Co-Hosting Payout Within Airbnb
Airbnb co-hosting is a feature that allows a listing owner and someone the listing owner already knows to take care of their home and guests jointly. With the help of the co-host, it enables the listing owner to manage properties in multiple places without physically being present. The co-host makes a percentage of money from the property owner for co-hosting the guests.
Airbnb co-hosting is a trendy business model as it allows co-hosts to manage the property and be able to earn extra income without owning the property. You can make a part-time or full-time salary by co-hosting properties in an area you live in. A co-host is responsible for taking care of the home, guests, managing and other hosting requirements in the absence of the property owner.
I have been fortunate enough to help co-host three additional properties in Nashville, TN (my hometown). Family, friends, and clients have seen the success of my Airbnb and asked me to help implement their own Airbnb into their homes as well. Starting an Airbnb and choosing to host on its platform is challenging enough. With the help of a seasoned co-host (me in this case), these new hosts have gained a leg up on the competition by getting a crash course on how to properly start and grow an Airbnb listing.
Co-hosting is no easy task either. It comes with challenges and hurdles just like with anything worth doing. Do not expect anything less. However, Airbnb has now implemented a new policy for payouts to co-hosts. Thus, adding a slight hurdle to the overall simplicity that was co-host payouts.
Canceling Co-Host Payouts
Airbnb’s new policy of canceling co-hosting payments took effect on August 1, 2018. According to the new system, co-hosts will no longer get paid through the Airbnb platform. Which means, co-hosts now have to bill hosts directly. Which now requires more work on the back end since the pay-out used to be automated by Airbnb.
Ramifications
Co-host ending payouts have left many co-hosts annoyed and in-secured. Co-hosts will now have to trust and rely on the property owner to get paid. If the co-host is not organized and not clear the co-host management fee will result in untimely payments and disputes. Moreover, it will be inconvenient for co-hosts to bill an owner directly when the owner is not staying in the same town or traveling. Property owners who do not live on the property may not realize how much work goes from the co-host on the backend to maintain the property. It might be difficult to make a deal with the owner of a fair price for co-host services.
The State of Housing
There are many people who have the ability to work from home now. Mothers and fathers who have come to rely on Airbnb to make an income by renting out extra space in their home. My wife and I are no exception to this. Our Airbnb adventure began in May 2015 with our first Airbnb in our personal residence. By adding a boost to your monthly income the boom of Airbnb in the short-term rental industry has helped supplement family income around the world.
So What?
Property owners and co-hosts were already dependent on the functioning co-hosting system. The change will leave many of them handicapped. This will make it more essential to learn how to create your invoices and level up your negotiations skills so that you get the value for your services as a co-host. First-time hosts will have questions and need assistance. Adding co-hosting payouts to that formula may hinder their experience.
The principal focus for co-hosts is to have clear communication with the property owner, manage your finances and to have an organized workflow. Break down to the property owner what percentage will be charged for your services as a co-host. Be honest and upfront. Make sure the host is on the same page with what is to be expected.
Hosting has been a blessing for me and my family. When done correctly it can be a game changer. If you are thinking about becoming a host on Airbnb and have questions please reach out.
