Here are answers to some questions we are frequently asked:
ABOUT AirBnB:
- What is AirBnB?
- Is AirBnB legal in Massachusetts?
- What additional insurance do I need for AirBnB?
- Will my home be safe as an AirBnB?
- Who is a typical AirBnB Host?
- Who is a typical AirBnB Guest?
ABOUT Air-CapeCod:
- Who Are We?
- Is Air-CapeCod a part of AirBnB?
- Is Air-CapeCod licensed and insured?
- Does Air-CapeCod conduct criminal background checks of the cleaners, landscapers and other contracted services personnel they use?
- Is Air-CapeCod looking for development partners?
ABOUT OUR SERVICES:
- Can I do AirBnB in my house?
- What do I need to make my house AirBnB ready?
- Can I stay in my house while hosting on AirBnB?
- What areas do you serve?
- How much do your services cost?
What is AirBnB?
According to Wikipedia:
Airbnb is an online marketplace and hospitality service, enabling people to lease or rent short-term lodging including vacation rentals, apartment rentals, homestays, hostel beds, or hotel rooms. The company does not own any lodging; it is merely a broker and receives percentage service fees (commissions) from both guests and hosts in conjunction with every booking. It has over 3,000,000 lodging listings in 65,000 cities and 191 countries, and the cost of lodging is set by the host.
Airbnb can be accessed via either the Airbnb websites or mobile applications for iOS, Apple Watch, and Android. Registration and account creation is free. On each booking, the company charges guests a 6%-12% guest services fee and charges hosts a 3%-5% host service fee. Hosts can also offer “experiences”, such as excursions, to guests for an additional charge, of which Airbnb takes 20% as a commission.
Users can search for lodging using a variety of filters including lodging type, dates, location, and price. Before booking, users must provide a valid name, email address, telephone number, photo, payment information, and, if required by the host, a scan of a government-issued ID. Guests also are required to agree to any house rules of the host.
According to the AirBnB Website:
Founded in August of 2008 and based in San Francisco, California, Airbnb is a trusted community marketplace for people to list, discover, and book unique accommodations around the world — online or from a mobile phone or tablet.
Whether an apartment for a night, a castle for a week, or a villa for a month, Airbnb connects people to unique travel experiences, at any price point, in more than 65,000 cities and 191 countries. And with world-class customer service and a growing community of users, Airbnb is the easiest way for people to monetize their extra space and showcase it to an audience of millions.
Is AirBnB legal in Massachusetts?
There is no clear, simple answer to whether AirBnB is legal due to the variety of ways individual hosts conduct their AirBnB hosting activities.
In Massachusetts, regulations regarding room occupancy that might pertain to AirBnB are local – passed by and enforced by the 351 individual cities and towns of the Commonwealth. On Cape Cod, some towns require registration of rental properties, with inspections and payment of fees to the Town.
There are, however, differing interpretations of just what constitutes a “rental property” and where AirBnB fits within the regulatory framework. Generally, in resort areas like Cape Cod, where summer rentals are a longtime tradition, if you’re not causing problems, do not have a sign and tightly screen guests you don’t have problems – however, some condo or community associations do have restrictions on short term sublets.
There have been regulations proposed on a statewide basis to tax and regulate AirBnBs, but at this time none exist.
This article, from the Cape Cod Times, outlines the ambiguity of regulations on the Cape.
What additional insurance do I need for AirBnB?
The “sharing economy” is relatively new, and many issues around it are somewhat undefined. Answers to questions regarding insuring your AirBnB property are somewhat vague – a lot depends on how often you do it, whether you live in the home, whether it is a second (or third) home, the types of things you expect to be covered, etc.
One widely recommended “asset protection” strategy is to incorporate (LLC, Limited Partnership, Trust, etc.) your AirBnB business, purchase commercial liability insurance and enjoy all the tax benefits of operating a business. There are companies who specialize in just this type of insurance – Vacation rental insurance for homeowners – which replaces your homeowner’s and sometimes costs less. One U.S. agency is Proper Insurance, the carrier is Lloyd’s of London – and no, we don’t get referral fees for the link.
WHAT AIRBnB PROVIDES FOR FREE
AirBnB automatically provides two types of insurance for every booking – a $1,000,000 Host Protection Insurance policy (liability) and a $1,000,000 Host Guarantee (property damage).
The Host Protection Insurance program is designed to protect hosts against third party claims of bodily injury or property damage.
Conversely, Airbnb’s Host Guarantee program is designed to protect hosts against damages to their own possessions or unit in the rare instance of property damage by their guests in listings.
