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WARNING: 7 Costly Mistakes New Homestay Hosts Keep Making (And Losing Money)New to hosting? Discover 7 common mistakes that cost Indian homestay owners money, from pricing errors to poor communication. Learn how to avoid them and run a successful, guest-friendly homestay.


If you’ve spent any time browsing listings on Airbnb, Homeyhuts, or Booking.com, you’ve probably seen properties with beautiful photos, promising descriptions, and surprisingly low ratings. You might assume these hosts were unlucky, but in reality, most low-rated homestays suffer from the same predictable mistakes.


Hosting isn’t just about offering a place to sleep—it’s about creating an experience that feels smooth, comfortable, and worth the price. Over the years, I’ve watched many first-time hosts jump in with big hopes, only to get stuck in a cycle of poor reviews and lost income. Nearly every time, it comes down to these seven avoidable errors.


Setting the Wrong Price From Day One


One of the biggest mistakes new hosts make is guessing what to charge. Some people set the price high because they think it reflects quality. Others start too low in hopes of getting quick bookings. Both approaches can backfire.

Pricing too high without a track record usually leads to an empty calendar. Guests will compare your property to others with more reviews and skip yours. But pricing too low does more than eat into profits—it attracts bargain hunters who often have higher expectations and are quicker to complain.


A better approach is to spend time studying similar listings in your area. Look for those with consistent bookings and good reviews, and set your rates in the same range. Consider offering a small introductory discount—just enough to attract your first guests and start collecting positive reviews. As your ratings improve, you can adjust prices with more confidence.


Skipping Clear Communication


Another reason many hosts struggle is poor communication. Guests today expect fast, clear responses. If you reply slowly or vaguely, it creates uncertainty before they’ve even arrived.


From the moment someone books, your job is to keep them informed. Confirm the reservation quickly. Send clear check-in instructions a couple of days before arrival. Let them know you’re available if they have questions.


During the stay, a short message asking if everything is okay can prevent small problems from turning into negative reviews. After checkout, a polite thank-you note and a request for feedback shows professionalism and helps you learn what to improve.


Good communication doesn’t cost money, but it builds trust and keeps guests relaxed. It’s often the single biggest factor in whether someone leaves you four stars or five.


Ignoring the Basics of Cleanliness and Maintenance


A spotless space sounds obvious, but you’d be surprised how often new hosts underestimate what “clean” means to a paying guest. Travelers aren’t looking at your property with the same forgiving eyes you do. They notice dusty corners, hair on the floor, smudges on mirrors, and kitchen odors.


Before every check-in, do a thorough walk-through. Check bathrooms, kitchen surfaces, under the beds, and inside cupboards. Make sure linens and towels are freshly washed and neatly arranged.


Equally important is basic maintenance. If something doesn’t work—a dripping tap, a faulty AC, a door that sticks—fix it before the guest arrives. When people are paying to stay, they expect everything to function without hassle.

Cleanliness and upkeep are two of the most common reasons for complaints and refunds. Don’t let small oversights become big problems.


Not Thinking Through the Guest Experience


New hosts often assume that as long as the property looks good, guests will be happy. But there’s a lot more to a good stay than nice photos.


Think about the full experience from the guest’s perspective. What happens when they arrive tired from a long journey? Is the entrance easy to find? Is there drinking water ready? Are instructions for Wi-Fi and appliances clear and accessible?


Consider leaving a small welcome note or some local snacks. These gestures don’t cost much but feel personal. Also, anticipate questions. Put together a simple guidebook with tips about the neighborhood, emergency contacts, and directions to grocery stores or pharmacies.


A smooth, thoughtful arrival experience sets the tone. If the first impression is confusing or frustrating, it’s much harder to recover.


Forgetting to Set and Share Clear House Rules


One mistake that leads to countless misunderstandings is failing to set clear expectations. You might assume guests will respect your space just as you would, but everyone has different standards.


Decide upfront what’s okay and what isn’t. Can guests smoke? Is it fine to bring extra visitors? Are pets allowed? How should they handle rubbish or dishes before checking out?


Write these rules clearly in your listing description and in your welcome materials. Then, gently remind guests after they book. This isn’t about sounding strict—it’s about avoiding surprises and awkward conversations later.


When guests know exactly what’s expected, they’re much more likely to follow through.


Overlooking Platform Tools and Support


Every hosting platform, from Airbnb to Homeyhuts, has built-in tools designed to help you succeed. Yet many beginners never bother to explore them.


Features like automated messaging, calendar sync, smart pricing suggestions, and reservation reminders can save you time and prevent mistakes. Some platforms, like Homeyhuts, offer dedicated support teams who actually understand the Indian homestay market.


If you’re serious about hosting, take the time to learn how these tools work. They’re often the difference between feeling overwhelmed and running a smooth, professional operation.


Treating Hosting Like a Side Hobby Instead of a Real Business


Finally, the most costly mistake is treating hosting like a casual side gig rather than a business. Even if you’re only renting out one room, you are providing a professional service. That means paying attention to finances, taxes, and compliance.


Keep clear records of your earnings and expenses. Be prepared to declare your income and, if you cross ₹20 lakh in turnover, register for GST. Know your local regulations—many Indian states require homestay registration, and ignoring this can lead to fines or forced delisting.


When you treat your homestay seriously, guests notice. They see it in your responsiveness, your attention to detail, and your willingness to improve.


The Bottom Line


Hosting can be deeply rewarding—both financially and personally—but it isn’t effortless. Many of the most damaging mistakes come down to inexperience, rushed preparation, or simply not thinking things through from the guest’s perspective.


If you’re just starting out, take the time to get your pricing right, communicate clearly, keep your property in excellent shape, and set expectations upfront. Use the tools your platform provides, and never forget that you’re running a real business.


Ready to make the most of your hosting journey? Partner with Homeyhuts to simplify property management and maximize your rental potential. Our platform offers cutting-edge solutions to help you attract more guests and achieve greater success.

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