https://nasacademy.com/blog/article/how-to-make-money-with-airbnb
Airbnb hosting is something we’re all familiar with, either through the grapevine or by staying at an Airbnb when traveling. There’s a reason why Airbnb hosting has become so popular, and we’ll show you in this guide to how to make money with Airbnb.
In the modern world, having multiple sources of income is essential to live the lifestyles that were commonplace only one generation ago. Several worldwide depressions and a pandemic in the years since have made living expensive, and millenials and Gen Z can’t afford what their parents and grandparents could. Bloomberg reports that millennials are doing worse financially in almost every way measurable than the generations before them.
Investing in multiple income streams, such as passive income alongside a full time job, is one of the ways to offset this disparity of income and expenses we face today. Some people choose to opt into investments such as crypto or the stock market, but one of the fastest growing industries is in rentals, particularly seen with Airbnb.
Making money with Airbnb may not be an obvious choice because many think that you need to own a property to be able to rent it out in the first place. To do so means that you already have enough to afford your own living space as well as a spare space to rent out, which is a barrier for many who are already struggling financially. There’s also a serious learning curve, especially when managing multiple properties and standing out from the crowd.
We’ve found some of the best strategies to earn a passive income through Airbnb — and there are more options than you might think! Get your listing seen and begin earning money with these tips, and we’ve even included a couple of ways to earn money even if you don’t have a property to rent out.
No matter the industry, you’re not going to be making any money if your expenses exceed your income. Figuring out your expenses will help you figure out how much you need to charge your listing in order to have a reasonable and steady income.
Some of the expenses that you’ll encounter include Airbnb’s own host fee, which is usually set at 3%. This covers hosting and payment processing.
You may also have to pay a regulatory license fee, depending on where you live. This counts as a license that allows you to conduct your Airbnb hosting as a business, and usually has a fee attached.
As with all property ownership, insurance is important, and you should consider insurance even if you’re subletting. Airbnb offers its US hosts up to $1 million in insurance for property damage and liability costs, but it’s also worth noting that your existing homeowner and rental insurance policies come first in priority to Airbnb’s insurance policies.
Taxes also need to be paid on any rental income you earn.
Finally, there’s day-to-day expenses, such as maintenance fees and wages to your property manager(s) or co-host(s) if you have them. The maintenance fee covers upkeep and repair of the property.
Cleaning and turn expenses also need to be considered each time a guest leaves, as you’ll be responsible for replacing items like toiletries and hiring cleaning services and need to be considered when compiling your expenses.
Your listing is the first thing potential guests are going to see, so it’s worth it to get your listing to the top of their search results. While the quality and features of your property plays a large part in how your listing performs, there are some other things you can do to improve your ranking.
One of the easiest ways to do so is to come up with a catchy headline that will draw readers’ attention. “Double room with en suite bathroom with shower and walk-in closet” sounds a lot better than “spare room for rent”. This is your opportunity to show off your listing, so take the chance to do so. Remember to add as many features as possible to make it stand out!
After you write your heading, it’s time for your description. Make it as detailed as possible, while also making it easy to read and understand. Make sure each amenity and feature of your listing is highlighted, particularly essentials such as number of rooms, bathrooms, and if there’s a kitchen and a washing machine. Is your listing pet-friendly? Add that in.
Also add in any services you perform, such as airport pickup. Be transparent about any potential downsides, such as being located in a noisy area. Some guests may actually prefer a vibey atmosphere, while others will appreciate the candor, rather than getting a nasty surprise on arrival.
It goes without saying that your listing should have the best photos possible. No matter how great your description is, your photos are what’s going to seal the deal. Make sure your listing is clean, tidy, and well-decorated in your photographs, and that everything is well-lit. Maybe even ask a pro to take photos of your space!
Finally, be honest about your space, including any policies you have and any additional fees you charge. Remember that you don’t just want one-time guests — you want them to give you a good rating, so that your listing continues to be seen by future guests. Hiding information, especially additional fees, will leave a bad impression on your guests, and it’s better to be upfront from the start.
