Cleaning fees have come into the spotlight since the outbreak of COVID. That scrutiny isn’t showing signs of slowing down anytime soon. Hosts have often been accused of boosting their income by charging an inflated Airbnb cleaning fee. But once hygiene became a matter of life or death, hosts massively increased their cleanliness standards. Word travels fast when your cleaning standards are not up to scratch and your reviews will reflect this.
All of this attention begs the question – what are people charging as an Airbnb cleaning fee? As local market experts, we have access to all sorts of data. We collected and analyzed the cleaning fees of every Airbnb property in North America. We then averaged out the results and created this market report. It should help you work out what you should be charging!
Average Airbnb Cleaning Fee – Canada
Airbnb cleaning fee figures vary drastically according to property type. Of course, guests renting a room in your house will not be willing to pay the same cleaning fee as if they had rented the entire property. We collected the data for all property types listed on Airbnb and divided them into four main categories: entire home, shared room, private room, and hotel room. We then divided the ‘entire home’ category into five subcategories: entire house, entire chalet, entire condominium, entire cottage, and entire apartment.
As you can see from the charts, hosts who rent out their entire home or chalet charge more than hosts who rent only their apartment, or a room within an apartment. This works logically, if you think about it, because the smaller the property, the easier and faster it is to clean.
Of course, general figures can only carry you so far. These figures do not take the level of luxury, or price of listing into account, which will also affect the Airbnb cleaning fee charged. The figures that we collected and analyzed, in this case, are simply meant to illustrate the greater market trends within cleaning fee patterns in Canada.
Average Airbnb Cleaning Fee – US
Unsurprisingly, average cleaning fees in the US are higher than their property equivalents in Canada. Generally speaking, the Airbnb listing prices are higher, so this is to be expected.
In the graphs below, we did the same with the data as we did for Canada. The first graph shows you a breakdown of the average cleaning fees for properties in the following categories: entire home, shared room, private room, and hotel room. In the second graph, we dive into the ‘entire home’ category and discover the average cleaning fees for different property types available for ‘entire home’ rentals.
In Canada, the highest cleaning fees were charged for entire house properties. In the US, it was for entire chalet properties. Again, these figures do not take property room count into account, nor does it consider the average daily rate as a benchmark.
For hosts that own and operate an apartment and list the entire space on Airbnb, our figure of $86 should help identify if you are charging too much, or too little. If you’re charging just $10, it’s a safe bet that you can increase your cleaning fee. If you are questioned about it, justify the cost by explaining that cleanliness standards in the wake of COVID demand more intensive cleaning with more expensive anti-bacterial products. Generally speaking, you won’t have many people querying a cleaning fee, provided that it isn’t extortionate.
How Can DPGO Help?
If you’re an Airbnb host looking to access vital Airbnb data insights, then DPGO is the perfect choice for you! Not only do we offer extensive market insights, but we also use that information to improve and optimize your pricing. To give DPGO a try, click on the banner above and register for an account. We’ll give you 30-days to enjoy DPGO services for free, and we also add credits to your account for every listing that you optimize with us. Got questions? Drop a mail to firstname.lastname@example.org and a member of our Support Team will gladly assist you.
Dynamic pricing is a strangely contentious issue in the world of short-term rental hosting. While it has been around in the airline and retail industry, dynamic pricing is relatively new in the STR game. Hosts often cite that they fear losing control of the nightly price of their listing.
All sorts of myths and rumors have circulated about dynamic pricing. We’re here to debunk those myths and show you that it is the best way forward for your business.
Myth #1 It Will Increase My Prices & Scare Away Potential Guests Verdict: False
It’s a sentiment often heard in STR groups and chat rooms. Hosts and property owners worry that dynamic pricing tools are programmed to hike up the prices in the name of “higher revenue” and often end up scaring off all potential bookings.
We can’t speak for other dynamic pricing tools, but in DPGO’s case, nothing could be further from the truth. We designed our software to use a myriad of data points to calculate the highest rate with the highest likelihood of securing a booking. This figure will vary depending on the market environment on any given day.
Myth #2 It Will Drop My Prices & I Will Miss Out on More Money Verdict: False
Again, hosts get concerned that dynamic pricing will actually bottom out their prices and leave hosts with almost no money at the end of the month. Again, this is false. Dynamic pricing tools read market trends and only alter prices to take better advantage of those trends.
DPGO allows hosts to enter a minimum price figure which helps establish a pricing framework within which our dynamic pricing engine can work. By stipulating a minimum price, you ensure that we will never set your prices below that figure. Your minimum price guarantees that you never have to honor a booking for a figure lower than your break-even cost.
Myth #3 Dynamic Pricing Doesn’t Work Verdict: False
Dynamic pricing tools are seriously advanced pieces of software. Not only do they collect billions of data points, but they also analyze that data in extremely short spaces of time. Without the data that only smart pricing engines can access, hosts would be completely in the dark and utterly unable to update their prices accurately on a daily basis.
Markets are fluid concepts, they change every minute. It’s critical that hosts recognize this if they want to move towards optimized pricing. Without the help of dynamic pricing service, hosts simply do not have the expertise to accurately estimate what the market is doing at any one moment.
Myth #4 It Can Increase Revenue by Up To 40% Verdict: True
We can’t speak for other dynamic pricing software specifically, but generally speaking, using dynamic pricing offers hosts a marked increase in revenue generated by their STR property.
On average, DPGO users see an increase in revenue by up to 40%. Compared to industry standards, that’s an impressive figure. It’s even more impressive when you factor in our pricing models. Our users are given a choice: $1 per booked night or 0.5% of the automated booking total.
Guests in the modern era cannot expect prices to remain the same, year after year. Inflation rates change, currency exchange rates change and the cost of living fluctuates noticeably in a 12-month period. If your returning Airbnb guests book the same weekend every year, simply set a discount for that week on your DPGO dashboard and ensure that your returning guests are ready to book! Alternatively, if your returning guests stay over a week or over a month, you can set up time-based discounts on your DPGO dashboard too.
