The sharing economy now makes it feasible to earn money by renting out your belongings. You may rent out your automobile via Turo, your backyard pool for parties or events with Swimply, and a spare room or other properties via Airbnb.
However, is becoming an Airbnb host worthwhile? Examine how to generate money on Airbnb to determine if it’s a good fit for you.
What exactly is Airbnb?
Airbnb is an app and web-based platform that allows you to host visitors in your home, apartment, or other properties. The platform is based on the community. Guests and hosts are able to review one another; these reviews are crucial, as others might use them to judge the type of guest or host you are.
How To Make Money on Airbnb
To earn money as an Airbnb host, you must have at least one room available for rent. By offering many houses, though, some hosts have transformed Airbnb hosting from a side gig to a full-time company. Tents, treehouses, yurts, airstreams, and geodomes are novel accommodations that can generate income on Airbnb, even if you don’t have a large number of vacation properties to rent.
However, what if you have no space to rent? There are additional ways to earn money on Airbnb, such as:
- Property administration
- Hosting adventures
How To Become A Host On Airbnb
Becoming a host on Airbnb is relatively easy. The website guides you through the procedure by inquiring about the room or property you intend to rent out. The primary steps in the setup walk-through are as follows:
- Describe the rental’s location, number of rooms, and amenities.
- Upload images
- Create a calendar of availability
- Add domestic rules
- Compare prices
- Review local rental regulations
Don’t worry if any of the points on the list appear overwhelming. Airbnb simplifies the process by providing instructional videos and decision-making guides. For instance, the website may contain information regarding hosting laws in your city.
After being an official host, you will ideally begin to receive booking inquiries. Before deciding whether or not to accept a reservation, you can browse the individual’s profile to view past reviews from other hosts. Additionally, you can engage with the guest via Airbnb’s messaging network.
What is the average Airbnb host’s income?
The amount you can earn depends on your location, quantity of rooms or properties, and marketing expertise. According to AllTheRooms Analytics, the average price of a night’s stay worldwide in 2021 will be $137. The average nightly fee in North America is $208, which is the highest in the globe.
It seems tempting to earn over $100 per night as a host, but it is uncommon to have 100% occupancy or be fully booked for the entire month. As of 2021, Earnest discovered that nearly half of Airbnb hosts earn at least $500 per month, with an average monthly income of $924.
Can Airbnb actually be used to generate income? Despite the epidemic, a number of hosts have outperformed the norm and struck a home run:
- Alexis Schroeder of Fitnancials earns $2,000 for her northern Virginia property during her busiest months.
- Hopscotch’s Kristen Sarah and Siya Zarrabi The Globe earned $10,000 in their first month of renting out their mountain home in Ontario.
- Susan and Boris Mordkovich of BuildYourBnb average $5,000 in monthly rental income from a few of their properties.
Considerations When Pricing Your Airbnb
Before deciding on a nightly rate, you should consider some of the costs associated with being a host. They consist of:
- Renters insurance is required to protect you against the costs of litigation and property damage.
- The service fee charged by Airbnb is straightforward. You will be charged 3% on each reservation. It’s not much, but it adds up over time.
- If you rent for more than 14 days a year, you will be required to pay taxes on your rental revenue. Consult a tax expert to maximize your deductions and prepare for tax filing.
- Utilities: Don’t forget to factor in your rental’s water, electricity, internet, garbage service, and gas.
- Whether you employ a professional cleaning service or do it yourself, you will spend costs to clean and prepare the rental before each guest’s arrival. Many hosts defray cleaning costs by charging guests in advance.
- Emergencies: clogged toilets and leaks typically occur at the worst possible time. It is essential to have maintenance contacts available in case of an emergency repair. Calling a plumber on a Friday night will be expensive, but it is part of being a competent host.
- Soap, toilet paper, cleaning supplies, and other supplies are included in the cost of doing business. When considering how to price your rental, don’t forget to include in the expense.
Who May Serve as an Airbnb Host?
As previously stated, a beachfront mansion is not required to make money on Airbnb. You can hire out a room or even your lawn for a tent. It appears that the more imaginative the experience you offer your guests, the more popular your rental may become. Clearly, there are limitations.
According to Airbnb, all hosts must adhere to certain rules. Among the most important are:
- Ensure your home is sanitized according to the COVID-19 criteria of the Centers for Disease Control and Prevention.
- Provide amenities including toilet paper, soap, pillows, linens, and towels.
- Respond to requests for reservations within 24 hours.
- Maintain a high customer satisfaction rating.
- Observe the laws and policies of your community regarding hosting.
- There are no recording devices permitted in bedrooms or toilets. Other regions’ surveillance cameras must be revealed.
- Provide a well-marked fire escape path.
Who Cannot Become an Airbnb Host?
Although Airbnb does not impose many restrictions on hosts, there are a few things you should consider before signing up.
- If you rent, your lease agreement may prohibit you from subleasing or hosting your rental property.
- Some buildings or communities may impose restrictions on the amount of nights you can rent your property, or even on which levels vacation rentals are permitted.
- Some neighbors may be hostile against the possibility of an Airbnb rental next door, which might make your visitors’ stay uncomfortable.
To avoid landing in hot water as a host, it is vital to conduct preliminary investigation.
How to Make Money on Airbnb Without Owning a Home
If you do not own a property that you can rent out, you can still make money on Airbnb in other ways. Here are some considerations.
Find an Airbnb host who will co-host with you.
