AirBnB is an app where millions of people are making money renting out their extra bedroom, entire house or unused space to travellers.
How Does AirBnB Work?
All you need to start making money is a spare room, apartment or house, however small or big it may be. If you have that simply sign up as an Airbnb Host and create your listing.
If you don’t have an extra room or don’t own a home there are still options:
- Use other people’s properties and start an Airbnb management company
- Rent out your place while you are travelling/not at home
- You can convert one of your rooms into an extra bedroom
- Ask your landlord for permission to use Airbnb (give them some profits)
- Buy a property to use for Airbnb
- Find a friend who has a room(s) and make a deal with them
How much can you earn?
Some people can cover their mortgage payments with Airbnb others are running a full time business with multiple properties. There is no limit to how much you can earn, it depends how serious you want to take it.
In general, your location and the type of space you have is what will determine your income.
Here are some variables that will determine your income:
- Your nightly price
- Your vacancy rate – how many nights will you be booked
- Your place – How many guests you can accommodate, size of home, amenities etc.
- Your location – is there tourism, heavy business area, a travel hotspot, a large city?
- Time of year/season
- Competition – Supply/demand in your area affects the price
- Automation – if you want it to be 100% passive there will be more expenses
How to Get Started
If you’re interested in starting your own Airbnb business as a side hustle or to build passive income we actually made an entire app on this topic!
If you want a quick overview here is the basic process for getting your first booking:
- Get a room or house you can list on Airbnb
- Make an airbnb account – You can sign up here
- Create a great listing – Airbnb walks you through the process
- Start receiving bookings – Set your calendar, price and let the money start coming in
- Welcome your guest – Prepare the property and wait for your guests to arrive
- Get paid – Once your guests finish their stay you automatically get paid! Airbnb keeps 3%.
- Set up systems (optional) – Set things up like self-check in, cleaning services, and more so you have a passive income stream.
Anyone can do Airbnb without prior experience. But there are a lot of steps involved.
Pros of Airbnb
- Potential for high earnings
- Can be almost entirely outsourced and set up for passive income
- Can be scaled and turned into a business (optional)
- Sometimes you can make a lot more than having long term tenants
- You set the rules for your guests
- No professional experience required
Cons of Airbnb
- Takes a lot of effort and time to earn good reviews
- More challenges if you don’t own a home. For example getting landlord’s permission
- Lots of initial setup before it’s passive
- Income potential is very different for everyone (location, number of rooms, etc).
What types of properties can I rent?
Anything. You can share everything from a room, a basement, to a treehouse or a whole estate with pools and everything included.
Can I rent out multiple properties at once?
Of course. You can rent as little or as many properties you have available, as long as you work according to Airbnb’s rules and maintain them.
Does the property need to be available all the time?
No, it’s completely up to you how many days you offer the property and you can set check-in times and check-out times.