Leah and I travel a lot. Our primary residence is often left empty for weeks at a time while we stay in other people’s Airbnb units. We decided to explore how to use our home for short-term rental through one of the short-term rental sites.
As property owners, we asked each other if we could make some extra money by hosting short-term guests while our entire property was otherwise unused during our travels.
Our home is off the beaten path. we don’t live near a tourist destination. Additionally, there aren’t vacation homes in the region. It turns out those factors actually work in our favor by minimizing market competition.
After months of “thinking about it,” we researched the short-term rental market and looked at it from more than one lens. This is how we learned that short-term vacation rentals are indeed an important aspect of short-term residential activity.
Some Findings of our Research of Using Our Home for Short-Term Rental
Some guests are between leases, undergoing a remodel, or new home construction. Those guests use short-term residential rentals for residential use on a short-term basis.
But a significant share of the market is single rooms in family homes so. As a matter of fact, a hotel manager in my county lists his hotel rooms and sees a tremendous amount of activity.
Fast forward to now- we generate significant sums through this short-term rental activity. Guests pay the nightly fee, daily pet fees, cleaning fees, and all taxes and associated costs.
Expenses & Insurance
We pay our monthly utilities, mortgage and escrow, and normal upkeep. (To be honest, those are paid already).
We found the right insurance coverage that covers us for liability, the property, contents, and guests. Thankfully, the new policy doesn’t cost much more than our former homeowner’s premium.
Years ago we leased out our second home for long-term rentals and the small amount of rental income didn’t offset the risk. Having been rental owners, we were nervous about the venture at first. However, so far this rental platform is a great way to earn extra cash.
Preparing our Home for Short-Term Rental
Evaluating the Viability to Use Your Home for Short-Term Rental
Interior Selling Points
We have a unique home. It has several aspects that make it unusual but add to the charm and individuality.
Sunroom Living Area
The central living area in our house is a large, high-pitch ceilinged, skylighted, open sunroom with a 72 inch smart TV, full wet bar.
Two antique wood tables and a porch-swing chair with a stand accent the space. It is further furnished with two Natuzzi white leather sofas, complete with end tables and a Cantoni glass and chrome cocktail.
Additionally, four chrome stools sit at the bar. There is also an upscale wrought iron patio set with four chairs complete the space’s furnishings.
The room opens to three other areas of the house via double French doors and has picture windows overlooking the patio, pool, and outdoor kitchen. It opens to the breakfast room with a collapsible glass wall. We refer to this space as the Sunroom, and it is the room we use most during the summer months.
Master Bedroom
Our master bedroom is a spacious area large enough for chairs and a sofa. That is in addition to a bureau, a chest of drawers, and a king-sized bed with two nightstands.
One complete wall of the room is mirrored. (We don’t know if that is a positive or not. It was that way when we purchased the home) We keep it covered more or less, by the way, we place our furniture.
The bedroom opens to the sunroom through a windowed wall and two French doors. A floor-length curtain provides a modicum of privacy and keeps out the morning light.
Master Bath
The master bath is a key feature of the property. Two doors provide access from the bedroom and each opens to its own (his and her) granite-topped vanity with cabinets and drawers. One side has a walk-in closet and the other has its own large closet.
The bathroom’s most noteworthy feature is a recessed whirlpool tub for two with picture windows overlooking the landscaped pool area. Wooden blinds can block all visibility from the outside if desired.
The master bath also features a full-sized shower and potty and bureau behind a screen for added privacy.
Other Living Areas
Along with the main living area, there are several others within the house. They vary in level of formality but the living areas greatly impact many aspects enabling someone to use your home for short-term rental.
Whether the house has numerous living areas or a singular room impacts the type and quantity of guests that can be hosted. Below is a description of the living areas within our home.
Den Area
The den is stained wood, picture-frame paneled, floor to the high vaulted ceiling, warm space. The dominant feature is its floor-to-ceiling, raised hearth, brick, wood-burning fireplace.
The floor is 100% ceramic tile to minimize mishaps with dropped firewood or coals and things of that nature. The tile actually runs through both the den and the sunroom areas.
The den has its own 52 inches smart TV and is furnished with a plush leather recliner. Additionally, there is a Natuzzi white leather couch and a matching, plush armchair with an ottoman.
