Airbnb is an online platform that lets people rent out everything from a spare room to an entire home. This “air bed and breakfast” was started in 2008 in San Francisco. Today there are millions of hosts and guests interacting through these unique accommodations.

What Is Airbnb?

The sharing economy shares goods and services online. Airbnb is a good example. Guests pay to stay in locations they select from verified personal profiles and internet listings.

How Does Airbnb Work?

This is how Airbnb works. Potential guests look through their options and apply filters. There are review systems and cancellation options. Then they book a stay.

Get started hosting with a free Airbnb account. There’s a flat service fee of 3 % Airbnb charges. They don’t charge for payment processing, but there are some extra fees listed here.

How Is an Airbnb Vacation Rental Different from Competitors?

Airbnb claims to be different than the competition. Whether you’re booking an entire house or a single room and you’re a guest or hosting, you should know about them.

Airbnb provides reservation screening and $3M USD damage protection. It covers incidents with a guest destroying things like art and valuables. Airbnb also has a 24-hour safety line with one-tap access.

Here’s a list of places to stay that every family member will enjoy.

What Is the Pricing on the Airbnb Website?

There are different fees to go with the rental prices posted for Airbnb listings. The booking subtotal is based on the rate hosts charge, plus any extra money, fees, and costs. These additional fees are determined by the hosts and Airbnb.

Airbnb offers a rundown for both guests and hosts.

What Is Airbnb’s Service Fee?

Asking “How does Airbnb work?” You can’t ignore Airbnb fees.

Like the Guest Service Fee. Most of these are under 14.2% of the subtotal for booking. These are shown before you book. There’s the Cleaning Fee too. Some hosts add this charge to clean entire homes, private rooms and other spaces. And a Host Fee, most of these are 3%.

Many hosts tack on an Extra Guest Fee too. Something to think over before you settle on your next vacation.

What Are Airbnb’s Cancellation Policies for Vacation Rental Services?

Airbnb makes allowances when guests need to cancel. There are different riders. Like the fact that a full refund applies to the nightly rate only.

There are different cancellation policies. These tell you the time frames where a guest can cancel to get a full refund. Some renters add a nonrefundable option. Certain options are listed under “Super Strict” banner.

There are special cases too. Like in accordance with the local laws in places such as Germany.

How Do You List a Property as an Airbnb Host?

Property owners just need to go to the host section of their profile. That’s where you can create a listing that includes a room rate and/or rent for a host’s home.

There are some other factors to the settings. Like how to set the house rules. The options are different for the amenities you describe and any additional services. Check area laws before deciding on the booking settings.

How Are Airbnb Hosts Paid?

It takes just a few steps to get payouts when you’re renting a space out. You can choose from PayPal, Fast Pay, and direct deposit bank transfers, and other options.

You need to provide tax information. There is also a verification process that can take up to 10 days. Don’t forget Airbnb takes a 3% fee. You’ll need to subtract the city tax and any others from your subtotal.

The money gets released approximately 24 hours after the scheduled check-in times. When you actually get the payout depends on the method you’ve selected. For example, Payoneer takes 24 hours or less. A bank transfer can take up to five business days.

What Is an Airbnb Superhost?

There is no need to apply to be an Airbnb Superhost. You can get that status by getting positive reviews and avoiding cancellations. Being responsive also helps. The company checks four times a year.

You need to maintain a 4.8 overall rating with the review system and a 90% response rate or even higher. Having an air mattress on hand for guests helps.

What Is Airbnb Plus?

Airbnb Plus highlights top properties vetted by the company. They offer many benefits like exceptional quality and outstanding design. Company inspectors have a checklist of unique quality items and requirements.

Here’s a list of eligible cities.

What Is the Difference Between a Hotel and Airbnb?

Trying to decide between a hotel room or an Airbnb reservation? There are some differences.

Airbnb doesn’t charge as much as the hotel industry.
Airbnb is community-built. Live among the locals in one of these rooms or homes. It’s more authentic than a hotel. They have some excellent features like rebooking assistance for guests who change their plans.
A Hotel’s focus on the safety of guests is a little better. Buildings are kept up to code and there are regular inspections. Still, Airbnb has community standards that take action if a host endangering or threatening guests is reported. Airbnb does have policies to promote safety like ones against threats and abuse.
Luxury Hotels generally have more features and amenities.

What Are the Risks of Airbnb?

There’s a host guarantee that looks after damage caused by guests to cover the property. Other insurance programs for people renting spaces out include one for liability.

But of course, there are risks for people in this business.

Renting to squatters can be a big issue. There’s a long legal process to evict them.
Regulatory environments can change. Compliance costs can skyrocket.
Hosts need to remember the final say in cancellations goes to the company.

Finally, property damage can be a problem. Like water damage and broken furniture. Even unauthorized parties held at your rental can increase your liability.

Do Airbnb Hosts Stay With You?

The answer depends on the type of rental. If you rent one room, the host is usually in the same home. With a whole house, you’ll generally be on your own.

A shared room can mean the host is with you. Read the listing carefully before booking a stay.

Finally, if you’ve heard reports about discrimination at Airbnb, you don’t need to look somewhere else. They’ve recently made changes to their instant book feature to cover any issues.

READ MORE: 

How to Start an Airbnb Business
How to be an Airbnb Host

Image: Depositphotos

This article, “What is an Airbnb?” was first published on Small Business Trends