As the title suggests, Airbnb Superhosts get glowing reviews and their listings seen because they’re the best of the best. As such, they get paid more than the average Airbnb host. Airbnb Superhosts are rewarded with increased visibility, and get more guests because of their increased presence on listings.
To become a Superhost, you need to receive at least 10 stays per calendar year, or 3 reservations totalling at least 100 nights. You also need to have a cancellation rate of under 1%.
Superhosts are also great communicators, and this is reflected in the expected response rate of 90%. This means they respond to 90% of their messages within 24 hours.
Finally, Superhosts get glowing reviews and ratings from the majority of their guests. 5 stars is common amongst Superhosts.
While it takes a lot of time and work to become a Superhost, you don’t need to own property to qualify, and can start getting in those reviews with just renting out your room, or subletting.
Now that we’ve covered the basics, here are some ways to make money on Airbnb without owning property:
Airbnb has a cool option where you can rent a property for the sole purpose of subletting. This is a great choice if you don’t own property. Airbnb arbitrage is best suited for short-term vacation stays, where you can set your price at a lower rate than hotels in the area, but high enough so that you get a profit from your investment.
With Arbitrage rentals, you’ll want to research the cities and places that get high volumes of traffic from tourists on short stays, meaning the area has a high occupancy rate. While investing in a spot in a coastal town sounds like a good idea, the last thing you want is to invest in an area that remains closed for six months of the year because of cold weather.
Better places to invest are bustling cities that see high volumes of traffic all year round. The benefit of subletting in a city is that people on business trips are always looking for affordable and comfortable places to stay, no matter the season.
Airbnb Arbitrage Pros:
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Becoming a rental property manager is another way to earn money with Airbnb without having to invest in property. And, as the amount of property owners continues to skyrocket, so too has the demand for property managers.
Property managers have a wide range of responsibilities you’d expect with property maintenance, including but not limited to confirming bookings, managing the needs of property owners, communicating with guests, supervising the check-in process, marketing, conducting property inspections, and organizing cleaning and maintenance of the property.
There are a couple of steps you need to complete to become a property manager depending on where you live — some places may require you have a real estate broker’s license, but other places may not require any formal qualifications at all.
Because of this possible barrier to entry, it would be a good idea to invest in a license to open your options and set yourself apart from the competition. Besides a license, it’s also a good idea to brush up your management and communication skills. Otherwise, being a property manager is a great way to earn money through Airbnb, without the expenses of property.
Property managers can expect to earn $42,000 per year through short–term rentals, but experienced managers can earn up to $60,000.
Property Management Pros:
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Co-hosting is another option to earn money on Airbnb without owning property. Co-hosting is similar to property management, but rather than being a full on manager, co-hosts are more like assistant’s to the lead host.
While this comes with a lower income, it’s also a great place to start as you don’t need any qualifications or experience to break into the industry. Co-hosting is a diving board for many Airbnb managers and hosts, and one of the best ways to get your toes wet while earning money and accumulating experience.
Some of the duties of a co-host include communicating with guests, conducting inspections, supervising check-in and check-out, writing reviews for guests, and restocking the property. Co-hosts earn on average around 10-20% per booking, but more experience and responsibilities can get you as much as 25% per booking.
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Silvia Baena has been an Airbnb Superhost for years, and she’s starting her own class — How to Become a Profitable Airbnb Host. This class is a comprehensive guide to becoming an Airbnb superhost, with content drawn from Silvia’s years of experience.
She’ll be teaching you all you need to know to start an Airbnb business without owning property. While this doesn’t sound possible, many Airbnb superhosts start out without property and use rentals before taking the plunge and purchasing their own properties.
Silvia will teach you the strategies she used, including making the decision to buy or rent along with calculating the ROI on it, standing out on Airbnb, getting those bookings, and nailing reviews.
Becoming an Airbnb host lets you run an online business, gives you access to multiple income streams, and gives you that financial freedom everyone wants. Sign up today, and take control of your finances.
Become a Airbnb SuperHost
By Team Nas Academy
WE EMPOWER CREATORS.
