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Home Business

How to make money with Airbnb

by Jacob Warrior
March 26, 2022
in Business
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Airbnb is a service that provides ways for people to rent out rooms or houses (etc.) to travelers in cities where they live. You can make money by renting out extra space in your home while you’re away on vacation. It’s sort of like the sharing economy idea.

It’s recently become more profitable than ever before, and it’s not just for the elite market that had extra rooms in their Cupertino apartments for rent. It’s really easy to get started, and we’re going to share some tips on making money with Airbnb.

There are complete courses dedicated to the AirBnB business if you are interested. Here’s a review of Jorge Contreras Airbnb course if you want to give it a try.

And now, the tips:

#1: Profit from out-of-peak seasons by renting daily.

There are peak seasons (like summer) and off-peak seasons (winter, except for ski towns). Every city has a different peak or off season, so do some research and see the demand.

If you have a room in your house that isn’t used in winter, it’s something to think about. Renting daily can earn you more money than weekly or monthly rentals, especially if there are no available rooms in the city during peak season. You could make a whole month’s rent or more in a week or less. You can increase your income by finding renters for peak periods and then offering to take them through the peak periods to help them out – that way, you only have one short-term renter instead of multiple short-term renters who will be much easier on your house and clean up.

If all works well, you could increase the daily rate next winter since people will be aware that it’s your off-peak season.

#2: Increase profits with high-end appliances & furniture.

Your goal should always be to make money – not just break even or barely cover expenses, so improve your home’s amenities to attract higher-paying renters for more income. If you already own a high-end home, you’re in luck.

Renters care about privacy and comfort – not necessarily cost, so focus on giving them privacy and convenience over saving money when furnishing your house. Things like luxury linens, plush towels, and bedding will make their stay more comfortable (look up “travel luxury hotel products” for ideas). Like any business, you can give your customers what they want and price accordingly.

#3: Don’t limit yourself to your own home.

If you’re not comfortable letting strangers into your house, or maybe you don’t have a place but still want to make money this way, nothing is stopping you from doing the same thing in somebody else’s house. 

You could do the same thing in the winter when nobody wants to rent your extra room or maybe even in someone else’s home during peak seasons! Many people might not want an unknown person living in their house, but they might be totally fine with you staying there – it all depends on what you’re comfortable with and how you present your business to them.

Whether you do this or not, it would be a good idea to go over all the rules and restrictions with the owner, so there are no surprises if they come up.

#4: Offer professional cleaning services.

The cleaner people think your property is, the more likely they will rent it. Cleaning services are an easy way to increase your bottom line, so it’s something you shouldn’t ignore. It becomes more important if your property is not in a “normal” location or neighborhood where the property values are high, there aren’t many renters, and they don’t have high expectations. 

A professional cleaning company will charge 8-12 dollars per hour, and they will usually charge between 100-150 dollars for a two-bedroom or 450-600 for a larger house, and that’s just for the cleaning supplies and labor. If you’re in an area where people would expect professionals to clean, not doing it yourself could be the kiss of death when it comes to someone renting your place.

#5: Don’t overprice yourself out of the market.

You don’t want to price yourself too low because you won’t make enough money, and people will expect that service level for all Airbnb properties. It’s also important not to price yourself too high – no one wants to pay 100 dollars a night or more in most countries.

You want to think about how much you made off of each rental and what your hourly rate should be. Why would somebody want to rent it if you didn’t make any money? If your price was too high and nobody rented your property, then that’s the market telling you that perhaps that price point is too high.

Lastly, don’t forget to factor in any costs that may come up from owning a property, such as interest on the loan, homeowners association fees, etc. These are all legally required, and you could be held accountable even if you didn’t know about them before renting (i.e., fines or collection fees).

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