If you’ve got any more questions about dynamic pricing, or concerns about switching, please contact a member of our friendly Support Team. They would love to hear from you! You can send them an email to email@example.com, or alternatively, you can join the Support Chat on our website homepage – www.dpgo.com.
While you’re here, stay awhile longer and take a look at some of our other posts! Team DPGO consists of real-estate investors and experienced Airbnb hosts, so we know what we’re talking about. Here are a few highlights from this month on the DPGO blog:
We’re always looking for ways to give you a competitive advantage in the STR market. This week on the DPGO blog, we wanted to explore Airbnb Experiences.
What is an Airbnb Experience?
Airbnb Experiences can be anything from cooking classes to guided tours. Hosts often have a lot of knowledge of their local area, and by giving them an opportunity to share that knowledge, Airbnb moved into an interesting place in the tourism industry.
By offering experiences, Airbnb managed to cordon off another vital section of the market and add value to their existing host network. It was a stroke of genius, we have to admit!
What Qualifies as an Airbnb Experience?
Before the pandemic, anything from a cooking class to a tour of the local area qualified as an Experience on Airbnb. Since the outbreak of COVID-19, hosts have been forced to get creative.
Experiences have moved online with people getting more and more creative about what they can offer Airbnb users. People across the world were confined to their homes and soon started to miss the rush of travel. Resourceful Experience hosts saw a gap in the market, and they took advantage of it big time.
Cooking classes went virtual, quizzes moved online and in-person tours changed to video explorations of far-off places. Some of the highest-rated experiences on Airbnb are virtual and based on the feedback we read, virtual Airbnb experiences are here to stay!
Who Hosts Experiences on Airbnb?
You don’t need to be an Airbnb listing host to run experiences on Airbnb. Some Experience hosts that we interviewed were normal tour operators who listed their services on Airbnb. After registering with Airbnb as an Experience host, some quotes that more than 60% of their monthly income came from Airbnb users.
Airbnb hosts that offer Experiences have the added benefit of being able to offer their services to existing and returning guests. Some of the most successful hosts offer both their property and their experience as a package and feed one into the other. Of course, this is done with some pretty impressive marketing.
How Much Money Can You Make?
Well, that number varies wildly from host to host, place to place, and season to season. We did a fair amount of market research on this one and found a huge range of numbers from $0 to nearly $80,000.
Based on the reviews we read, food-based experiences are the most popular on Airbnb right now. However, interactive tours, quizzes, and team-building activities have also seen a huge spike in booking rates.
The beauty of virtual Experiences is simple: you’re not limited to people located in your local area. A professional chef can run a pasta-making class and host people from right across the globe.
More and more companies have also been using Airbnb Experiences as team-building exercises in light of the ‘work from home’ movement sparked by the pandemic. This gives Airbnb Experience hosts a huge boost in business as they receive one payment and can do just one class.
What are the Possible Drawbacks?
Again, based on market research, we found that quite a few hosts were unhappy with the Experience review system. According to various hosts, the review system is hard to understand, hard to complete, and often yields incorrect information. You can read more about how to review an Airbnb experience here.
There was also another drawback that existing Airbnb Experience hosts highlighted: the lack of ability to set minimum numbers. Sadly, Airbnb does not allow hosts to set a minimum number of guests required in order to actually conduct the tour/class/experience. This means that if hosts get one booking, they have to go through with the reservation, even if just one booking means they lose money.
We also received a few complaints that Airbnb’s review process is unclear. Once you register an experience, someone from Airbnb needs to verify it. Many hosts have reported excellent rapport with their reviewers, and seemingly no hiccups. Some were even told that their Experience well and truly exceeded standards, and yet, 6 weeks later, their request to like an Experience on Airbnb was denied. No explanation was offered.
Hosts Who Helped
These lovely Airbnb Experience hosts helped us with market research and gave us invaluable insight into their hosting operations:
Managing an Airbnb listing can be a supremely stressful endeavor and honestly, not everyone is cut out for it. Maybe you need an Airbnb co-host! You might have business savvy, but a close friend or business associate of yours might have a fantastic eye for detail. Imagine you’d like to bring them on board as a partner in your Airbnb listing – does Airbnb offer co-hosting capabilities?
Well, yes, they do. In fact, co-hosting on Airbnb is so popular that it’s practically a separate industry all on its own! There are a number of professional co-hosting businesses across the globe and some are recording very impressive business figures.
Airbnb categorizes a co-host as “someone the listing owner already knows. Co-hosts are usually family members, neighbors, trusted friends, or someone the host has hired to help with the listing. Hosts and co-hosts agree on who’s responsible for what, how much of the reservation income will go to the co-host, and how the co-host will be reimbursed for expenses.”
What Does an Airbnb Co-Host Do?
Co-hosting makes the most sense when a property owner lives a considerable distance from their property but a close relation or friend of theirs lives closer and is willing to manage said property in their absence.
These sort of arrangements always work better when duties, jobs, and responsibilities are clearly spelled out and agreed to by both parties. Without a co-hosting agreement, things can fall through the cracks, and neither party benefits from unhappy guests, especially on a platform like Airbnb where reviews are so highly regarded.
How Does the Airbnb Co-Hosting System Work?
Primary hosts who have listed their properties on Airbnb need to add their co-host via the Airbnb interface. Go to Listings, select the listing that you’d like to update, click ‘Co-Hosts’ and ‘Invite a Friend’. You can add up to three co-hosts per listing, but remember that you will all have to agree to the co-host Terms of Service
What Does the Airbnb Co-Host Terms of Service Say?
Airbnb’s Co-Hosting Terms of Service are there simply to make the co-hosting relationship as official as possible, and protect Airbnb and its users’ interests. Critically, Airbnb co-hosts are only allowed to join as a co-host if they are doing so in an individual capacity, and they are not representing a business or organization. If you want to register a professional as a co-host, you’ll need to get express permission from Airbnb directly. This is very possible and there are a few professional co-host companies that have seen huge success as of late!
