How to Start an Airbnb Business (2023) » Small Business Bonfire

I have been running a successful Airbnb business for the last two years. After starting small, I now run several Airbnb’s growing rapidly and proving quite lucrative. 

However, I know that starting a business from scratch can be daunting. That is why I want to help others looking to break into the Airbnb market.

In this guide, I will provide all the steps necessary to start an Airbnb. You will learn how to find a great location, design your space, market it effectively, and more.

You don’t need to become an expert overnight. With this guide, you can start small and grow at a pace that you’re comfortable with.

How to Start an Airbnb Business

Starting an Airbnb business requires careful planning and preparation and involves several important steps. It is essential to stay on top of current trends within the industry to ensure success in running an Airbnb business in 2023.

Here are 9 steps to launching a successful Airbnb business in 2023:

  1. Research the competition
  2. Find the perfect location
  3. Study local laws
  4. Clean & stage your home
  5. Take amazing pictures
  6. Post your Airbnb listing
  7. Get an LLC
  8. “Wow” the first customers
  9. Get great reviews

Step 1: Research the Competition

Researching the competition is essential for anyone who wants to run a successful Airbnb business in 2023. Before getting started, it is important to study how the local market works and who your competitors are to help you differentiate your Airbnb from others in the same area.

Start by looking at the local market and understanding what other Airbnb hosts offer. Compare the amenities, services for each listing, and their rates.

Also, take into account the reviews other Airbnb businesses receive. This often provides an insight into how well they are doing compared to others in the same region or city.

Step 2: Find the Perfect Location

Finding the perfect location for an Airbnb business in 2023 is critical to success. This decision should be based on many factors, including proximity to major cities, airports or other forms of public transportation, and local attractions that guests may want to visit or explore. 

If a property is too far from major tourist destinations or other points of interest, it may be difficult to attract guests. When selecting a location, it’s important to research the local market and its competition to identify untapped opportunities and areas with high demand but low supply.

It’s also beneficial to look at demographics such as population size, age range, and economic opportunities like job availability and growth rate, as these will influence rental prices and occupancy rates. Additionally, consider the cost of living in the area, as this will directly affect how much you can charge for your services.

Step 3: Study Local Laws

It is important to become familiar with the laws and regulations that govern your particular area when starting an Airbnb business. That is because different cities and counties have rules and regulations regarding short-term rentals.

Before beginning your business, make sure you understand what laws apply to renting out a room in your home or an entire residence for a limited time. Depending on your location, you may need to acquire a permit or certification before listing your property on Airbnb.

However, be aware that local governments have their noise ordinances, zoning requirements, and health codes that must be followed. In some areas, short-term rental properties may need to pass certain safety inspections as well.

Be sure to research the city’s current policies on Airbnb before starting your business to operate lawfully and avoid potential fines or penalties. Many cities require hosts to collect lodging taxes when they rent out properties which could involve additional paperwork that needs to be filed with the local government.

Step 4: Clean & Stage Your Home

When starting an Airbnb business, it is important to ensure that your home is as clean and inviting as possible for potential guests. That is why cleaning and staging your home are essential for a successful Airbnb experience.

Not only will it make a great impression on potential guests, but it can potentially increase the amount of money you make from your rentals. Make sure to deep clean your space, removing dust and dirt from every corner and crevice to ensure it’s sparkling when potential customers arrive.

Once you’ve finished cleaning, it is time to stage your home. This involves creating a welcoming atmosphere with décor, artwork, and other design elements that help potential guests envision themselves living there during their stay. Make sure everything looks clean, neat, and organized to give your guests the best possible experience.

Also, consider investing in amenities, such as high-end linens and towels, breakfast items, and coffee makers, to further enhance the atmosphere of hospitality at your home. Remember, the more thought and care you put into making your home presentable, the more it will attract customers.

Step 5: Take Amazing Pictures

Taking amazing pictures for your Airbnb business is essential for helping potential guests get a good idea of what the accommodation looks like and enticing them to book. It’s important to consider lighting, angles, and composition when taking photos to showcase your home in the best way possible.

Invest in a good camera and learn how to use it properly to take quality photos. If necessary, hire a professional photographer to ensure the images capture the essence of your Airbnb business.

Also, consider taking pictures of the surrounding area so potential customers can get a feel for what it would be like to stay at your Airbnb. Your photos should provide an accurate and realistic representation of your home so that customers have no surprises when they arrive.

