6 Simple Steps to Start an Airbnb Business in India

Starting an Airbnb business in India is becoming a first choice for people who have spare properties or empty spaces; and why not, if you look at the stats you’ll see that in the financial year 2020, Airbnb India made around 687 million Indian Rupees. This opens up great opportunities not only for the travel and tourism industry but also for individuals who want to start a side business without much investment.

If you’re that individual who wants to start an Airbnb business in India, then you’re at the right place. In this article, you’ll get to know how to start the Airbnb business in 6 simple steps. So, keep reading till the end.

How To Start an Airbnb Business?

Are you curious about how to start an Airbnb business in India? Well, below is a list of 6 simple steps that can help you start an Airbnb business and make it your full-time job.

1. Get Required Permits

When looking to start an Airbnb business, it is crucial to have all the required permissions before starting the business. Without valid licenses, you can get into trouble with authorities. For instance, if someone is leasing out a room in their house for Airbnb, the RWA should know about it, or else it would pose a security threat when unknown people enter the society regularly.

There are different permissions like NOCs from co-operative societies, or RWA of the society, municipality permissions and other permissions required in the city where the property is to be listed. This would keep the property out of hassle, and the travellers can enjoy a pleasant stay there.

Airbnb provides the required permission documents from the hosts according to the place of listing. Once the host provides all the permissions, only then is a property considered.

2. Organize the Space

After receiving the required permissions, as a host you can start preparing the property to ensure that you provide all the required comfort and safety to guests. There are several things to look into while doing so.

You should provide certain things like refrigerators, microwaves, tea & coffee machines, and geysers for their guests to use. The rooms should be private enough for the guests to enjoy their stay.

As a host, you should always have the place stocked with clean bedsheets, towels, and toiletries. Properties that provide kitchens should provide basic utensils for the guests to use. This would help you earn good ratings.

3. Price the Airbnb Property

Now the time come to decide the prices of your Airbnb as a host you should consider all the expenses and set the price for the property accordingly. This will help you earn good profits. Airbnb collects a flat 3% service fee of the reservation amount.

You should keep in mind not to exaggerate the amount, as there would be many other options with better facilities around and the guests would prefer them. Always look around other similar properties and set the price. The price should cover all the costs, provide comfort to the guests, and provide profits on each booking. For further details on expenses, you can discuss with the experts from Airbnb and set the price for the Airbnb for business.

4. List Property on Airbnb

This is a crucial step when listing your property, you should not exaggerate anything and must not hide any problems on or near the property. If such instances occur, it would lead to lower ratings and getting insufficient bookings.

Never forget to mention the specialities of the Airbnb property and how it stands out from other properties around it. Always provide the latest photos of the property. This would help the guests understand the property’s size and features.

And yes, clearly mention the things that are not allowed on the property so that there is no confusion at a later stage. For instance, many properties do not allow smoking, allow pets, or do not allow outside food on their premises. So, it is advisable to specify this in advance.

5. Hire the Help

It is always recommended to have staff around to take care of the property, bookings, check-ins and check-outs of the guests and maintenance. This would be an added benefit to the host, especially if you don’t live on that property primarily. It’s great that Airbnb allows up to three co-hosts for a single property. Make sure your co-hosts are aware of the Airbnb terms and conditions and are able to interact with the guests and provide them with all the required information.

With co-hosts in the picture, the responsibility would be divided during the peak seasons. With proper staff and co-hosts, you can easily manage the guests, interact with them, and provide them with all the comforts during their stay, making hosting on Airbnb a breeze.

6. Host Airbnb Experience for Travellers

So, Airbnb is not only about hosting guests at properties. People who do not have a place to provide for stay can sign up for the Airbnb experience. The Airbnb experience offers travellers a guided tour of the local spots. The locals can sign up for it and can help the guests explore different places in their area. Just imagine trekking on a local hill or going on a nature trail with the locals who would provide all the details.

The host providing the Airbnb experience should provide a schedule on their availability, the number of travellers they can accommodate on a single trip, and the number of trips they would like to make. This would help travellers to choose the plan accordingly.

You can apply to Airbnb, it would verify the application and the experience to undertake the tour mentioned in the application. Airbnb takes around a week to respond to the application. Before starting the application process, the incoming host should get all the permissions as per the local laws.

How Much Are Airbnb Taxes?

It is very important to know about how taxes are involved when starting an Airbnb business. The tax rates for Airbnb rentals in India can vary depending on several factors, including the location of the rental property and the local tax laws. Airbnb hosts in India need to know the tax regulations applicable to their location and rentals. Here’s a general overview of the taxes associated with Airbnb rentals in India:

1. Goods and Services Tax (GST): Airbnb hosts in India are required to register for GST if their annual earnings are over a certain amount. GST rates for accommodation services vary between 12% and 18%, depending on factors such as the room cost and other services provided. Hosts are responsible for collecting GST from guests and paying it to the government.
2. Local Taxes: Some cities or states in India may impose additional taxes on short-term accommodation rentals. These could include taxes for occupying a certain place or tourism taxes. The rates and regulations for these taxes can vary significantly depending on the specific location.
3. Income Tax: Hosts are also required to declare their Airbnb income as part of their overall income tax filings. The income from Airbnb rentals is subject to income tax as per the tax rates.

Tips To Improve Your Airbnb Ratings

The most fundamental thing to get more bookings on Airbnb is to have a higher rating on the platform. There are several listings on the platform, and it often gets competitive for business owners to make their listings stand out from the other properties. But it is necessary to have good ratings for a better earning on the property.

Some simple things to follow to have good ratings on Airbnb are

• Provide clean and spacious rooms to the guests. The cleaning services of Airbnb should be good.
• Ensure hassle-free check-ins and check-outs for the guests.
• Provide all the essential amenities to the guests.
• Have good staff on the property at all times to meet the guests’ requirements.
• The property should have proper security for the guests to feel safe. You may also install CCTV cameras in the common spaces for added security.
• Interact with the guests regularly. Please provide them with details about the local places to enjoy.
• Many guests prefer to visit some local places known only to locals. The hosts can come in handy by providing them with the details of the most famous spots in the city.
• The location should have good transport facilities and be accessible to essential places in the city.
• The Airbnb hosts can use a property management system for handling the various operations of the business

How To Grow Your Airbnb Business? 

Start with a single property, and understand the basics of running an Airbnb property successfully. Once that property starts reaping profits, the business owner can think of expanding their business by investing in real estate. This will eventually increase their income through an Airbnb business.

Depending on the investment and profits, one can add new properties to their Airbnb listings. With higher ratings on one property, it becomes easier for the other properties to gain popularity.

If an individual has a space, they should list it on Airbnb by following their guidelines. If the property works out fine, it gives an excellent opportunity to earn additional income. With the business growth, one can work full-time by enlisting other properties on Airbnb.

Start Airbnb Business

An individual looking at how to start their Airbnb business in India should follow the guidelines mentioned here for a smooth operation. As an owner, you should look at providing all the basic amenities and going out of your way to give more comfort to your guests.

All these things are good to follow once you start your Airbnb business, think it through get a plan ready and follow it diligently and you can have a thriving Airbnb business in India.

Deep dive into our Business section to read about more such interesting and emerging business ideas, trends and tips.

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