Every week, I receive emails from people who’ve read my Airbnb book and want help getting started on Airbnb. What some people don’t realize is that there’s more than one way to make money as an Airbnb host.
Today I look at five stories of how people have earned between 22K and 500K on Airbnb. I hope there’s something here to inspire you.
1. Rent Out Your Home Part-time
This is what our family does. You simply list your home on Airbnb and accept bookings.
When we have guests to stay, we visit with family or take a vacation. I love earning money while taking a break!
When you create your listing be sure to look at the competition. How is your house different? Who is it best suited to? Perhaps it’s ideal for families with young children. Or couples wanting a romantic getaway.
Make sure everything about your listing appeals to your target guests. Include photos that highlight any special features. Describe all relevant extras. Do you include beach toys or sport equipment, what about Netflix or a PlayStation? Is your home close to any tourist attractions or popular visitor spots?
In our case, we are a family with two young children. Our home is suited to other families. Two of our bedrooms are kids’ bedrooms. We have toys, baby gear, and a large outdoor play area. We live in a quiet residential neighborhood next to a park. We mention all these details in our listing description.
Knowing your ideal guests and creating an experience unique to them is the key to success as an Airbnb host. In fact, I dedicate an entire chapter to this in my Airbnb book.
Renting out your home part-time is probably the fastest way to earn a side income on Airbnb and a great way to get started as a host.
Earnings: In our first 12 months we earned $22,653 on Airbnb.
2. Rent Out Your Home Full-time
In March 2010, Jasper Ribbers quit his finance job to explore the world. While he traveled, he rented out his Amsterdam apartment to long-term tenants.
Then, in June 2012, he discovered Airbnb. Within a few months, he was earning two to three times his long-term rental income.
Renting out your home full-time is ideal for anyone who dreams about travelling the world. It’s also a popular next step for people who rent out their home part-time and discover the joys of being an Airbnb host.
Earnings: In his first year, Jasper made $60,000.
3. Rent Out Part Of Your Home
Rochelle Short became an Airbnb host after a devastating breakup. She rented out two bedrooms in her three-bedroom Seattle home.
This is a great option if you have one or more spare rooms that you can make available to guests. You can earn money year-round to pay off debt, cover the mortgage, or boost your family income.
Earnings: In her book, Letting People In, Rochelle describes how hosting gave her the financial freedom to start a freelance business.
4. Rental Arbitrage
Some people are professional hosts. Maybe they start out renting their home – or part of their home. Then decide to build a portfolio of rental properties.
If this appeals to you, but you don’t have the cash to purchase rental properties, then rental arbitrage may be the answer.
This is where you take out a long-term lease on a property and then list it on Airbnb. You take advantage of the difference between long-term rental prices and the much higher short-term rental prices.
After a month of researching and number crunching, Scott Schatford took out a long-term lease on a penthouse for $3,695 a month. He made his money back in less than four months and went on to make $7,000 each month.
If you try this, make sure your long-term lease allows you to sub-let. Also check out other local rules relating to Airbnb properties.
Earnings: Scott earned $156,800 on Airbnb while traveling the world. His revenue came from two properties, the penthouse he rented and an apartment he already owned.
5. Buy A Rental Property
If you have cash to invest then buying a dedicated rental property is worth considering. Not only do you earn a monthly income, you also own an asset (that will hopefully appreciate).
After renting out his home in San Diego, Ryan Scott bought a triplex in Mission Beach and began drawing a huge return on investment. He now manages 14 properties on Airbnb.
This is probably the highest risk option since it requires you invest money to purchase your properties. However, the potential returns are also the greatest.
Earnings: Ryan Scott earns $500K a year from his properties.
Ready To Get Started?
What do you think? Could you become an Airbnb entrepreneur or are you already one?
If you’d like to learn more about becoming a host check out my Airbnb book on Amazon. It teaches you everything you need to know to list your home on Airbnb. You’ll find step-by-step instructions on how to attract your dream guests and charge more than your competition.