Making Money with Airbnb

The travel and tourism business is one of the largest and most lucrative in the world. With so many people traveling for both business and pleasure, the demand for places to stay and to accommodate travelers of all demographics in nearly every community has increased exponentially. 

Airbnb is a San Francisco based startup, with an overall worth of $38 Billion, now operates with more listings than the largest hotel chains in the world. Based on a shared economy model, Airbnb relies on homeowners to become hosts and allow their space to be used by travelers.

Perhaps you’re a homeowner and are wondering how to make money with Airbnb. If this is the case, here we’ll discuss the overall concept of how you can use your own space to pay your bills or add a little extra to the savings account.

Partial Home Rentals

Most people when they hear of Airbnb, they tend to think of an apartment home that some college kid’s parents are listing when he’s out of school for the summer, which might be the case in some situations. What many people don’t realize is that some hosts choose to list only one specific room or part of their home on Airbnb.

With this method, you can have seasonal or continual listings that don’t interfere with your everyday life. And, the added income you receive for partially renting can be applied to your lease or mortgage.

Additionally, you can also be present in the home when you’re renting it out. This is often looked upon as an added sense of security, enabling you to monitor the activities of your guest.

Partial home listings can be quite lucrative considering you don’t probably won’t have additional housing expenses when you only list one space on Airbnb, and you can perform cleaning yourself if desired

Full Home Rentals

Renting out an entire home is a much more significant investment. While many prefer to list a room or common area of a property, some have the means to list an entire home for use on Airbnb. When considering the options regarding how to make money with Airbnb, the full home option tends to be the most lucrative if applied with a strategic business plan or approach.

If you want to list the entire home, you must be a homeowner or have permission from the landlord (if this is a rental home and you’re under lease agreement). Once you calculate your monthly mortgage cost, utilities, and any additional overhead, you can then begin to formulate what you want to charge per night for a stay in your home.

Keep in mind that additional costs will be incurred if you’re listing an entire home. Such costs include a cleaning expense after each occupant stay and a correspondingly higher average utility costs with more people in and out of the house.

Planning your Listing

The business of Airbnb listing is just like running any other business. You have to have a practical approach that ensures you will be adequately compensated for your efforts. 

It’s noteworthy to add that listings can be altered under Airbnb contracts, such as raising or lowering rental prices and the like. Regardless, all listings should be well researched and priced to be competitive with your surrounding rental properties.

Additionally, you want to ensure that there is a demand for your listing. This means that if you have a country home in the middle of nowhere, keep in mind that you might not get any business due to remote locations or lack of nearby services.

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