Through the sharing economy, you can now rent out your things to make money. You could rent out your car through Turo, your backyard pool for parties or get-togethers through Swimply, and a spare room or other properties through Airbnb.
But is it worth the trouble to become an Airbnb host? Check out how people make money on Airbnb to see if it’s a good fit for you.
What Is Airbnb?
Airbnb is an app and website that lets you rent out your home, apartment, or other properties to people who want to stay there. The platform is based on a group of people. Both guests and hosts can leave reviews for each other. Reviews are important because they let others know what kind of guest or host you are.
How To Make Money on Airbnb
You need at least one room to rent out if you want to make money as an Airbnb host. But some Airbnb hosts have turned it into a full-time job by renting out more than one property. Think outside the box. Even if you don’t have a lot of vacation homes to rent out, you can still make money on Airbnb by putting together unique stays like tents, treehouses, yurts, airstreams, and geodomes.
But what if you don’t have any room to rent? There are other ways to make money on Airbnb, such as:
- Co-hosting
- Taking care of property
- Putting on events
- Photography
- Copywriting
- Cleaning
How to become a host on Airbnb
It’s pretty easy to become a host on Airbnb. The website guides you through the process by asking you questions about the property or room you plan to rent out. In the setup walk-through, the main steps you need to take are:
- Give information about the rental, like where it is, how many rooms it has, and what it has.
- Add pictures
- Make a schedule of your availability.
- Put in house rules.
- Pick prices
- Check the rental laws in your area.
Don’t worry if some of the things on the list seem too much. Airbnb makes it easy by giving you tutorials and guides that help you decide what to do. For instance, the website might have information about hosting laws in your city or town.
Once you’re an official host, you should start getting requests to stay there. Before you accept a booking, you can look at the person’s profile to see how other hosts have rated them. You can also use Airbnb’s messaging platform to talk to the guest.
How much do Airbnb hosts make on average?
How much you can make depends on where you live, how many rooms or properties you have, and how well you market your business. AllTheRooms Analytics says that the average cost of a night’s stay around the world will be $137 in 2021. But, on average, a night’s stay in North America costs $208, which is the most in the world.
As a host, making more than $100 per night sounds good, but it’s rare to have 100% occupancy or be fully booked for the whole month. As of 2021, Earnest found that almost half of Airbnb hosts make at least $500 a month, with an average of $924.
Can Airbnb really help you make money? Even though there is a pandemic, some hosts are above average and have hit it out of the park:
- Alexis Schroeder of Fitnancials makes $2,000 a month from her property in northern Virginia during her busiest months.
- Hopscotch’s Kristen Sarah and Siya Zarrabi The Globe made $10,000 in the first month they rented out their mountain house in Ontario.
- Susan and Boris Mordkovich, who run BuildYourBnb, rent out a few of their properties and make an average of $5,000 per month.
What to Think About When Setting Prices for Your Airbnb
Before you decide how much to charge per night for your rental, think about some of the costs of being a host. Among them are:
- Insurance: You need renters insurance to protect yourself against the costs of a lawsuit or property damage.
- The service fee for Airbnb is easy to understand. Each booking will cost you 3%. Even though it’s not much, it all adds up.
- Taxes: If you rent for more than 14 days a year, you’ll have to pay taxes on the money you make. Talk to a tax expert to get the most out of your write-offs and get ready for tax season.
- Utilities: When renting a place, don’t forget to factor in the cost of water, electricity, internet, trash service, and gas.
- Cleaning fees: Whether you hire a company or do it yourself, you will have to pay to clean and prepare the rental before each guest arrives. Many hosts cover cleaning costs by charging guests for them before they arrive.
- Emergencies: A toilet that won’t flush or a leak usually happen at the worst time. It is important to have maintenance contacts on hand in case you need to fix something quickly. Calling a plumber on a Friday night will be expensive, but it’s part of being a good host.
- Supplies include things like soap, toilet paper, cleaning supplies, and more. Don’t forget to take the cost into account when deciding how much to charge for your rental.
Who can become a host on Airbnb?
As was already said, you don’t need a fancy villa on the beach to make money on Airbnb. You can rent out a room or even set up a tent in your backyard. It seems that the more unique the experience you give your guests, the more popular your rental could be. There are, of course, limits.
According to Airbnb, all hosts must follow a few simple rules. Among the most important are:
- Make sure your home is clean according to the COVID-19 guidelines from the Centers for Disease Control and Prevention.
- Give them the things they need, like toilet paper, soap, pillows, sheets, and towels.
- Answer requests to book within 24 hours.
- Keep getting good reviews from customers.
- Follow the laws and rules of your area when it comes to hosting.
- There can’t be any recording devices in bedrooms or bathrooms. There must be information about security cameras in other places.
- Have a fire escape route that is easy to find.
Who’s Not Eligible To Become an Airbnb Host?
Although Airbnb doesn’t set too many limits on hosts, there are things you should look into before you sign up.
- If you rent, there may be a clause in your lease that says you can’t sublet or host your rental.
- Some buildings or neighborhoods may have rules about how many nights you can rent out your place or even which floors you can rent out.
- Some neighbors might not like the idea of an Airbnb rental next door, which could make your guests’ stay uncomfortable.
Make sure you do your homework first so you don’t get in trouble as a host.
How to Make Money on Airbnb if You Don’t Own a Property
There are other ways to make money on Airbnb if you don’t have a property you can rent out. Here are a few to think about.