This room opens to the sunroom, headroom hallway, coffee bar, and round breakfast room. Additionally, the entry foyer opens up to this room through a wide doorway.
Formal Living and Dining Room Areas
To the left of the foyer, when facing the double front door is the formal front living room. This space is furnished with a gold and glass console, wrought iron, and a marble accent table. The Massad sofa and chair provide seating.
The bay window faces the circle drive. To the right of the foyer sits a near-identical space furnished with a large dining table and chairs, a hutch, and two glass and wood china cabinets. That room also opens up to the kitchen via split, louvered swinging doors.
Kitchen
The kitchen has a large island and counter space along three sides. The room is equipped with a pair of oversized built-in smart ovens, ceramic topped range, double sink, refrigerator, dishwasher, and compactor. A 21 bottle, built-in wine rack accents the space.
Bedrooms
A hallway with a half bath connects the main three bedrooms. Aside from the master suite, the other two are served by a Jack and Jill bathroom with a shower tub, and double-sink vanity. Each of these rooms has a queen-sized bed, chairs, and its own closet.
Office Area/Sleeping Accomodations
The final interior room is a combination bedroom/office with a sofa bed, divan, and a glass and chrome with matching chrome and white leather office chair give the workspace its charm.
A half bath and large closet complete the room. It opens to the round breakfast room and the sunroom.
Outside Areas
Front Yard
The house sits on three lots. It was built in the 1970s and has updated landscaping that includes a weedless lawn and a large raised specimen bed. The home is brick and unassuming with a nice curb appeal.
Other features include a semicircle concrete driveway and large trees in the front. Each side of the house has a privacy fence that completely spans the distance between the house and the edges of the property.
The entry has double front doors behind a pair of dark-tinted, all-glass storm doors.
The Side Yard
The rear driveway, garage, and side yard are accessed from the alley in the rear. This space has a concrete drive large enough to park several vehicles.
A covered carport gives protected space for one vehicle, and the garage has interior room for one vehicle.
An herb garden surrounds a small greenhouse and the lawn is well kept.
Backyard
The backyard features a pool, an outdoor kitchen, patio space for sunning, dining, and lounging. The entire backyard wraps around the house and is the envy of any garden club.
Patio Area
Latticed rafters provide ample shade to the lounge and cooking areas. The privacy fence is double picketed to give that extra level of visual privacy- nobody can see in.
Ambient lighting gives you the ability to use this space any hour of the day or night. The patio is furnished with an aluminum and tile patio table with 6 chairs. Additionally, an outdoor settee seats four, and an appealing pair of chaise loungers increase your temptation to relax in the sun. You can enjoy cast metal rockers around the propane fire table on cool days and evenings
Outdoor Kitchen
Outdoor cooking is fun and the food is delicious. The Large Big Green Egg and the big propane grill are built into a granite prep surface.
We will install a small refrigerator beneath the prep surface in the near future as an upgrade. Also, the 36” Blackstone griddle is on wheels and is easy to move wherever you want it.
Pool
The large L-shaped swimming pool is heated, has a hot tub spa, and also has an 8’ deep end. The spa is in the L section in the shallow end and can be used any season of the year.
Gardens
The gardens are filled with colors and fresh produce in the spring and summer. Herbs are available year-round, as well. Organic herbs include basil, savory, sage, thyme, parsley…the list goes on.
Organic kales, lettuces, chards, arugulas, carrots, and spinach are some of the vegetables you can select for your meals most months of the year. Break off a stem of any ornamental or herb to use in fragrant and visually appealing arrangements anywhere on the property.
Repair, Replace, or Upgrade
Things We Didn’t Notice Until We Began Looking
Over time, it is easy to not notice some of the imperfections and issues that may develop. That door that needs greasing, the gate that sticks, and other concerns can become invisible to those that live with them day-to-day.
One benefit of evaluating our home for short-term rental possibilities is that those items that we no longer notice suddenly become visible again.
