The lowdown on Airbnb
Thinking of opening your home as Airbnb accommodation? Here’s what you need to know to become a host
IT EXPLODED onto the scene nine years ago, changing the way many travellers felt about booking accommodation for business trips and holidays. And South Africans of all walks of life have embraced Airbnb, opening up rooms and granny flats to tourists, holidaymakers and businesspeople keen for a spot to lay their heads without breaking the bank.
The figures speak for themselves: in 2016 Airbnb added about R2,4 billion to the South African economy while in the past year 620 000 guests used the service – a growth of 144% from the previous year. Of these, 269 000 were locals, representing a 204% increase.
“Airbnb is here to stay and will continue to grow and thrive in SA,” says Mariette du Toit-Hembold, a tourism expert and head of Destinate, a tourism marketing agency.
Township residents have contributed to the explosion, with dwellers in larger areas such as Khayelitsha in Cape Town and Soweto in Joburg offering rooms to people keen to get a taste of township life.
And this will promote trade, says Velma Corcoran, Airbnb’s regional market consultant for southern Africa.
“Through hosting on Airbnb, members of township communities can become part of the tourism economy. This will directly impact their lives and also benefit the wider community, local business and shops. Airbnb can help unlock diverse communities that weren’t as accessible to visitors before.”
Du Toit-Hembold says a large part of Airbnb’s appeal is due to the fact that more people want to experience local culture first-hand.
“Travellers have changed. No longer looking for the traditional holiday and no longer satisfied with merely relaxing, they search for authenticity and meaningful experiences that will enrich their lives and broaden their perspectives on the world.”
WHO USES IT?
“The tourism industry in SA generates more than R220 billion a year, of which about R20 billion is spent on accommodation,” says Professor Daneel van Lill of the University of Johannesburg’s College for Business and Economics.
Du Toit-Hembold says Airbnb identified a gap in the market with the arrival of millennials and their travel habits and it’s one of the fastest-growing markets worldwide.
“Speed, adventure and bragging rights are their motivators, as well as the free-
dom to take spontaneous decisions while on holiday. They’re good with technology and use various apps and social media platforms when planning their trip.”
WHAT DO I NEED TO KNOW IF I’M CONSIDERING BECOMING A HOST?
It’s advisable to do proper research if you’re considering buying a property to use it solely for Airbnb, says Ashley James, co-founder of online estate agency Property Fox. You can however opt to rent out a spare room in your home, but it’s worth doing your research. Guests either search for properties that allow them to live with locals or indicate they want a place to themselves.
Do your homework – you’ll essentially have a stranger in your home whom you’ll need to provide with basic things such as soap, toilet paper and coffee.
Check out the competition
Pick five places similar to your potential offering and establish what they offer and how much they charge. Work out the average of what they’re asking – this will give you an idea of how much you can charge.
Being close to a train or bus station can affect how much you charge, as does being close to the airport or popular tourist spots. The more favourable the location, the more you can charge.
Expenditure and the legal aspects
Confirm that Airbnb is allowed within the current zoning of your property. If your property is a sectional title you need to make sure your building or complex allows it. In terms of municipal approval, to be able to Airbnb your home you need to know that every jurisdiction is different.
Contact your municipality directly for information on the bylaws regarding short-term rental.
Airbnb offers insurance but check how comprehensive it is – you might need to top it up and ensure you’re covered for what’s essentially a business property.
You must also declare your extra income in your tax return.
Extra costs
The moment your unit is up and running you’ll have costs such as cleaning services or small welcome gifts for guests, which help you get positive reviews. You can incorporate cleaning costs into your guest fee.
You’ll also need to replenish supplies such as soap and toilet paper regularly and be prepared to do plenty of laundry, or if it’s a standalone property you will need to install a washing machine in the unit with the necessary detergents and instructions on how to use it.
Investing in appliances such as a microwave, kettle and toaster will make your unit more attractive but you’ll also feel this in your pocket. Of course, this doesn’t apply if the guest is living in a room in your home.
Make sure your guests are satisfied
Here are some tips to make your guests’ stay as pleasant as possible.
Property Fox suggests you offer safe parking, especially for those who’ve rented a car.
Good-quality linen is a luxury many people appreciate.
Offer free Wi-Fi, laundry facilities, a TV and video-on-demand service such as Showmax or Netflix. Invest in a good coffee machine. Communicate clearly with guests – for example by sending them a welcome email the day before their arrival.
Give clear directions and try to be there in person when they arrive to give your guests tips on what to do and see in the area.
Have maps of the area at hand on which you can show them where they are and where you recommend they go. Also indicate where public transport is available so they know how far they have to walk to get to an attraction.
Have a list of rules on display showing things such as check-out times, noise regulations or when the rubbish must be taken out.
‘Travellers have changed. They want authenticity’