2 | Market Research & Area Regulations: Starting an Airbnb 101

Listen Now:

One of the biggest obstacles you might run into when starting an Airbnb is area regulations, and we actually first met at a city council meeting when our city was trying to regulate Airbnb. We think that the sharing economy is (not so slowly) becoming the new normal, but it’s still weird for some people and there might be some pushback.

So today we’re going to discuss what kind of market research you need to do to make sure your new Airbnb will be legal, and what you need to know to make sure you position and price your rental appropriately.

Market Research 101

Here are a few things you should be looking at:

• Firstly, are there any city or county laws that currently exist or are proposed that limit short-term rentals? If any regulations already exist, we obviously can’t recommend starting your business there. However, if one is proposed, you can go to public hearings on it and speak up like we did!
• You also need to check if your neighborhood, HOA, or condo association have any regulations against short-term rentals. Again, you don’t want to start your business off on the wrong foot.
• Look for competition – not just other short-term rentals in the area, but also hotels. Check their calendars to see when they’re busy and what their pricing is like. Look into what amenities are offered. You need to know everything about your competition so that you can position yourself well against them and price accordingly.
• Also look for attractions in your area: convention centers, concert halls, and anything else that may bring people to your area.
• Go out and talk to other Airbnb hosts! Collaborate, talk about pricing, be honest, and be open. If you all do better and no one is trying to undercut everyone else, it’s just going to be good for your area’s economy! At the same time, if you have a hot tip (like an annual event that everyone should be aware of), share it!

Resources:

• Have any questions, comments, or concerns? Email us at [email protected]!
• Learn more at https://thanksforvisiting.me/
• Connect on Instagram: https://www.instagram.com/thanksforvisiting_/
• Listen to How I Built This: “Airbnb: Joe Gebbia”