Are Short-Term Rentals Worth the Effort? A Personal Experience with Airbnb

As a second home owner in Canton of Valais, you may be familiar with the challenges of managing a second property, especially when it comes to covering the costs of building charges, taxes, utilities, and other expenses. The idea of renting out your apartment or chalet for short-term stays through platforms such as Airbnb may have crossed your mind as a way to offset these costs. In this article, I'll share my experience of renting out my family's second home on Airbnb and answer the question: is it worth the effort?

Why I Decided to Rent Out My Second Home on Airbnb

Like many second home owners, I was facing the challenge of paying high building charges and other expenses for a property I only used occasionally. During the pandemic, I had more free time and decided to try my hand at renting out my family's apartment on Airbnb to see if it was worth the investment. I was curious to see if I could cover the costs and possibly even make a profit.

Can You Really Make Money on Airbnb?

After several years of experience with short-term rentals, I can confidently say that renting out your second home on Airbnb can be a worthwhile investment. Not only did I manage to cover all my building charges, taxes, and utilities, but I also used some of the profits to pay for our ski trips, dining expenses, and even renovate both bathrooms in the apartment. The returns I have seen have been significant, and it's gratifying to know that I'm making the most of my investment.

In fact, if I had started renting out the apartment since 1967, when my great-grandfather first purchased it, I would have had three apartments today instead of just one. Of course, it's worth noting that back then, short-term rentals were not as popular as they are today, and the charges and expenses were much lower. But with the convenience of the internet and platforms like Airbnb, it's now easier than ever to rent out your second home.

Is It Worth the Time Investment?

While the potential financial benefits of short-term rentals are attractive, it's important to consider the time investment involved. As a host on Airbnb, there are many tasks to be done, and they can quickly add up. Here are just a few of the responsibilities you'll need to take on:

• Maintaining the property to a high standard for each guest

• Pricing and promotions management, cancellation policies, and revenue management

• Professional photography and marketing

• Screening and monitoring guests, dealing with any disturbances or nuisances

• Administration and insurance

• Organizing a secure and efficient check-in process

• Writing a comprehensive guide for guests

• Being available 24/7 to respond to any issues or questions

• Having a support team in place, such as handymen and housekeepers

• Establishing contracts with laundry services, investing in high-quality bedding and towels, and replenishing consumables such as cleaning products

The list goes on, and it's important to be prepared for the time investment involved in being a successful host on Airbnb. While it can be rewarding, it's not for everyone.

Airbnb Management Services: Are They the Solution ?

Reflecting on my experience with Airbnb management, I would do it again, but with a different approach. The return on investment did not justify the time I put into it, at least not for a single apartment/cabin. However, if I could maintain the return and delegate the tasks I mentioned, that would be ideal. I approached several short-term rental agencies, but none met my criteria. Some told me that it would be a good outcome if I could cover some of my expenses, while others had commissions of 38% and took margins on linen and cleaning. Moreover, as a commercial engineer and programmer, no company was able to convince me of its "digital strategy" (if it even had one). Especially since being at the top of the list on Airbnb, Booking or others is key to getting reservations.

This is when I asked myself, why not do it myself and offer our Airbnb management services to other property owners? And that’s the story behind the inception of superhosts.ch. If you are interested or just curious, I invite you to discover our services or to contact us.

Simon