Find an Airbnb host who will let you co-host with them.
Even though you won’t make as much money co-hosting as you would if you had your own Airbnb, it could be worth it, especially if you want to learn more about hosting on Airbnb. A co-host helps the host with Airbnb tasks like communicating with guests before and during their stay, overseeing guest check-ins and check-outs, doing property inspections, managing cleaning and maintenance staff, and restocking any needed items.
How much you get paid will depend on what you and the Airbnb host who hires you agree on. For instance, you could get 10% to 20% of the nightly rate or a flat fee every month. Also, you should charge a separate fee if you clean the property.
Learn how to manage rental properties for Airbnb hosts.
Rental property managers for Airbnb hosts do many of the same duties that an Airbnb co-host would do, except they also are tasked with fulfilling property owners’ requests and marketing the Airbnb properties they manage.
Depending on what your state needs, you might need a license to be a real estate broker or a license to be a property manager. Airbnb hosts can pay property managers a flat monthly fee or agree to give them 25% to 50% of the rent.
Hold an Airbnb Experience
You can also make money on Airbnb by hosting an Airbnb experience, such as a food tour by bike, a nature hike, or a tour where you tell stories about your city.
Before you can start, you’ll need to make sure that the experience you want to offer is approved by Airbnb. Next, you’ll need to make a page about your experience, where you’ll write about your skills and add pictures. The last step is to add dates and begin hosting.
Depending on the kind of experience you offer, you may need a business license. Check with your local government to find out. To figure out how much to charge per experience, you should probably look at other listings that are similar to yours. Keep in mind that Airbnb charges 20% of the price of the experience the host offers as a service fee.
Offer your skills as a photographer for Airbnb
As a way to market their rentals, Airbnb hosts often need someone to take pictures of their homes. If you’re skilled at taking interior photos, you could 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. This is because real estate listing photos are no longer useful once a property is sold, but Airbnb photos can help rent a property over and over again.
Offer to work as a copywriter for Airbnb.
Marketing an Airbnb property takes a lot of work, and writing copy is a big part of that. If the title and description of the property don’t catch people’s attention, the host will probably have a hard time getting bookings.
You can decide how much to charge for this service, but you should probably look at how much other Airbnb copywriters make. On the website of one copywriter, for example, a full Airbnb listing costs $219 and two full listings cost $338.
Start a service to clean Airbnbs
Maybe you live in a place where there are a lot of Airbnb listings, like hundreds or thousands. If so, you might be able to start making a good amount of money quickly by starting your own Airbnb cleaning service.
You’ll need to spend money to advertise your cleaning service and buy cleaning tools and supplies. If you want to grow your business, you might also need to hire a couple of people to help you clean.
The best way to figure out what to charge is to look at what other Airbnb cleaning services in your area are charging. According to data from TurnoverBnB, the national average cleaning costs for short-term rentals were $60.68 for one-bedroom properties, $78.58 for two-bedroom properties and $106.49 for three-bedroom properties in 2021.
Airbnb vs Competitors
Hotels are Airbnb’s most obvious rivals, but there are also a few other websites or apps that could be used as alternatives. Here is how they compare:
Airbnb vs FlipKey
FlipKey is the rental platform used by Tripadvisor. First, the site isn’t as clean and easy to use as Airbnb’s. At the moment, it only has about 830,000 rentals, while Airbnb has 6 million. Tripadvisor is a good alternative to Airbnb because many travelers rely on member reviews of things to do and places to stay.
Airbnb vs Vrbo
Vacation Rentals By Owner is what Vrbo stands for. It began in 1995, which is longer than Airbnb. Vrbo has about 2 million properties, which is one-third of the 6 million that Airbnb has. Although Vrbo has made improvements over the years to create an easier experience for hosts and guests, Airbnb’s platform is still easier to work with for booking and hosting.
Airbnb vs Couchsurfing
The main difference between Airbnb and Couchsurfing is that Airbnb costs money and Couchsurfing doesn’t. Before you list on Airbnb, you could start by hosting a few couch surfers to see what it’s like to have guests. But Airbnb makes it easy to get started and gives new hosts who want to do things right a lot of help and tools.
Things to watch out for besides these
There are some factors and expenses that could affect the success of your business — and your bottom dollar. First of all, it’s important to be careful about who you let stay at your place. If you don’t, you could damage your rental. You should expect some wear and tear. But there is also a chance that someone will leave with your towels or sheets. Choosing guests with high ratings could minimize trouble down the road, but having a contingency fund to cover maintenance and replacement of items is essential.
Then there is the problem of making your neighbors unhappy. In some places, angry neighbors are pushing for more rules that will make it harder to rent out your space. Having a clear list of house rules could help potential guests understand what you expect from them and keep the peace.
Takeaway
Airbnb is a good way for many homeowners and renters to make money. All you need is the desire to give your guests a great time by making sure they are comfortable and feel welcome. It’s a great way to earn extra cash or pay off your mortgage early.
As an Airbnb host, you need to clean up the rental, make it feel like home, and take photos that make it look appealing. But the payoff is great: you can make money by renting out a space you don’t use, your home while you’re on vacation, or even a spot in your backyard.
The best aspect is that you can make money on Airbnb even if you don’t own a house. Some possibilities are co-hosting, becoming a short-term rental property manager, hosting an Airbnb experience or offering services as an Airbnb copywriter, photographer or cleaning service.
