Want to operate a vacation home in Madison, but don’t know where to start? We’ve done the preliminary research for you and assembled what you need to know in this article, so read on to discover how to start an Airbnb in Madison, Wisconsin.
How to decide if you’re really ready to start an Airbnb
Starting a vacation rental property can come with big perks ($$$!) but there are also tradeoffs. Make sure you have the time, money, patience, and passion necessary to become a professional landlord.
How to buy a property specifically to operate it as a rental property
Here are steps to follow when you’ve decided to invest in a new rental property.
Decide on your budget
Study local laws and regulations (more on that below!)
Search for properties on the market in Madison
Figure out what your return on investment (ROI) will be (this will be just an estimate for now—you’ll need actual data to see how much you’re really making)
Need a little help with that ROI calculation? Here’s a helpful guide from Mashvisor. Keep in mind that there will be extra costs involved with running your property, such as insurance, business licenses, and repairs.
Why guests love Airbnb
Airbnb is just as popular as other types of stays like motels, hotels, and hostels because they are affordable, allow you to live locally like you’re native to the city, you can opt for total privacy, and you see everything you’re getting in advance.
How Airbnb fees work
As the host, you set the price and Airbnb then charges a three percent payment transaction fee from the host and a 6-12 percent booking fee from the guest. You can also choose to charge guests a security deposit and a cleaning fee. Finally, depending on your location, Airbnb will apply state or city taxes to your booking.
Set up your account
The Airbnb Help Center is a wonderful resource to reference when setting up your account, but once you sign up and it’s time to start filling out the details, here’s a few tips to consider:
Think of your rental property as a potential renter would see it. Of course, you’ll want to include the basics like location, number of bedrooms, etc., but take Instagram-worthy photos of your space, too. Highlight unique or memorable details about your property. Do you have a killer view of Lake Mendota? Are you near the Capitol Square? Are there amazing restaurants nearby?
Be thoughtful about house rules. You might be tempted to make house rules very relaxed in order to get as many renters as possible, but since you’re renting in a desirable city, you can probably afford to be careful with rules (i.e., restrictions on pets, smoking, and parties) up front to protect yourself and your property.
Review your local laws. As Airbnb says, some cities have rules that address home sharing, limits on nights you can host, registration requirements, and special taxes. Get more general info from Airbnb on that here and read about Madison’s local laws here.
Get your space sparkling clean—and contact a professional cleaning partner if you need them. Properties with zero hair, dust, mold, and tons of clean surfaces and bedding always win higher ratings from guests.
Stock up on essential items guests will need. Think about soap, shampoo, towels, coffee, kitchen utensils and small appliances, extra pillows, a nice TV with streaming service(s), etc. Anything that might make their stay more comfortable will lead to a better experience and happy renters.
Now that you know how to start an Airbnb in Madison, you know that keeping your property spotless is key to renter satisfaction, stellar reviews, and repeat business. As we talked about above, that means you’ll need a professional cleaning partner with a reliable and experienced team!
We can help out with that. You can depend on us for cleaning between stays and a deep cleaning whenever you need it. We’re just a call away! Contact us at 608-497-1374 or book your free estimate online today.