So you’re thinking about renting a property from someone just to turn around and rent it to short-term guests using Airbnb, but you want to know if you’ll make money. Airbnb is a great way to make money, but in this type of situation you’re already at a disadvantage compared to a property owner.
Someone who owns the property they’re listing on Airbnb can at least build equity in their home by paying their mortgage. If their mortgage is completely paid off, their expenses are significantly lower, meaning they can make a higher profit than a renter.
With all that being said, it is possible to make money using Airbnb even if you are renting the property you have listed on the site. You just have to target short-term travelers who expect to pay a higher price for their quick stays.
In order to help you earn extra money from properties you don’t own, we’ve put together the following tips:
Live in the property you list on Airbnb
While it is possible to make a profit by renting out a space you don’t live in, wouldn’t it make more sense to live there too? This cuts down the time you spend traveling to the listing and getting it ready, while also enabling you to get more from the space.
After all, you’ll have to pay rent regardless of if you list the space on Airbnb. If you live in the space you list on Airbnb, you might be able to afford a larger apartment since you’ll be offsetting the rent with income from guests.
Sign a yearly lease, rent weekly
A year round lease, especially in a resort town, in most cases, will be the cheapest option in terms of rent. Take your affordable space, and rent out the space by the night or week, to maximize your profits. In a seaside town, you might pay $1000/month, but you can probably charge $2000 per week during the high-season and $1000 per week in off-peak periods.
Make sure you cover the basics
In order to make money, you’re going to have to get bookings. To do that, you’ll need to offer a handful of basic amenities. You’ll also want to enable Instant Book, have great photos taken, and ensure that your listing rules are properly explained to guests.
Rent in a city that’s popular year round
Speaking of seasons, if you’re looking to make the most money, lease a property in a city that has tourists year round. These would be metropolitan areas like Manhattan, New York or Berlin, Germany.
Many popular cities on Airbnb are flooded with listings, so once you pick a city that has tourists year round, you’ll need to ensure you put significant amounts of effort into standing apart from other listings.
Have the best listing in your city
If you can figure out how to become the best listing in your city, you’ll be booked up in no time and surely be making a profit. There are lots of ways to do this. First of all, get creative. Look at what every other host is doing, and then figure out what you can do that is different and better.
Also, make sure you have everything we’ve listed on our list of things the best Airbnb’s have. If you believe in your abilities as a host, you will succeed. If you just want to make a quick buck and don’t care about your guests or the experiences of travelers to your property, you will have a harder time turning a profit.
Supplement your income with experiences
Think of ways you can get your guests to spend more money staying with you. Maybe you are a talented cook and can offer paid meals, or can offer cooking classes through the Airbnb Experiences platform. You can also look into offering tours or driving services.
Be booked as much as possible
The best way to make money while leasing a property is to be booked as often as possible. Play around with your numbers until you find the perfect listing price.