Nowadays, the sharing economy allows you to make money by renting out your belongings.
You could use Turo to hire out your automobile, Swimply to rent out your backyard swimming pool for parties or get-togethers, and Airbnb to rent out a spare room or other properties.
Is it, however, worth the effort to become an Airbnb host? Check out how to make money on Airbnb to see if it’s a good fit for you.
Airbnb is an app and web platform that allows you to rent out your house, apartment, or other property to guests. The platform is centered on a community.
Guests and hosts can leave reviews for one another. Because others may see your reviews, they can tell what kind of visitor or host you are.
How to earn money on Airbnb
Get tips from Hosts for listing your space and earning money on Airbnb
Whether you have a spare room, a second house, or an apartment to rent out while you’re away, Airbnb makes it simple to market your property and connect with people all over the world.
However, how do you make money with Airbnb?
- Begin by listing your space on Airbnb—free, it’s and they just take a small portion of your nightly fee.
- Select the sort of Host that you want to be (more on that below)
- Make a decision on how much you want to charge.
How To Become An Airbnb Host
It’s relatively easy to become an Airbnb host.
The website guides you through the process by asking questions about the property or room you intend to rent. The following are the major steps to follow in the setup walk-through:
- Give details about the rental, such as its location, number of rooms, and amenities.
- Create an availability calendar and home rules by uploading photos.
- Prices can be chosen.
- Examine the renting legislation in your area.
Don’t worry if some of the items on the list appear overwhelming. Airbnb simplifies the process by providing lessons and recommendations to assist you in making an informed selection. For instance, the website might offer information about hosting legislation in your city or municipality.
You’ll (hopefully) start receiving booking requests after you’ve become an official host. You can study a person’s profile to see previous ratings from other hosts before deciding whether or not to accept a booking. You can also use Airbnb’s messaging tool to communicate with the visitor.
How Much Can You Make as an Airbnb Host?
The amount of money you can make is determined by your location, the number of rooms or properties you have, and your marketing abilities.
According to AllTheRooms Analytics, the average nightly stay in 2020 will cost $110 per night worldwide. However, nightly rates in the United States are the highest in the world, averaging $171 per night.
Make your money work for you instead of against you.
While earning over $100 per night as a host sounds appealing, 100% occupancy or being fully booked for the entire month is uncommon. Nearly half of Airbnb hosts earn at least $500 per month, with an average monthly income of $924, according to Earnest.
Despite the pandemic, several hosts have outperformed the norm and hit it out of the park:
- Fitnancials’ Alexis Schroeder earns $2,000 in her busiest months for her northern Virginia property.
- Hopscotch The Globe’s Kristen Sarah and Siya Zarrabi made $10,000 in their first month of hosting their Ontario mountain house.
- BuildYourBnb’s Susan and Boris Mordkovich make an average of $5,000 a month by renting out a few of their residences.
What To Consider When Pricing Your Airbnb
Consider some of the costs of doing business as a host before deciding on a nightly charge for your rental.
They are as follows:
- Insurance: A renters insurance coverage is required to protect you from the costs of lawsuit or property damage. The service fee charged by Airbnb is straightforward. On each booking, you’ll be charged 3%. It’s not a lot, but it adds up.
- Taxes: If you rent for more than 14 days per year, you’ll have to pay taxes on your earnings. To optimize your write-offs and prepare for tax filing, speak with a tax professional. Water, electricity, internet, trash service, and gas should all be accounted for on your rental.
- Cleaning fees: Whether you employ a firm or do it yourself, cleaning and preparing the rental before to each guest’s arrival will cost money. Cleaning fees are often minimized by charging them to guests up front.
- Emergencies: A clogged toilet or a leak usually occurs when you least expect it. It’s critical to have maintenance contacts on hand in case you need to conduct an emergency repair. It will be costly to contact a plumber on a Friday night, but it is a necessary aspect of being a competent host.
- Supplies: Soap, toilet paper, cleaning materials, and other supplies are all part of the price of doing business. When determining how much to charge for your rental, don’t forget to include in the cost.
Who’s Eligible To Become an Airbnb Host?
You don’t need a beautiful coastal house to make money on Airbnb, as previously said. You can rent out a room or even throw a tent party in your lawn.
It appears that the more unique the experience you provide your guests, the more popular your rental becomes.
Of course, there are limitations.
According to Airbnb, there are some basic guidelines that all hosts must adhere to. The following are a few of the most important:
- Make sure your home is sanitized according to the COVID-19 criteria from the Centers for Disease Control and Prevention.
- Supplies such as toilet paper, soap, pillows, linens, and towels are required.
- Within 24 hours of receiving a booking request, we will respond.
- Maintain a high customer satisfaction rating.
- Follow the laws and ordinances governing hosting in your area.
- In bedrooms and toilets, recording devices are not permitted.
Other security cameras must be made public.
- Have a fire escape path that is properly designated.
Who’s Not Eligible To Become an Airbnb Host?
Although Airbnb does not impose many restrictions on hosts, there are a few items to consider before signing up:
- If you rent, there may be a condition in your lease agreement prohibiting you from subletting or hosting your property.
- Some buildings or communities may impose restrictions on the amount of nights you can rent your space or even which floors you can rent for vacations.
- Certain neighbors may be adverse to the idea of an Airbnb rental next door, making your visitors’ stay uncomfortable.
To avoid getting into trouble as a host, it’s crucial to do your homework upfront.
Many landlords and homeowners can profit from Airbnb. All you need is the willingness to give your guests a memorable experience by making them feel at ease and welcome.
It’s a terrific method to supplement your income or pay off your mortgage early.
Being an Airbnb host necessitates some preliminary work to tidy up the rental, make it comfy, and take attractive images. However, the payback is substantial: you may make money by renting out unused space, your home while you’re away, or a location in your lawn.