Co-hosting allows members of Airbnb’s host community to enlist help from their friends and family in an official capacity in order to get extra support for the management of their listing. Critically, it is not the same as a host hiring a property management company.
How Can Having an Airbnb Co-Host Help Me?
Generally speaking, if you live within commuting distance from your listing, then having an Airbnb co-host might not make sense for you. Unless of course you work full-time and cannot dedicate the amount of time necessary to manage your property listings accordingly.
If you find yourself in a restrictive position like the above, co-hosting is a way to bring someone you know and trust on board to help and pay them a pre-agreed percentage of your income. It is normally calculated per booking. The same goes for hiring a professional co-host.
Airbnb’s Terms of Service for Co-Hosting stipulate a few of the possible duties for co-hosts and they include: adjusting calendars and prices, handling guest check-in and check-out, managing guest communications, interacting with Airbnb for claims, and troubleshooting, and more. You can read the Terms of Service here.
What Are Some of the Best Practices for Airbnb Co-Hosts?
Communication is undeniably the most important attribute that any co-host relationship must prioritize. Without communication, no business relationship can flourish and succeed. Be sure to actively communicate and make very clear which duties are the responsibility of which party.
Discuss any limitations that you have identified and look for ways to address them. A co-host is a fresh pair of eyes on the property. Perhaps they will identify issues of which you as the primary host may not have been aware.
Reliability is another important factor in any successful co-hosting relationship. Both parties need to be completely reliable and dedicated to making the co-hosting arrangement work.
Where Does Dynamic Pricing Come In?
Co-hosting was designed to make the Airbnb hosting process easier than ever. And more efficient, of course. Co-hosts get paid a percentage of the bookings that they manage. Dynamic pricing gets you more money for every booking and that benefits both you and your co-host.
We designed our dynamic pricing tool to find the best possible price for your listing in every market environment. It reads market fluctuations, changes in demand, changes in supply, global travel trends, exchange rates, and more before it creates the optimal price. It then automatically updates your prices every single day.
Business in 2021 is all about optimization. Technology has given us all amazing opportunities to increase the profitability of our businesses and DPGO is no different. Start pricing more intelligently and sign up for your free 30-day DPGO trial now! Register here!
We live in an age where you can find and buy almost anything on the internet! As a result, STR really should get their hands on these must-have products if they want to make their lives as easy as pie!
Here’s a quick look at our Top 12 products for Airbnb plus other STR hosts:
Robot Vacuum Cleaner
We’ve done loads of research on this and found that the majority of hosts would opt not to put a robot vacuum cleaner in their Airbnb listings. But, sadly, we think that they are wrong because these machines are so advanced and so easy to use that it’s hard to imagine not needing one! So, grab this one from Amazon, program it to clean only the kitchen, and give your guests the highest level of in-home cleaning convenience.
DPGO Favorite Must-Have Products:Amazon Echo Dot
The Echo Dot from Amazon is a great invention by the tech and commerce giant! We think every Airbnb listing needs an Echo Dot or two. It’s one of our favorite must-have products! The convenience it offers is unmatched. Program it to turn lights on and off, play music, and even deliver messages. Set reminders for your guests to check out on time and further optimize the operations of your STR property.
Coffee makes the world go round and it really is that simple. The vast majority of people drink coffee so it makes perfect sense to buy a high-quality coffee machine to satisfy your guests’ caffeine cravings. Keurigs are arguably the most popular coffee machines in North America, and they have so many options to suit so many different budgets and interior styles! Here’s our favorite:
Starbucks Coffee K-Cups
If you’ve got a coffee machine, buying Starbucks coffee to use with it seems like a logical step. Because this affordable variety pack features all of the Starbucks favorites, we think it’s a great buy! So, leave one of each flavor in your listing per booking and relax in the knowledge that your guests will be caffeinated and happy! But remember, you can’t have a Keurig without K-Cups, so why not choose the best for your guests?
AirWick Air Freshener Plug-Ins
Bad smells are unavoidable in any type of property – rental or otherwise. We love these AirWick plug-in air fresheners so much that they’re high up on our list of favorite must-have products! Not only do they blend into any home perfectly, but they also release fragrances consistently throughout the day. They leave your Airbnb smelling like a summer meadow. So, no matter the season, your Airbnb will smell wonderful. These AirWick air fresheners come in a variety of scents, we are just particularly partial to the Fresh Linen scent. Be aware, there are allergens in these oil-based diffusers so be sure to read up on them before buying!
Protect your floors and get yourself a shoe rack! Encourage your guests to take off their shoes by leaving a shoe rack at the entrance. You can even leave a little sign asking that guests remove their shoes because replacing carpets is an expense that nobody needs. So by giving them somewhere to place their shoes that’s neat and out of the way, guests will naturally adopt your house rules and you’ll have pristine floors for longer! Dirty carpets are never a good look so we think it’s best to avoid them…
Wood Furniture Repair Kit
This one is more of a host-staple than one that guests can use, but we think that it’s a really important item to keep in your repair kit! Wooden furniture is insanely popular because it’s usually cheaper, easier to fix and it blends into most design styles. As a result, this wooden furniture repair kit is perfect for fixing small instances of damage like scuff marks, or scratches, dents, and more. Make sure you have a really detailed look around your property once every month or so (if possible) and touch up any issues that you can spot on your wooden furniture.
Mrs. Stewarts Liquid Bluing
This is another one aimed at hosts more than guests, but Mrs Stewarts Liquid Bluing is a weapon that should feature in every host’s arsenal. Bleaching laundry is a weekly challenge for Airbnb hosts, but what are you supposed to do when your linens take on that slightly yellow color? So, that’s where Mrs Stewarts Liquid Bluing comes in. As a result, by adding a splash of blue, the yellow in your linens will be neutralized and you’ll be left with a sparkling white wash load!