Even while you won’t earn as much as you would if you hosted your own Airbnb, co-hosting could be worthwhile, especially if you’re trying to gain hosting experience. A co-host assists the host with Airbnb hosting tasks, such as interacting with guests before, during, and after their stay, supervising guest check-ins and check-outs, completing property inspections, managing cleaning and maintenance staff, and restocking necessary supplies.
Your remuneration will depend on the agreement you reach with the Airbnb host who employs you. For instance, your compensation could range from 10 to 20 percent of the nightly rate, or you could earn a set monthly charge. Additionally, you should charge a fee for cleaning the premises.
Become an Airbnb Host Rental Property Manager.
Property managers for Airbnb hosts perform many of the same responsibilities as co-hosts, in addition to satisfying property owners’ requests and marketing the Airbnb properties they manage.
Depending on your state’s laws, you may require a real estate broker’s license or a property manager’s license. Property managers for Airbnb hosts can receive a set monthly fee or negotiate between 25 and 50 percent of the collected rent.
Provide an Airbnb Experience
Hosting an Airbnb experience, such as a cuisine tour by bicycle, nature trek, or tour in which you share stories about your city, is another option to earn money on Airbnb.
To get started, you must ensure that the experience you intend to offer is Airbnb-approved. Next, you must construct an experience page that describes your skills and includes images. You will then add dates and begin hosting.
Check with your local authorities to see if you require a business license based on the experience you offer. To determine how much to charge per experience, it is likely that you will need to examine comparable listings. Consider that Airbnb charges Experience Hosts a 20% service fee on the price of the experience they offer.
Offer Your Photographic Services as an Airbnb Host
As part of their marketing efforts, Airbnb hosts frequently require the services of a professional photographer. If you have experience photographing interiors, you may offer your services as an Airbnb photographer.
According to the real estate content platform Areyo, you should charge twice as much for Airbnb photos as you would for a home real estate listing, because real estate listing photos are no longer useful once a property has been sold, whereas Airbnb photos can be used repeatedly to rent out a property.
Offer Your Writing Services to Airbnb
Copywriting plays a substantial role in the marketing of Airbnb properties. If the property’s title and description are not appealing to potential tenants, the host will likely struggle to secure reservations.
You can set your own prices for this service, but you should probably research how much current Airbnb copywriters earn. On the website of one copywriter, for instance, a complete Airbnb listing costs $219 and two entire listings cost $350.
Start a Cleaning Service for Airbnb
Maybe you reside in a region with hundreds or thousands of Airbnb listings. If this is the case, creating your own Airbnb cleaning service could be a quick method to generate a substantial income.
Marketing and purchasing cleaning equipment and supplies will require some initial investment. If you wish to expand your business, you may also need to hire a few workers to assist you with cleaning.
The easiest approach to determine what to charge is to examine the prices of other Airbnb cleaning services in your neighborhood. In 2021, the nationwide average cleaning expenses for short-term rentals were $60.68 for one-bedroom properties, $78.58 for two-bedroom properties, and $106.49 for three-bedroom properties, according to statistics provided by TurnoverBnB.
Airbnb vs Competitors
While hotels are the most obvious Airbnb competitors, there are a few additional websites or mobile applications that could function as Airbnb substitutes. Here’s how they stack up:
Airbnb vs. FlipKey
FlipKey is the rental platform for Tripadvisor. The website is not as organized and user-friendly as Airbnb’s. It has approximately 830,000 rentals, compared to Airbnb’s 6 million. However, many people rely on Tripadvisor ratings of attractions and accommodations, making it a credible alternative to Airbnb.
Airbnb vs. Vrbo
Vrbo is an abbreviation for Vacation Rentals By Owner. It was founded in 1995, making it older than Airbnb. Vrbo provides approximately 2 million properties, which is a third of Airbnb’s 6 million. Although Vrbo has made enhancements over the years to make the experience easier for hosts and guests, Airbnb’s infrastructure for booking and hosting is still easier to use.
Airbnb vs. Couchsurfing
Airbnb is a commercial service, whereas Couchsurfing is a free service. Before listing on Airbnb, you may get a feel for what it’s like to have guests by hosting a few couch surfers. However, Airbnb makes it easy to get started and gives new hosts with a wealth of assistance and resources to help them succeed.
Other Factors to Consider
There are a number of variables and costs that could have an impact on the performance of your business – and your bottom line. Initially, it is essential to be aware of the guests you accept on your property. Otherwise, you could risk property damage. Wear and tear should be anticipated. However, it is also feasible for someone to steal your towels or bed linens. Choosing visitors with excellent ratings could reduce future issues, but it is vital to have a reserve budget for maintenance and replacement of items.
There is also the concern of disturbing your neighbors. In certain regions, angry neighbors are lobbying for more local regulations, making it more difficult to rent out your apartment. Possessing a comprehensive list of house rules could be useful for informing potential visitors of your expectations and for maintaining peace.
Airbnb allows several proprietors and renters to generate income. All you need is the desire to give an exceptional experience for your guests by making sure they are comfortable and welcome. It’s a terrific method to supplement your income or pay off your mortgage early.
Being an Airbnb host requires some early preparation to ensure the property is clean, pleasant, and well photographed. You can generate money by renting out unused space, your home while you’re away, or even a corner in your lawn.
The best aspect is that you may make money on Airbnb even if you do not own a house. Co-hosting, managing a short-term rental property, hosting an Airbnb experience, or providing services as an Airbnb copywriter, photographer, or cleaning service are all viable options.