A detailed explanation of both programs, with links, is below.
• WHAT YOUR HOMEOWNER’S INSURANCE DOESN’T COVER
In general, your homeowner’s insurance doesn’t cover AirBnB – some insurance companies define renting rooms as “doing business” – specifically excluded by standard form policies. Other homeowner’s policies will cover short term rentals, under 90 days, just as if your family came to visit while you were away.
Your guests may have homeowners (or renters) insurance on their home that likely protects them against their negligence, liability or loss.
In general, landlord insurance doesn’t cover AirBnB guests either – it is designed for long term rentals where your property becomes the renters residence – not the case with short term AirBnB rentals.
CAUTION – PLEASE BE AWARE: When you Google this question you’ll find many conversations on this subject. In reading through you’ll find cases where by merely asking an agent “would I be covered if …” the homeowner’s policy is cancelled. It might make sense to speak informally to an insurance agent you trust on an ‘off the record’ or hypothetical basis – “My neighbor is doing this … I wonder …”
• THE PURPOSE OF INSURANCE
The purpose of insurance is to protect the named insured (usually the policyholder) from financial loss should certain things happen (called hazards), accepting that there isn’t much else that can be done other than put aside money to pay for them (in the form of insurance premiums).
But, insurance is only one part of a sound risk strategy – other tactics are to avoid or minimize hazards.
As an AirBnB host you can do a lot to avoid or minimize risk;
- Avoid risk by removing valuable, potentially dangerous or defective items from your rental,
- Minimize risk by screening your prospective guests – check reviews on AirBnB, MEET them (or use a reputable Key Service) before handing over the keys, tell them you, your family and/or friends live in the area and keep an eye on things, carefully inspect your property immediately after guests leave, and finally,
- Accept unavoidable and unknowable risk using appropriate insurance products.
As a professional AirBnB property management company, Air-CapeCod is dedicated to avoiding and minimizing risk to maximize profit. Our goal is to rent your Cape house for more money and with less hassle than ever before possible. We take care of every detail for you!!
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The Host Protection Insurance program
The Host Protection Insurance program provides primary coverage for Airbnb hosts and landlords, as additional insureds. The program protects against liability claims up to $1 million USD that occur in a listing, or on an Airbnb property, during a stay.
Though over 60 million guests have had safe, positive experiences staying on Airbnb, it’s best to be prepared when the unexpected occurs. The Host Protection Insurance program provides you peace of mind, protecting hosts against third party claims of property damage or bodily injury up to $1 million.
The insurance policy under the Host Protection Insurance program is provided through Lloyd’s of London, one of the world’s most reputable insurance organizations. Airbnb is the policyholder under the policy and Airbnb hosts and, where applicable, their landlords are the insured parties. The Host Protection Insurance program is provided to hosts and their landlords free of charge and you are not required to pay an insurance premium in order to benefit from protection under the program.
Download HPI Program Summary.pdf
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The $1,000,000 Host Guarantee
The peace of mind of an AirBnB host is priceless, so they don’t charge for it. Every booking on Airbnb is protected by the Host Guarantee at no additional cost to the host. AirBnB doesn’t just say that they value their hosts, they back it up to the tune of $1,000,000. That’s an unmatched level of protection in the travel industry. Hosts are part of the Airbnb family, and AirBnB stand by their family.
Though property damage is rare, the company understands you may need protection. The Host Guarantee will reimburse eligible hosts for damages up to $1,000,000. Payments are subject to certain conditions, limitations, and exclusions. For more details, read the Host Guarantee terms.
Hosts seeking payment under the Host Guarantee agree to cooperate with Airbnb and its insurers, including providing documentation of the claimed loss and agreeing to inspection in the rare cases when it may be necessary.
The Host Guarantee should not be considered a replacement or stand-in for homeowners or renters insurance. The Host Guarantee does not protect:
- cash and securities
- pets
- personal liability
- shared or common areas
Certain types of property–such as jewelry, collectibles, and artwork–have more limited protections. Hosts may want to secure or remove such valuables when renting their place, and may want to consider independent insurance to cover such items.
The Host Guarantee does not protect against reasonable wear and tear.
Will your house be safe as an AirBnB?
Saturday, August 5, 2017 Airbnb recorded its busiest ever night with more than 2.5 million people staying in listed properties. In the vast majority of those stays there was no appreciable damage to the property, yet it seems that we’re always seeing scary stories about wild parties, drunken orgies or worse at homes rented on AirBnB.