Some of These Concerns Have Already Been Addressed. Others We Are Works In Progress
The back patio ambient lighting was hard to operate
Burned out lightbulbs
Inoperable mini-fridge in outdoor kitchen
Inoperable mini-fridge in wet bar
Hard to operate remote control in the master bedroom
The privacy fence required an upgrade
The pool heater
We didn’t know how to program and delete temporary key codes
Rabbits
Pillows and bedding
A couple of spots in 49-year-old carpet
Door handle on one of the 6 French doors
Guests Told Us Through Private Feedback
We have purposefully asked our guests for feedback on ways that we can improve. So far, their ideas have been very helpful.
As with the items above, some of the problems that we no longer notice still need to be addressed. Guests’ feedback has been a great avenue to help ensure we are aware of concerns that may impact their stay.
The frame of the bed in the master bedroom can hurt your shin if you run into it.
The trash compactor has a specific way of operating, and we hadn’t noticed.
We had an air fryer but no toaster.
Wish-list From Our Travels
Welcome basket
Guest book
Bathroom products/makeup remover
Empty refrigerator
Sharp cutlery
Spices
Quality TP
Fresh arrangements
Installed Amenities
- 3,190 square feet of interior space
- Inground, heated L-shaped pool with spa
- Large, furnished patio
- Privacy fenced back yard
- 4 bedrooms and 4 bathrooms
- Whirlpool tub for two in master suite
- Dedicated workspace
- Fast Wi-Fi
- Smart wide-screen TVs with Roku
- Ceiling fans
- Fire extinguisher,
- First Aid kit
- Smoke detectors
- Free parking
- Single level with one step down
- Quiet, tiny, secluded town
- Ceramic range, double ovens, microwave, and trash compactor
- Two dedicated dining areas with dining tables
- Dishwasher
- Dedicated refrigerator
- Full-sized wet bar with mini fridge
- Washer and dryer
- Double garage plus carport
- Outdoor kitchen equipped with Big Green Egg, propane griddle, propane grill
- Three living areas including reading room, sun room, and den with wood burning fireplace
- Heat and AC
Added Amenities
- Iron
- Fully stocked cookware, bake ware, and BBQ supplies
- Wine glasses, glasses, mugs, dishes, and silverware
- Crock pot, air fryer, blender, toaster, mixer
- Keurig and coffees & teas
- Hot water kettle and French Press
- Assortment of spices
- Board games
- Wii game console
- Record player
- Children’s books and toys
- Alexa
- Table corner guards
- Extra linens, pillows, blankets, and towels
- Hangers
- Soaps, shampoos, conditioners
- Hair dryer
- Holiday themed: 9 fully decorated, lighted Christmas trees up to 12’ (in season)
- Christmas lighted exterior in season
Entering the Market
First- Meet all Airbnb’s Requirements
This was a lot more straightforward than I expected it to be. I didn’t find any initial requirements on Airbnb’s website for short-term rental hosts. or for a hosted property. Airbnb requires responsiveness (communicate within 24 hours), accept booking requests, do not cancel approved requests, and maintain a high overall rating (superhosts ratings must be 4.7 or above).
The essential amenities list on the Airbnb site only includes linens for each bed, a pillow, and towel for each guest, toilet paper, and soap for hands & body.
Second- We Upgraded Our Listing by Adding Amenities
- Make up remover and cloths
- A mirror in each bedroom as well as one in each bathroom,
- Dinnerware, glassware, and tableware for 16 guests
- Cleaning and laundry supplies
- Oil, butter, eggs, sugar, flour, and spices
- Candles in each bathroom
- Upscale hair products
- Bar supplies
- Upscale paper supplies
- Welcome basket with wine bottle
- Upscale table linens
- Seasonal decorations (including 9 fully lighted and decorated Christmas trees)
- Extra propane for the outdoor appliances
- Candy bowl with good candy and fine chocolates
Third- Self Education
I want to know more than is necessary about the process. What is the best way to begin? Are there residential zoning districts? Do I need a short-term rental permit? Do we need a short-term rental permit? What additional information do I need to have?
Local Laws
Few local laws are on the books. Electra’s city council and local governments are less interested in having public hearings and writing short-term rental regulations.
Websites & Facebook Groups
I read most of Airbnb’s website, only skipping content directed toward international hosting and things like that. Instead, I focused on the linked videos and many pages of print material.
Youtube Videos
Next, I watched probably 15 hours of YouTube videos on host channels. Once I felt I received saturation in the overall process, I looked for answers to specific questions.
