AirBnB is a travel app where people can make money renting out their space to travellers.
In 2017, over 100 million trips were booked on Airbnb in over 190 countries! If you have an apartment, house, or just an extra bedroom chances are you can start making money as an Airbnb Host.
Here is how you can make Airbnb an income stream:
How Does AirBnB Work?
Travellers use Airbnb to book accommodation. Whether it’s family trips, business trips, or just a regular vacation thousands of “hosts” are getting paid to let these travellers stay in their home.
All you need 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:
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 (maybe give them a cut)
Use other people’s properties and start an Airbnb management company. That is a completely different topic but check out google if you want to learn more
Some people are able to cover their mortgage payments with Airbnb others are running a profitable 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 space you have is what will determine your income. A luxury condo in New York City will earn more than a 1 bedroom house in a small suburb. 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 Do I Get Started?
Here is the basic process for getting your first booking:
Make an airbnb account - You can sign up here
Airbnb will ask for some personal information
Create a listing - Airbnb walks you through the process
Price your listing - You can choose your price manually or use Airbnb Smart Pricing to do it for you
Start receiving bookings - Make your listing as attractive as possible. You may want to consider a lower price until you get 1 or 2 reviews on your account
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 (optional)
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 time and effort before you start receiving consistent bookings
More challenging if you don't own a home. For example getting landlord's permission.
Lots of initial setup to make it passive income
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, such as cash and securities, collectibles, rare artwork, jewelry, pets or personal liability, so it’s best to relocate these object before the guests arrive at the property. Upon sign up, Airbnb also collects government ID and validates everyones identity for an additional layer of security.
Find Out What You Can Earn
Millions of people are using Airbnb. If you want a slice of the pie sign up and see how much you can earn in your area!