Do such events occur? They must, or the UK Daily Mail, Sun or other accurate, responsible, reliable sources could not report them, but they are exceedingly rare, or the UK Daily Mail, Sun or other sources would not report them. An Advanced Google search for “Airbnb, wild party, drunk” does yield 62,800 results – a majority referring to the same dozen or so incidents all around the world.
But consider this – even if all 62,800 citations referred to separate, discrete incidents which all happened on August 5th, it would mean 2.5% of listings could expect a wild parties with 1,000 guests. Your actual odds are infinitesimal.
AirBnB does offer insurance against unlikely events, but at Air CapeCod we advise the classic triad of risk management –
- Eliminate, or identify and remove or secure items of value you do not want to lose,
- Minimize, or screen guests thoroughly and meet them BEFORE they are allowed to take possession of your property, and,
- Indemnify, or have certain risks specifically covered by insurance riders – for instance, if you have a valuable stained glass window which cannot be removed, get property damage insurance which specifically names it and the circumstances.
A 119-page report published by consultancy LearnAirbnb, based on data from nearly seven million bookings from more than 430,000 Airbnb listings and 257,000 hosts across more than 200 cities in the 12 months to October, 2015 – represents about one-fifth of the two million listings that Airbnb says it had in the U.S at that time. Concern about theft and damage is the biggest concern for 18.5% of surveyed prospective Airbnb hosts – however, such worries drop dramatically after two months as a host, with only 1.6% of surveyed current hosts seeing this as their biggest headache.
Who is a typical AirBnB Host?
AirBnB is a large, fast growing network with major nodes in San Francisco, New York, Paris, Amsterdam, Berlin, UK, Sydney and Barcelona. Each of these areas has a different demographic for ‘typical’ hosts, but based on market research and surveys conducted for AirBnB some general conclusions can be drawn;
- Airbnb hosts rent out the home they live in,
- Airbnb hosts say Airbnb helped them stay in their homes.
- Hosts spend most of their Airbnb income for essential living expenses, such as taxes, rent or mortgage payments.
- Nearly half of hosts live in a single–income household.
Seniors (55+) are the fastest-growing host demographic, and senior women consistently are the best-rated hosts on Airbnb. AARP polling shows most older Americans wanting to stay in their homes for as long as possible, and many of them have empty bedrooms that can yield extra income to help them afford to “age in place.”
“Oftentimes, their home is their biggest asset but also their greatest expense, and they may be empty-nesters on a fixed income,” said Marisa Moret, Airbnb public policy manager for nine Western states, including Nevada.
According to research conducted for Airbnb:
- Home sharing on Airbnb brings the typical US host aged 65 and older an extra $8,350 a year, which can be a financial lifeline equal to a 52-percent increase over typical Social Security income.
- Fifty-eight percent of our older American hosts report that Airbnb has helped them stay in their homes.
- A report published in March 2016 revealed that nearly two-thirds of all senior hosts are women.
- Women 60 and older are consistently the best-reviewed hosts on Airbnb, with 63 percent of trips hosted by senior women resulting in a five-star review.
Who is a typical AirBnB Guest?
- Millennials (generally defined as those born between 1980 and 1995, so between 20 and 40) already account for roughly 60 percent of all guests who have ever booked on Airbnb, and the number of Millennials who have booked on Airbnb has grown more than 120 percent in the past year.
- 88% of Airbnb’s reservations were for groups of two to four people and 60% or the reservations were for the entire home / apartment.
The Cape Cod market probably skews slightly older than the typical AirBnB customer, but it has been our experience that the guests we work with tend to be the ages of our children, rather than our peers. As hosts and as property managers we have found this experience delightful, as on the Cape we tend to see a lot of folks our age and older – it is a blessing to see young families enjoying our homes!!
It has been our experience that AirBnB guests are very courteous, considerate and respectful of our properties.
Who Are We?
Steve and Ginne, founders and principals of Air-CapeCod, are unusual in that they are true locals – they met in the 7th grade, attending Barnstable Junior High School.
That’s the same school building where Steve’s Mom attended High School. Steve’s Dad attended Provincetown High School – that’s the same building where Ginne’s Mom later worked for the Provincetown Council on Aging!
Highly unusual in a transient place like the Cape, both their parents and grandparents knew each other!!
Between them, the managing partners of Air-Cape Cod have over a century of experience working with tourists, summer residents and second-homeowners on the Cape. We have been a busboy, waitress, bartender, life guard, pet sitter, whale watch guide, bus tour guide, house painter, interior decorator, B&B developer and host, Realtor™, website designer and much more.
