With the rise of the sharing economy, renting out your belongings has never been easier. Think about renting out your car on Turo, hosting amazing parties on Swimply, or even renting out extra rooms via Airbnb.
In this article, we’ll look at Airbnb, the platform that allows you to host guests in your home or apartment. It is all about building a community-based experience that binds people together. Guests and hosts can share their thoughts and leave reviews, which help future guests gauge what kind of experience they might have.
Is it worth your time and energy to become an Airbnb host? That’s a good question, one worth examining. Here, we’ll explore the specifics of making money with Airbnb so you can decide if it’s right for you.
Here are the essential steps you need to take to launch your own Airbnb.
Table of Contents
How to Start an Airbnb Business?
Step 1: Get Permission
Make sure you have the green light before starting your Airbnb adventure.
Contact your landlord, co-op board, or homeowners association to determine whether you’re allowed to host guests.
Take a look at your lease to see if there are any provisions about short-term rentals or subletting.
You might have some restrictions if you’re a part of a homeowners association.
Step 2: Set Up Your Airbnb Space
A cozy and inviting space is key to a successful Airbnb. If you’re renting out a single room or your whole house, a few thoughtful investments can make all the difference:
- Install a keyless lock for hassle-free entry.
- Provide your guests with amenities like a minifridge, microwave, and Keurig.
- Add a wall to make a private room or set up a separate, well-furnished TV area.
- Stock up on fresh sheets, towels, and toiletries to impress your guests.
- Prepare for higher utility bills and plan for cleaning services between guests.
Consider working with a co-host if you need help managing your Airbnb. Co-hosts can take care of things like guest communication, check-ins, and cleaning, so you can focus on other things. A co-host can also provide backup support in case of emergencies or unexpected situations.
Don’t forget to factor in taxes and Airbnb host fees to make sure you’re financially prepared. It is generally necessary to report Airbnb income on your tax return and may be taxed.
Step 3: Price It Right
It takes a combination of insight and strategy to find the perfect price for your Airbnb.Here’s how you can set your rates:
- Think about your audience and what they’d pay for your space.
- Balance your price so it’s attractive while still covering costs and leaving room for profit.
- Understand the local market and compare your pricing with similar listings.
Be aware of Airbnb’s fees, which are usually 3% of the booking total. Certain factors, like Airbnb Plus status, location, or strict cancellation policies, might affect fees.
The Airbnb Price Comparison tool lets you see how your prices stack up to your competitors. You can adjust prices for peak demand times or specific days.
You can also charge extra for extra services like cleaning, equipment rentals, pet-friendly rooms, 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
The key to creating a captivating Airbnb listing is to incorporate several key elements that will attract potential guests and inspire them to book. Here’s how to make your Airbnb listing stand out:
- Write a Compelling Title: Keep it short and sweet, but descriptive. Think about what makes your place unique, like its location or special features. For example, “Chic Studio with Rooftop Terrace Near Downtown” or “Cozy Mountain Cabin with Panoramic Views”.
- Detailed Description: Tell a story about your home. Start with an attention-grabbing opening line, then describe the space, amenities, and neighborhood. Use clear language, organize the content neatly, and include bullet points for important features.
- High-Quality Photos: Display your property’s best angles with well-lit, high-resolution photos. Include pictures of each room, the exterior, and the neighborhood. Your cover photo should be eye-catching.
To improve visibility, use relevant keywords like “near downtown” or “pet-friendly”. Take a moment to think about what guests may look for.
The most important thing is to get positive reviews. You should ask satisfied guests for feedback and highlight positive reviews on your website.
Keep your listing up-to-date by updating descriptions, photos, and amenities. Maintain a current availability calendar if anything changes or improves in your property.
Step 5: Hire or Enlist a Co-host
If you want to run a smooth Airbnb stay, you can enlist a co-host to help you out. Using a co-cost, you can divide tasks like handling emails, fixing a site, and handling urgent issues.
In addition to providing valuable neighborhood tips, your co-host can ensure a hassle-free check-in for your guests.
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?
According to Airbnb, US hosts earn an average of over $9,000 per year. However, there is one catch: the numbers can vary quite a bit. There are some people who go all in, renting out apartments and houses all the time.
So, how’s your income?
It all boils down to two things:
- How much you charge for your space: The money you earn depend on what you charge.
- Booking frequency: The more bookings, the better.
In the beginning, Airbnb hosting is more of a side gig than a 24/7 money machine. You must have realistic expectations about earning money if you’re going to play it smart, especially if you’re not fully committed to hosting.
You know the old saying, “You get what you give”? It’s true for Airbnb too. You have to accumulate good reviews and ratings before you can make a full-time income from Airbnb.
Guests rate you on many things: the overall experience, the accuracy of your listing, the cleanliness, the smoothness of check-in, the location of the spot, the value for the money, and the amenities.
You’ll climb the Airbnb search ladder if you have solid reviews. It’s like being on the first page of Google. The more visibility you have, the more bookings you’ll receive.
In other words, if you’re eyeing those sweet Airbnb dollars, remember: it’s more than just owning a space. It’s about doing the work, getting those great reviews, and giving travelers an unforgettable experience!
Read more: Best Side Hustle Ideas
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:
1. Co-Hosting with an Airbnb Host
If you’re interested in Airbnb hosting but don’t have your own place, co-hosting could be perfect for you. Your job as a co-host is to help an existing Airbnb host run their place. Although you won’t make as much as you would with your own place, it’s a great way to get started.
Your responsibilities could include communicating with guests, handling check-ins and check-outs, keeping an eye on the property, organizing 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
When renting on Airbnb, words matter. As an Airbnb copywriter, you’ll create catchy titles and descriptions that make listings irresistible to potential renters.
Although you can set your own rates, you should check what other copywriters charge. For example, I know one copywriter who offers a full Airbnb listing write-up for $219 or two for $338.
5. Offer Airbnb Cleaning Service
Do you have a lot of Airbnb listings in your area? You might consider offering cleaning services for these properties. This is a quick and easy way to earn some cash. Investments in marketing, cleaning supplies, and equipment will be required up front. As your business grows, you might even hire a few helping hands.
Take a look at other cleaning services nearby to determine your pricing. 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 with Airbnb is totally doable. Just make sure guests have a great experience. You can use this extra income to pay off your mortgage faster.
Airbnb takes some upfront work – sprucing up your place, making it cozy, and taking killer photos. But it’s worth it. Whether it’s a room, your whole house, or even a cute spot in your yard, you can earn money.
You know what’s cool? You don’t have to own property to join. You can co-host, manage short-term rentals, or host unique experiences. It’s also possible to offer your writing, photography, or cleaning skills. No matter if you’re an owner or not, Airbnb has unexpected ways to make money.
Anthony Smith is an internet entrepreneur. He created the Side Hustle Ideas Database to help people find side hustles for making extra money, with the potential of turning into a full-time income.
After graduating from the University of Pennsylvania with a business degree, he gained business experience at a consulting firm. At the same time, he tried various side hustles including freelance writing, blogging, and eCommerce. He managed to turn his side hustles into a full-time business, earning over $3 million. Now, he enjoys financial freedom and travels around the world as a digital nomad.