How to Start an Airbnb Business: 10 Steps for Success

Wondering how to start an Airbnb business? Though property owners face fees and some restrictions in this line of work, 2025 is still a great year to consider launching an Airbnb business. 

Provided you prepare and market your property the right way, you can easily attract clients and make a decent amount of money from your property. 

In this article, I take you through ten steps that you must follow to launch your Airbnb business this year. Whether you’re looking at buying a property or already have one to market, my steps will inform you how to start profiting from the short-term rental market this year.

Is an Airbnb business still profitable in 2025?

It certainly can be. Research published by the Short Term Vacation Rentals Report shows that the global market is likely to reach $172 billion by 2030. This is due to many tourists and business travelers preferring the flexibility and comfort afforded by homes and apartments when compared to hotel rooms for short stays.  

The main cost to consider when renting your property on Airbnb is the 3% service fee, which is still current in 2025. So, if you let out your property for $100 per night, you will only receive $97. That said, the fee applies to all additional fees that you set. However, Airbnb has a “host-only fee,” which can be between 14% and 16% for most property owners. 

Of course, there are other, less upfront fees you need to consider. How will you clean your apartment between stays? Will you provide Wi-Fi? Do you cover the cost of water and electric bills for all tenants? Are there any condominium or apartment service fees? What about city or council tax?

Ultimately, with all the additional fees you need to meet as a property owner, you can realistically expect to take home 50-70% of the nightly rate at which you advertise your property.  

Therefore, one of your first questions should be: Can I make more money in the short-term or long-term rental market? 

If your property is in a high-traffic area that’s popular with tourists or business travelers, it makes sense to market it on Airbnb. If not, it might be more profitable to rent it out to a long-term tenant.

How to start an Airbnb business in 10 simple steps

So, if you’re confident that starting an Airbnb business is still in your best interests as a property owner, here are the ten steps you should follow to launch your business:

Step 1: Do your research

If you already have a property, conduct research into Airbnb listings in your area. This is a good way to gauge the potential rates you can charge and whether there’s a decent short-term rental market where your property is located. 

However, if you’re in the process of buying a property, focus on areas that already have a vibrant short-term rental market. Specifically, look for areas with the following characteristics: 

• Rental yield: Search for areas that command higher than average rental yields (ideally between 5% and 10%) for the best returns. 
• Tourist areas: Look for a property within walking distance of popular tourist destinations so you can attract potential short-term visitors to the area. 
• Business hubs: You should also consider the property’s location relative to any business hubs and exhibition centers. These can also be highly profitable for Airbnb owners. 
• Transport links: Excellent transport links are a must for Airbnb owners. Consider the property’s distance from the nearest airport, rail and bus station. The closer the better.

Step 2: Check for any short-term rental restrictions in your area

At this early stage, you also need to check that Airbnb can operate in your area. Some cities have specific measures aimed at limiting the number of Airbnb rentals. These are part of wider rental rules and regulations being rolled out in different parts of the world to protect local residents. 

New York City is the best example where short-term rentals are strictly restricted. Paris also has restrictions, specifically relating to people who use a second home as a short-term rental. There are also restrictions in Barcelona, Berlin, and London, as well as other major European and American cities. 

This article by Investopedia is a great resource for discovering the tightest restrictions on Airbnb rentals worldwide.

Another option is to use AI to guide you. For instance, you could ask Arvin if short-term rentals have any restrictions where you live. You will receive a real-time, accurate guide that will help as you consider where to launch your Airbnb business this year. 

Step 3: Create a plan 

You’re now ready to compile a plan for your Airbnb rental business. Whether you’re marketing one or several properties, you need a solid plan to work from that covers the following bases:

• Business overview & objectives: What exactly are you planning to do? How many properties are you renting out or managing? What are your business aims and objectives? 
• Competitor & industry analysis: Include a section on your research into the viability of Airbnb rentals in your area. How much can you make per night? Are Airbnbs legal? What challenges and costs will you face? 
• Financial plan: How will you fund your Airbnb business? What taxes and costs are you required to pay? What profits do you expect to make in the first one, three, and five years? 
• Pricing: How much will you charge for your Airbnb property/properties? How did you arrive at this price? Is it aligned with the current market in your area? 