We offer real world experience in hospitality, property maintenance and management. We know the scenic places, we know the local hotspots, we know the great restaurants, we know the plumbers, landscapers and housecleaners – your guests love our hospitality, you love our connections and great results.
Is Air-CapeCod a part of AirBnB?
Air-CapeCod is not legally affilliated or associated with AirBnB. The principals of the company are hosts (we have our own properties listed on AirBnB), and we are qualified AirBnB Co-Hosts, but all activities as Air-CapeCod are those of an independent company offering assistance with the services of another independent company. We are subject to and bound by the same AirBnB rules and regulations as any other host.
We do not receive any additional compensation from AirBnB for our activities other than the usual and customary payments they make to any host, the fees paid for the referral of new hosts and/or payments for the provision of “Experiences”.
Is Air-CapeCod licensed and insured?
In Massachusetts, no license is required to be a property manager.
Under the laws of the Commonwealth, although renting and leasing activities are considered real estate activities undertaken by a real estate broker, if those activities are incidental to his or her involvement as a property manager, a real estate broker license is not required.
The primary business activity of Air-CapeCod is the provision of contract services to and assistance with the management of properties that are listed on the AirBnB online platform. As a part of property management, we consult with prospective hosts about the process and feasibility of using their properties as AirBnBs, assist in the development of listing materials, screen and communicate with prospective guests, greet guests, provide support services to guests, arrange for cleaning, landscaping, etc., on behalf of hosts. Incidental services provided (accepting reservations on behalf of the Host) are akin to those offered by a hotel reservation agent.
Air-CapeCod also assists in the development, promotion and management of AirBnB “Experiences”. There are no provisions in the statutes of the Commonwealth that would require licensing of “Experiences”. There could be circumstances where an individual municipality may require some type of permit or license, in effect classifying an “Experience” as a form of entertainment. In the event that it is determined that a specific “Experience” would be required to be licensed, Air-CapeCod and it’s hosts will comply with the local regulation..
Air-CapeCod carries the following types of insurance and will provide appropriate certificates of insurance as needed:
Errors and Omissions Insurance – Like any service industry that provides a specialized service, we carry professional liability insurance, often referred to as Errors and Omissions (E&O) Insurance. This insurance protects the guest and the host from a financial loss that is directly related to a mistake made by us.
General Liability Insurance – While errors and Omissions Insurance covers specialized services offered by a Air-CapeCod, we also carry General Liability insurance. General Liability insurance is intended for the day to day business practices of any company, regardless of the industry.
Does Air-CapeCod conduct criminal background checks of the cleaners, landscapers and other contracted services personnel they use?
At this time all persons associated with Air-CapeCod have been thoroughly vetted – we’re a bunch of locals who’ve known each other for years.
It is the policy of Air-CapeCod to contract with local companies who employ personnel who have passed appropriate criminal background (CORI) checks.
We rely on our sub-contractors to conduct those checks.
Is Air-CapeCod looking for development partners?
At the present time Air-CapeCod is looking to develop mutually beneficial relationships on a number of levels, including partnering in the development of proprietary analytical software, general business development and geographic expansion. For more details about the types of opportunities available, take a look at our “Join With Us … ” pages or contact us directly.
This is not a solicitation for investors.
Can I do AirBnB in my house?
Most likely, yes. Virtually anybody who owns or rents a home can become an AirBnB host. The registration process is simple, and when you decide to work with Air-CapeCod, part of our service is to properly set up your account, handle the registration, check the right boxes, etc.
Whether your property is desirable as an AirBnB destination and whether you can be a successful AirBnB host is another question. Again, when you decide to work with Air-CapeCod, we help out with these questions. We have developed our exclusive 149 point UltraHost™ Checklist based on market research, guest preferences and discussions with hosts around the world, as your guide to the ‘physical aspects’ of hosting – loads of “must have” items your guests will expect (CLICK HERE to download a copy!!).
You can also use our contact form, text us, call us on our toll-free number or our local number – we are happy to talk and take a look at what you have to offer. All our conversations are confidential and we do not share your information with anyone.
DIFFERENT WAYS TO RENT WITH AIRBnB
There are two general types of hosting – the homesharing model, where the host lives in the house with their guests, who stay in an ‘in-law’ apartment, separate wing of the house, upstairs or some other acceptable arrangement. This type of hosting accounts for about 40% of all AirBnB business.
