The short-term property market presents some unprecedented opportunities for investors, owners and renters. Since its inception over a decade ago, Airbnb has been fueling the short-term rental industry’s growth throughout the world.
The home sharing powerhouse celebrated its 10th anniversary this summer. In the beginning, Airbnb was just three college students trying to make enough money for rent. Now the multi-billion dollar company is a driving force in the vacation property rental market.
Like many successful businesses, Airbnb wasn’t an instant hit, with several ups and downs in the first couple of years. The company, now worth an estimated $38 billion, had a hard time getting investment dollars in those early years. After all, it was a unique business strategy at the time. The company began raising investment dollars in 2009 when they first received $600,000 in seed money from Sequoia Capital and an additional $7.2 million in financing from Greylock Partners a few months later. Airbnb doesn’t own the properties it lists, but rather acts as an intermediary between property owners and guests. The company offers a marketplace, with an easy-to-use booking process for travellers.
When a guest successfully books a rental, Airbnb charges a guest service fee ranging from six to 12 per cent. The higher the subtotal, the lower the service fee. Property owners will pay a service fee of roughly three per cent, which is included in the final transaction. With Airbnb taking care of all payments, owners and guests using the service never exchange money directly. Guests pay for everything related to their booking directly through Airbnb at the time of the reservation.
During its first year, Airbnb hosted around 400 guests. Now, after a decade, the company is estimated to book that same number of guests every two minutes (a 26,280,000% increase). Travellers can book an Airbnb almost anywhere in the world. The company is now a global brand with a presence in every country in the world except for Sudan, North Korea, Iran, and Syria — aa staggering 97.95 per cent of the globe. With its groundbreaking flexibility, travellers can always find something to suit their plans — whether they’re crashing for a night or staying for a month for a business endeavor. Airbnb is known for providing travellers with a diverse selection of rental suite options.
The Canadian and Toronto Airbnb markets are also growing, making it an exciting time to be a short-term property rental investor.
Listing your Toronto short-term rental on Airbnb instantly connects you with travellers around the world. A recent CBC story found that 450,000 Airbnb guests spent more than $417 million in Toronto last year. Competition is fierce on Airbnb, and it takes experience and creativity to make your Toronto listing stand out on the platform. High-end travellers seek accommodations that offer luxury combined with the comfort of home. A successful Airbnb property listings needs to project these qualities. That’s why QuickStay hires professional interior designers and photographers to showcase the Airbnb suites we manage. The details matter, and we work tirelessly to generate more bookings and profits with our obsessive attention to the small stuff. Your listing should be like a resume, honest and showcase its best self.
Guest ratings are crucial on Airbnb, as listings with strong ratings will show up higher in the Airbnb algorithm. Five-star reviews lead to higher occupancy and more revenue. At QuickStay, we work hard to bring in the best reviews. Our guest support team addresses questions and concerns 24/7, making our response time impeccable. We also offer professional Airbnb cleaning services. Guests appreciate quick and thoughtful replies from hosts. These positive interactions set the foundation of a 5-star experience.
Pricing is another critical element to prospering on Airbnb. If you’re not constantly adjusting your vacation rental’s price based on local seasonality, competitor pricing and upcoming events, then you’re ignoring key factors in the booking process — and losing out on big money. Over the years, we’ve helped Airbnb property owners maintain a high occupancy for the best possible daily rates. The best performing listings on Airbnb are priced high enough to convey a level of trust and luxury, but still affordable enough to compete with similarly marketed rentals.
We’ve all heard those Airbnb horror stories of guests trashing their property rental, costing owners thousands of dollars and significant stress. The company responded to these negative experiences and took some major steps to protect the safety and security of both guests and property owners. Guests are now required to provide valid identification and Airbnb has greatly improved its profile and review systems. The company also implemented a host-guarantee that reimburses any eligible costs associated with guest damages up to $1 million.
At QuickStay, we take security and guest safety very seriously. We’ve designed a proactive Airbnb security solution that provides protection for our guests, clients and suites. Guests must agree to all rules before checking in, and understand that violating these rules could result in eviction. We’ve installed in-suite noise sensors in each Airbnb we manage to monitor guest activity throughout the day and night, and we’re instantly notified when there’s a spike in volume. Worst case scenario, we have a professional security team available for dispatching.
We’re proud of the reputation we’ve earned as one of Toronto’s best Airbnb property management companies. Airbnb is an excellent way to share your space with travellers around the world, keeping your vacation property occupied throughout the year. Learn more about how we can make you successful on Airbnb.