Hosting Grenada homes on Airbnb
Things are really looking up for the Grenada West Indies Airbnb market.
It seems that everybody is getting into that business these days. Property owners who used to provide long-term rentals are switching to the more lucrative short-term rental or home-sharing market.
Even the government of Grenada is excited at the economic prospects of the fast-growing Airbnb market. signing an agreement of understanding to formalize a partnership with the global home-sharing company. Clarice Modeste-Curwen of Grenada’s Minister of Tourism signed on behalf of the government in a conference held during the Caribbean Tourism Organization’s annual Caribbean Week in New York City. So, how do you like to get your foot in the door and enjoy the benefits of having your own Airbnb business in Grenada?
Not sure what is Airbnb? It is a platform operating online is located in San Francisco, California. The Airbnb website allows ordinary people like you to list their homes, rooms, tents, or unique accommodations to visitors for an agreed price. Essentially, all it takes is that extra space you are not using – convert it into a short-term rental for visitors. The Airbnb opportunity is great for homeowners who have a spare bedroom or two that won’t be used for a while, the empty nester, and the owner of a vacation or extra property.
How hard can running an Airbnb be?
Getting into the home-sharing business is not hard at all. There are tons of opportunities in Grenada’s Airbnb market for home-sharing to grow. Grenada is a popular tourist destination, After all, that attracts visitors from different countries who love the beach and sands of Grenada. Indeed, many tourists are repeat guests.
Hosting on the Airbnb
It is not difficult to become a host on Airbnb as long as you have even a room to spare. Once you register on the Airbnb site to become a host you have full control over the price for your space, the rules visitors or guests must observe, how you or your representative interacts with the guest, and the availability of your property. Depending on the website you sign up with, you may get insurance coverage for your property. This coverage is protection against property damage and accidents guests may suffer.
Airbnb guests are Prescreened
Of course, you would need to ensure that the guests you receive are trustworthy. A reputable home-sharing site will screen the prospective guest for you so you don’t have to be concerned about their character – and how they will treat your property. Information typically required from prospective guests includes a verified email address and a confirmed telephone number. You can, if you choose, require additional information such as a recommendation from other hosts and verified identification.
What if you are still uncomfortable and want to further check out the potential guest before committing to your space? Airbnb site will allow you to talk with the potential guest through their secure messaging tool for as long as it takes for you to become confident in hosting guests. Airbnb gives you the added protection of requiring identification from guests during the booking process. You can also review the reservations ahead of the scheduled date of arrival and reserve the right to refuse guests who may seem suspicious.
Airbnb hosts with good reputations do well
Since you are in control of your space and what goes on in it, you can insist that guests abide by your house rules or risk termination. So, if you are not tolerant of smoking and certain events on your property, you are free to make it known to the potential guest during the booking or reservation process and get their agreement. You can also research guests who have used an Airbnb service before through reviews from their former hosts. Hosts who have been in the Airbnb business also have reviews left by guests that potential guests can look at. If you are just starting out, you won’t have guest reviews yet. You must pull out all the stops to make a good first impression. The truth is the Airbnb hosts with good reputations do very well.
Hot investment niche
Airbnb’s in Grenada niche has become a hot cash cow for the astute Grenada investor who has taken the opportunity to snap up income properties and list them on the Airbnb websites. Airbnb hosts have even paid off mortgages from going the Airbnb route. The short-term rental income in US currency has been a significant income stream for these Grenada property owners. So strong is the income potential of Airbnb that a recent study on the impact of Airbnb in developing countries, suggests that “up to 97 percent of the price of listings goes into the pockets of hosts”. Hosts in developing countries worldwide have pocketed more than US$10 million in 2017 alone. Grenada property owners have gone as far as listing their homes on Airbnb sites and renting accommodations elsewhere to live in, or “bunk” with friends and relatives, while their homes earn cash from a handsome flow of guests. If you are up to it, you can use that spare bedroom for short-term guest accommodations courtesy of Airbnb. You must however be prepared to share your personal amenities – kitchen and bathroom – with strangers.
Hike in Rental Prices
An actual downside to the popularity of Airbnb’s in Grenada is the hike in rental costs islandwide. A quick browse on Facebook Marketplace for homes for rent will turn up two glaring issues. The first is that home prices have skyrocketed. The second is that prices, especially in prime real estate, are quoted in the US currency. From a rational money-making point of view, it is not good business to rent a two-bedroom apartment in a prime residential community over the long term for$700.00 EC dollars per month. Not when the same property can fetch $80 US Dollars ($213.00) per night in short-term rentals. This means university graduates, young professionals, and even working-class people with families will be hard hit to find a decent home in the St. George’s area that they can afford. Worse, it is proving difficult to find affordable space that property owners are willing to rent for the long term. Grenadians are cashing in on the Airbnb market. The opportunities for short-term rentals during special music and cultural events are tremendous.
Grenada’s Government is on Board
Grenada’s Minister of Tourism is on board, having signed an agreement of understanding with the operators of the Airbnb platform. According to Airbnb’s Shawn Sullivan, the Public Policy lead for Central America and the Caribbean,
We recognize that in order for the destination to remain competitive we must grow and evolve with the ever-changing travel landscape, she said.
There is an agreement by parties that Grenada is good for the Airbnb business. The Tourism Minister acknowledges that Grenadians are buying into the Airbnb concept and are opening their homes to visitors in larger numbers and earning handsomely as a result.
Tax Revenue Potential
Grenada also stands to benefit from the tax revenue to be raised from the Airbnb operations on the island. According to the Minister of Tourism, Clarice Modeste-Curwen as reported by Airbnb News plans were made for the Airbnb platform to pay over contributions to the Grenada Inland Revenue Division (GIRD). Minister Clarice Modeste-Curwen acknowledges that Airbnb has conceded its obligation to pay the requisite Grenada taxes as a business with interests in Grenada. In the short term, arrangements surrounding the entity’s contribution to the GIRD. However, the Grenada Inland Revenue Division clarified that the Tax is payable on ‘occupied guest accommodations.’ Such accommodations include bed and breakfast, apartments, villas; motels, resort cottages; guesthouses, and timeshare properties with 3 rooms and more, Airbnb will collect the taxes and then send them to Grenada Inland Revenue Division. Grenadians who host guests under Airbnb arrangements may contribute to the GIRD if Airbnb passes the costs on to them.
To date, Airbnb has signed more than 275 similar agreements and remitted over $240 million in relevant taxes to states and municipalities globally. This tax agreement will ensure greater compliance on the part of hosts and ease the administrative burden on the island, Airbnb executives said.
Are You Ready to Become an Airbnb Host?
Are you excited yet? Ready to start? The first step is to create an account with the Airbnb platform. Select whether you have a property to list, providing co-hosting services, or delivering an experience.
Getting paid from the Airbnb platform is facilitated by Payoneer, Paypal, or the Western Union. To stand out above the crowd of properties now on the list, you would need to offer a different experience, or go above and beyond to deliver the best quality services to your guests.