How to start an Airbnb business: A guide for new hosts

August 2025

Running your own Airbnb is great way to earn extra income — but where do you start? If you take the time to do things properly, you could soon have a brand new, profitable Airbnb business. Here are the steps involved to start your own Airbnb.

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Getting started with Airbnb: do your research

When Airbnb first started, people were renting out their spare rooms to strangers. Times have changed, though. These days, if you want to succeed on the popular holiday rental portal, you’ll need to approach your plan with a true business strategy.

That means starting with research. If you don’t already own a property you want to rent as a holiday home, you’ll need to find one. Some aspects to consider include:

• Location. Where do you want your property to be based? Choose wisely, as some areas have far higher potential for return on investment, such as city centres or areas with good connectivity. It’s always advisable to do good research on holiday rental prices in the areas you’re considering.
• Property prices and financing. Many mortgage providers will not offer mortgages on holiday homes, and those that do often have far higher rates than a standard mortgage. Decide on your budget and choose a property that fits it.
• Local competition. You’ll want to take a look on the big holiday rental websites to compare some of the top properties in the area. Find properties comparable to yours and see what they’re charging. You can’t tell occupancy rates, unfortunately, but the number and frequency of reviews might give you a clue.

This initial research will help you decide how profitable Airbnb can be for you. 

You’ll also want to dive into local rules and regulations. In some jurisdictions, anyone can rent their house for holidays, while you may need an official licence in others. This is particularly true if you want to rent out your holiday rental in Spain. Some cities are clamping down on the entire industry. For example, the city of Barcelona has announced it will be shutting down all holiday apartments. Watch out for these kinds of regulations, which could destroy your business before you even get started.

Craft the brand for your Airbnb

Once you’ve chosen your property, it’s time to think about how you’re going to market it. The first stage here is creating a cohesive brand. Here are some things to consider:

• Who is your target audience? Will you be marketing your property to families with children, couples looking for a romantic getaway, travellers on business trips, or young singles?
• What is your property’s USP? There are so many houses for rent on Airbnb, so what sets yours apart? Is it the swimming pool, a quirky building, eco-friendly amenities or something else?
• Are you offering a luxurious experience to the high end of the market, a cheap and cheerful getaway for budget travellers, or something in between?
• Can you think of three words to sum up your brand?
• What kind of visuals represent your brand? Think of colours, fonts, logos and so on.

Once you have a clear brand vision in mind, marketing your holiday rental and making it stand out from others will be a lot easier.

Prepare your Airbnb for guests

Now it’s time to get your property ready for the first guests. If you’ve got great interior design skills, go nuts. If not, you might want to ask for some help.

Again, research can help here. Take a look at other holiday home listings to get inspiration and decide what your property will look like. It might need just a small amount of work or perhaps a complete renovation and makeover.

Some things to consider as you’re getting your property ready include:

• Paint or wallpaper. Do you like the colours, or do you want to change them? A fresh coat of paint is always a good idea when you’re preparing for guests.
• Furniture. What do you have already, and what do you need? How will it fit with the style of your property?
• Decorative touches. How can you make your property feel like a home? Which decorative pieces and ornaments match your brand?
• Amenities. Will you stock the bathroom with single-use toiletries, or will you go for large bottles? In the latter case, you may want to attach them to the wall securely to stop guests from taking them.
• Security. Are you going to install a smart lock or lockbox for contactless check-ins? Does your property need cameras and motion detectors outside?
• Safety. Does your property meet local regulations for holiday rental safety? If you have a pool, does it have a secure fence and gate? What safety equipment do you need to buy?

Think about pricing

Pricing is a crucial part of any Airbnb business model, but it can be one of the trickiest elements to get right. Many would-be landlords find themselves wondering if it really is profitable to rent on Airbnb. Of course, it can be — but you’ll need to manage things correctly.

When it comes to pricing, consider these factors:

• Look at the prices of comparable properties in the area. Be honest: is your property worth more or less than them? If you price your property too high, guests will go with the competition instead. Too low, and guests might doubt the quality of your Airbnb.
• What kind of occupancy rate are you looking for? Do you want your property to be full every night? You’ll probably need to charge less in this case.
• Will people rent your holiday flat all year round, or does your area have a distinct high season?
• Do you want to use dynamic pricing? This means you’ll charge less at some times —midweek rentals, for example— and more at others.
• What price range fits your brand? If you charge too much, travellers will be scared away. However, charge too little, and you might attract undesirable guests.

Remember, you might not get the pricing right straight away. That’s fine, as it’s not set in stone. You can always tweak things after your business is up and running.

Set up your listings

Finally, it’s time to advertise your holiday home. Take your time to get the photos right — they’re the main thing your potential guests will look at. Shoot them at the right time of day, ensuring they’re bright and well-lit. Make sure the property is scrupulously clean, and stage the photos carefully to create a welcoming atmosphere.

The description in your listing should be written with your brand in mind. A good brand has a distinctive voice, and your listing must match that. If you need to, you can get help from a friend or utilise AI software like ChatGPT.

You can always advertise your property on Holidu to make things a lot easier. Becoming a Holidu Host means you will gain access to a personal expert account manager who will help you to craft the perfect ad listing and set a suitable price for your property. You will also receive a free professional photoshoot, so you can showcase your property in the very best light to potential guests.

In your listing, be sure to select all the correct amenities and services that you have available. Guests will often use filters while searching, and you want your property to appear in their results.

Starting an Airbnb business is certainly time-consuming, but it can be extremely rewarding. Make an effort, and you should be able to turn it into a profitable enterprise.

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