Every host knows the struggle of make-up-stained towels and pillowcases, so we found a solution! Nothing ever seems to shift make-up stains on light-colored linens. So instead, buy yourself a few packs of these special make-up removing towels for guests to use at their pleasure. As a result, you’ll see no more foundation and black eye make-up on your pillows, and silky soft remover towels for your guests. Simply wash them with some anti-bacterial cleaner or soap and you’ll be good to go for your next booking!
No String Blinds
We cannot count the number of times that Airbnb guests break the blinds in our properties. There is something about blinds on a string that means people simply lose their minds. Replacing blinds is expensive and complicated if you live far away from your STR property, so we think we’ve found the perfect solution – cordless blinds! These little beauties fit wonderfully well into any design aesthetic, they’re super easy to use plus they’re not expensive! Simply because they’re cordless, you’ll never go back to normal blinds again!
Plastic Microwave Cover
Cleaning microwaves is a nightmare and it takes forever. So, save your cleaning crew (or yourself) some time and grab one of these must-have products from Amazon. Most hover at around $10 and they’re so great for minimizing the mess in your microwave. Faster turnovers are the name of the game in STRs, especially in peak season, and this plastic microwave cover will go a long way in making your cleaner’s job easier than ever.
Slipover Couch Cover
If you’ve made the decision to be pet-friendly, this couch cover is a fantastic idea for protecting your furniture and is certainly a must-have product! It protects the fabric of your actual sofa from dog hair, and as a result, it protects from any mud, mess, or dirt. And, it’s only $35! This also allows you to be extra safe with guests who have mild pet allergies. Your couch cover can be easily removed and washed, ensuring that no pet hair remains for your next guests, whether they have a dog or not!
We hope you enjoyed our list and found yourself a must-have product or two to make your life as an STR host a little bit easier!
We know a thing or two about data so we compiled a list of the Top 10 most improved markets between February and March 2021. If you’re struggling to identify your next vacation rental investment location, try our fantastic Markets feature! It’ll show you a range of free and detailed data specific to the market that you specify in the search bar. Here’s how to use Markets to your advantage! Did you know that Airbnb has a YouTube channel? Well, they do and the videos that they post are so helpful! Check out our favorite ones!
We cannot underestimate the importance of vacation rental insurance. You need to look at your STR property as an investment, and the best business owners in the world recognize that their businesses need protection.
Generally speaking, having insurance is always a good idea. Life is unpredictable, and you can never really know what’s going to happen. Insurance is a safety and security net. Yes, you may never actually need to make a claim, but is it a risk worth taking?
In this post, we wanted to dive into the vacation rental insurance options available on the market, the benefits, the drawbacks, and how Airbnb’s insurance plays a role in hosts’ protection.
What Does Vacation Rental Insurance Cover?
Great question, but sadly, there is no simple answer. The coverage changes according to the insurance provider and so does the price. But, there are a few benefits that remain constant throughout the different providers’ policies.
Most policies include property protection, which covers the likes of furniture and appliances inside your STR property. The policies also usually cover the building itself and any additional structures and liability coverage if a guest gets injured and tries to sue you as a result.
Additions that you can add to your primary insurance plans include inflation protection, protection from water damage, and all-risk coverage.
What Does Vacation Rental Insurance Typically Not Include?
Strangely, most vacation rental insurance does not include coverage from natural disasters like sinkholes or earthquakes. They also often exclude maintenance, building code violations, costs of evictions, and theft.
This differs between insurance providers. If you have something specific in mind that you want coverage for, make sure that you mention it in any correspondence with potential insurers so you can make sure it’s covered!
What About the Insurance Provided by Airbnb?
Airbnb offers two forms of vacation rental insurance. First, let’s look at the Host Protection Insurance.
According to Airbnb, Host Protection Insurance is defined as – “In the rare event someone gets hurt, or their property is damaged during a covered stay at your place, you may be protected with up to $1,000,000 primary liability insurance.” This policy is available to all Airbnb hosts across the globe. It protects hosts from check-in to check-out. In Airbnb’s words, the policy may include:
Bodily injury to guests or others.
Damage to property belonging to guests or others.
Damage to common areas, like building lobbies and neighboring properties, caused by a guest or others.
The other Airbnb insurance is called Host Guarantee. Airbnb categorizes this policy as – “If a guest damages your place or belongings during a stay and doesn’t reimburse you, you may be protected with up to $1,000,000 property damage protection.”
Again in Airbnb’s words, the Host Guarantee may include:
Cover of damage to your property caused by guests.
Any damage to belongings caused by guests.
Damage caused by a guest’s assistance animal.
The Host Guarantee does not include:
Theft of cash and securities (Ex: savings bonds, stock certificates)
Damage from ordinary wear and tear
Bodily injury or property damage to guests or others (those may be covered by Host Protection Insurance)
Who Would We Recommend for Vacation Rental Insurance?
There are a few vacation rental insurance providers that our customers use. Your insurance needs to cover what you want it to covered and cater to the specifics of your rental situation.
For vacation rental insurance, one name seems to pop up again and again in various top 10 lists across the internet, and that’s Proper Insure. Proper Insure designed their policies especially for the likes of Airbnb and Vrbo hosts. According to Proper Insure, most short-term rental owners don’t know that their homeowner or landlord insurance does not cover exposure on most STR sites. It would help if you had insurance designed to cover the gaps that average insurance leaves open when you’re letting your home out on a short-term basis.
Insurance isn’t free, and if you don’t have it, where are you supposed to find the extra cash to take out a policy? Well, with DPGO’s low-cost rates, anyone can afford to supercharge their business success and optimize their revenue!
Our AI-driven algorithm finds the best price for your listing daily and automatically updates them to ensure that you don’t miss a single booking! Enjoy optimized revenue and increased occupancy rates with DPGO! Sign up here for your free 30-day trial!