Step 6: Post Your Airbnb Listing

You can begin posting your Airbnb listing online when your home is ready. This is critical for getting the word out about your business and attracting potential customers.

Start by creating an eye-catching title for your listing that accurately describes what type of accommodation you are offering and any amenities or special features included. Make sure to provide a detailed description of your property and the surrounding area, any rules for guests, and clear pricing information.

Be sure to include photos of your home and surround them with keywords that potential guests might use when searching for accommodations. Additionally, make sure to respond quickly to inquiries or questions about your listing so that customers have a positive experience interacting with you. Here are some useful tips to get more bookings for your Airbnb.

Step 7: Get an LLC

One of the best ways to start an Airbnb business is to set up an LLC (Limited Liability Company). LLCs are popular legal entities among small business owners because they provide asset protection and tax advantages that sole proprietorships do not.

Setting up an LLC allows you to structure your business in a way that makes sense for you and your Airbnb rental property. It also protects personal assets from liability that is incurred through any risks associated with running a business.

An LLC can be created either as a single-member or multi-member entity, depending on whether you plan to run the Airbnb or have other members involved. In addition, all profits and losses can go directly to the LLC’s operating agreement which affords greater flexibility regarding taxes. However, applying for an EIN (Employee Identification Number) is important to ensure you are properly filing taxes on income generated from your Airbnb.

Step 8: “Wow” the First Customers

Impressing the first customers of your Airbnb business is essential for success. You need to ensure that their experience with you and your listing is positive, so they will come back for more in the future.

It is important to take the time to establish relationships with potential guests and demonstrate that their stay will be comfortable and enjoyable. Consider sending a welcome letter or email introducing yourself and your property and providing additional information about nearby attractions, restaurants, or other points of interest.

You should take time to go above and beyond for every customer and provide them with an experience that exceeds their expectations. It’s also important to have clear communication channels in case of any questions or issues.

Step 9: Get Great Reviews

Getting great reviews is an integral part of running a successful Airbnb business. Reviews are one of the main ways potential customers decide whether or not to book with you, so it is important to do all you can to ensure that guests have an outstanding experience at your Airbnb.

How to Start an Airbnb - Get Great Reviews

To ensure that your customers are happy and provide positive feedback, you should take the time to review your guests and get to know them better. This can be done by asking detailed questions about their experience in your home or area so you can find out what they liked and disliked.

It is also important to thank each guest for staying with you and making sure they feel comfortable during their visit. Additionally, consider sending small tokens of appreciation, like snacks or welcome cards. These thoughtful gestures can make a huge difference in how customers perceive your Airbnb business.

How Much Can You Make Running an Airbnb?

Running an Airbnb business can be a highly lucrative investment opportunity. Depending on your rental location, the number of guests you host, and the type of property you offer, you can make anywhere from a few extra hundred dollars a month to tens of thousands of dollars annually.

The more you market your space, take advantage of seasonal demand, and offer attractive amenities, the more likely you will have higher occupancy rates and enjoy greater profits. However, property owners who rent out their homes seasonally may also have different financial results than those who rent out permanently.

Overall, running an Airbnb business can be a great way to make extra money while providing travelers with unique accommodations. With the right knowledge, strategy, and preparation, you can maximize your rental profits and enjoy the entrepreneurial lifestyle of running your own business.

How Much are Airbnb Taxes?

Airbnb taxes vary based on the location and the type of business. Depending on which jurisdiction the Airbnb business is located, it may be subject to different types of taxes, such as hotel occupancy tax, sales tax, value-added tax (VAT), income tax, and local zoning laws.

In addition, some Airbnb hosts in certain jurisdictions may also be subject to lodging or transient occupancy taxes. These taxes are imposed by local governments and are intended to generate revenue from tourist activities conducted within their boundaries.

These taxes can range anywhere from 6% – 15%, but this rate can vary depending on the specific booking platform and the exact location of the rental property. It also is important for Airbnb hosts to research their local regulations and understand what kind of taxes they may be subject to before they start their Airbnb business.


Starting an Airbnb business is a great opportunity for those wanting to try their hand at becoming entrepreneurs. The key to success is ensuring you have the proper capital, a strong marketing plan, and a willingness to work hard.

All you need is a good location, an appealing property, a reliable cleaning service, and reasonable rates. By following this guide, you can ensure that no detail is overlooked and that you have a great business model.

Are you interested in starting an Airbnb business? Do you have any questions about how to start an Airbnb business? Let us know in the comments below!

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