Your business plan doesn’t need to have all the answers. Rather, you should see it as a blueprint that you can follow to launch your business successfully. You can always amend your business plan, adding to it after you launch your Airbnb business.

Step 4: Register your business

You’re now ready to register your Airbnb business. Most property owners who enter the short-term rental market set up a limited company to run their affairs.

This is a better structure than a sole trader or self-employed model, particularly if you’re planning to invest in more properties down the line. 

With a limited company, you can set up a business bank account, save money on taxes, and gain sufficient insurance to cover your operations. You are also protected should one of your customers try to sue you. 

In most countries, registering a business is relatively straightforward, and you may even be able to do it online. One thing to consider is that you might need a real estate license before registering as an Airbnb business owner. 

Every country, state, and local authority has different regulations and guidelines for this, so conduct thorough local research to discover what you need to do. 

To register your business, you will need to create a company name. You might want to keep things simple by using your initials or part of your name. 

Alternatively, use our free company name generator to save lots of hassle and come up with a professional name for your Airbnb business in seconds.

Step 5: Launch your brand

Even if you plan on marketing your property primarily on Airbnb, it’s helpful to create a brand. This opens up other marketing opportunities and means you can attract customers from elsewhere. 

For instance, by launching a brand, you can reach potential clients in the following ways: 

• Website: Create a website and include a booking form. When people find your property directly rather than on Airbnb, you can secure their reservation without paying any fees. 
• Social media: You can also launch your brand on social media platforms like Facebook and Instagram. Use hashtags and post photos of your property for people to find. You can then direct them to your website booking page to save on Airbnb fees. 
• Offline: Another option is to market your property offline. You could take an ad out in local classifieds or print flyers to put up around the local area. This can be another great way to find potential clients without using Airbnb directly.

Using the latest AI to launch your brand 

Arvin is home to all the tools you need to launch your Airbnb business brand successfully: 

• Begin by using our excellent free logo maker. This gives you access to a professional logo in seconds. You can then use this for all your online and offline marketing, adding an air of professionalism to your Airbnb company. 
• Read our complete guide to branding guidelines. This will inform you of how to successfully market your brand online to reach as many customers as possible.
• Use our excellent writing tool for online content. This AI-powered tool will help you create content for social media, your business blog, and your website. 

By harnessing our advanced AI, you can launch your brand in no time without breaking the bank. This tip will give you a significant advantage over the competition, as many people exclusively market their properties on one or two platforms. 

Step 6: Prepare your property for the market

Now that you’ve planned your business and launched your brand, it’s time to turn your attention to the property itself. You need to prepare it for the open market. As much as you might love your property as a home, is it ready to become a short-term rental? Here are some crucial steps to take to maximise the profitability of your rental and to ensure it’s ready for the open market: 

• Complete a full audit of the property, noting all items that you have included in the kitchen, bathroom, living room, bedrooms, etc. 
• Perform any simple maintenance tasks yourself (changing light bulbs, etc). Call in an expert if you need to perform any structural improvements to the property before renting it out. 
• Consider whether the property would benefit from a deep cleaning and a new paint job. Though inexpensive, it can make the property much more appealing to short-term tenants. 
• Remove all personal pictures and touches from the property. As much as you love your family and pets, your visitors won’t know who they are! 
• Ensure your property is clean, tidy, and presentable. Then, take high-quality photos in good light (ideally with a camera, not your phone). You might even consider hiring a professional photographer to help you with this.

Step 7: Establish a cleaning & maintenance schedule

After fully preparing your property for Airbnb, you need to consider how to clean and maintain it going forward. If you live locally and want to save on fees, you might carry out the regular cleaning yourself, visiting the property between guest stays. 

However, if you don’t live close by, you must budget for and arrange for a cleaning crew to enter the property to clean and prepare it for the next guests. 

