Airbnb is among the most popular online marketplaces for short-term rentals and private rooms. Since its inception in 2007 in San Francisco with two hosts and three air mattresses, Airbnb has gone a long way. 

With over 5 million registered hosts and 7.7 million listings worldwide on Airbnb alone, the vacation rental industry has become undeniably saturated. This means making a mark in this competitive space can be extremely challenging. 

So, how can you ensure your listings don't get lost in the crowd? What common pitfalls should you avoid?

Our comprehensive guide for vacation rental owners goes beyond the basics of Airbnb to help you make the most of your listing.

Airbnb is an online marketplace for short-term rentals. Its community network helps owners of holiday rentals list out all kinds of properties from single rooms and entire villas to treehouses and tents.  

From a guest's perspective, it gives them a wide variety of listings to choose from before they book what best suits them.  

The advantage for both hosts and guests are there is nothing traditional to the type of properties listed in Airbnb so hosts can list any kind of property (though certain standards must be met, so you might not be able to list out a spare mattress anymore), and adventurous guests can find them checking in to properties that suit their daredevil appetites, instead of going for safer listings.  

Research shows that more than 4 million hosts use the platform with around 5.6 million global listings in 100,000 cities and over 200,000 countries and regions bringing the valuation of Airbnb to a whopping USD 110 Billion.

Airbnb.com started off as airbedandbreakfast.com an ode to the three brilliant guys who turned to rent air mattresses in their apartment into a business that people now rent out everything from shared spaces to a wide array of properties including entire homes, private rooms, apartments, manors, castles, and private islands. 

Its logo, relaunched in 2014, known as “Belo” short for the Symbol of Belonging comprises of 3 intertwined parts, a head- for people, a heart- for love, and a location sign for places. Check out the logo to see if you can find all these elements.

Airbnb thrives on the user-friendliness of its platform for both hosts and guests. It is easy to navigate and provides all the information a guest needs to make an informed decision. Hosts can save time managing their properties while maintaining a competitive business. It gives everyday people, who might not have a background in real estate or property management, a chance to enter the industry and provide a personalized experience for travelers without having to invest in a website.

As a company, Airbnb does not own any property, instead, it allows other property owners to list their properties on their site for free only charging a small percentage as commission when a booking is made. 

A large part of Airbnb’s success can be attributed to its use of technology. The website is so user-friendly that property owners are not expected to know any technical or marketing skills to use it. Additionally, from their 24-hour customer support system to host insurance coverage, Airbnb has seemingly thought of and covered every aspect of the vacation rental business.

When building a listing on Airbnb everything depends very heavily on first impressions. If potential guests are not happy with the photographs on the site, they are most probably not going to check out your descriptions or amenities, so it's best to make sure to get professional help if you are not sure how to do it by yourself.  

Other key parts of the listing to pay attention to: 

The full amount is charged from guests by Airbnb before check-in. 24 hours after the guest's check-in, the host’s payout will be processed. Sometimes, however, depending on the payout method it may take up to 7 working days for some hosts to receive their payment.

Airbnb makes money by charging service fees to both hosts and guests. As a host, you’ll typically encounter one of two commission structures:

1. Split-fee model (most common): In this setup, the host pays a 3% service fee (deducted from each payout), while guests pay a separate service fee that usually ranges from 5–14% of the booking subtotal. The exact guest fee depends on factors like reservation length, price, and local regulations.

2. Host-only fee model: Some hosts—especially those using channel managers or property management systems like Hostaway—may fall under the host-only fee model. Here, the entire service fee (usually 14–16%) is paid by the host, and the guest doesn’t see an additional Airbnb fee at checkout. This structure is common for professional hosts managing multiple properties.

What this means for your vacation rental business:

No matter which model applies, Airbnb automatically deducts its commission before sending your payout, so there are no extra invoices or manual payments.

Airbnb provides hosts with AirCover for Hosts, a built-in protection package that comes at no extra cost. This includes up to $3 million in property damage protection and $1 million in liability insurance, covering scenarios like accidental guest damage, injuries, or stolen property.

While this gives hosts peace of mind, it’s important to note that AirCover is not a replacement for comprehensive short-term rental insurance. Many hosts choose to add their own policy for extra coverage, especially for risks like loss of income, natural disasters, or damages outside of Airbnb’s terms.

Reviews are central to building trust and reputation on Airbnb. After each stay, both hosts and guests have 14 days to leave a review. The system is double-blind, which means neither party can see the other’s review until both have submitted theirs or the 14-day window closes. This helps ensure feedback is honest and unbiased.

Guest reviews of hosts focus on things like communication, cleanliness, accuracy of the listing, check-in process, and overall experience. These reviews directly impact your visibility in Airbnb search results and your ability to qualify for Superhost status. The more positive reviews you earn, the stronger your chances of attracting new bookings and boosting your vacation rental income.

Whether it’s a positive or negative review, the key is to respond to each one of them to give guests the impression that you take time out of your day for them even after the business is done. 

Host reviews are the feedback you leave for your guests after their stay. These reviews are just as important as guest reviews of your property because they help other hosts decide whether to accept a booking request. In your review, you can highlight whether the guest communicated well, respected house rules, and left the property in good condition.

Writing fair and honest reviews not only contributes to the safety of the wider Airbnb hosting community but also encourages good behavior from guests. A consistent track record of positive host reviews makes it easier for travelers to book future stays, while negative reviews can alert other hosts to potential issues. For you as a host, leaving reviews also strengthens your reputation as an engaged and responsible member of the short-term rental market.

Hosts and guests can contact Airbnb directly via call and their website. However, the extensive list of areas covered in the help center allows hosts and guests alike to navigate their way into finding the solution to their problem without having to call Airbnb. The help center also assists those struggling to navigate the Airbnb website. 

Additionally, when guests make a booking, they will usually receive a contact number when they receive their confirmation email. This is the best number for guests to use if they want to contact Airbnb via telephone. 

Every business carries risk, and handing your home to strangers can feel especially daunting. The good news is, you can take practical steps to protect both your property and your peace of mind when running a vacation rental business.

By layering these precautions on top of Airbnb’s built-in protections, you’ll reduce risk, safeguard your investment, and build a more reliable short-term rental property.

Listing your property on Airbnb is one of the fastest ways to grow your vacation rental business and start earning extra income. Airbnb attracts millions of travelers worldwide, giving your space visibility to both local and international guests. Whether you’re renting out a spare room, a second home or an investment property, the platform connects you directly with travelers searching for unique stays.

Beyond exposure, Airbnb makes hosting simple. The platform provides tools to manage bookings, set nightly rates, and keep your calendar in sync. With AirCover for Hosts, you also get up to $3M in property damage protection and $1M in liability insurance, giving you peace of mind while welcoming guests. Combined with secure payments and guest verification, Airbnb helps you turn your property into a reliable source of rental income while keeping operations straightforward.