DENVER – Airbnb has become extremely popular across the nation. “However, many homeowners do not understand how to turn their home into an Airbnb,” said Broker Associate Sarah Clark, of Kentwood City Properties, who Airbnbs her personal residence as well as a home in Salida.
To educate people on turning their second home into an Airbnb, or short-term rental, Clark lists the following eight tips:
1. Buy a house
“Talk to a Realtor, even if you have doubts about being able to buy a home,” added Clark.
No. 2: Set up an Airbnb account
It is quite easy to set up an Airbnb account. Visit airbnb.com.
No. 3: Give details of the listing
Provide professional pictures and explain what part of the home is available for use. “Be specific if it’s the entire house or just a room,” stressed Clark. “That way people know what to expect when coming into your home.”
No. 4: Set expectations
Set up a person’s expectation of what they are paying for and getting out of this. “Describe the area that it’s in,” noted Clark. “List what things people can do around the city, how they can get around, what restaurants are nearby, coffee shops and any other activities.”
No. 5: Price your listing
Look at comparable homes on Airbnb and other rental sites in your area. What are they charging? What are they offering? If you aren’t getting booked, adjust your price. “You can also use the Airbnb smart pricing component; however I always find it to be priced low,” stated Clark. “That’s up to you and what you want to get out of your property, financially.”
No. 6: Check the Airbnb laws in your area
“Here in Denver, you have to have a short-term rental license in order to host your house on Airbnb and it must also be your primary residence,” stated Clark. “This is a great way to offset costs of mountain homes or other second homes. Every city is different so it is important to check your city’s laws.
You can check the Airbnb laws for Boulder at bouldercolorado.gov/plan-develop/short-term-rentals or Denver at denvergov.org/content/denvergov/en/denver-business-licensing-center/business-licenses/short-term-rentals.html.
Longmont is in the process of updating the Land Development Code (LDC). This update will include short term rentals and city staff is in the process of drafting recommendations for language and options to be included in the LDC. For the most recent update, visit longmontcolorado.gov/departments/departments-n-z/planning-and-development-services/code-updates-2017.
No. 7: Receive inquiries about the home
Make sure to keep a very strong response rate. The percentage of your response displays on Airbnb and people look at that. Whether the property is available or not, still acknowledge them with a response.
No. 8: Once the first guests leave, make sure to review them and be honest
“This is important for other Airbnbs,” concluded Clark. “You also want to keep in mind that your guests will be able to see these as well and will also leave a review about you and that’s what builds your business.”
By Sarah Clark, Kentwood City Properties. Sarah works with buyers, sellers and investors. She is a fourth-generation Realtor that focuses on central Denver, such as the Highlands, Rhino, Wash Park, downtown Denver and surrounding western suburbs. For more information, call 720.666.4572 or visit sarahclark.co. Kentwood City Properties is located at 1660 17th Street, Ste. 100 in Denver.