AirBnB is an app where millions of people are making money renting out their extra bedroom, entire house or unused space to travellers.
Here is how you can make Airbnb an income stream, even if you don't own a home.
How Does AirBnB Work?
- Works in 191 Countries 🌎
- Income Potential: Medium/High
- Difficulty: Medium
All you need to start making money is a spare room, apartment or house, however small or big it may be. If you have that simply sign up as an Airbnb Host and create your listing.
If you don’t have an extra room or don't own a home there are still options:
- Use other people’s properties and start an Airbnb management company
- Rent out your place while you are travelling/not at home
- You can convert one of your rooms into an extra bedroom
- Ask your landlord for permission to use Airbnb (give them some profits)
- Buy a property to use for Airbnb
- Find a friend who has a room(s) and make a deal with them
How much can you earn?
Some people can cover their mortgage payments with Airbnb others are running a full time business with multiple properties. There is no limit to how much you can earn, it depends how serious you want to take it.
In general, your location and the type of spaceyou have is what will determine your income. A luxury condo in Las Vegas will earn more than a 1 bedroom house in a small town. Click here to see how much your place is worth.
Here are some variables that will determine your income:
- Your nightly price
- Your vacancy rate - how many nights will you be booked
- Your place - How many guests you can accommodate, size of home, amenities etc.
- Your location - is there tourism, heavy business area, a travel hotspot, a large city?
- Time of year/season
- Competition - Supply/demand in your area affects the price
- Automation - if you want it to be 100% passive there will be more expenses
How to Get Started
If you want a quick overview here is the basic process for getting your first booking:
- Get a room or house you can list on Airbnb
- Make an airbnb account - You can sign up here
- Create a great listing - Airbnb walks you through the process
- Start receiving bookings - Set your calendar, price and let the money start coming in
- Welcome your guest - Prepare the property and wait for your guests to arrive
- Get paid - Once your guests finish their stay you automatically get paid! Airbnb keeps 3%.
- Set up systems (optional) - Set things up like self-check in, cleaning services, and more so you have a passive income stream.
Pros of Airbnb
- Potential for high earnings
- Can be almost entirely outsourced and set up for passive income
- Can be scaled and turned into a business (optional)
- Sometimes you can make a lot more than having long term tenants
- You set the rules for your guests
- No professional experience required
Cons of Airbnb
- Takes a lot of effort and time to earn good reviews
- More challenges if you don't own a home. For example getting landlord's permission
- Lots of initial setup before it’s passive
- Income potential is very different for everyone (location, number of rooms, etc).
What types of properties can I rent?
Anything. You can share everything from a room, a basement, to a treehouse or a whole estate with pools and everything included.
Can I rent out multiple properties at once?
Of course. You can rent as little or as many properties you have available, as long as you work according to Airbnb’s rules and maintain them.
Does the property need to be available all the time?
No, it’s completely up to you how many days you offer the property and you can set check-in times and check-out times.
What if my property gets damaged?
Airbnb has an “Airbnb Host Guarantee”. This provides protection for up to $1,000,000 for property damages caused by a guest. There are certain things exempt from the Airbnb Host Guarantee, but it is a good start. You can also get additional short term rental insurance for pretty cheap.
Find Out How Much Your Unit Will Make
Millions of people are using Airbnb. If you want a slice of the pie start by finding out how much you can earn in your area!
If you're interested in starting your own Airbnb business as a side hustle or to build passive income download our free Airbnb guide here for step by step instructions.