With the rise of the sharing economy, making money by renting out your belongings has never been simpler. Imagine leasing your car on Turo, offering your backyard pool for awesome parties via Swimply, and yes, even capitalizing on your extra room or properties through the well-known platform, Airbnb.
Let’s zero in on Airbnb – your ticket to hosting guests in your home, apartment, or other properties. It’s all about building a community-based experience that brings people closer. With the ability for guests and hosts to share their thoughts and leave reviews, these reviews become crucial in helping potential users gauge what kind of experience they might have.
Now, the big question: Is becoming an Airbnb host worth your time and effort? It’s a valid question, one that deserves a closer examination. In this article, we’ll dive deep into the specifics of making money with Airbnb, assisting you in deciding if this path aligns with your goals.
If you’re curious and ready to take the plunge, let’s break down the essential steps to launch your own Airbnb business.
Table of Contents
How to Start an Airbnb Business?
Step 1: Get Permission
Before diving into your Airbnb adventure, make sure you have the green light to proceed. Here’s how:
- Get Permission: If you’re renting, touch base with your landlord, co-op board, or homeowners association to ensure you’re allowed to host guests.
- Review Your Lease: Give your lease a read-through to see if it mentions anything about subletting or short-term rentals.
- HOA Check: If you’re part of a homeowners association, check for any rules or limitations on short-term rentals.
Step 2: Set Up Your Airbnb Space
Creating a cozy and inviting space is key to a successful Airbnb. Whether you’re offering a single room or your entire home, a few thoughtful investments can make a big difference:
- Convenient Entry: Consider installing a keyless lock for hassle-free check-ins.
- Comfort Essentials: Think about providing amenities like a mini-fridge, microwave, and Keurig for your guests’ convenience.
- Space Enhancement: You might even consider making modifications like adding a wall to create a private room or setting up a separate, well-furnished TV area.
- Linen and Essentials: Stock up on fresh sheets, towels, and toiletries to go above and beyond your guests’ expectations.
- Utility and Cleaning: Be prepared for potentially higher utility bills and plan for cleaning services between guest stays.
- Teaming Up: If needed, consider partnering with a co-host to manage your Airbnb together.
- Financial Considerations: Factor in taxes and the Airbnb host fee to ensure your financial planning is spot-on.
Step 3: Price It Right
Finding the perfect price for your Airbnb is a blend of strategy and insight. Here’s how to set your rates:
- Consider Your Audience: Keep in mind the type of guests you want to attract and what they’d be willing to pay.
- Affordability Factor: Balance your price so it’s attractive while still covering your costs and leaving room for profit.
- Market Awareness: Understand the local market and compare your pricing with similar listings in the area.
- Know the Fees: Be aware of Airbnb’s fees, which typically amount to 3% of the booking subtotal. Note that certain factors like Airbnb Plus status, location, or strict cancellation policies might affect fees.
- Optimal Pricing: Airbnb provides insights into how your prices stack up against the competition. Adjust prices for peak demand times or specific days of the week.
- Extras Matter: Think about charging extra for additional services like cleaning, equipment rental, pet-friendliness, or guided tours.
Airbnb handles guest payments, charging them before their stay. You get your earnings via your preferred method (PayPal, direct deposit) 24 hours after check-in.
Cash payments are a no-go, but you can accept various forms of digital payment like credit cards, debit cards, Apple Pay, Google Pay, and PayPal.
Just be mindful of potential additional factors that could affect your earnings, like discounts, seasonal pricing, co-host payments, or taxes in specific locations.
Step 4: Create a Captivating Listing
Your listing is your space’s shining introduction. Here’s how to make it shine:
- Be Genuine: Describe your space honestly; don’t overstate or hide any issues.
- Show Off the Unique: Highlight what makes your place special to stand out in a crowded market.
- Accessibility Insights: Note any features that make your space accessible and comfortable for all guests.
- Picture-Perfect: Include high-quality photos that showcase the size and distinctive features of your space.
- Paint a Story: Craft a description that helps guests envision their stay and the experiences they’ll enjoy.
Step 5: Hire or Enlist a Co-host
You can enlist a co-host to share the load and ensure a smooth Airbnb experience. With a co-cost, you can divide tasks like handling emails, site repairs, and addressing urgent matters.
Your co-host can provide valuable neighborhood tips for your guests and take care of the check-in process to make guest arrivals hassle-free.
Don’t forget to include your co-host in your listing (you can add up to three co-hosts) and ensure that they are acquainted with Airbnb’s Co-host Terms of Service.
Finally, make a fair decision about the compensation for your co-host’s contributions per reservation.
If finding a co-host is tricky, consider third-party companies that offer services like inquiries management and cleaning assistance.
Step 6: Get More Properties to Increase Revenue
As your Airbnb becomes more popular, it’s a great opportunity to grow your business and make more money.
You can use the money you’ve earned so far to keep improving your Airbnb. Aim to become a Superhost by providing amazing service, which can help you earn even more.
If your place meets the requirements, you might want to join Airbnb Plus. This can help more people see your listing and trust it. Keep making your place and services better to attract more guests and make more money.
Think about getting more properties to make different ways of earning money. This can help you have more income sources.
How Much Money Can You Make with Your Own Airbnb?
If you’re curious about the cash you could pocket as an Airbnb host, you’re in the right place. On average, hosts in the US are raking in over $9,000 each year, as reported by Airbnb. But here’s the scoop: the numbers can swing quite a bit. Some folks go all in, getting a bunch of apartments or houses to rent out non-stop.
