Whether it's your first dive into the Airbnb industry or you already have a couple of properties under your management, it's important to take a step back and analyse your business. A business case is a good way to note your findings and get an outside perspective on the performance of your property management earnings. In this article, we break down 5 tips to make your Airbnb business thrive.

Know Your Target Audience

The Airbnb platform caters to a variety of guests. With more than 100 updates scheduled for 2021, the platform will make it even easier for users to discover more destinations and unique homes around the world. This makes it crucial for you to define your guests and ask yourself what makes your home unique.

When listing your property on Airbnb, the algorithm will suggest a description for your home based on your photos, size, number of bedrooms and extra features. Although many opt to use this description it may count in your favour to make the description unique to your property. Your 3-bedroom property may seem ideal for a family but it might not be fit for children under 12 years old. It's important to note this in your description. If you offer unique services, like guided tours of the suburb or you have a friend that can give your guests good rates or a free entrance to a gallery, remember to add that to the description as well. These points all contribute to defining your target audience.

Use Your Budget Wisely

The next step is planning the type of investments you would like to make to upgrade your Airbnb. Airbnb guests make their bookings based on several things; photography being one of them. Airbnb has now made it possible for users to scroll through images before even opening the listing when scanning through options to book. That makes it even more important for your property to position and represent itself in the best light.

It's a popular myth that you have to make a large upfront investment for your Airbnb to receive many bookings. Consider adding a striking artwork, bright couch or interesting tiling in the kitchen instead. The most important tip is to ensure that if your home sleeps 6 people that there are 6 seats at the dining room table and 6 seats in the living room.

Pinpoint Your Airbnb Management Structure

If you want to manage an efficient Airbnb business, it's important to decide on a management structure you can rely on. Are you managing the cleaning, guest vetting and communication, maintenance, and revenue yourself? If not, it may be a good opportunity to contact an Airbnb management company to handle that on your behalf. Will Airbnb be the only platform you list your short-term rental on? There's booking.com and Vrbo to consider as well, although to be sure to research their commission structures beforehand.

Write a Financial Growth Plan

If you're looking for investment from third parties you'll need to include projections for at least one year. Do your research by speaking to local Airbnb owners or joining short-term rental forums online. Experienced Airbnb hosts and managers are usually more than happy to share their knowledge and experience in the Australian market. Remember to add a cost analysis as well. This includes planned and unplanned maintenance, cleaning fees, property insurance and laundry service. Even though Airbnb has banned parties, property damage may still occur during guest booking, so keep that in mind, too.

Follow the tips in this article and you'll be well on your way to putting together a business case for your Airbnb.