Owning an Airbnb: Benefits and Challenges

owning an airbnb

By The Hospitable Team

Thinking about buying a vacation home and renting it out on Airbnb? Since there is an increasing demand for short-term rentals, the popularity of this OTA platform is exceptionally high, and the financial returns of Airbnb strategy can be gratifying.

Still, it’s a serious investment; if you go this route, you’ll also face some challenges. So before you take a plunge, it makes sense to weigh all the pros and cons of owning an Airbnb property.

To help you figure out whether becoming an Airbnb host is a good idea, we’ll explore the benefits and challenges of renting your home short-term on Airbnb.

Owning an Airbnb: Pros and Cons

Airbnb is an online marketplace connecting hosts who want to rent out their homes with travelers looking for accommodations in specific locations. For property owners, it offers a flexible online booking platform that they can use to make extra money renting out their vacation home or a spare room to people visiting their area. 

Airbnb offers hosts an easy, relatively stress-free way to earn passive income from their short-term rental property—it handles all bookings and payments and eases communication with guests. It’s up to you to decide how involved you want to be in managing your listing. You can hire a property manager or co-host—this approach requires minimal effort.

An alternative option is to use vacation rental software like Hospitable. It has comprehensive features and can help you take care of essential hosting responsibilities and automate most of your daily tasks. Then you’ll be able to put your STR business on autopilot.

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Airbnb is a popular choice for property owners. Still, before you take a leap and start your own Airbnb business, it’s crucial to weigh the advantages and challenges of this business model against your goals and lifestyle.

By understanding both sides of the Airbnb hosting experience, you’ll be able to make an informed decision about whether investing in an Airbnb is a fit for you. You’ll also be able to better equip yourself with the necessary knowledge and skills needed for running a successful short-term rental business.


Let’s first look at some of the positives of owning an Airbnb property.

Higher income compared to traditional renting. Owning an Airbnb rental can be more profitable than renting the same property to a single long-term tenant. You can charge more on a nightly basis and increase the nightly rates when the demand is higher during peak seasons, weekends, or due to local events and holidays.

A diversified portfolio of guests. With traditional renting, you entirely depend on one tenant paying rent. That can be perfect if your tenant is financially reliable and stays long. But what if they fail to pay rent on time? Owning an Airbnb, you earn income from many guests each month, and if one or two of them cancels, it will have a minimal impact on your total income.

More flexibility. With Airbnb, you can rent your home or apartment at your convenience and have complete control over who stays there and for how long. You can block several nights in the calendar when you want to take a break from hosting. You can also adjust your nightly rates regularly to increase your profitability.

Airbnb provides free marketing. The platform attracts millions of travelers looking for a place to stay, and you can rely on its traffic to land your first booking and start building your vacation rental business. You’ll have time to focus on improving the guest experience and setting yourself apart from other hosts.

But to become successful and profitable in the STR market, you’ll need to develop a solid Airbnb marketing strategy to reach a wider audience. Using both online and offline marketing channels to promote your listing and increase your occupancy rate is essential.

The good idea is to create a direct booking website to build your brand, develop relationships with guests, and drive repeat bookings. If you opt for Hospitable, you can easily build your direct booking website using professional, easy-to-customize templates. No technical skills are required.

Get a direct booking website within minutes!

Our system will ensure your calendars stay synced with OTAs, and your guests get the best experience.


Now let’s take a look at the common challenges that come with owning an Airbnb property. Here are a few things you need to consider before making a final decision.

Restrictions on Airbnb rentals. Different cities have unique Airbnb regulations, and some have strict rules about renting properties for short-term stays. So first, you need to research whether it’s legal to host in your area and what requirements you need to meet.

Cities often restricti Airbnbs to ensure enough housing for city residents, but if you decide to run an Airbnb in a more restrictive city, it will limit your income. Then it’s better to opt for long-term renting or find an alternative city with milder Airbnb laws.

You may want to check out our blog article to learn more about Airbnb regulations in some popular locations in the US.

Higher expenses. You’ll be responsible for initial expenses, such as repairs and improvements, to make your rental property more attractive to guests and increase your chances of booking. You’ll also have to invest in high-quality furniture, decor, appliances, and popular amenities to ensure a comfortable stay for your guests. Additionally, Airbnb hosts must cover electricity, water, cable TV, and WiFi, costs of cleaning services, and perform regular property maintenance and repairs.

Success takes time. Bookings through Airbnb come largely from your reputation as a host. Even if you have a perfect property in a popular tourist destination, don’t expect that it will be booked nearly every night right from the start. You’ll need to work hard to give your guests an incredible experience to get 5-star reviews and increase your rating. Then you’re more likely to attract new guests and get more bookings.

You need to ensure perfect communication with all your guests via messages to provide them with the necessary information when they need it and make them feel cared for. That’s very challenging if you do it manually, so automating guest messaging using software like Hospitable makes sense. Our tool integrates with ChatGPT, which can help you craft answers to unusual questions.

Have conversations with your guests even when you sleep.

We will detect questions and answer on your behalf; send fully custom messages triggered by events, and much more!

The short-term rental market is highly competitive. Starting an Airbnb business involves much more than simply buying a property in a great location, listing it on Airbnb, and welcoming guests. You’ll need to work hard to reach your target audience and make your listing stand out.

You’ll need to devote time and spend extra money to wow your guests and encourage them to leave you positive reviews. This includes investing in items like quality bedding and bath accessories, taking professional photos of your property, providing your guests with welcome gift baskets, etc.

Hosting on Airbnb may often feel like a full-time job, demanding your time and energy. Many hosts opt for vacation rental software like Hospitable to automate their routines. Using automation to streamline your processes will give you a competitive advantage, making your STR business more efficient and increasing your chances for success.

Final Thought

Although owning an Airbnb can be a smart way to get extra income, it’s not a walk in the park. A lot of things go into having a short-term rental property, and you really need to understand what you’re getting into. If you are patient and willing to do the necessary work and overcome all the challenges of running a vacation rental, Airbnb hosting may be the perfect fit.

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Airbnb Host Checklist: Setting Up for Airbnb

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Airbnb Service Fee: How Much Does Airbnb Charge Hosts?

How much does Airbnb charge for listing your property? How does an Airbnb service fee impacts hosts and guests? Does Airbnb refund service fees? Answering these and other questions. We will explain everything you need to know about the costs of using Airbnb.

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