1. Use a space you already have.

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Granted, this is assuming you already own some kind of space with Airbnb potential. But many people think they need to a) buy a brand new vacation property or b) build a brand new ADU to start their Airbnb. While these are excellent options if you have the start-up cash, you can start smaller with an existing space on your own property. When I looked into building a backhouse as an additional dwelling unit (ADU), I was shocked at how expensive it would be—the construction costs, the permitting fees, and the cost of furnishings all added up to way more than I could afford at the time. Luckily, I already had a finished basement which, with a tiny bit of construction, could become a private area of the house for an Airbnb. Of course, a backhouse is much more ideal than a basement to have people live alongside you, but I figured I’d use what I had in the meantime while saving up for the more ideal location, the ADU. Also, the basement Airbnb profits could go toward the construction of the ADU. Three years after I had started my basement Airbnb, my backhouse was constructed and ready to receive guests. Three years of sacrifice with people living under my floorboards had paid off—they were in their separate space, and I could have my basement back!

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2. Tackle the big construction projects later.

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I could have turned my basement into an amazing Airbnb unit if I wanted to with lots of extra renovations to make that happen. But I received a tip from a contractor who said to start my Airbnb first, and once I started making money, that would be the time to put the money back into the business to improve it. In the beginning, I did the bare minimum when it came to construction—I closed off the area so that guests would have a private entrance and a private unit (very important for charging higher nightly rates), and I added an inexpensive but completely functional kitchenette rather than a huge kitchen addition. The money I saved with this smaller construction cost allowed me to later build my dream ADU—with the beautiful kitchen and all. If you’re anything like me, watching house renovation shows all the time will make you want to renovate from A to Z, but sit tight, be patient, and get by with what you can at first. Your great design and thoughtful touches will make up for whatever your space lacks (on to that topic now). 

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3. Create a budget ahead of time.

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Once you have walls and space to fill, give yourself a realistic budget. Try to think of everything you’ll need to buy for your Airbnb—furniture, appliances, linens, kitchen items, decor, etc. (There are plenty of lists you can look up online). Setting yourself a monetary goal is a big help since it will force you to get realistic with the numbers as well as get creative with your purchase choices. I’ve set myself a budget for every Airbnb I have designed, and it’s not only a good money saver, but it’s a fun exercise to try to stick to that fixed number. 

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