How to Make Money on Airbnb: 8 Surefire Ways
Are you looking to capitalize on your property and join the thriving community of Airbnb hosts?
This in-depth guide will teach you how to maximize your earnings on the platform, offering valuable tips and tricks to make your space stand out and attract guests from around the world.
Explore the lucrative world of Airbnb and start making money today!
How Much Does an Airbnb Host Make?
An Airbnb host’s earnings can vary greatly depending on factors such as location, number of rooms or properties, and marketing skills.
As of 2021, the global average cost for a one-night stay is $137, as reported by AllTheRooms Analytics. However, North American nightly rates are the highest worldwide, averaging $208.
Earning over $100 per night may seem appealing, but achieving full occupancy throughout the month is uncommon. According to Earnest, nearly 50% of Airbnb hosts earn at least $500 per month, with an average monthly income of $924, as of 2021.
Based on data from ZipRecruiter, as of April 10, 2023, the average yearly salary for an Airbnb host in the United States stands at $59,296.
Maximize Airbnb Income: Expert Strategies
1. Rent out your entire property
If you have an entire apartment, house, or vacation property, you can list it on Airbnb for travelers to rent. Make sure your property is clean, well-maintained, and furnished with essential amenities such as Wi-Fi, a comfortable bed, and a functional kitchen. Take high-quality photos of your property, and write an appealing description to attract potential guests. Set competitive pricing based on the local market, and consider offering seasonal discounts or promotions to boost bookings.
2. Rent out a private room in your home
If you don’t have an entire property to rent out but have a spare room, you can still make money on Airbnb by offering a private room in your home. Make the room as comfortable and inviting as possible, with clean linens, towels, and a pleasant decor. Ensure that common areas like the kitchen, living room, and bathroom are tidy and accessible.
Be sure to communicate house rules and expectations with your guests, and offer local tips and recommendations to enhance their stay.
3. Offer unique experiences
Aside from accommodations, Airbnb also allows hosts to offer experiences to guests. If you have a particular skill, hobby, or local knowledge, you can create an experience to share with travelers. Examples include cooking classes, photography workshops, guided hikes, or historical tours.
Develop an engaging and unique experience, provide clear instructions and meeting points, and set a reasonable price for your service.
4. Provide add-on services or amenities
To increase your income, consider offering additional services or amenities to your guests for a fee. These could include airport transfers, bike rentals, breakfast or meal options, or laundry services.
Be transparent about the costs and availability of these add-ons in your listing description and communicate with your guests to arrange them when needed.
5. Optimize your listing for Airbnb search
To make more money on Airbnb, it’s essential to optimize your listing to rank higher in search results. Encourage guests to leave positive reviews, as a higher rating will improve your listing’s visibility. Regularly update your listing’s calendar, and respond promptly to inquiries and reservation requests.
Also, utilize Airbnb’s Smart Pricing tool to adjust your prices automatically based on demand and ensure your listing remains competitive. Additionally, become an Airbnb Superhost by meeting specific criteria like maintaining a high response rate, receiving excellent reviews, and having a low cancellation rate, which will further increase your listing’s visibility and trustworthiness.
6. Become a Co-Host
As a co-host, you will assist the primary host with various tasks associated with managing their rental property. Your responsibilities may include handling guest communications, cleaning the property, conducting inspections, and replenishing consumable items such as soap, toilet paper, and other essentials.
Your earnings as a co-host will be determined by the agreement you establish with the property owner. Some hosts may offer a percentage of the rental rate, typically ranging from 10% to 20%, while others might provide a flat monthly payment. Your compensation may also vary based on the specific duties you are responsible for, such as cleaning the property, which would generally warrant higher pay.
7. Become a Property Manager
Property managers share many of the same responsibilities as co-hosts but also take on the added role of marketing the rental property. To become a property manager, you will need a state-issued real estate broker’s or property manager’s license. This additional qualification can lead to more lucrative opportunities, with property managers potentially earning up to 50% of the rental rate.
8. Engage in Rental Arbitrage
In rental arbitrage, you rent a property for a long-term period (e.g., a one-year lease) at a mutually agreed-upon rate with the property owner, with the intention of listing it on Airbnb or a similar platform. By charging a nightly rate that covers your rental expenses and generates additional income, you can turn a profit through this venture.
However, this approach is not suitable for everyone, as it requires obtaining permission from your landlord to sublet their property. If your landlord is hesitant about the idea, you can propose sharing a portion of your profits with them, which may increase the likelihood of securing their approval.
To succeed in making money on Airbnb, focus on optimizing your listing, providing excellent guest experiences, and implementing effective pricing strategies. By mastering these aspects, you can maximize your property’s earning potential and thrive in the competitive world of Airbnb hosting.