Airbnb No Longer Wants to Be Just Airbnb: What Should Hosts Do? (Final Part)

In this article, we will explore why Airbnb’s major redesign could be positive for investors in Airbnb stock but might be bad news for traditional hosts.

What should traditional Airbnb hosts do?

First, three harsh realities

1. In the short term, traffic to accommodation listings is falling sharply.

It is like YouTube giving short videos half the homepage space that previously belonged to long videos to promote the shorter format.

To promote services and experiences, Airbnb now gives traditional accommodation only 1/3 of the page.

In the short term, more and more Airbnb homes will therefore find it harder to appear on recommendation pages.

2. Internal resources are being redirected toward new products, worsening already unsatisfactory customer service.

Since last year, most owners have agreed on one thing about Airbnb support: Handling guest complaints is taking longer and longer.

With so many new products introduced at once, the future quality and speed of customer service are even more concerning for owners.

3. Property-damage risks and determining responsibility may become more complicated.

If services such as in-home yoga, massages or private chefs cause damage while being provided, the situation will become more complex. For example, what happens if a massage therapist accidentally spills essential oil on a hardwood floor?

Although Airbnb offers AirCover insurance covering this, more complicated access to the property makes assigning responsibility harder and may even increase tension with neighbors.

So how should owners respond?

1. I think the trend over these past two years is very clear.

Airbnb is tightening its screening. It wants high-quality properties to remain rather than simply maximizing the number of listings, and is even proactively removing low-rated properties.

The early sharing-economy concept of listing a spare room so amateur hosts could earn extra money has therefore disappeared.

In the future, the only hosts who survive on Airbnb will be increasingly professional full-time hosts, or owners whose properties are managed by full-time professionals.

2. The property itself needs character. Ordinary listings will receive less and less traffic.

Returning to the essence of vacation rentals, distinctive properties are the ones that can survive and thrive. If all you offer is a spare room and a bed, with nothing distinctive about the home itself, Airbnb will favor you less and your traffic will continue to shrink.

Ordinary properties should therefore consider focusing on long-term rentals and giving up short stays.

3. My third suggestion is to treat listing on multiple platforms as a must-have, rather than a nice-to-have. VRBO and BOOKING.com have become necessities, not optional alternatives.

You should also think seriously about the need for your own direct booking site.

After all, we have seen too many examples: When a platform suddenly decides it no longer wants you, having no alternative may mean the end of your hosting business.

Although Airbnb has several short-term drawbacks, there may be one long-term advantage. Its services and experiences could attract a much larger user base. People who did not previously use Airbnb to book accommodation could become new Airbnb users!

And they could be high-quality users who care more about experiences than price.

Over the long term, if you run a distinctive, highly rated property that can survive, you may face a better future rather than a more competitive one!

Owners, what do you think?

If you:

• Hope to increase rental income through short-term rentals;

• Cannot spare a great deal of time to handle the small details;

• Occasionally need to use the home yourself, making it unsuitable to empty out the furniture for a long-term rental;

Then:

Snowball Rentals’ management team is your best choice.

From pre-launch vacation-rental styling, big-data analysis and online marketing to tenant screening, dynamic pricing, customer service and sales, cleaning and repairs, Snowball Rentals provides everything as one complete service for your home.

This Week’s Booking Results

Through long-standing relationships with insurers, assignment companies and technology companies, Snowball Rentals rents homes for medium- and long-term durations at short-term rates, then gives owners a rebate of 5% in management fees to maximize their income.

As April arrives and cherry blossoms begin to bloom, Seattle’s short-term rental low season is finally coming to an end!

Short-term rentals in peak season; mid-term rentals in low season.

Looking back at earlier large bookings, this strategy has achieved some results, allowing us to retain confidence even in a cold winter!

Although peak season has arrived, we still cannot let our guard down. Policies and broader conditions are full of changes and challenges. Making steady progress will remain the main theme going forward.

The detached Seattle home below can be found on Redfin, where its estimated long-term monthly rent is about $6,820.

With the owner’s trust and support, we carefully furnished the home and immediately began short-term rental operations. Fortunately, because the home’s condition and location are both good, short- and mid-term bookings have continued to come in.

As shown in the booking screenshot below, a guest recently booked this home from May 30 to September 8, a total of 100 nights, at an average monthly rent of $18,180.

In summary, after Snowball Rentals began operating this property, its monthly rental income increased from $6,820 to $18,180, an increase of more than 1.5 times the original amount.

For homeowners, combining short- and mid-term rentals in this way can earn more in peak season and help them get through low season smoothly. Even if the low-season rental figures look less dramatic, they still outperform long-term rentals and give homeowners a strong sense of financial security.

More importantly, the owner does not have to worry about maintenance or cleaning. When something needs to be discussed with guests, we also help with communication and oversight.

Here, we again thank the owner for placing trust in the Snowball Rentals team!

After nearly two years of Airbnb’s downturn, we at Snowball Rentals hope to help owners make steady progress in low season, navigate the challenges safely and lay a better foundation for next year’s peak season.

Once again, heartfelt thanks to our homeowners for their trust and support. Whether the market is strong or weak, Snowball Rentals will stand with you and look for ways to increase your income!

Some homeowners will surely ask the hard question: was a large booking like this just a stroke of luck? What if the home does not rent? A long-term rental is more stable—even earning less is better than earning nothing!

Our answer is: the outcome depends on what we do.

Vacation-Rental Styling

Competition on Airbnb is becoming increasingly intense. The days of piecing together secondhand furniture, taking phone photos and earning easy money on Airbnb are over. Airbnb hosts have moved toward professional operations.

Careful design and furnishing before launch, followed by professional short-term rental operations, will be the only choice for a rental that continues to generate high income.

Here is another of Snowball Rentals’ core services: vacation-rental styling!

Here is what the detached home described above looks like after our careful furnishing:

When choosing a short-term rental on Airbnb, would this home’s appearance attract you?

If you would also like to make your home more attractive and earn more rent, please contact us at any time!

We also share practical vacation-rental styling plans and creative ideas to help you achieve more with less spending and keep rental income growing!

Referral Rewards

If you are already a Snowball Rentals homeowner, you receive a US$500 referral fee for each referral.

If you are not yet a Snowball Rentals homeowner, you receive a US$250 shopping voucher for each referral.

Snowball Rentals Management

1. Full service — We provide pre-launch rental design, furniture procurement, furnishing, professional photography, online marketing, copywriting, tenant service and sales, cleaning, supply purchasing and property repairs. You only need to be a hands-off owner; we handle the rest.

2. Multi-platform promotion — We promote the home on Airbnb, VRBO, HomeAway and other mainstream platforms for maximum exposure.

3. Dynamic pricing — Using big data, we adjust prices every day according to seasonal demand, holidays, last-minute vacancy offers, weekends and local activities, maximizing the owner’s income.

4. Income-improvement SOP — We follow 44 secrets for maximizing short-term rental income, optimizing each property’s online marketing, on-site operations and other aspects to work toward maximum income.

5. Flexible owner stays — Owners can flexibly choose when to stay themselves. This is especially suitable for owners with multiple residences around the world.

6. Terminate at any time — Management does not require an annual commitment. The owner can end the agreement with one month’s advance notice.

7. Corporate housing — In addition to nightly rentals, we work with insurers and assignment companies to provide executives with hotel-style managed accommodation for stays 30 days or more.

8. Transparent fees — For rentals 30 days or more, we charge 15% of accommodation revenue. For nightly rentals 30 days or less, we charge 20% of accommodation revenue.