Join the thousands of people are making money on Airbnb. Learn how to rent an extra bedroom or an entire home to travelers to earn extra income.
Airbnb Summary:
Availability: High, Works in 191 Countries 🌎
Income Potential:Â Medium/High, income varies based on seasonality and number of listings.
Difficulty:Â Medium
Initial investment: Low – High, Managing property requires time unless outsourced.
Return on investment: Low-High
Time required: Medium-high
Best for: Investors owning an existing property that can be easily listed on Airbnb.
How Does AirBnB Work?
Many hosts achieve financial freedom through income made through short term rentals on Airbnb.
“Hosting my home allowed me to become an entrepreneur and laid down a path to financial freedom.” -Airbnb.com
To start earning money on AirBnb, all you need a spare room, apartment or house. It doesn’t matter how small or big it may be.
How to rent your property on AirBnb
Want a quick overview of getting started with AirBnb? Below is the basic process for getting your first booking:
- Select a room or property to list on Airbnb
- Research prices – Use a tool like PriceLabs (paid tool) to estimate how much your property can rent. Airbnb has a free tool where you can find out how much you can earn
- Create an Airbnb account – You can sign up here, its free and fast.
- Create a great listing – Airbnb walks you through the process
- Start receiving bookings – Set your calendar, price
- Accept Booking – You’ll want to select guests with good rating to avoid issues.
- Get Ready – Clean and prepare your property. Check for any items requiring repair and fix.
- Welcome your guest – Send a welcome email that include rules of the house to avoid issues.
- Get paid – Once your guest finishes their stay, you get paid automatically! Airbnb keeps a percentage
- Set up systems (optional) – Set things up like self-check in, cleaning services, and more so you have a passive income stream.
Do you need a own an entire house to make money on AirBnB?
What can you do if you don’t own a home or have an extra room? There are still options for renting on AirBnb:
- Rent out your own room while you are traveling/not at home
- Convert a closet, basement, storage space, or detached garage into an extra bedroom.
- Use other people’s properties and start an Airbnb management company
- Buy a new property to use for Airbnb
- Rent out a unique space such as an RV, Yurt or Boat
What do you need to know before signing-up on AirBnB?
There are some key questions that you’ll need to know before signing up for AirBnb or Vrbo. The most critical question is if your property eligible for short term rentals.
Some neighborhood do not allow owners to rent our their properties on AirBnb. Contact your homeowners association, landlord or property manager and verify that short term rentals are permitted. There also may be limitation about duration of rentals.
If your neighborhood or city does not allow Airbnb then consider using other people’s property for AirBnb.
What if my property gets damaged?Â
It can be stressful hosting guests and worrying about damages to your home. Airbnb has an “Airbnb Host Guarantee”. It provides hosts protection for up to $1,000,000 for property damages caused by a guest.
However, there are certain things exempt from the Airbnb Host Guarantee. These include “Damage from wear and tear due to ordinary and reasonable use” but it is a good start. That you can also get additional short term rental insurance or renters insurance for pretty cheap.Â
For more read: AirBnb frequently asked questions
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Determine if your property can make a profit
Factors such as location, seasonality, competition and rental rates determine your potential income from your property
PriceLabs allows you to enter any address in the world and estimate rental income based on historical data, competitor index, and market revenue growth.
In the example below, Pricelab models future prices and occupancy rates next year based on your properties neighborhood and amenities.
You must accurately calculate expected rental income and expenses before listing to determine if listing and managing a property is worth your time.
For more details: Read How much money can you earn with AirBnb
In Closing
Remember, owning an AirBnb is similar to managing a hotel. You are responsible for the entire quest experience while she is at your property. This includes everything from providing keys, answering client questions, fixing or replacing worn/broken items, lock-out service, and cleaning property before and after rentals.
Next Steps
You can take this idea and start right now on your own! But there’s still a bunch of steps and nuances to pull this off successfully. So you can also save some time and build it right by learning from a mentor.
In that case, we highly recommend How to Create an Empire on Airbnb without Owning a Home course by David Vu.
The course has been taken by over 12,000 students, received a rating of 4.6 stars. No risk, Money back guarantee if you change your mind. Click here to visit course page
The Bottom Line
If you want to do it without the course that is fine too! The barrier of entry to real estate has never been lower and it’s thanks to companies like Vrbo and Airbnb.
