Nowadays, the sharing economy allows you to earn money by renting out your belongings. You might rent out your automobile through Turo, your backyard swimming pool for parties or get-togethers with Swimply, and even a spare room or other properties through Airbnb.
But is it worth the effort to become an Airbnb host? Examine how to generate money on Airbnb to see if it’s suited for you.
What Is Airbnb?
Airbnb is an app and web platform that allows you to host visitors for stays in your home, apartment, or other properties. The platform is community-driven. Guests and hosts can review each other – reviews are significant since others can read them to determine what kind of guest or host you are.
How to Make Money on Airbnb
To generate money as an Airbnb host, you must have at least one room available to rent out. However, by offering many properties, some hosts have turned Airbnb hosting into a full-time business. Think beyond the box – even if you don’t have a few vacation properties to rent out, you can make money on Airbnb by putting up unique accommodations such as tents, treehouses, yurts, airstreams, and geodomes.
But what if you don’t have any rental space? Other ways to make money on Airbnb include:
- Property management
- Hosting experiences
How to Become an Airbnb Host
It is extremely straightforward to become an Airbnb host. The website guides you through the process by asking you questions about the property or room you intend to host. The following are the primary stages you’ll need to take throughout the setup walk-through:
- Provide information about the rental, such as location, number of rooms, and amenities.
- Upload images
- Make an availability calendar.
- Make some house rules.
- Prices should be chosen.
- Examine local rental laws.
Don’t worry if some of the points on the list appear to be overwhelming. Airbnb simplifies the process by providing lessons and recommendations to assist you in making an informed selection. For example, the website may contain information regarding hosting laws in your city or municipality.
When you become an official host, you should start receiving booking requests. Before deciding whether to accept a booking, you can study the person’s profile to see previous ratings from other hosts. You can also contact with the visitor via Airbnb’s messaging tool.
How Much Does the Average Airbnb Host Make?
The amount you can earn is determined by your location, the quantity of rooms or properties you have, and your marketing abilities. According to AllTheRooms Analytics, the average nightly stay in 2021 will cost $137 per night globally. However, nightly rates in North America are the highest in the world, averaging $208 per night.
Earning more than $100 per night as a host sounds appealing, but being fully booked for the entire month is unusual. Earnest discovered that approximately half of Airbnb hosts earn at least $500 per month, with an average monthly profits of $924 as of 2021.
Can you really make money with Airbnb? Despite the epidemic, some hosts have outperformed the norm:
- Alexis Schroeder of Fitnancials earns $2,000 during her peak months for her northern Virginia property.
- Hopscotch founders Kristen Sarah and Siya Zarrabi The Globe made $10,000 in their first month hosting their Ontario mountain house.
- Susan and Boris Mordkovich of BuildYourBnB earn an average of $5,000 a month by renting out a few of their houses.
What To Consider When Pricing Your Airbnb
Consider some of the costs of doing business as a host before setting a nightly rate for your rental. These are some examples:
- Insurance: A renters insurance coverage is required to safeguard you against the costs of litigation or damage to your property.
- Airbnb’s service fee is easy. Each reservation will cost you 3%. It’s not much, but it adds up.
- Taxes: If you rent for more than 14 days per year, you will be required to pay taxes on your income. Speak with a tax professional to maximize your write-offs and plan for tax filing.
- Utilities: Don’t forget to account for water, electricity, internet, garbage service, and gas on your rental.
- Cleaning fees: Whether you employ a firm or do it yourself, you will pay costs to clean and prepare the property prior to each guest’s arrival. Many hosts mitigate cleaning fees by charging them to guests in advance.
- Emergencies: A clogged toilet or leak usually occurs at the most inconvenient time. It’s critical to have maintenance contacts on hand in case you need to conduct an emergency repair. It will be costly to call a plumber on a Friday night, but it is part of being a professional host.
- Supplies: Soap, toilet paper, cleaning supplies, and other items are included in the cost of doing business. Remember to factor in the cost when determining how much to charge for your rental.
Who Can Become an Airbnb Host?
As previously said, you don’t need a beautiful coastal house to make money on Airbnb. You can rent out a room or even host a tent in your lawn. It appears that the more innovative you are regarding the experience you provide your guests, the more popular your rental might be. Of course, there are limitations.
According to Airbnb, there are several basic rules that all hosts must fulfill. Some of the most important are:
- Ascertain that your home is thoroughly sterilized in accordance with the Centers for Disease Control and Prevention’s COVID-19 criteria.
- Provide necessities such as toilet paper, soap, pillows, linens, and towels.
- Respond to booking requests within 24 hours.
- Maintain a high customer satisfaction rating.
- Follow your local area’s hosting rules and ordinances.
- In bedrooms and toilets, recording devices are not permitted. Security cameras in other areas must be made public.
- Maintain a well marked fire escape route.
Who Can’t Be an Airbnb Host?
Although Airbnb does not impose many restrictions on hosts, there are several things you should consider before signing up.
- If you rent, your lease agreement may contain a provision prohibiting you from subletting or hosting your property.
- Some buildings or communities may limit the amount of nights you can rent your space, or even which floors allow vacation rentals.
- Certain neighbors may be adverse to the thought of an Airbnb rental next door, making your visitors’ stay uncomfortable.
To avoid getting into trouble as a host, do your homework upfront.
How to Make Money on Airbnb When You Don’t Own a Property
If you don’t own a property to rent out, there are alternative methods to make money on Airbnb. Here are things to think about.
Find an Airbnb host who will accept you as a co-host.