Identifying your ideal vacation rental investment location is a serious challenge, even for experienced STR hosts. If you don’t live near your target location, it’s almost impossible to familiarize yourself with the norms of that unique market.
Short of paying for targeted market data, there are very few ways to get the sort of information you need to choose an investment location. Well, until now! Markets by DPGO was created to give all STR industry stakeholders the opportunity to gain in-depth market data for free!
What is Markets?
As a company that specializes in market data collection and analysis, we understand that sometimes access is one of the biggest hurdles. And we wanted to change that! Markets by DPGO was created to grant access to everyone.
Our Markets feature is exceptionally easy to use – all you need to do is enter the name of a county in the United States or an area in Canada and we’ll show you the key facts and figures. Our network is always expanding and we’ll update this page whenever our coverage area grows!
What Can I See on Markets?
We wanted Markets to show people the most important data. This data display covers the basic level of our market insights. It will also help you identify areas that may be of interest to you.
The insights that we display for free include market supply, day of the week price factor, average daily rate, minimum night stay requirement, occupancy rate, day of the week occupancy, and our helpful DPGO map!
How Does This Info Help Me Find A Location for My Vacation Rental Investment?
Let’s break it down. We’ll go through every data display and explain what it does and how it can help you identify areas of investment interest!
Knowing the total number of listings in any given area can show you more than you think. By using basic principles of business, if you find an area with a high number of listings, this usually means that the area is popular. On the other hand, areas with lower total listing figures can often suffer from lower levels of tourism interest.
However, this may not necessarily always be the case. Exclusivity comes into the discussion here, as do STR restrictions and simple geographical issues like plot size or topography.
We also made the decision to break down our market supply display into property types. It’s important to know which type of property is the most popular, and of which there is a possible shortage. You can use these displays to understand which type of property is the most popular.
Arguably one of the most important metrics, our occupancy rate data block takes the occupancy rates of every listing in your target county/area and compiles an average for your convenience.
Areas with higher occupancy rates seem more impressive, but you need to keep the time of year in mind. For example, at the time of writing this, Orange County in California has an average occupancy rate of just 53%. Remember that this is an average figure of confirmed bookings in the area over the next 30 days. It is not a reflection of how well this area performs on an annual basis.
If you’re looking for a vacation rental investment location, then occupancy rate is a good indicator. While using the full DPGO service, we display a year of occupancy rates to give our users the best understanding of how any given area fares throughout the year.
Average Daily Rate
The average daily rate (ADR) tells potential vacation rental investors how much they stand to make on an average day as a rental owner in that market.
Again, this figure is an average of the confirmed booking prices for the next 30 days in that local market. This figure is also affected by global travel restrictions, seasonality, and other factors.
It may only be a local average but this figure gives you vital insight into your potential earnings. As a real estate investor, you should be examining the ROI (Return on Investment) critically in order to ascertain if you would be able to make any money back.
Day of the Week Price Factor
We’ve broken down the average daily rates by day of the week so you can see what is being charged on an average daily basis in your chosen area over the next 28 days.
Some STR locations depend heavily on weekend bookings, and to encourage more midweek bookings, hosts opt to charge lower rates for stays that commence between Monday and Wednesday. This information could be valuable in your hunt for the ideal vacation rental investment location as it gives you insight into the kinds of booking trends this area usually experiences.
Minimum Night Stay
Knowledgeable STR owners understand that setting minimum stay requirements will protect them from a spate of single-night bookings.
In order to keep your listing in line with the rest of the market, our minimum night stay display is broken down into duration sections. This gives you the easiest view of how many listings have certain minimum night stay requirements.
While you don’t want to always follow the trends and norms in your market, it may be worth considering how to carve yourself a niche in said market. Inner-city properties which are ideal for business travelers for example might attract more bookings if you allow shorter minimum night stays.
Day of the Week Occupancy
Sometimes it helps to see how the occupancy rates fare across the days of the week. This will help you identify whether the vacation rental investment location that you are considering is a weekend-only destination, or the occupancy is spread out evenly across the week.
Weekend-only destinations are often tricker to make a success. In order to break even, your weekend pricing needs to be much higher. After all, there are only four or five weekends in a month, which optimistically gives you ten bookable nights per month. This means higher rates and running the risk of scaring off potential bookings.
How Can DPGO Help?
Finding the right vacation rental investment location is a complex process. As a potential real estate investor, you’ll need to make sure that you’ve researched every aspect of the target market. If you haven’t, you risk losing money on a grand scale.
With DPGO, you’re giving yourself the best chance at making your STR business profitable. The key to success is information and we specialize in giving you the tools you need to price yourself to better business health.
We designed Markets to offer STR hosts, owners, and managers, even if they are not DPGO users, to offer guidance to those who need it. Markets is one of the easiest ways to access information that can help you decide on your independent pricing strategy.
DPGO users enjoy these insights and more when they sign up for an account and connect their Airbnb profiles. Our dynamic pricing engine not only optimizes your pricing but automates it too. Staying competitive is vital and DPGO makes sure you stay on top of the game 24/7, 365.
To start your DPGO journey, register now for your free 30-day trial.
Finding help as a new STR host can sometimes feel really impossible. You’ll certainly face plenty of unproven information sources claiming to be a foolproof guide to success. A large amount of research is the best way to learn, and we think we found just the right thing!
As creators of the platform, the team at Airbnb knows their stuff. We recently discovered that they have a really fantastic Airbnb YouTube channel! It’s filled with cool videos, helpful guides, and awesome content for hosts who are looking to improve their listings.
We talk about dynamic pricing a lot, but today we wanted to raise awareness about this great content and show you our favorite Airbnb help videos on their Youtube channel. We also included a little information on the services we offer, just in case you’re interested!
