Common challenges of hosting long-term on Airbnb
In this article, we will talk about the challenges of long-term Airbnb hosting, but before going right to the topic, we need to talk more about STR platforms and different kinds of Airbnb rental options.
The STR platforms, such as Airbnb, make it effortless to find the best accommodations based on a traveler’s taste, budget, and location. These accommodations can be a lot better than hotels, more affordable, and comfortable at the same time.
Using the Airbnb platform to find a local place to stay is a win-win situation for both the guests and hosts. Most travelers prefer to stay in such rental properties to reduce expenses and become closely familiar with the local culture. On the other hand, hosts get to meet people from different countries and cultures and earn a good income.
However, things don’t always go as smoothly. After all, any business has its own set of challenges. But don’t panic. You can learn to overcome short and long-term Airbnb hosting challenges by spending some time and effort.
Before getting to long-term Airbnb hosting challenges, let’s see what long-term Airbnb hosting is and how it differs from short-term hosting.
Short-term renting is what most Airbnb hosts are skilled at. Short-term guests rent your Airbnb for a few days to a couple of weeks to enjoy a vacation and have a place to sleep during their business travels or relocation to a new city.
Any reservation for more than 28 days is long-term and requires specific policies and rules. However, it’s not common for hosts to always have long-term guests, but it’s not impossible either! Sometimes, people prefer to rent an Airbnb for an extended period for different purposes, such as staying somewhere during a business trip, vacation, or a college semester. Obviously, the laws and payment rules are unlike short-term rental contracts.
In short-term reservations, the guests have to pay the total amount upfront through the Airbnb website, while long-term Airbnb guests pay for the first month and input the credit card information on Airbnb so that the company will charge them automatically per month. The contracts between a host and a long-term Airbnb guest are different, too, and it usually obeys local tenancy laws.
But is it worth enabling long-term Airbnb hosting on your account? What are the Challenges of long-term Airbnb hosting?
Challenges of long-term Airbnb hosting
The Airbnb platform makes handling all the details of long-term rental contracts much more effortless. However, if you’re considering renting your place to long-term Airbnb guests, you should know the rules and regulations for extended stays. Long-term hosting may not be suitable for everyone. The terms and laws in a long-term rental contract may not be in the same direction as your policies and hosting strategies. They may not even be the best option for your financial goals. So, it’s best to know the long-term Airbnb hosting challenges and difficulties:
The fixed prices are one of the main challenges of long-term Airbnb hosting. This is what discourages most hosts from accepting long-term reservations. The rental fee is a fixed price you offer at the beginning, and your guest is responsible for paying it off monthly. It means you can not raise the rental fee during the high seasons and vacations, unlike short-term hosts who maximize their Airbnb income this way. If you want to host a long-term rental you will have to come up with a your own set of Airbnb pricing strategies.
As you may know, ADR stands for average daily rates, calculated by dividing the entire reservation fee by the number of booked nights. In other words, the ADR defines your everyday rental price. Naturally, this rate is much higher in the short-term bookings, but since the long-term stays obey different kinds of rules, the ADR should be decreased in this kind of contract. This may be another factor that makes Long-term Airbnb hosting challenging.
Risk of getting stuck with bad guests
Hosts must be careful before approving potential Airbnb guests. It would be best if you took the necessary precautions to prevent complicated situations and lower the risk of accepting bad-tempered guests. In long-term Airbnb rentals, getting rid of such guests would be much more complex than in short-term reservations. It would be even worse if you turned your primary home into an Airbnb and shared a living space with your guests. So, if you’re too sensitive and vulnerable to deal with troublemakers, you should be very cautious in accepting long-term guests!
Difficulties in managing your property
Another common challenge of long-term Airbnb hosting is that you can not manage your property as you did before. Long-term guests have the right to express their opinion about the place and disagree with your hosting strategies. If you share the living space, you need to ask their opinion about different things related to the house and solve their problems. This can limit your freedom as a host and postpone some of the house maintenance projects and plans.
Despite its challenges, long-term hosting may be a good option for you if you want to manage your Airbnb remotely. You need to be aware of the challenges of long-term hosting to make the best decision based on your needs.
What’s your opinion about the Challenges of long-term Airbnb hosting? Is it worth it? Have you ever hosted a long-term guest? Please share your views in the comment section with other hosts and us.