Even while you won’t be able to earn as much as you would having your own Airbnb, co-hosting could be worthwhile — especially if you want to gain expertise in Airbnb hosting. A co-host assists the host in carrying out the duties of Airbnb hosting, such as interacting with guests before and during their stay, supervising guest check-ins and check-outs, completing property inspections, managing cleaning and maintenance employees, and refilling any essential products.
The amount of money you’ll receive is determined by your agreement with the Airbnb owner who hires you. For example, your payout could be 10% to 20% of the nightly charge, or you could earn a fixed monthly fee. Furthermore, if you clean the property, you should charge a separate cost.
Become a Rental Property Manager for Airbnb Hosts.
Rental property managers for Airbnb hosts do many of the same obligations as an Airbnb co-host, but they are additionally responsible for satisfying property owners’ requests and marketing the Airbnb properties they manage.
You may need a real estate broker’s license or a property manager’s license depending on your state’s laws. Rental property managers for Airbnb hosts might earn a set monthly fee or negotiate 25% to 50% of the rent received.
Host an Airbnb Experience
Another method to make money on Airbnb is to host an Airbnb experience, such as doing a cuisine tour by bicycle, leading nature walks, or sharing stories about your city as part of a tour.
To begin, make sure the experience you wish to offer is approved by Airbnb. Next, you’ll need to develop an experience page where you may explain your skills and include images. Finally, you’ll add dates and begin hosting.
Check with your local authorities if you require a business license based on the experience you provide. You should probably look at other listings that are comparable to what you’re selling to figure out how much to charge per experience. Keep in mind that Airbnb charges Experience Hosts a 20% service fee based on the price of the experience they give.
Offer Your Services as an Airbnb Photographer
As part of their marketing efforts, Airbnb hosts frequently require someone to photograph their rental properties. If you’re great at capturing interior shots, you may work as an Airbnb photographer.
According to real estate content provider Areyo, when taking Airbnb images, you should charge twice as much as you would for a house real estate listing, because real estate listing photos are no longer valuable once a property is sold, however Airbnb photos can help rent a property repeatedly.
Offer Your Services as an Airbnb Copywriter
A lot goes into marketing an Airbnb property, and copywriting is a big part of it. If the title and description of the home aren’t appealing to potential renters, the host will likely struggle to secure bookings.
You can set your own pricing for this service, however you should probably check at what current Airbnb copywriters are paid. For example, one copywriter’s website offers an entire Airbnb listing for $219 and two complete listings for $338.
Begin an Airbnb Cleaning Service
Perhaps you reside in an area with hundreds or thousands of Airbnb listings. If so, starting your own Airbnb cleaning business could be a simple way to start making money.
You’ll need to invest some money up front in marketing your business and purchasing cleaning equipment and materials. If you want to expand your business, you might need to hire a number of people to assist you clean.
The simplest method to figure out how much to charge is to look at what other Airbnb cleaning services in your region are charging. According to TurnoverBnB data, the nationwide average cleaning expenses for short-term rentals in 2021 were $60.68 for one-bedroom properties, $78.58 for two-bedroom properties, and $106.49 for three-bedroom properties.
Airbnb vs. Competitors
While hotels are the most obvious Airbnb competitors, there are a few more websites or apps that could function as Airbnb alternatives. Here’s how they compare:
Airbnb vs Couchsurfing
The key distinction between the two is that Airbnb is charged while Couchsurfing is free. You may begin by hosting a few couch surfers to get a sense of what it’s like to have visitors before listing on Airbnb. However, Airbnb makes it simple to get started and offers plenty of assistance and tools for new hosts who want to do it well.
Airbnb vs Vrbo
Vrbo is an abbreviation for Vacation Rentals By Owner. It’s been around longer than Airbnb, having been founded in 1995. Vrbo has around 2 million properties, which is one-third of Airbnb’s 6 million. Although Vrbo has made improvements over the years to make the experience easier for hosts and guests, Airbnb’s software is still better to use for booking and hosting.
Airbnb vs FlipKey
FlipKey is Tripadvisor’s rental platform. To begin, the website isn’t as sleek and user-friendly as Airbnb’s. It currently has roughly 830,000 rentals, compared to Airbnb’s 6 million. However, many people rely on Tripadvisor user reviews for things to do and places to stay, making it a credible alternative to Airbnb.
Some circumstances and expenses may have an impact on your company’s success – and your bottom line. To begin with, it is critical to be mindful of the guests you accept on your home. Otherwise, you risk damaging your rental. Wear and tear are to be expected. However, there is a chance that someone will steal your towels or linens. Choosing visitors with excellent ratings may reduce future problems, but having a contingency money to cover maintenance and repair of items is crucial.
Then there’s the matter of disturbing your neighbors. Angry neighbors in some regions are lobbying for new local rules, making it more difficult to rent out your apartment. A good set of house rules will help inform potential guests of your expectations – and keep the peace.
Many homeowners and renters can make money on Airbnb. All you need is the desire to make your guests feel comfortable and welcome. It’s a terrific option to supplement your income or pay off your mortgage faster.
Being an Airbnb host involves some preliminary work to clean the apartment, make it comfy, and take attractive images. But the payback is fantastic: you can earn money by renting out unused space, your home while you’re away, or even a piece in your lawn.
The best aspect is that you can earn money on Airbnb even if you don’t own a property. Co-hosting, becoming a short-term rental property manager, hosting an Airbnb experience, or giving services as an Airbnb copywriter, photographer, or cleaning service are all possibilities.