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How does AirBnB work?


Chad Constantine
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Hey Guys,

 

I was hoping to find out how does the payments to rent out an AirBnB work? I have never used it before but my friend showed me the places he has stayed at and they look amazing. Are they really cheaper than getting a hotel, motel, or hostel? Is it better when you rent one out if your going in a big group compared to going by oneself?

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I’ve stayed in Airbnb a bunch, it’s worked well so far (50+ times).

 

There are a few things to consider:

1) you can use Airbnb to rent in a place where there are no (or few) hotels. This could be an underserved neighborhood in a city, or an area with few hotels.

 

2) they are often cheaper than hotels, however you’re often giving up amenities (room service, concierge, etc). Also, staying in a hotel tends to be more private, checking into a room is quick and easy, and afterwards you are on your own (especially if you say you don’t want cleaners to come by). With Airbnb, things are a little more complicated. Some hosts know what they’re doing (electronic locks, etc) so that you only encounter them if you want to see them, but others are more in between (you have to see them on occasion). This can go either way, some Airbnb hosts you want to meet, because they can give you great advice about their area, history of their home, or are just fun to chat with. However, when you’re getting off a 10-hour flight at 1am, the last thing you want to do is interact with someone or have to jump through hoops to access your bedroom.

 

Overall, I’d say it’s definitely worth trying! I’ve stayed in all kinds of crazy places, such as a giant decaying mansion in the tropics that had been taken over by hippies (who Airbnb rooms out).

 

Payment is pretty easy, you just set up your payment info on the site and you are charged once the host approves your request to stay (some hosts auto-approve). Over time, you will build up a reputation (ie people leave reviews of you as a guest) and the “due diligence” aspect of things will become easier. It’s been a few years, but I believe you have to submit your ID to the site.

 

I’ve never had to cancel / refund a stay, so I’m not sure how well that process works. I also avoid places that charge a deposit because I am not familiar with how efficient that is (ie whether they drop the hold quickly and automatically). Since many places don’t require a deposit, it’s not a problem to avoid the ones that do. Make sure to always check the Additional Prices section of each listing, to see whether there are any unusual additional charges (outrageous cleaning fee) or great discounts (many places have a discount percentage for renting by the week or month).

 

As for going with groups or by yourself, I’ve done both and I’d say it just depends on the place you want to stay (ie splitting cost or whatever).

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There are risks involved with Airbnb, the host can cancel your reservation at any time. I had an Airbnb set up in NYC and the host cancelled on me the morning before I was to arrive. In that case though the host is supposed to help you find another airbnd spot that is comparable to what you just had. Also, you have to make sure that the host cancels the booking so that it is not on you.

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I’ve stayed in Airbnb a bunch, it’s worked well so far (50+ times).

 

There are a few things to consider:

 

I’ve never had to cancel / refund a stay, so I’m not sure how well that process works. I also avoid places that charge a deposit because I am not familiar with how efficient that is (ie whether they drop the hold quickly and automatically). Since many places don’t require a deposit, it’s not a problem to avoid the ones that do. Make sure to always check the Additional Prices section of each listing, to see whether there are any unusual additional charges (outrageous cleaning fee) or great discounts (many places have a discount percentage for renting by the week or month).

 

As for going with groups or by yourself, I’ve done both and I’d say it just depends on the place you want to stay (ie splitting cost or whatever).

 

Is it true you can find fully staffed luxury homes/villas on AirBnB? Is it better to go with Superhosts?

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There are risks involved with Airbnb, the host can cancel your reservation at any time. I had an Airbnb set up in NYC and the host cancelled on me the morning before I was to arrive. In that case though the host is supposed to help you find another airbnd spot that is comparable to what you just had. Also, you have to make sure that the host cancels the booking so that it is not on you.

 

Are there any other risks?

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Is it true you can find fully staffed luxury homes/villas on AirBnB? Is it better to go with Superhosts?

I’ve never stayed at an Airbnb with professional staff / caretakers, so I’m not sure about that. As for SuperHosts, I’d say in my experience reviews reveal more than that simple designation, but there’s probably no harm turning that filter on in areas with a lot of listings. I read the reviews as I would on Yelp (or here for that matter), that is to say to take them with a grain of critical thinking. Sometimes people will complain about things that are clearly stated in the listing, are plainly outside of the host’s control, or which can be seen positively or negatively depending on your personal preferences.

 

For the most part, I’ve found people on Airbnb to be upfront and honest (I’ve only been a guest though, not sure what it’s like as a host). On a couple occasions I’ve had minor issues (access code doesn’t work, host fell asleep when they knew I was arriving late) but these were always resolved without Airbnb involvement. Just like on this site, you can sometimes find amazing deals from people who are new hosts and don’t know their worth yet (some use airbnb’s Automated pricing which seems to hurt more than help the host).

 

If you like meeting people and you don’t need the hotel amenities, I think it’s worth a try.

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One thing I’d add too, is that I always communicate with the host before booking. There are many reasons to do this, the biggest (for me) are: 1) getting a sense of the host’s personality and service skills, 2) confirming that the place is available and that the host is comfortable having me stay there, and 3) asking any questions ahead of time.

 

In my initial request I usually write a sentence or two about the trip that brings me to the host’s area, so they have can get comfortable with who I am and what I’m doing. Keep in mind that in many cases you are staying in someone’s home, so it’s good to build a little trust on both sides. Naturally there are a lot of professional Airbnb hosts on whom these assurances are wasted!

