Investing in a rental property has become exceedingly popular for generating additional income. One of the primary discussion points among real estate investors is the confusion of whether the property should be listed on Airbnb or the traditional rental option would work best.
Travellers who love taking risks and want to enjoy a unique experience are recommended to choose Airbnb however those who are well aware of the dates, and location, and have the desired property type should opt for a traditional rental management company.
Read this blog to learn what strategy can generate a better return on investment, while providing a great experience to the potential travellers. Let’s compare Airbnb vs traditional rental to discover the advantages and disadvantages of each rental strategy.
Traditional Rental Vs Airbnb - Which is The Best Option?
Is it better to rent or Airbnb? This is one of the most common questions asked by the travellers. Well, when it comes to the comparison of both, different aspects leave a different impact on the overall travel experience.
How It Operates?
Airbnb
Through this platform, interested travellers can rent the property from the owners directly, which makes the process flexible and seamless for both parties. Hosts can rent out rooms, spacious houses, and even villas in over 190 countries.
Travellers can easily search the cities, profiles of the hosts, properties, and reviews. Once the profile has been created, the traveller then connects with the host and requests a booking.
The preference of some hosts is to have a conversation with potential guests on Airbnb before accepting or declining the request. In addition to this, travellers can ask whatever questions they have on their minds.
Traditional Rental
A traveller chooses a specific city and then needs to find a rental agency in that specific city. The traveller does not deal with the owner of the property directly. The travel agent will answer all the queries and concerns.
In Airbnb vs traditional rental, traditional rental is a hassle because the travellers need to search the properties or visit them in person within proximity. Many traditional vacation properties are only available within a specific timeframe and usually allow week-long bookings.
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Payment Procedure Comparision
Airbnb
After the confirmation of the booking, guests typically tend to have two options. They can either pay the total amount right away or pay half the amount at the time of booking and the other half at the time of stay.
As the travel date comes nearer, official arrangements are made between the traveller and host regarding time-in and time-out details, and from where and how the keys should be collected. The contact details of the host are also provided.
Traditional Rental
Many rental agencies ask for a deposit at the time of booking and the balance is due whenever the travel date approaches. Time-in and time-out times are decided by the agency and travellers need to leave the room at the time of booking. Keys are picked up from and dropped off at the company’s office.
Related: Top 6 Apps Like Airbnb
Refund Policy Comparision
Airbnb
If a guest experiences any kind of accommodation issues during their stay or Airbnb does not meet their expectations, a refund can be requested but for that, the issues need to lie under the guest refund policy.
Let’s suppose, the described location of the rental vacation home is wrong, the amenities are not as described, the space is not clean, or the size is too short, the guest can request a full refund at Airbnb’s discretion.
Traditional Rental
Agencies most commonly have 30-60-or 90-day cancellation policies and guests can get a refund within those timeframes.
Reviews Comparision
Airbnb
Once the stay is over, travellers are encouraged to leave a review about the property and the property owner which might be helpful for the next visitor whenever he/she plans to book through Airbnb.
In addition to this, the host also has an option to review the renter. So make sure to be a welcomed and respectable guest.
Traditional Rental
Some rental agencies allow the reviews to be posted online. Most of the agencies do not consider any complaints, they leave them to the property owners directly.
Wrapping Up
In Airbnb or rent comparison, there is no clear-cut winner. Comprehending the aspects of both platforms will help the hosts and travellers make informed decisions regarding the property portfolio, target audience, and location.
