Whether you own multiple short-term rentals or just purchased your first property, true revenue awaits those who learn to manage their Airbnbs like a business. Here are five ways to get started. 

5 Pro Tips for Managing Your Airbnb Like a Business

Boss. Solopreneur. Captain of your own (short-term rental) ship.

Whatever you call yourself, you’re at the cusp of what could be a prosperous business—as long as you learn how to treat it like one. Whether you’ve just bought your first short-term rental (STR) or are on the way to a robust portfolio, the best returns await those with a true entrepreneurial mindset. But you don’t need real estate, hospitality, or even small business experience to become the CEO of your own STR empire. 

What you do need to start a vacation rental business is know-how: navigating the data, monitoring meaningful trends and competition, and skillfully managing your rentals like a true boss would. 

Here are five ways to start treating your Airbnb like a business. 

1. Hold out for the right real estate investments.

Running an Airbnb business means owning multiple STRs. But not just any STR will do. As a business owner, you should approach your investment decisions like Goldilocks—you want to find properties that are just right. The tricky part is that what’s just right for one STR business owner might not be what’s right for you. 

How do you make strategic investment decisions? Lean into the data. Many U.S. destinations are experiencing an extended summer, which means the profit-earning season is longer, too. The revenue potential for small cities/rural areas also remains 55% higher than it was pre-pandemic. 

We don’t have to tell you that the STR market can change. But what you might not know is just how quickly those changes can impact your own STRs. Running an Airbnb business means having an always-on approach to monitoring your markets so you can proactively optimize your listings. 

STRs in the U.S., for example, recorded a record month in July 2022, with over 23 million nights stayed. Even more interesting? Last-minute bookings were up 69%, with 26% of July stays booked within that same month. If you’re monitoring the market, you’ll see trends like this coming so you can optimize your listings and snag a piece of that unexpected upturn. 

Though this may sound time-consuming, it doesn’t have to be. Turn on Google Alerts, follow industry publications, or invest in vacation rental data that delivers market insights to you. Whichever approach you choose, keeping an eye on (and, eventually, staying ahead of) the market will help you become a mastermind in the STR business. 

Running a successful Airbnb business means knowing competing listings as well as you know your own—or, almost. After all, their average daily rate (ADR), amenities, occupancy, and pacing can all provide valuable insights into how you should price and market your own properties.

Though this may sound tedious, it doesn’t have to be. The right tools can quickly drill down on critical data like your competitors’ ADR, occupancy, booking lead time, and more, none of which you can find on their Airbnb listing. You can then more easily dig into the details you can find on individual listings, including competitors’ amenities, home styles, and reviews. The key here is getting to valuable information quickly; the less time you spend finding the data, the more time you can spend on making your listings stand out. 

Make it a habit to analyze your competitors over your morning coffee (bonus points if you can optimize your listings accordingly), and you’ll be well on your way to a successful STR business. 

Not even a fancy toilet can make up for a lack of toilet paper. That’s the line you’ll need to walk to run your Airbnbs like a business. 

Though Instagram and TikTok may have you itching to make some improvements, STR business owners know that not all renovations actually pay off. Balancing hospitality and design with the bottom line is the best way to decide which ideas will actually pass go—and which get a hard no. 

Interior design can actually increase your Airbnb’s occupancy rate and ADR. Certain amenities also can, especially if there are amenities you lack that your competitors’ guests rave about. But before you run out and buy a bunch of heated toilet seats, dig into the data to make sure there will be a return on that investment. And in the meantime, ensure your listings check all the basic boxes, like a well-stocked kitchen, extra toilet paper in all the bathrooms, and fresh, comfy linens. Remember, at the end of the day, you’re in the hospitality business now, and hospitality centers around people. Focus on what your guests (and potential guests) want and make upgrades that give you the most bang for your buck.

Trusting your gut is important. But your gut doesn’t always know what’s happening in the STR market. Data does. So whether you set aside your gut for the data or simply back up your hunches with a little more information, leaning into the data is the best way to become a true Airbnb business owner. 

Data can lead the way to the most profitable investments. It can also help you capitalize on those investments by showing you how to optimize your pricing, improve your listings, and even add amenities to your STRs. Treating your Airbnb like a business means knowing when to listen to your gut and when to listen to the data so you can make more profitable decisions. 

Though working with data can seem intimidating, it doesn’t have to be. There are a lot of different metrics you can dig into, and understanding them will only make you a stronger, more well-rounded STR manager. 

Even if you’ve already invested in a few promising properties, you may not feel like a business owner yet. But you will! Managing your Airbnbs as a business owner starts with the right state of mind. As Mark Cuban once said, “It’s not about money or connections. It’s the willingness to outwork and outlearn everyone.”

In STRs, that means taking the time to learn the industry, learn your markets, and learn how to interpret the insights so that you can make strategic decisions for each of your STR investments. Data is the single best way to do that. 

Start studying your neighborhood with a free MarketMinder account today, and you’ll be surprised just how quickly you’ll feel like the Airbnb business owner you’re already becoming.

Whether you own multiple rentals or just getting started, true revenue awaits those who manage their Airbnbs like a business. Here are 5 ways to get started.

5 Pro Tips for Managing Your Airbnb Like a Business

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