently opposed to Airbnb.
Contrary to popular belief, an article in the Economist points out that Airbnb hasn’t really had a negative effect on the hotel industry thus far, according to The Economist.
Airbnb is a user-friendly service that connects travelers to affordable accommodations around the world and provides people with an opportunity to generate extra income by renting out their homes.
Airbnb is already attracting more business travelers and professionals in addition to the tourists looking to save a buck it built its business on.