Many Airbnb owners even offer daily property cleaning when guests are in situ, which is something to consider. 

You can create a simple rota for cleaning and share it with your team. Ensure you regularly update it and never welcome new guests into the property without cleaning it. 

Then, on a monthly basis, perform a simple maintenance checklist to work through. Visit the property to check the inventory and to look for any damage or breakages. Check the light bulbs, ensure the sockets work, and make sure there aren’t any obvious issues with the property. 

If there are, take the necessary steps to fix the property before the next guest arrives. This will help you to maintain a good feedback rating on your Airbnb profile.

Step 8: Find comprehensive insurance

With your property ready for market, there are just a few final steps to take. One of the most important things to consider is which insurance policies you want to take out. 

At the very least, you will need homeowners’ insurance to cover any property issues that arise. When you partner with Airbnb, you can also access Airbnb Host Protection Insurance and the Airbnb Host Guarantee at no extra cost. Both policies cover claims of up to $1,000,000. 

It’s a good idea to also research additional insurance that you might take out, including: 

• Vacation rental insurance, which covers damage protection. 
• Business income insurance. 
• Worker’s compensation insurance (only if you plan on hiring employees). 

Although it’s another additional cost to bear, insurance is vital. Anything can happen when you rent your property out, so you need to be adequately covered.

Step 9: List your property – Is Airbnb the best option for you? 

Finally, you’re ready to list your property. As the title of this article suggests, Airbnb is likely your first port of call. After all, it’s the most-used short-term rental market platform out there, with over five million listings worldwide.

However, it’s not the only way to market your property to holidaymakers and business travelers. If you’re not sold on Airbnb, consider the following sites as alternatives or additional marketplaces to reach more customers: 

• Vrbo: Vacation Rentals by Owner (Vrbo) is located in Austin, Texas, and it’s the number one competitor to Airbnb, particularly in the US market.  
• Booking.com: Though booking.com primarily offers hotel and apart-hotel rentals, there’s a growing number of private apartments listed on the site. Listing your property on booking.com a good way to access a wider market.

Step 10: Welcome your first guests 

Now that you’ve taken the above nine steps, you’re ready to welcome your first guests. It may take a while for people to find your property on Airbnb, and you might need to offer a promotion to get people through the door. 

Crucially, aim for five-star feedback when you’re new to the platform, as this will help more people find your property. To get those five stars, be communicative and friendly to your guests at all times.

Consider going above and beyond by leaving a little welcome package and helpful tips on what to do in the local area. Open up a line of communication with your guests as soon as they arrive, and make sure you respond in a friendly and timely manner. 

Hopefully, if everything is to their liking, they will give you those valuable five stars and help you secure more guests in the coming weeks and months.

The bottom line: How to start an Airbnb business this year 

While some cities have launched policies to restrict short-term rentals, 2025 is still a great year to start an Airbnb business if you get your location right. 

As I’ve illustrated in the ten steps above, learning how to start an Airbnb business is nowhere near as difficult as you might have thought. 

Be willing to use the latest AI tools from Arvin to launch your brand and conduct your research. Also, check for local regulations to ensure your chosen area is viable for short-term rentals. Otherwise, good luck!

How to start an Airbnb business FAQ

How much does it cost to start an Airbnb?

Depending on the amount of work needed to repair and decorate your home, you can probably prepare your property for Airbnb for less than $1,000. Make sure you thoroughly clean and prepare your property and take the best possible photos to showcase it to potential visitors.

Do you need a license to run Airbnb?

In most countries and cities around the world, you require a license to run an Airbnb business. You should check for local regulations before marketing your property as a short-term rental and get the necessary insurance to protect you and your guests.

Is it worth starting an Airbnb business?

While success isn’t guaranteed, if you have an attractive property in a busy area among tourists and business travelers, you can make decent money from an Airbnb business. However, you should weigh up whether it’s more profitable and easier to make money by renting your apartment out long term before taking the plunge.