How Hotels Can Compete with AirBnB

Many homeowners and landlords are turning to Airbnb to generate income from their properties through short-term rentals. Some consumers prefer Airbnb for their lower price, better location, and increased amenities compared to hotels.

Airbnb Versus Hotels

However, Airbnb owners face unique challenges when competing with hotels for renters.

Get Your Homeowners Association on Board

Many HOAs have restrictions on rentals shorter than 30 days. There are several reasons for this policy:

  • The behavior of guests may be annoying to residents in the community.
  • Guests do not pay HOA fees and may lack the motivation to follow the HOA rules.
  • Renters may monopolize common areas, preventing residents from using them.
  • Too many rentals in a community can create issues with traffic and parking.
  • Rentals in the community may increase the cost of HOA insurance

If your property is in a community with an HOA, you must ensure that the HOA does not prohibit using your property as an Airbnb and that your guests do not engage in behaviors that may cause the HOA to put restrictions in place. It is also a good idea to determine if the specialized insurance coverage provided on the master insurance policy of Airbnb extends any protection to the HOA’s property.

Use High-Quality Photos

Hotels have professional photographers photograph their rooms, lobby, and common areas to ensure the property looks attractive on their website. They also have a professional cleaning staff to make sure everything looks neat.

To compete, consider hiring a professional cleaner to ensure your property is spotless before taking photos. Hiring a staging professional to make some adjustments to your decor that will look good in photographs may be worthwhile. 

Take your photos in natural light with a high-quality camera. Take pictures from multiple angles. Make sure nothing unattractive is in the shot. Consider hiring a professional photographer. 

Describe Your Space Accurately

Like hotels, reviews can make or break your success. Even if guests like your property, they are likely to complain if the rental isn’t exactly how you described it in the listing. Tell your potential guests what makes your property special, but don’t oversell. Make sure you mention anything that could be an issue, such as pets or smokers in the home.

Be sure to mention your HOA rules, such as not playing music after a particular hour or limiting when guests can use common areas. It will help prevent problems that could increase HOA insurance rates. 

Running an Airbnb can be an excellent way to make some extra money. However, to compete with hotels, you must address the unique challenges of renting a home in a residential neighborhood.

About Kevin Davis Insurance Services

For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.