Major Points of Advice
The number one piece of advice is to use a professional photographer in your listing. Much of the other Airbnb content lent itself to scaling up to multiple properties.
Market Analysis- Is it a Viable Option to Use Your Home for Short-Term Rental in Your Area?
I thoroughly analyzed the offerings in my market area to find a sense of what made for good and poor listings. I looked at listings of comparable size outside my market area too.
Less Than Helpful Training
One thing that I participated in which wasn’t as helpful as hoped was a free, hour-long webinar taught by an Airbnb recommended super host. She covered a lot of items and answered some chat questions, but I independently discovered everything she addressed.
Finally- Begin and Post
We converted our homeowner’s insurance policy to short-term rental insurance. The insurance policies are vastly different, and the
House rules are necessary. Fewer, significant is better than more detailed rules. Stay out of our personal items, refrain from excessive noise (nobody likes neighbor complaints),
Registration With A Reputable Hosting Website
The registration process is unbelievably simple. it took ten minutes to get it off the ground. I connected the payment link.
I used cell phone photos. (Professional photos will replace those soon.) Nevertheless, I staged every space before photographing.
I worked a lot on the actual listing. Developing the content took time and a number of revisions. I renamed, re-described, repriced, and everything else no fewer than ten times during the first month.
What Does the Company Handle?
Airbnb handles all the finances, they collect their fees, take care of the applicable state and transient lodging tax as well as any other occupancy taxes.
The company can even collect and distribute extra fees such as those for cleaning and pets. They will automatically deposit payments into your bank account or Paypal.
All stays to date have been paid the day of or the day after check-in. I saw on a video somewhere that it can take longer for monthly stays, but I can’t verify that.
Beta Testing
Pricing
Our property is different from all other listings within an 80-mile radius. However, nobody has a heated pool and few properties have as much space.
We further differentiated ourselves by making the listing pet-friendly. Occupancy rates of the higher-priced properties in Wichita County are less than 50%, but the same holds true with economy listings. This is probably the slow time of the year.
Airbnb has a Smart Pricing feature that will automatically price your listing using suggested minimum and maximum price points. However, the suggested minimum price was absurdly low. The company is more concerned with occupancy than host profit.
We decided on a relatively low price point for the first few listings in order to “feel the market,” and get 5-Star feedback from our first guests. We think that will pay dividends over time.
Accepting Bookings
The first week in November, within 5 hours of listing for the very first time, we had Thanksgiving week booked. We were thrilled! That couple canceled the booking for a non-related reason. We were less than thrilled.
Within a day, the week was booked again. A guest then booked a weekend to host a baby shower four months in the future. Thrilled again! They haven’t canceled.
A family stayed a week in December. A bride-to-be booked a weekend two months in advance and will have her small wedding in our space.
One very encouraging request was for a 34 day stay with a mature couple and their two dogs. We couldn’t accept it because we have a family event planned during that time frame- but we know it will happen for us and we will be able to turn a profit in a short time.
Choosing to Be a Little Choosy
Two individuals within the past week made requests for a group of their friends to spend some time together. The requesters didn’t use the word party, but they both failed the “sniff’ test.
Both events sounded like parties. We don’t want groups of young people hanging out in our house overnight or over a weekend. Therefore, we agreed to not accept their requests.
As new business owners, it’s challenging to not see the dollar signs and ignore the red flags. However, by choosing to be particular, we hope to only have high-quality guests, not frat-house parties.
Turnover for Next Guests
We need to have a reliable cleaner to come in between guests and prepare the space for the next group. To address that need, we used Facebook Marketplace to locate a local reputable cleaner.
She met with us and did an initial scrub of the entire home. Then we agreed on a price for turning the property. In the future, she agrees to clean immediately after each guest leaves.
Distance Management
We elect to manage the rental property ourselves. We don’t need a business license and we can do everything a property manager needs to do from anywhere over the phone. However, this choice may need re-evaluating in the future when we are able to travel even more.
Short-term rentals provide additional income without having to manage rental properties or the problems that accompany long-term renters. For the time being, we use our own home and list it when we won’t be using it anyway.
If you are interested, the link to our Airbnb site is: www.airbnb.com/r/jimr13480 or you can click this LINK.
And Click Here for more information about our business plan.