The second, more popular model, is ‘whole house‘ – ideal for second homeowners. This is very familiar to people on the Cape – we’ve been doing it for over a hundred years – it’s what most people call ‘summer rentals‘. Here at Air-Cape Cod we deal primarily with the “whole house” model, simply because of the huge number of second, vacation homes in our service area. The “whole house” model can be problematic if you wish to share your primary residence, unless you have family or friends who can take you in while your home is occupied by guests.Keep in mind that some apartments buildings, condominium developments or neighborhood associations may have specific restrictions regarding renting or subletting which may restrict or eliminate your ability to be a host.
At Air-Cape Cod we believe that if you own a home on Cape Cod, especially a second or third home, we offer the absolute best way to build equity and generate income without any expense to you. We make renting simple, easy and hassle free.
AirBnB properties managed by Air-Cape Cod can;
- Pay Your Property Taxes,
- Pay Your Mortgage,
- Pay Your Utilities or Maintenance,
- Build Your Equity,
- Pay for a Nice Vacation,
- Send a Child to College, or
- Help You Stay In Your Home!!
What do I need to make my house AirBnB ready?
Making your house ready to host with AirBnB is relatively simple – if you were going to vacation on the Cape, what would you like to have in your rental?
Part of the service we offer is a basic analysis of your home and its potential for hosting. We earn our income managing properties and have a really good eye for desirable properties AND how to “fluff and buff” homes to make them even more desirable. Use the contact form on every page, text us, call us on our toll-free phone line or email us – we’ll talk, take a look at your property and give you our opinion.
Our careers in marketing a wide variety of products (including real estate), plus our time as interior decorators, lighting designers and BNB developers and hosts have given us some very special skills we use to benefit our hosts. One key concept we emphasize is that the most important part of making your house AirBnB ready actually happens long before your first guest arrives, and it involves the proper staging, photography and written descriptions of your home.
Download our exclusive report and 149 Point UltraHost™ Checklist
For your convenience we provide a free download which includes an informative report on the incredible opportunity available with Air-Cape Cod and AirBnB, plus our exclusive 149 Point UltraHost™ Checklist – just click HERE and you’ll go to the download page. It is FREE, all you need to do is put in your email address, click on the button and you’ll have a PDF copy.
And please don’t worry – there are no viruses or malware and we will not spam, sell, share, rent or otherwise distribute your email address.
Can I stay in my house while hosting on AirBnB?
Yes, you certainly can and it is, in fact, quite common.
There are two AirBnB models – “homesharing”, in which the Host is expected to stay in the home with guests, or “whole house”, where guests have private quarters, including private entrance, kitchen, baths, etc., and generally have minimal interaction with the Host.
About 40% of all AirBnB bookings use the homesharing model – for many hosts it is the only viable alternative – they don’t have a second home to go to or family to stay with for extended periods. In this model guests would generally have a private bath, but usually would share the kitchen, dining room and sometimes ‘common areas’ of living, family room or den.
The homesharing model generally doesn’t get the same rates as the whole house (ie when comparing a two bedroom house with two rooms in a shared home). However, given the right set up (in-law or basement apartments, guest wing, etc.) this type of arrangement can command rates very close to “whole house” offerings. And of course, all ‘rooms’ are not created equal – any accomodations in grand, unusual or historic homes can command special rates.
In homesharing the personality, hospitality and local knowledge of the hosts also can go a long way in adding value to their guest’s stay.
Air-CapeCod works with ‘homesharing’ hosts to ensure their accomodations meet the highest standards of comfort and cleanliness, that their listing presentation and photos project a clear sense of the personality of the host and house and that they understand and practice the true princples of hospitality.
AirBnB began as a homesharing site, and the attraction of ‘living local‘ is a strong, vibrant part of the company. Air-CapeCod is working to build the same ethos in our Cape Cod listings.
What areas do you serve?
At the present time we are operating primarily in the Mid Cape Area, serving Centerville, Barnstable Village, Cummaquid, all of Yarmouth and most of Dennis.
Our business model is based on nodes of geographic proximity – in order to provide top quality service we develop hosts near each other.
As we find more interest in other areas we will build out additional nodes.
EMAIL Our Managing Partners Directly!
How much do your services cost?
Most of our services cost you nothing – we are paid out of revenues we generate on your behalf. We earn money for you and take a share. The size of the share depends on the level of services we provide.
We can design a custom blend of service levels specifically for you, ranging from our very popular “Key Service” where your guests are met, greeted, given a short tour of the property and local recommendations for beaches, dining, etc. plus keys, to our deluxe “RELAAAX” option, where you get a check*, we do all the work.
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* Check is a euphemism – we like to use Paypal, Venmo or other similar services for financial transactions.