Our Favorite Airbnb Help YouTube Videos
How to Set Up a Successful Listing
As a general guide, this 6-minute video is a great help! The video compiles lessons from real Airbnb hosts with years of experience in the industry. It covers the importance of photos, perfecting your listing details, setting the right price (we can help with that!), owning your calendar and booking settings (again, we can help with that!). It goes on to show you how to stand out in Airbnb search results and advice on getting paid.
How to Make Guests Feel Special
In just 2 minutes and 30 seconds, this Airbnb help video shows you how to make your guests feel welcome in your home. Remember, it’s the little things that stick in guests’ minds. The video covers creating mini-escape areas, making it personal, adding plants, giving your guests a take-home gift, and using your amenities to create an experience. It continues on to show you how to make your listing feel like home to guests.
How to Attract 5-Star Reviews
Catherine and Bryan, an experienced Airbnb hosting couple, take you through their tips on getting 5-star reviews. Having hosted over 2,000 guests, they sure know what they’re talking about! Sit down with a cup of coffee and make sure you write down some of these helpful suggestions. Remember: 5-star reviews are like Airbnb gold, you can never have enough!
How to Take Great Listing Photos
If you’re not in a position to pay a professional, these ideas from Candida and Jack, Airbnb hosts from California, will set you on the right path to excellent photography! Some of the points they touch on include removing the clutter from your space, the importance of framing, how to use lighting to your advantage, and more!
How to Upgrade Your Interior Design
You don’t have to be an interior designer to upgrade your listing’s design aesthetic! Another pair of knowledgeable Airbnb hosts take you through a few simple and easy ways to spruce up your interior design. Great design aesthetics do not need to cost a fortune and these creative hints will help you take your listing to the next level.
How to Describe Your Space
Teresa and David, two Airbnb-hosting creative directors at two very successful advertising firms, share their know-how on how to describe your listing in the most evocative way possible. You don’t need to be a professional writer, just follow their simple steps and get ready to welcome more guests into your home!
These Airbnb help videos are great to help you gain a better understanding of how to optimize your listing. Dynamic pricing is another great way to ensure your listing is bringing in as much money as possible, and we can help!
If You Want to Earn More with Dynamic Pricing, Try DPGO!
DPGO was founded by a group of Airbnb hosts and real estate investors who know more than a thing or two about the struggles of the STR business. We never managed to find a dynamic pricing tool that worked perfectly for us, so we designed one ourselves!
DPGO uses in-depth data analysis to determine the best price for your listing in any given market environment. We also automate the process and create detailed reports so you can see how well your property is doing! Users can enter their own pricing rules, minimum stay requirements, discounts, and seasonal adjustments, and DPGO will do all the hard work!
Stay competitive 24/7, 365, and say goodbye to manual pricing updates forever! Sign up for your free 30-day DPGO trial here. We can’t wait for you to join us!
Ever since the introduction of Airbnb Plus in 2018, hosts have been left wondering: which is better out of Airbnb Plus and Airbnb Superhost? General Airbnb hosts can, and still do, make a healthy profit on Airbnb and make up the vast majority of the hosting community. For those hosts that want to elevate their offering further, Airbnb designed two paths for them: Plus and Superhost.
In this post, we’ll dive into the details of both, and their respective pros and cons to try to bring you a little bit closer to deciding which option is better for your Airbnb business success.
What is Airbnb Plus?
Launched in 2018, Airbnb Plus is Airbnb’s way to offer its users an elevated hospitality experience. Plus properties are differentiated from general Airbnb listings because they are seen as being on par with top global hotels, in terms of location, styling, and amenities.
Airbnb Plus is currently only offered in larger metropolitan cities like London, Los Angeles, and Paris. That number is increasing and soon, Plus will be all over the world offering “all the comforts of home, plus more.”
How Do I Become an Plus Host?
Airbnb Plus is a curated program. Hosts can either be invited to join Plus or they can apply themselves. Prospective hosts need to pay a non-refundable amount of $149 for the application process, which does not guarantee acceptance into the Airbnb Plus program.
There are certain requirements that prospective Airbnb Plus hosts must meet before they can be considered for the program. These include:
The host’s average rating needs to be 4.8 or higher.
A host needs to have accepted 95% of booking requests for their listing over the past year.
The host cannot have canceled any bookings over the past year (except in extenuating circumstances which may need to be proved.
If a host meets this requirement, the property is then taken to the next stage where the property features will be assessed. The adjudicating panel usually looks for the following things, although Airbnb does not release their exact criteria:
Consistent design aesthetic and style throughout the property.
Plus properties must be well-maintained: clean, tidy and everything must be in working order.
Plus rentals need to be equipped with a range of amenities like a guest would have in the own home, namely: A kitchen stocked with cooking and dining utensils A bathroom with toiletry items and towels Other electronics: a safe, hairdryer, and microwave A Smart TV
Airbnb Plus Benefits
Depending on whether you’re sitting on the guest side of the equation or the host side, the benefits will vary.
For guests, Plus offers an assurance of a listing’s quality. Guests that book through Airbnb Plus know that their accommodation will all have met the same high standards. Airbnb Plus saves this type of guest time by not requiring them to page through thousands of listings to find one that meets their high expectations. Guests that book through Plus are supported by a premium support team, meaning their queries are attended to faster by Airbnb. As Plus requires an almost perfect guest-acceptance record, guests do not need to wait as long for their booking to be confirmed.
For hosts, the benefits of Plus are primarily financial. Due to their Airbnb status, these hosts will be able to charge more per night. According to iGMS, Plus hosts earn an average of $250 per night, which is considerably higher than normal hosts (depending on the area, of course). Airbnb Plus hosts’ competitor pool is considerably lower as there are far fewer Plus properties than there are normal Airbnb properties.
Benefits & Drawbacks of Airbnb Plus
Let’s get into the pros and cons of being a Plus host a little more. There is really only one drawback to Airbnb Plus and it’s that you have to list on Airbnb exclusively. Airbnb wants to make sure that they offer their users the best and so a non-compete agreement is standard practice for situations like this.
