How do I start an Airbnb?

Question

I have a house that I’ve been fixing up and plan to list on Airbnb. But I don’t know what I need in order to do that. Do I need an LLC? Right now the house is in my name. Do I need to get more insurance above the regular rental property insurance? Is there anything else I’m missing?

Jimmy Woodard · Answer

@Sheldon James Definitely pay for vacation rental insurance through any of the companies Josh suggested.

Depending on the city, check your local laws to see what you need to do. Some require you to register your business and obtain a permit.

The LLC isn’t necessary but certainly recommended.

Find a reliable cleaning crew and handyman, they are the lifeblood of your business.

Also look into pricing tools like Beyond Pricing and Wheelhouse (you’re leaving money on the table if you try to do it on your own).

Last but not least, research your competitors in the space. Make sure to offer amenities guests will expect, and amenities that separate you from the competition.

Good luck and feel free to DM me with any other questions!.

Michael Baum · Answer

Hey @Sheldon James, that is a loaded question. Where is the house located? Are you looking for families as guests or ?

If it is completely empty, you will need to furnish it with as many amenities you can stuff in there. Do some searches and you will find a lot of posts that cover things like furniture, linens, mattresses etc.

Zahid Ali · Answer

Congrats on the new home. To list it on Airbnb check out their information for hosts and take an intro webinar with one of their top hosts. I found the webinars very informative and a solid base to start up your Airbnb setup.

You can operate under your name or form a separate LLC/CORP strictly for the STR (do an S corp Election ie: consult with your CPA/attorney) See which avenue suits your need and please get STR insurance endorsements. Also note not all landlord's policies will cover STR and you need to disclose this on your application. Proper really have a good STR package and I believe it to be the best so far in the industry. Their rates are a bit on the high side but you need to plug and play to see how much coverage you really need.

Good luck!

Joshua Strickland · Answer

You don’t need an LLC.

You will need additional coverage over regular home owners insurance to cover you for guest liabilities. Check out proper, foremost, or cbiz.