In the Philippines, Airbnb has gained increasing popularity over the years, thanks to the country’s booming tourism industry and the increase in the number of Filipinos who own second homes or investment properties. According to Airbnb’s 2020 report on the Philippines, the platform had 36,000 active listings and 23,000 active hosts in the country. The model appeals to both sides of the supply and demand equation: Travelers get to experience living like a local, and hosts can earn extra income from their underutilized properties.
Many homeowners use the platform to offset the costs of owning a second property or to supplement their retirement income—which is especially helpful to Filipinos abroad who plan to retire in the Philippines. The income generated from Airbnb rentals can be substantial, especially during peak tourist seasons. Christine, who owns a few short-term rental units in Manila, attests, “I actually make more money renting out daily than long term.”
For Filipinos living abroad who are planning to start a business back home in the Philippines or even invest in a property here in preparation for their retirement, an Airbnb business is a viable one to consider. However, like any business, having and managing short-term rentals come with its own set of perks, challenges, and regulations. Below, KUBO answers some of your frequently asked questions about the world of Airbnb rentals.
Where do I start?
If you don’t have an Airbnb account yet, just log on and you’d be happy to know it’s a user-friendly website. You get a step by step guide on how to create your profile and upload your listings in a very easy way. Christine confirms that “Airbnb actually helps you get started—from taking photos to describing your property. It was really easy.”
In some areas, an affiliated Airbnb photographer can come to your place and take accredited photos. And although you can set your own pricings, Airbnb offers suggestions for daily, weekly, and monthly options if you need help figuring out what to start with best.
When choosing a property to list, keep in mind a few crucial things, according to Christine: “Location, location, location is always the key to a great rental property. Design and layout should also be good. A clean property is very important as well. Only put necessary items. Clutter is the enemy.”
How flexible is Airbnb when it comes to rentals?
Airbnb allows you to choose when and how to rent out your properties. While you live abroad, you can opt to rent out your spaces only during the peak season, block the dates when you are coming back to visit the Philippines (if you’ll be staying in the property), or choose to turn it into a full investment and rent out your properties all year round. The flexibility of Airbnb can help you maximize your earnings while also managing your schedules.
Christine explains that peak season—which may vary for different areas around the Philippines, but usually falls around the holidays (from October all the way to January or February) and summer months (March-May)—is a good time to earn, but “Airbnb rentals are inconsistent. Sometimes you get rented out a lot, then dry season comes. That’s why when I meet a good tenant and they want to rent it long term, I usually agree.” Having this flexibility when it comes to tenants and your own needs offer you a great freedom.
What are other perks of renting out my property on Airbnb?
Renting out properties on Airbnb is especially convenient for those who don’t want to deal with the challenges of long-term rental. Christine says, “It still is very difficult to rent out an apartment in the Philippines unless you hire an agent, and I didn’t want to deal with one. I’ve had experiences with agents before, and they were not good ones. We really don’t have any [reliable] websites or apps for renting out properties [here in the Philippines], so I turned to Airbnb.”
And because Airbnb is used by people around the world, you get to meet people from different cultures and backgrounds, which can be an enriching experience. It is an opportunity to make new friends and expand your network. Being able to connect with them and letting them discover your favorite local places makes it a beautiful experience for them. Who knows, some of them might even be able to return the favor if you go to their hometown! (This writer actually used to have a house on Airbnb in Boracay and met amazing families—I am still in touch with some of them, including one family I got to visit in Seoul, South Korea twice.)
What are some short-term rental regulations and liabilities I should know about?
In 2019, the Philippines implemented a law requiring the registration of all transient homes, including those listed on Airbnb. Check with your local authorities or your building or subdivision to know if you need to do anything to register your property.
It is also always a good idea to make sure your neighbors, your condo or home’s property management office and homeowners’ association (if applicable), and other people handling the area where your property or properties are located know that you’re turning your spaces into Airbnb rentals.
If you are not easily reachable, especially given the distance and time difference, make sure you appoint a trusted property manager if you cannot take care of your rental so your guests and the people living around your rental do not go through any inconvenience.
Know that hosting on Airbnb carries a certain level of risk and liability for homeowners. The platform offers insurance coverage for hosts in case of damages or accidents caused by guests, but homeowners should still be aware of their responsibilities and obligations.
Is a short-term rental high maintenance?
Hosting on Airbnb requires regular upkeep and maintenance to ensure the property is in excellent condition for guests. Homeowners should be prepared to invest time and money in cleaning, repairs, and upgrades to maintain their ratings and keep their listings competitive.
Abigail shares some tips when you’re just starting out on the platform: “Be patient and be physically present in the first months. Renting out on Airbnb is not an easy job. You need to give your time to your guest and to continuous maintenance of your listings.”
Is competition tough among short-term rentals?
The increase in the number of Airbnb rentals in the Philippines has led to stiff competition among hosts. Gelly, an Airbnb owner based in Siargao, points out, “The website has its own algorithm, so that will determine how often people will see your listing. Consistency and perseverance are keys [to success].”
Meanwhile, Christine points out the need to go the extra mile: “There are so many properties to choose from on Airbnb so the competition is really big. Make your property stand out and offer things that others don’t. I always ask tenants what they need and try my best to give it to them or offer alternatives, [much like how] a hotel always makes sure guests are comfortable and are enjoying their stay. Keep the property always clean and sanitized. Good reviews always help.”
How do I make my rental stand out from the rest?
Homeowners who want to stand out must invest in renovating their properties, offering unique amenities or services, and providing excellent customer service. Christine explains how she made sure her Airbnb properties have a comfy and unique touch. “I used old furniture and just refurbished them. Pinterest was a good tool for me to look for design inspiration. Minimalism is key. Don’t put all your old stuff in the apartment. Lay out things properly. Always imagine yourself living in the property so you can place items where it’s most effective and useful.”
Airbnb rentals offer a unique and personalized experience for travelers, as each property is different from the typical cookie-cutter hotel room. Travelers can choose to stay in a quirky treehouse, a stylish condo, or a charming colonial house, among other options. Abigail Navarrete, who handles a few properties in Boracay, tells KUBO, “As a traveler myself, I usually prefer staying in Airbnb units rather than hotels. It is usually cheaper and…it feels more homey.”
If you want to succeed on Airbnb, you should research the local market, maintain a well-kept property, provide unique amenities, offer excellent customer service, and ensure your property is safe and secure for your guests. By following these tips from KUBO and actual Airbnb renters, you can tap into the income-generating potential of short-term rentals while helping boost the country’s tourism industry. Check these successful listings from Gelly in Siargao and Abigail’s unique rental in Boracay for more inspiration.