Are you thinking of using that apartment you have, to multiply your income? Then this article can help you take an exploratory look at what you need to think about beforehand to get this move right and how you can take the next step through Airbnb!
Airbnb is a popular platform that enables people to find accommodation for a short period of time wherever they want in the world as they travel!
What are the first steps before listing your property on Airbnb?
First, you need to assess the condition of the property you are interested in listing on the short-term rental platform. What is the condition of the equipment, furnishings, decorations? Does it need renovation? It is necessary to be clear to the landlord what the costs are for these actions in relation to what he or she expects to gain monetarily in terms of utilization of the property.
Once you have a target of how much you would like to price the accommodation you need to follow the necessary steps regarding the condition of the house and its appliances so that the price is in line with the amenities. Subsequently, you can calculate how long it will take to amortize the money you will invest in repairing and freshening up the house.
What the legislation says
If you wish to rent accommodation, you are required to have contents insurance for your home.
According to the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation Amendment Law 9(I)/2020, by 1/1/2022 all self-catering accommodation (villas, houses, apartments) advertised through platforms such as AirBnB or Booking and available for short-term rental must be registered in the register of self-catering accommodation of the Ministry of Tourism.
How can you apply for accommodation registration?
For this purpose, the applicant must have the following in place prior to submitting the application for registration of his/her accommodation in the register of self-service accommodation of the Ministry of State Department of Tourism:
– Registration with the Tax Department (Tax Identification Number or VAT number where provided for under the relevant legislation) of the Republic of Cyprus; and
– Insurance coverage of the accommodation in force – at least against all risks, fire and civil liability.
The application for registration in the register is submitted only electronically through the website of the Ministry of Tourism and the registration fee for self-catering accommodation is €222 per self-catering accommodation per three years.
The operator (applicant) of the self-catering accommodation may advertise and/or rent the self-catering accommodation, provided that it is registered in the Register of Self-Catering Accommodation and has received a special mark and registration number from the Ministry of Tourism, which is indicated in the advertising and/or promotion of the accommodation, as well as in all related transactions.
How can you list a property on Airbnb?
If you wish to list your property on this platform, then you need to know that it is something simple and easy.
Airbnb gives flexibility as you can rent out that property you have whenever you want and for as long as you want!
The first step to get started is to get a business account on the app and fill in the necessary details that will be requested. Then you can start listing your properties by adding a full description of the home’s amenities. It’s important that the photos are thoughtful to attract interest!
Define the rules you want while someone is staying in the house. Interested parties need to agree to them at the time they make their selection. In addition, make it clear what the cancellation policy will be. You also need to add a payment method through which you want Airbnb to pay you.
How can you track the performance of your listings?
Remember that you will be able to track the performance of your listings through the use of tools accessible to you from your business account. This will help you evolve and improve your advertising strategy.
How to book?
In order for a guest to book your property they first need to accept Airbnb’s terms and then your rules. Once Airbnb has received payment, then they notify you by email and the reservation will show up on your booking page! Airbnb usually pays you within 24 hours of your guests arriving.
What about commissions?
In terms of commissions, most hosts pay a service fee of 3% of the subset of the booking, while guests typically pay a service fee of around 14% of the subset of the booking.
Protection offered by Airbnb
In terms of damage protection, Airbnb compensates you for any damage that may occur to your accommodation or personal belongings. Furthermore, you are protected in case a guest is injured or damaged during their stay at your property.
What are the most common mistakes made by a landlord who has a space available for rent?
These are those who have previously used the space e.g. a cottage or an apartment they have inherited and feel that with old furniture, old curtains and no change or renewal they can charge prices that do not match the quality they provide.
Another mistake is the inadequate insurance cover for the accommodation, which could protect the owner and his property from accidents or even unscrupulous visitors! All risk insurance cover against fire and civil liability is essential!
So Easy Insurance offers homeowner’s insurance packages that cover the requirements of the legislation.