The benefits of Airbnb Plus are extensive. These benefits include:
More listing views (According to VR365.com, Airbnb Plus properties get over 7 times more views than normal Airbnb listings).
70% more nights booked (Again, according to VR365.com).
A special property listing page design and layout.
Access to priority Airbnb Support.
An immersive home tour to help guests visualize your property.
What is an Airbnb Superhost?
Airbnb Superhost status is similar to Airbnb Plus in that it offers Airbnb users a certain guarantee of quality. Unlike Airbnb Plus, Airbnb Superhost status is open to every host and you don’t need to apply.
How Do I Become an Airbnb Superhost?
Every host who can attain the following criteria over the last 12 months is eligible for Superhost status:
Hosts must have maintained a response rate of 90% or higher.
Hosts must have an overall rating of 4.8 or higher.
Hosts must have completed at least 10 trips OR completed 3 reservations that total at least 100 nights.
According to Airbnb – “Quarterly assessments begin on January 1st, April 1st, July 1st, and October 1st, every year. We’ll notify you of your Superhost status at the end of each assessment period—which usually finishes 5 days after the assessment begins. Only primary hosts are eligible to attain Superhost status.”
You can track your progress via the Superhost section of your Airbnb hosting dashboard.
Benefits & Drawbacks of Superhost Status
The good news is that there aren’t any drawbacks to being a Superhost on Airbnb! And there is no bad news, so that’s encouraging. The benefits of a Superhost are as follows:
Higher-income – Superhost properties get more bookings.
Higher ranking in Airbnb search results.
Superhost status justifies higher prices.
Superhosts earn more when they refer friends to join Airbnb as hosts.
So, Which is Better?
Well, purely comparing Plus and Superhost status can be a little complex. One is more attainable than the other. But both are seen as an added value to Airbnb hosts.
For hosts that can, we advise going to Airbnb Plus if your property is located in applicable areas and your design standards are where they need to be in relation to Airbnb’s expectations.
Every Airbnb host should be aiming for Superhost status. Why wouldn’t you? Airbnb users are more likely to trust you and book your property if you have that extra level of reassurance.
How Can DPGO Help You?
Whether you’re listing on Plus, you’re a Superhost, or just a general Airbnb host, you can benefit from dynamic pricing. We use in-depth market data to find the optimal price for your listing in that given short-term rental market environment. We then automatically update your prices once per day to keep you competitive.
Managing a successful Airbnb vacation rental listing is stressful. Property listings have countless aspects that you need to optimize to run the most successful listing possible. Apart from Airbnb price optimization, it’s pretty hard to know where to start!
First and foremost, hosts need to develop an Airbnb pricing strategy. Using smart pricing gets you off to a great start and using a dynamic pricing tool does more than just maximizes profits. But this is not the only thing hosts can do to get the very best performance out of their short-term rental.
Team DPGO is made up of experienced Airbnb hosts and real-estate investors, so we know a thing or two about running a profitable short-term vacation rental. In this post, we wanted to share some of our experiences and decided to develop a list of the 6 most important factors that you’ll need to perfect to create and maintain a successful Airbnb property. And we promise, our list features more than just Airbnb price optimization!
1. Know the Pros and Cons of Your Listing
In the wise (and not so accurately quoted) words of George Orwell, “All Airbnb listings are equal, but some are more equal than others.” Well, George, we agree. In part, at least. The best Airbnb owners know their listings like the back of their hands. And this information can and must be used to their advantage.
If, for example, you know that the floorboards in your living room creak or the downstairs shower takes a long time to warm up, mention that in your booking confirmation email. Obviously, don’t give this information pride of place in your listing description. But by declaring these minor issues in your initial communication with your guests, it is less likely that they will use these issues to justify a lower rating. The first goal is to fix these issues, but if it’s not financially feasible to do so, just declare them before the guest checks-in. Communication is key.
One of the members of Team DPGO likes to spend a night in his Airbnb listings at least once per year. He maintains that this is the only way he can detect the smaller issues that may escape his cleaning staff’s notice – a dripping tap, a broken lightbulb, or something similar. It also gives him an opportunity to identify if anything is potentially irksome to guests – confusing light switches, baffling electronic manuals, or missing amenities.
Taking the time to stay in your property listing occasionally is a great way to discover the little issues that may have appeared. After all, if you want guests to stay there, you should want to stay there too, right?
2. Invest in Quality
People can recognize cheap appliances and poor-quality property finishings. You might not think that they’d notice, but they will. There are certain things in your Airbnb that you simply cannot afford to scrimp on. Even if you find the optimal price to attract bookings, these are the things that will stay in your guest’s memory.
Let’s start in the bedroom. Invest in high-quality mattresses and pillows, then look after them with protectors. One of the quickest ways to get a poor review is having an uncomfortable bed in your listing with horrible, scratchy sheets. Would you be happy to give a listing a 5-star review if you got no sleep while staying there? Unlikely. People have varying mattress tastes, so try to get something that’s not too hard and not too soft.
No pricing algorithm can fix cheap, broken appliances. You can pick up some really great coffee-makers from the likes of Amazon and Target for anything from $80 upwards. If you opt for a Keurig or a Nespresso, you can add these brand names to your listing description. This way, all of your potential guests will know that the option of a great cup of coffee awaits them if they choose to book with you. You can order pods for these machines from Amazon for as little as $0.30 each. Get yourself a milk steamer too and some stylish coffee mugs and you’ve got yourself a picture-perfect coffee station!
Cutlery and crockery matter too. Don’t buy plastic plates. There is almost never a need for plastic plates. People don’t pay Airbnb prices for plastic plates, especially since you can get ceramic, dishwasher safe, chip-resistant ones for around $5 each from Target and similar stores.
Plastic also has no place in furniture. Please resist the urge to use plastic outdoor furniture in your Airbnb. Of course, plastic chairs in the kitchen, like the stylish clear ones you see in interior decorating magazines are fine. Metal or wooden furniture is always sturdier. We understand that it may not go with the design direction of the property so try to use discretion.