 

I generally avoid places that can be “booked instantly “ because I prefer to have hosts who are engaged and who perform a little due diligence. But that’s just me.

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One thing I’d add too, is that I always communicate with the host before booking. There are many reasons to do this, the biggest (for me) are: 1) getting a sense of the host’s personality and service skills, 2) confirming that the place is available and that the host is comfortable having me stay there, and 3) asking any questions ahead of time.

 

In my initial request I usually write a sentence or two about the trip that brings me to the host’s area, so they have can get comfortable with who I am and what I’m doing. Keep in mind that in many cases you are staying in someone’s home, so it’s good to build a little trust on both sides. Naturally there are a lot of professional Airbnb hosts on whom these assurances are wasted!

 

I generally avoid places that can be “booked instantly “ because I prefer to have hosts who are engaged and who perform a little due diligence. But that’s just me.

 

Correct, I have stayed at an Airbnb where it was just a host’s extra property that he rented out. Still a good experience but I could see how it could turn into a bad experience.

 

Something else to keep in mind is to check out if the host will be staying at the place while you are there or if you have the whole place or just a room. I prefer having the entire place myself.

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I prefer having the entire place myself.

 

That’s a good point, Airbnb lets you choose Entire Place / Private Room / Shared Room, so you can filter. However you should generally read thoroughly and ask questions, if there is any ambiguity. Some people list an in-law suite as its own place... of course if it has its own entrance and is private, than that maybe fine with you, but best to read and look carefully (and always ask if uncertain). On the other hand, I’ve definitely seen upgrades where my “private room” was a pool house or cabin with its own patio or outdoor space.

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  • 2 weeks later...

I’ve used AirB&B if i’m in a city a long time (at least 3-4 days) and want easy access to stuff like microwave, refrigerator, etc. that way, i get to pretend i’m living in the city, get to do everyday thing like picking up stuff for snacks, walk around the neighborhood, etc. in some cities, it’s cheaper to get a hotel (Playa, Bangkok) while in other cities it’s cheaper to AirB&B (Paris, London, Buenos Aires, Istanbul). Make sure you read the rules - in Phuket, Thailand, for example, you pay for utilities (in addition to rent) while in Playa, Thailand, it’s all inclusive. Also, in some cities, the apartments are much nicer than the same price hotels. And do read the reviews - they give you a clue to some of the issues. For example, in Peru, the apartment we stayed in runs out of toilet paper and the host never responded. It’s a pain to have to go out to buy toilet paper while on vacation. Our host in Istanbul offered us sex for pay. Haa haaa. Too bad they weren’t cute. And in Paris, the host is a shoe whore (like Carrie in Sex in the City). Lucky for me, he was my size so I got to try out all these super expensive shoes. And he and his boyfriend were so super sweet and kind. It’s fun to try out someone’s shoes (figuratively and not) for a few days and pretend you’re living in Paris or Bruno’s Aires or Barcelona versus just visiting.

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I’ve used AirB&B if i’m in a city a long time (at least 3-4 days) and want easy access to stuff like microwave, refrigerator, etc. that way, i get to pretend i’m living in the city, get to do everyday thing like picking up stuff for snacks, walk around the neighborhood, etc. in some cities, it’s cheaper to get a hotel (Playa, Bangkok) while in other cities it’s cheaper to AirB&B (Paris, London, Buenos Aires, Istanbul). Make sure you read the rules - in Phuket, Thailand, for example, you pay for utilities (in addition to rent) while in Playa, Thailand, it’s all inclusive. Also, in some cities, the apartments are much nicer than the same price hotels. And do read the reviews - they give you a clue to some of the issues. For example, in Peru, the apartment we stayed in runs out of toilet paper and the host never responded. It’s a pain to have to go out to buy toilet paper while on vacation. Our host in Istanbul offered us sex for pay. Haa haaa. Too bad they weren’t cute. And in Paris, the host is a shoe whore (like Carrie in Sex in the City). Lucky for me, he was my size so I got to try out all these super expensive shoes. And he and his boyfriend were so super sweet and kind. It’s fun to try out someone’s shoes (figuratively and not) for a few days and pretend you’re living in Paris or Bruno’s Aires or Barcelona versus just visiting.

Wow I can not believe they did that in Istanbul and not in Thailand. How would you know it’s all inclusive or not? Would I have to just check in that payment bar they have on the side? Lastly, is it frowned upon to bring “guests” over if you rent out the whole place?

Edited by Chad Constantine
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In Thailand, we rented the 1-bedroom full apartment so have our own keys - we come and go at will. It was a high rise so as long as you have security card to get into building and elevator, they don’t care. I think they have a no party rule - so unless you’re going to throw a frat style house party, i think you’re fine. (So not to disturbed other tenants). We had no problems with guests in Hawaii or lots of other places.

 

As for payment, AirB&B will collect the fees for the room rate and tax, etc., but read the house rule and overview sections of the listing where it’ll tell you whether you are responsible for the utilities, etc. after your stay. It also provides you with how often for cleaning, etc. and even if there’s a deposit required. Yeah, in some of the reviews, people were shocked to have to foot out extra when they check out. (It’s understandable in some country where it’s hot and people are not good to environment and leave windows and doors open and air conditioner on all day, running up hundreds of dollars for electricity).

 

As for Istanbul, it was a last minute 2-night stay and was curious about the location so rented a room, not the entire apartment. The boys were waiters with side jobs as tourist guides and escorts. Haa haaa. Fun fun.

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