Property owners (and even some renters!) can make excellent money with Airbnb in some areas of the world. This website allows people to rent out their extra space short or long term to people from all over the planet directly, without having to go through any rental agent, broker or red tape.
Some people have made millions of dollars using Airbnb as their exclusive form of income as property investors. Others have not been so fortunate, often falling short of even the base income needed to break even on their investment property. Still other users have dealt with horror stories, both when renting out Airbnb and when using the platform to book their own travel accommodations. So, is Airbnb good or bad?
This post focuses on using Airbnb as a means of deriving income as a property investor. We will cover the subject matter completely and including discussions of best practices and how the website has changed many aspects of property investing.
Basics on How to Make Money with Airbnb
Airbnb is a property sharing website that allows people to rent out their extra space to short or long-term renters for profit. You can rent out your couch for an overnight guest for a single night, rent out a room to a traveling couple for a week or rent out your entire condominium to a family for a year. There are endless options for rental possibilities!
You can rent dedicated spaces designed to accommodate guests, such as separate homes or independent income suites within homes, or you can rent out shared spaces, like an extra room with a shared bath or even just a fold-out bed in your living room. The platform basically permits you to rent out anything, allowing the demand to determining the success of your offering.
Airbnb provides a safe, customer-service filled approach to easy travel accommodations for renters. It also provides a safe and customer-service filled platform for people who own or lease property to make money renting out their space. Let’s detail the best ways to make lots of money using Airbnb as a method of capitalizing on your property investment.
Airbnb Best Practices
When Airbnb launched, people did not know how huge it would become! Originally designed to allow people to rent out spaces they already had available, it did not take long for property investors to see the full potential of the platform and begin to develop properties exclusively for offer on Airbnb. Now, there is a vast industry of people involved in designing, building, buying and renting out income properties on this web-based platform. Here are some of the things to keep in mind if you are thinking about using Airbnb to make extra money from your real estate holdings:
As with all property, the location of an Airbnb rental is usually its main selling point. You need to find your angle to market to potential renters. If your location is highly desirable and you can offer accommodations for less than a hotel, then you are likely to always have a demand for the space on Airbnb.
Pricing of the space is crucial. If you afford to price a bit below your competitors, you will almost always beat them on price alone. Greed has killed many otherwise successful Airbnb hosts, allowing competition to come in and steal their client base.
Make the space welcoming to guests and spend extra time and effort considering what a guest requires to be comfortable. What would you want if you were renting the space. You should invest in the space to make it more appealing, since this will get you more rentals and better reviews. Over-deliver on everything and your reviews will catapult you to fast success on Airbnb.
Whatever your property offers, be sure to describe it accurately. Take great and clear photos that really detail the space. Focus on small details in the photos, such as amenities and charming characteristics of the space.
Be a great host. Be helpful, fair and available to assist your guests. Good communication before the renter arrives will facilitate a much better and easier stay for you both. Don’t act like you are too busy to be bothered… If this is your attitude, you should not be using Airbnb, since others will out-perform you and leave your rental behind in the dust.
If you are truly too busy to work closely with renters, consider getting an Airbnb agent to manage the property for you. This way, you will have to pay them, but you will not have to do any of the work. This is a common practice with very popular Airbnb units and with investors who own lots of different properties.
Make Money with Airbnb Analysis
I have used Airbnb many times as a guest, all around the world. I have also offered one of my own properties for rental on the platform, so I can talk from experience, as well as from research and investment perspectives. I am a fan of Airbnb and know 100% for sure that you can make a fortune as a property owner.
People now develop properties exclusively for the platform. This is very telling about the income potential. If you like the idea of Airbnb, you can certainly make a career out of it at this point in time. You can also make a mountain of money, if you do everything right.
That being said,, I have also seen many Airbnb sad stories. Most of these revolve around irresponsible owners and agents who do not maintain their rental units and the terrible disappointment from guests who must deal with broken facilities, unsanitary conditions and other impediments to a nice and safe stay. I had 1 truly abysmal experience on Airbnb and several disappointing ones, all because of terrible, dishonest and lazy landlords. When I rented out my own space, I had no bad experiences at all. All my guests were lovely and allowed me to break even on a property when I had to wait out a lease and had no more personal use for the space. I did not make money, but I did not lose tens of thousands either, like I would have if I did not use Airbnb…
With covid-19 and the downturn of travel, many Airbnb professionals have been devastated. Property owners in some areas can not rent out their spaces by law anymore or are limited by the small number of travelers who want to rent. Many great Airbnb listings have been removed, due to no demand. For property owners who have relied on the platform to make an income, covid has been a bitter pill to swallow. Meanwhile, the pandemic has not deterred Airbnb success in some areas of the world at all. In fact, it may have helped facilitate it, due to hotel closures and the general lack of travel infrastructure once the pandemic swept across the planet.
If you are thinking about becoming an Airbnb host, I recommend trying it out. Do lots of research first. The platform has many helpful guides about the best way to succeed. After all, the company wants you to be successful and provide a great experience. There are now options for providing complete travel packages, instead of simple accommodations. If you can offer special life experiences or other special enticements, you will have an advantage on Airbnb for sure.
Most importantly, remember that real people will be renting your space. Treat them well and always keep their safety and privacy in mind. Failure to do so is not only undermining your own humanity, but also potentially exposing you to litigation risks if anything happens to your guests!