3. Use Airbnb Price Optimization Tools like a Smart Pricing Tool
Using a dynamic pricing tool gives you the best chance at securing a booking while using the highest Airbnb daily rates possible. The vast majority of property managers use dynamic pricing, so it’s safe to say that it optimizes revenue.
Dynamic pricing is more than just price tips and optimizing nightly rates. It’s more of a holistic approach that sees an increase in occupancy rates too. You can use dynamic pricing over the holidays, special events, and peak tourism season to maximize earnings. Seasonality is less of a concern when you price dynamically too.
As a host, you’re in the business of Airbnb rentals and the name of the game is to increase your booking rates and earn more money. Airbnb price optimization is tricky, but using the pricing recommendations from DPGO is a great way to increase your profits. DPGO analyzes the fluctuations in your local rental market environment and updates your prices in real-time. No matter the day of the week, your prices will be kept competitive 24/7, 365.
If you perfect your rental pricing model, then the traction that your listing gets on Airbnb will increase too. Popular and updated listings are continuously found higher up in Airbnb search results. Whether you’re a Superhost or not, being close to the top of the page can make a difference to your Airbnb business.
4. Make Sure to Market Your Listing
Simply listing a property on Airbnb is not enough to spark success. Just like any recipe, you need all of the raw materials. Only once they come together can you create something wonderful. And, we hate to say it, but Airbnb price optimization alone may not even be enough. Don’t get us wrong, it will make a huge difference, but it can only attract based on price. Follow all of the DPGO prompts, and you’ll be well on your way to a successful rental property.
Back to marketing, remember that your listing page on Airbnb is basically an advertisement. Advertising companies make millions in designing the most attractive advert material that they can. It might help to examine the basic factors of any advert: images, text, and call to action.
Starting with images, you need to make sure that your listing has professional photography. Airbnb users judge a listing on their images and it just takes one picture to deter a potential guest. Use natural lighting, avoid pictures of toilets, style your space and find the angles that make your listing look the most enticing.
Next, the text on your listing matters. You want to complete the vision of your listing with the words in your description. This is where you can start to show which guests your listing is geared towards. A popular approach is to craft a story. Invite guests to relax in your living room in front of the fire while enjoying a delicious cup of coffee from your Keurig. See how those brand mentions come in handy?
Lastly, a call to action. Why not end your description with a question? Something like “Are you ready to escape the city and relax in utter serenity, surrounded by nature?”. Remember, you want to entice potential guests to choose your listing.
There are few guests, if any at all, who don’t care about cleanliness, especially now. In light of the pandemic, not even Airbnb price optimization could save some hosts from closing up shop. Now, there’s light at the end of the tunnel and cleanliness has never been more important.
We cannot stress this enough: make sure your listing is clean. It may not matter for the first bookings but once your reviews start coming in with low ratings for cleanliness, your booking rate will decrease. A poor cleanliness ranking is hard to shake so get ahead of the issue and ensure that your listing is sparkling clean. Your reviews will thank you in the long run, and so will your occupancy rates!
Moving on to styling your listing. In order to create a space that people will want to pay to stay in, you need to focus on styling. Decide on a design direction, and go from there. There are plenty of choices: nostalgic, modern, classic, refined, cosmopolitan, and more. Pick a style and try to keep it consistent throughout your listing. It can be as simple as a color scheme and as complex as a very obvious theme.
Also, it’s a nice added bonus to leave a welcome basket or some basic essentials for your guests. It shows them that you care and have thought about their comfort. You can also leave a note in your welcome packages requesting that they write you a review once they have checked out.
6. Communication is Key
Communicating with your guests is integral to your success as an Airbnb host. It allows you to understand their expectations, and explain the rules of your listing. The open dialogue will also help your guests feel comfortable enough to call you if there is an issue. The worst scenario is having a guest who does not want to alert you to any issues and just requests a refund straight away.
Before check-in, send them a welcome email with your guest guide, electronics manual, local area activity guide, and house rules attached. In COVID times, electronic copies are better than printed ones. Also, include any logistical info like Wi-Fi password or property access code. Be sure to include your contact number or a number to call in case of an emergency if you are not located nearby.
Once the guest checks out, and they are no doubt happy at the value for money that your Airbnb price optimization created, ask them for a review. If you are hesitant to do so, review them as a guest and this might prompt them to write a review for you as well.
Airbnb ranks active listings and hosts with better reply stats further up in their search results. Make sure you reply to every message in a timely fashion, even if your reply is simply to inform them that those dates are booked. Although you should be keeping an up-to-date calendar anyway, that’s a point for a different post.
DPGO: The Airbnb Price Optimization Tool for You
Optimizing an Airbnb listing takes serious work. Luckily for your users, we ensure their booking rates and revenue are in tip-top shape. DPGO is more than just an Airbnb pricing tool. We allow our users to input a range of data from automatic long-term discounts, seasonal fluctuations, last-minute reductions, and market-driven price hikes.
Dynamic pricing is not based on simply having lower prices. In fact, competitive pricing does not always mean lower. It simply means more attractive to potential guests. We analyze your listings amenities, features, location, booking rates, reviews, and more to compare them with that of your closest competitors. We then use that information to craft a pricing strategy, especially for your property, not forgetting to work within the pricing limits that our users set.
DPGO users can input base price, minimum stay requirements, minimum price, maximum price, discount percentages, discounts for weekdays or price increases for weekends, and seasonality changes. If you don’t believe us, try DPGO for yourself for free! We’ll give you a 30-day trial period to test out DPGO and see the increased booking rates for yourself.
Sign up for your free trial here. Remember, you don’t need to register a credit card when you create a profile, we have no usage limitations and no limit on the number of Airbnb listings that you can connect. You can also cancel your profile at any time with no cancellation fee.