So, How Does Your Income Stack Up?
Your moolah-making potential hangs on two big factors:
- How much you charge for your space: The bucks you earn hinge on the price tag you slap on your digs.
- How often you can book it: The more bookings, the merrier the bank account.
Both of these factors ride on how much effort and cash you pump into decking out and maintaining your place. The cozier and more inviting it is, the more it’ll get snatched up by eager travelers.
But Remember, Don’t Count Your Chickens Before They Hatch!
Now, before you start dreaming of big stacks of cash, here’s a reality check: for most people, being an Airbnb host is a side gig, not a 24/7 money-printing machine.
Playing it smart means having realistic money hopes. Especially if you’re not all in on investing lots of time and sweat into this hosting thing.
The Golden Rule: Put in Effort, Reap Rewards
You know that old saying, “You get what you give”? Well, it’s true for Airbnb too. The more elbow grease you put into your pad, the better your reviews and ratings will be. And those reviews? They’re like gold.
People love cozy, clean, and cool spots. So, if you jazz up your place and show guests you care, your reviews will shoot up. Quick response times to questions are the cherry on top.
Score Big with Reviews and Rise to the Top
Guests rate you on a bunch of stuff: the overall experience, accuracy of your listing, how tidy it is, how well you communicate, the smoothness of check-in, the spot’s location, how much bang for the buck it is, and the amenities.
Solid reviews mean you’ll climb the Airbnb search ladder. Think of it as being a top result on Google. More visibility means more bookings, and that’s the name of the game.
So, if you’re eyeing those sweet Airbnb dollars, remember: it’s not just about owning a space, it’s about putting in some love, getting those thumbs-up reviews, and giving travelers an awesome stay they won’t forget!
Read more: Best Ways to Make Money Online
How To Make Money on Airbnb When You Don’t Own a Property
If owning a rental property isn’t an option, don’t worry! Airbnb offers alternative ways to earn money. Check out these options to explore:
1. Co-Hosting with an Airbnb Host
If you’re interested in the world of Airbnb hosting but don’t have your own property, co-hosting could be a great option for you. As a co-host, you’ll team up with an existing Airbnb host to help manage their property. While you won’t earn as much as you would with your own place, it’s an excellent opportunity to learn the ropes.
Your responsibilities could include communicating with guests, handling check-ins and check-outs, keeping an eye on the property, coordinating cleaning and maintenance, and restocking supplies. Your earnings will depend on your agreement with the host. You might receive around 10% to 20% of the nightly rate or a fixed monthly fee. If you’re also handling cleaning, you can charge an additional fee.
2. Rental Property Manager for Airbnb Hosts
As a rental property manager for Airbnb hosts, you’ll take on similar tasks to a co-host, but with added responsibilities like fulfilling property owner requests and promoting the properties you manage. Depending on local regulations, you might need specific licenses.
Your earnings could be a monthly flat fee or a percentage (around 25% to 50%) of the collected rent. This role requires a bit more commitment, but it can be financially rewarding
3. Host an Airbnb Experience
If you’re passionate about something and enjoy sharing it with others, you can become an Airbnb Experience host. This involves offering unique activities like food tours, city hikes, or special tours.
To get started, make sure your experience meets Airbnb’s guidelines, create an appealing experience page, and set dates for your activities.
You might need a business license depending on your location. Research similar listings to decide on pricing. Keep in mind that Airbnb charges Experience Hosts a 20% service fee based on the experience price.
4. Work as an Airbnb Copywriter
Words matter when it comes to renting on Airbnb. As an Airbnb copywriter, you’ll create catchy titles and descriptions that make listings irresistible to potential renters.
While you can set your own rates, it’s wise to check what other copywriters are charging. For example, one copywriter offers a full Airbnb listing write-up for $219 or two for $338.
5. Offer Airbnb Cleaning Service
Got a lot of Airbnb listings in your area? Consider launching your own cleaning service for these properties. It’s a quick way to earn some tidy cash. You’ll need to invest in marketing, cleaning supplies, and equipment upfront. If your business grows, you might even hire a few helping hands.
To figure out your pricing, peek at what other cleaning services are charging nearby. According to data from TurnoverBnB, in 2021, the average cleaning cost for one-bedroom properties was around $60.68, two-bedroom properties were about $78.58, and three-bedroom properties averaged $106.49.
6. Snap Photos as an Airbnb Photographer
Love taking pictures? Offer your skills as an Airbnb photographer! Hosts often need attractive property photos to attract guests.
Your job is to capture the best angles and features of the rentals. A nifty tip from Areyo suggests charging double what you would for regular real estate photos.
Why? Because Airbnb photos keep on bringing in bookings, unlike real estate pics that serve their purpose once a property is sold.
Final Thoughts
In a nutshell, making money through Airbnb is totally doable. Whether you own a place or rent one, you can cash in on this opportunity. Just focus on giving guests an amazing experience with comfort and warmth. This extra income can be a game-changer or help pay off your mortgage faster.
Getting into the Airbnb game means some upfront work – sprucing up your space, making it cozy, and snapping great photos. But the payoff is sweet. You can earn by renting out a room, your whole place when you’re away, or even a cute spot in your yard.
What’s really cool? You don’t need to own property to join the fun. Think co-hosting, managing short-term rentals, or hosting unique experiences. You can also offer your writing, photo-taking, or cleaning skills. Whether you’re an owner or not, Airbnb offers unexpected ways to earn.