The popular short-term apartment rental website Airbnb offers both hosts and guests unique opportunities. The company, founded in 2007, has since expanded to almost all countries. As of September 2020, the platform comprised more than 4 million hosts, 5.6 million active entries and more than 800 million guest stays.
The site acts as an online marketplace for accommodations and enables hosts to list rental space from private rooms to entire houses. If you have additional space, Airbnb could be a good option to increase your income or perhaps convert it into a full-time job.
In this article, you’ll learn how to make money online as an Airbnb host. You can start as a side hustle and you can scale it to a full-time job as many do.
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The popularity of Airbnb
The variety of accommodation options, competitive prices, and the easy-to-use platform all contribute to the company’s success – obviously through its rapid growth. According to Airbnb, there are 100,000 cities with active listings in more than 220 countries and regions (as of September 2020) .1 Interest in short-term rentals and shared apartments also increased in 2020 with the need to work from home and more people are becoming “digital Nomads” while many offices were closed.
Airbnb gives travelers the chance to experience an area like a local and often provides more privacy than hotels can offer. Many guests are drawn to the unique accommodations such as tiny houses, boats, castles, yurts, and treehouses. Airbnb is often a budget-friendly option as housing costs can be shared among groups, and access to the kitchen can help reduce food costs.
The opportunity of Airbnb hosting
According to data from Airbnb, hosts have made a total of more than $ 110 billion through the platform as of October 2020. The company estimates a host’s average annual earnings at $ 7,900.1
According to data from Earnest, The lending company, an Airbnb host’s average monthly salary is $924, and the median monthly income is $440. The company claimed a wide variety of profits from hosts, with some making more than $10,000 per month and others receiving less than $200.2
Hosting on Airbnb can also open up other opportunities, such as more travel of your own through the connections you make with guests, or the ability to buy and rent more properties.
Get an estimate of how much you could make using Airbnb’s Earning Potential Calculator.
This is how Airbnb hosting works
Creating a listing is the first step in getting started on Airbnb. We’ll go into more detail on how to make your listing stand out later, but you want to include all of the basic information, have great, well-lit photos that showcase the space, and highlight what makes your place unique.
You decide how much you charge for your listing and your prices can vary depending on the day of the week or the time of year.3 The platform offers an optional Smart Pricing tool that automatically adjusts the prices of your listing to the demand in your region. Seasonality and other factors. While it’s free to post a listing on Airbnb, once a reservation is made, the company charges host a 3-5% service fee
Airbnb offers a Host Guarantee for up to $ 1 million in property damage and Host Protection Insurance – a liability insurance program with up to $ 1 million in liability insurance. There are some countries and programs that are not covered. You need to purchase additional insurance.
Home insurers have different rules regarding short-term rentals and what they or don’t cover. Some insurers offer special policies for short-term rentals. Before hosting, check with your insurance company to make sure you understand your policy.
Measure your commitment to an Airbnb business
Before you sign up as an Airbnb host, familiarize yourself with the challenges that can come with being a host. There are logistical issues to consider, as well as the amount of time it takes to provide great customer service to your guests.
Do you have time to host?
Building a successful Airbnb hosting company takes effort: not only do you need to be quick to respond to booking requests, but you also need to be available for any questions guests might have during their stay. Cleaning the space in between reservations and performing any necessary repairs can take a lot of time.
You can always subcontract cleaning and maintenance tasks if you are worth the extra cost to make some of your hosting tasks easier.
Make sure you can rent your space
From local laws to rental restrictions and neighborhood expectations, make sure you clear any potential hosting hurdles before you start listing on Airbnb.
Depending on where you live, there may be requirements at the state, state, city, or property level. Registration, permits or licenses, as well as safety certificates and additional insurance, may be required. Airbnb provides resources to help hosts learn about location-specific regulations and encourages host clubs to connect with local hosts to share information
Have you counted all the costs?
Make sure you approach your hosting with a business mindset. Before you start, create a business plan and set realistic financial projections and expectations. Decide in advance how much time and effort you want to put into the business.
You should consider additional costs, such as B. Increase in additional costs, additional laundry, and any welcome greetings you have provided such as coffee or snacks. The price for the acquisition of a trade license, any necessary certifications, or additional insurance is also added. Keep track of your hosting expenses on a budget and save receipts for tax times.
In certain areas, taxes on Airbnb revenues need to be collected from guests. The taxes and how they are levied depending on the location. It is recommended that details of the guest taxes required to be included in the description of the property
Steps to Starting a Successful Airbnb Business
We discuss what you, as a host, can do to make your Airbnb business more successful. A welcome description, well-staged images, and a high host rating can all help potential guests find your listing more appealing.
Prepare your Airbnb listing
A good listing will provide accurate descriptions and basic details of all the important information about the room – how many rooms and bathrooms there are, what amenities are available to the guest, and what is near the property.
Provide information on things that affect guests, such as stairs and parking spaces, and be open and honest about any peculiarities in your property. Consider what distinguishes your listing from others and put it in the title. Is it close to downtown or does it have a large yard?
You want high-quality photos of your listing. So, before taking any photos, make sure your room is clean and add pictures of each area. Try using natural light or add professional lighting if the room is darker and take the photos in landscape orientation.
Additional extras like local snacks or a bottle of wine can help make a guest feel welcome. Ask in advance whether guests are celebrating a special occasion during their stay; a congratulatory banner can help in setting a festive vibe.
Improve your host rating
Positive reviews improve your host rating and search ranking on the Airbnb website and can help you get more bookings in the future. Airbnb cites the following factors as important factors in getting good reviews: cleanliness, provision of essential amenities, accurate listing details, a smooth check-in process, and proactive communication.
Give your guests the opportunity to choose the level of interaction they want, as some want to join in conversations and others prefer to be left alone.
You can ask prospective guests questions ahead of time to see if they would be a good fit and shared her expectations with them, such as no parties and order in public areas.
Grow your business
Once you’ve gotten to grips with hosting on Airbnb and found a routine that fits your lifestyle, it’s time to grow your hosting into a full-time business. Depending on your goals, you can even grow your business further by adding more properties and tailoring your hosting approach to each listing.
Hosting on Airbnb is an opportunity to generate extra income on your own terms, with rooms that might otherwise have remained empty. The platform allows hosts to customize the situation with conditions that best suit their needs and expectations. It’s up to each host to take their business growth into their own hands – keep it part-time or expand the business for more income.