Switching to Airbnb Long-term Rentals: Is It Right for Your Property?
Long-term Airbnb rentals are becoming an increasingly popular hosting strategy, thanks to more travelers opting to “live anywhere” while they work remotely. Find out how to make your property ready for a long-term stay.
Airbnb is synonymous with short-term stays. However, it’s also become a trusted community for travelers looking to easily book online a longer stay.
But can switching to a long-term rental strategy be the better option for you? Find out what, if any, additional commitment it requires and what extra you need to ensure a pleasant getaway and a place where guests can live comfortably for a month or longer.
Key Takeaways:
- Airbnb offers guests special rates, available as a single monthly payment, for longer stays.
- Airbnb’s long-term rental options are especially popular among remote workers and students looking for ready apartment homes.
- Hosts may ask guests to sign a rental agreement for long-term stays, as long as they disclose it in the listing.
- Features and popular amenities for monthly rentals include simple monthly prices, high speed Wi-Fi, and work-friendly spaces.
What Is the Difference Between Long-term and Short-term Rental Stays?
According to Airbnb, a regular short-term stay is fewer than 28 days. Once a stay becomes 28 days or longer, it will count as a long-term or monthly rental.
Another key difference between short-term and monthly rentals is target audience. Short-term renters usually look for a quick break or vacation. On the other hand, long-term Airbnb rentals tend to attract guests like digital nomads, medical professionals, and business travelers. In addition to travelers looking for corporate housing, like medical professionals, it can also appeal to families in transition.
How Does Airbnb Support Long-term Rentals?
For guests
An extended stay offers guests convenience, cost-effectiveness, and a deeper immersion in their destination. For example, remote workers benefit from rentals with home office setups and strong Wi-Fi, while college students and interns enjoy more privacy, making it the perfect alternative to hotels and dormitories.
Weekly or monthly discounts make booking a place in popular destinations for extended stays economically viable. While you might initially think guests will find it boring to stay in the same place, settling into a single accommodation can be attractive. It reduces the stress of constant packing and unpacking, allowing guests to establish a routine and truly relax.
For hosts
For hosts, longer stays provide a more predictable and stable income with lower operational turnover. This is especially advantageous in fluctuating markets as focusing on extended stays can help hosts to maintain occupancy during slower seasons.
As long-term rentals generally create fewer daily management and maintenance tasks, hosts have more time to focus on delivering a better quality service. This way, they can improve the overall guest experience, helping to encourage repeat bookings.
Is a Long-term Rental Strategy Right for Your Property?
While monthly stays bring benefits like higher occupancy and fewer turnovers, it’s not always the best fit for a property. If you want to become a host who only accepts monthly stays, consider the following factors first:
Location
Seasonality within your area is an important factor. If your listing gets a lot of traffic and bookings during the high season, it might only be worthwhile offering a long-term stay during your low season.
In the same breath, you’ll also need to ensure that there’s indeed demand for monthly rentals in your area. Based on Airbnb’s data, popular destinations for extended stays in the United States include:
- New York City
- Seattle
- Miami
- Austin
- San Francisco
- Los Angeles
Outside of the US, it’s also popular in cities like:
- Cape Town, South Africa
- Barcelona, Spain
- Paris, France
- Berlin, Germany
- Amsterdam, The Netherlands
Revenue
Assessing your monthly net revenue over the past year can help determine if short-term rentals cover your overhead costs and meet profit margins. If falling short, long-term renting might increase revenue.
To estimate potential yearly earnings of monthly rentals, compare the rates of similar nearby monthly rentals. Then, compare these potential earnings with your current income from short-term rentals to see if long-term renting could be more profitable.
How to Turn Your Property into an Airbnb Long-term Rental
Before you are ready to start advertising monthly rentals on Airbnb, you first need to change your online listing and make a few changes to your actual property. These include:
Setting discounts
To attract guests seeking extended stays, Airbnb allows hosts to offer weekly and monthly discounts. Discounts of 10% or more are highlighted in search results and detailed in the price breakdown on your listing.
That said, in some instances, Airbnb will automatically apply a monthly discount. Don’t worry, it won’t be deducted from your payout and will be fully covered by Airbnb. It’s merely a gesture from the platform to help hosts market a monthly rental.
Editing the calendar
In addition to adjusting rates for your monthly rental, you also need to edit your availability settings. This will help show potential guests that you are open to weekly and monthly stays. It can also be a good idea to set minimum times between booking and an advance notice, as you’ll likely need more preparation time in between stays.
Adding long-term rental essentials
Guests looking for long-term rentals are essentially looking for a home away from home. This makes fully furnished rentals that include a full kitchen and the amenities you need to live comfortably for 30 or more days a must.
Essential and popular amenities for monthly rentals include:
- On-site laundry facilities
- Work-friendly spaces
- High speed Wi-Fi
- Air conditioning and heating
- Adequate closet and storage space
- Home gym/fitness center access
- An outdoor space
Updating your paperwork
You’ll need to update your welcome book and house rules before you can safely accommodate monthly rentals. For example, you’ll need to add extra instructions for day-to-day living, such as when trash gets collected, whether house plants need watering, and if visitors are allowed.
Additionally, ask guests to sign a rental agreement and include this requirement in your house rules. This is important, as depending on your location, long-term stays can mean guests qualify for legal tenant rights, especially if they stay for longer than 30 days. This will help to minimize risks associated with extended stays, such as guests requesting to change move out dates.
Become a Host Who Automates Rental Property Management
Whether you should become a host who offers long-term rentals to your guests depends on your business needs, property location and strategy for moving forward. If you’re unsure, you can run a test phase during which you list your rental for long-term occupancy and see if you get any queries or bookings.
Using vacation rental software, such as iGMS, can help you take your rental management to the next level, whether renting for the long or short term. You can, for example:
- Easily keep track of discounts and rates for your monthly guests
- Analyze other key metrics like occupancy rates and ADR to decide if long-term is the right strategy
- Streamline arrivals with interactive check-in forms
- Create a direct website to let returning guests easily book online
FAQs
What are the benefits of listing monthly rentals on Airbnb?
Longer stays of a month or more can help hosts generate good occupancy during slower periods, decrease cleaning costs, and save time spent on property management.
How do long-term cancellation policies for monthly stays work?
A long-term cancellation policy applies automatically to all bookings longer than 28 days. That said, hosts can choose between a firm or strict policy. With the firm policy, guests must cancel a minimum of 30 days before the check-in date to receive a full refund. Under the strict policy, guests must cancel within 48 hours of booking and cancel at least 28 days before check-in to qualify for a full refund.
How can you market monthly rentals on Airbnb to remote workers?
Working professionals looking for a monthly rental value dedicated working spaces and high speed Wi-Fi. Dedicated working spaces should include a comfortable chair, good lighting and ample charging points for remote workers who have to take their office with them. Providing verified internet speeds is a nice touch as it assures them of reliable connectivity, allowing them to book with confidence.
