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Rookie mistakes to avoid when you start an Airbnb rental | courier journal

Letting Airbnb set your price
Here’s the thing. Airbnb takes a cut of every stay, from both the host and the guest. I’m no mathlete, but if they book two million rooms a night (that’s their norm) at $100 apiece, they make more money than if they book a million at $250 (prices are just for illustration). Do you make enough to pay income and occupancy taxes, cover your mortgage and utilities, pay for supplies and cleaning — not to mention clear a little profit? Not their problem. So they’ll push offensively low prices on hosts in the hope of booking ever more rooms every night.

Background: She’s the Airbnb superhost of Louisville. And she made all the mistakes so you don’t have to

This will take some good old fashioned math, but figure out the minimum you need to make this worth it for you, and don’t go below that. Tools like Wheelhouse, a pricing software, helps you determine a price you can command, and will adjust your prices on the fly to account for seasonality and demand. When I first saw what they suggested for mine I was fairly flabbergasted, but gave it a try … and the bookings rolled in. Now I ignore the daily reminders from Airbnb that people are booking lower-priced places instead of mine, and the (good) bookings still come.

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Rookie mistakes to avoid when you start an Airbnb rental.

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