Have you ever wondered how to make money from Airbnb? In 2008, Airbnb created an online marketplace that allows individuals to earn extra income and rent out their home or second properties for guests all around the World. The short term rental industry has seen a massive boom since its introduction and currently, Airbnb is in 192 countries in cities and villages across the globe. But why is it so popular? Airbnb has made traveling more affordable and in December 2019 alone, around 10.4 million guests stayed in an Airbnb for the holidays: It’s safe to say that Airbnb generates a huge number of guests per month meaning that there is a fantastic opportunity for you to become a host and make a passive income.
The business model is very simple, anyone can become a host and make money with Airbnb. All you’ll need is a space to get started. When a guest books a stay via Airbnb they’ll pay a nightly fee in addition to a set cleaning fee. You’ll be paid into your bank account by Airbnb directly, 24 hours after your guest checks-in. If you currently have extra space in your house or if you are looking to rent all of the property, your passive income awaits as an Airbnb host.
Is Owning an Airbnb Profitable?
The short answer to this is yes. If you’re hosting space on Airbnb, you should be making money even if it is a small profit. However, your income will depend on many factors, such as the demand for Airbnb travel in your location, the characteristics of the property, local rates, and the time of year. A location that is in high demand will have a better chance of being solidly-booked and the Airbnb rental may be more profitable. In fact, many believe that your earnings could be more than renting the same property to a long term rental.
Running a successful short term lettings business on Airbnb can be hard. Many Airbnb hosts will use a property management service to fully manage their space. An Airbnb property management company will manage the day-to-day operations of Airbnb’s and other short-term rental properties, including online listing, photography, pricing management, guest communication, cleaning, laundry, toiletries and the check-in and check-out of guests. This will save you a huge amount of time and can add true value to your property. You may think that this service may eat into your profits but with good reliable management service, existing hosts can get more bookings and increase their income by over 40%.
How much can I make from Airbnb?
Every space has a price. As an Airbnb host, make sure you check the rental yields to calculate how much income your listing will return. This tells you how much money you are making from the property you have purchased or rent-to-rent. This is an important calculation for working out how much income you can make from your property from your potential guests. Yields refer to the earnings that have been generated by the property and can be used to work out the potential income. Furthermore, how quickly the property will start to pay for itself. A property rental yield is an annual income received on a property as a percentage of its market price.
Airpeachy’s Airbnb Earning Calculator is a great source to check the average daily rate for an Airbnb rental in your location. This will give you an insight into how much money you could be making from the property you are looking to host.
Taking Manchester as an example. The average daily rate is £99 per night, so if you rented out your Airbnb space for 240 nights per year, it’s possible to make a gross revenue of £23, 760. This could be a second income stream of a full-time job. Our students have made up to £51,202 in their first year as an Airbnb host with Airpeachy.
How do I start an Airbnb business?
If you have space to host, you are ready to start your Airbnb business. Like any successful business, you’ll need to make a business plan. Here you can assess your start-up costs, monthly expenses, likely income and also the time involved to run your space.
Making money as an Airbnb host can be life-changing. If you’re serious about starting your business but unsure of where to start, Airpeachy has a solution for you. Our marketing leading Airbnb courses will show you exactly how you can be successful in any environment. We have changed thousands of students’ lives already and we are that certain that our learning works that we offer a 6 month money back guarantee on our advanced educational courses.
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