$2,500/Month Passive Income
Renting Your Home (AirBnB)
Did you know that there are people making as much as $10,000 a month by renting their homes on AirBnb? (Source). That’s impressive, isn’t it? And to think you don’t have to spend a lot of time or money to build such passive income. So, if you have a home you would like to rent out using this popular service, keep reading.
Can you make passive income renting your home on AirBnB? You absolutely can make passive income renting on AirBnB. This service has become very popular among travellers preferring to enjoy a homestay environment instead of hotels while touring various places around the world. Passive income can be made through AirBnB by automating and outsourcing the rental process.
Estimates show that about half of those who rent their properties on AirBnb make at least $500 a month. Calculate your AirBnB monthly potential revenue on AirBnB here! We based $2,5000 on an entire place for four guests in Boston. You can earn this income passively, and without having to invest any money into the project. If you are not careful however, this can be a very active endeavour. Learn how you can make passive income from AirBnB in our guide for beginners below.
What are Some Benefits of Using AirBnB?
AirBnB is a similar concept to other peer-to-peer marketplaces, but instead of selling your crafts or household items online, you place your couch, your room, or your home up for rent. With skyrocketing hotel costs in major cities around the world, it’s been no surprise that Airbnb has become one of the first websites people visit before booking a trip.
While the platform has been around for some years now, it has only been recently that Airbnb has truly become fierce competition for local hotels and motels. AirBnB provides hosts with insurance coverage, support, international exposure to an audience of travellers, screened guests and reviews to ensure that everyone gets the most out of their experience.
Passive Income Renting Your Home on AirBnB
1. Getting Ready to Rent on AirBnB
The home or apartment you rent out has to be fit for any guests that wish to stay there. Besides having basic amenities like water and electricity, it should offer well-furnished, clean rooms. Basic necessities should be readily available to guests, including the following: easy to access parking, internet, bedding (comfortable linens, pillows, etc), washer, dryer, air conditioning, essentials (towels, soap, and toilet paper).
Make sure to take professional-looking photos of your place. If you are having a hard time taking photos yourself, it is worth contacting AirBnB to request they come take professional photos, or to hire a professional to do so. Photos are the main selling point of an AirBnB listing. As you prepare your home, also inform your neighbours that guests will be coming and going. Finally, it is important to clean your home and ensure that it is free from useless clutter.
2. Understanding Your Target Market
3. Posting Your Listing
4. Screening Your Guests
There are many platforms offering peer-to-peer rentals, however, AirBnB is by far the most popular in the short-term rental space. Here are some tips to consider before renting on AirBnB.
You should ensure that you promote your home properly by listing all the basics it offers beyond what a guest might expect in a typical home. Surprise your guests with small touches that make the stay all the more fun. Adding things like board games, a bottle of wine, chocolates, a welcome pack or a special gift from your area makes people want to come back and can easily help promote your listing with excellent feedback. Photos can also make or break your listing. The pictures you post of your home should be high quality and clear, and taken after staging and cleaning your home properly.
Take note that AirBnB will take 3% commission on all bookings from the host (you), and also that they will take between 6% and 12% from what the guest pays. Also, take time to understand what local tax laws have to say about your renting your home. AirBnB is all over the world, and in each jurisdiction, there are laws that govern how you should square things out with the tax authorities when you rent your property. Make sure to consult your local tax specialist for more information.
How Passive is Renting on AirBnB?
Renting properties is one of the most passive things you can do to make money. However, depending on how you setup your listing, renting on AirBnB can either be extremely passive or extremely active. If you want this endeavour to be as passive as possible, here are some things you can do:
- Put a keypad / self-locking system on the door: If you are renting out an entire space and would like to make the check-in and checkout process as easy as possible, us a self-locking system where your guests receive a code by email from you. They will be able to check-in and checkout on their own making the process extremely passive for you.
- Hire a cleaner: Once the guests checkout, have a cleaner come in and clean the property. They should also change the bedding and ensure everything was left in perfect shape. Have them report to you or your assistant if anything is missing, broken or needs to be reported.
- Hire an assistant: If you would like the process to be as outsourced as possible, you can take yourself out of the equation entirely by hiring an assistant. Provide them a cut of the listing to have them deal with screening potential renters, answering questions from guests and resolving other issues they may face. They can replace you in keeping the listing up to date and providing feedback to renters after their stay.
Return on Investment
Can you rent a room on AirBnB ? Yes, you can rent a house or a room through AirBnB. You can also rent a couch, cottage, camper, RV, camp-site or less conventional spaces such as a tree-house, boat-house, yurt, tiny home, Earth House, island, castle, cave, windmill, igloo or other.
What extras should you provide as an AirBnB host? Your home is supposed to offer basic necessities a comfortable stay. However, hosts that go above and beyond get the best feedback and the most bookings. You should provide essentials, such as clean sheets, towels, toilet paper, and soap. Superhosts offer special extras like a welcome pack, chocolate and wine to provide the best experience.