How much can you make a month on Airbnb

Airbnb hosts make, on average, about $924 a month, according to research from low-interest lender Earnest. Of course, that income can vary dramatically depending on where you’re based, how frequently you rent out your place, the quality of your home and the services you provide.

 

This common side hustle attracts many who are looking to make money off an existing asset: their home. About half, 54%, of those who own their own home say they’d consider renting it out through a service like Airbnb, according to a recent survey of 1,000 people by real estate data company Clever. And 82% believe this is a good money-making strategy.

Airbnb hosts make, on average, about $924 a month, according to research from low-interest lender Earnest. Of course, that income can vary dramatically depending on where you’re based, how frequently you rent out your place, the quality of your home and the services you provide.

“You can set-up an Airbnb with your existing space and you can make a decent side income,” says Danny Rusteen, founder of OptimizeMyAirbnb.com and a former Airbnb employee. That said, Rusteen tells CNBC Make It that with that mindset, you’re probably not going to get rich either.

And for every story like Miller’s, there are also horror stories about terrible guests, broken furniture and run-ins with local law enforcement. One host recently complained about spring breakers who destroyed a Destin, Florida condo after “partying like rockstars for a week.”

“All of these platforms, especially Airbnb, are really good at pitching hosts that you can make so much money, it’s so easy,” Dan Weber, founder Airbnb Hell, tells CNBC Make It. But it does take effort and the return depends on many factors, so it’s like the old adage: Hope for the best, plan for the worst.

If you are going to be a host on Airbnb, HomeAway, Vrbo or any of the other rental sites, it’s worth understanding the reality before you welcome your first guest. Here are some key details experts say to keep in mind.

If you’ve traveled recently, there’s a good chance you paid to stay in someone else’s home rather than a hotel, and you did so because of Airbnb. If your experience was positive, you might be asking how to become an Airbnb host yourself. While less involved than starting a business from scratch, there are still some formalities to take care of before becoming an Airbnb host. So, we’re here to discuss the economics of hosting — how much money you can earn renting out your space to travelers, and how much the process will cost you.

The Airbnb platform has done more to make the home-share model safe, reliable, and culturally acceptable than any other service. Today, Airbnb is active in more than 65,000 cities around the world, with upward of 4 million listings.

Unlike ride-sharing apps like Uber, which are the constant center of analysis, Airbnb doesn’t get as much focus, so it’s hard to tell whether the time, effort, and investment of becoming a host is worth the payoff. But it’s a question worth asking. To help you answer that question, we’ll show you how to become a host and, along the way, what hosting will cost you.

How much money can you earn as an Airbnb host?

If you’re thinking about becoming an Airbnb host, your intention is more than likely to pick up a side hustle, not to start a full-fledged business. On average, hosts make $924 a month, but those numbers vary. Some hosts even buy or lease a number of apartments or homes and rent them out full time, creating what could be a six-figure income.

If you’re curious about how much you can really earn by becoming a host, you can plug in your location, the number of guests you can host, and how much of your home you can rent out on Airbnb’s website, and they’ll show you an average number.

Of course, your true earning potential depends upon how much you charge for your space, and how often you can rent it out — both of which are ultimately dependent upon how much time and money you can spend on furnishing and maintaining your home. (Not to mention the sweat equity you’ll need to contribute toward making your space hotel-worthy.)

So, the first thing you need to do is decide what your goals are for becoming a host, and how much you’re willing to put into it, both effort- and money-wise. Keep in mind that if you’re renting out a room in your house, your roles, responsibilities, and expenses will be much different than if you need to obtain, furnish, and perform upkeep on an entire home.

Keep your prices realistic

You’re not a traditional hotel, Fast Company notes, so don’t try to price yourself like one.

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“Is it better to rent your place a third of the time at three times the price, or is it better to rent it all the time at one third of the price? The answer is the latter, because people like to save money,” Airbnb Superhost Gary Bearchell told Fast Company. “So they stay at your reasonably priced cabin. And then they leave you a nice review. And then you have a whole bunch of nice reviews. And the reviews are the only thing that takes away the risk of staying at a stranger’s house.”

Don’t forget the little things

Ensure a great guest experience by providing your customers with everything they will need during their stay, including mini toiletries, towels, entertainment, and maybe even a bottle of wine local to your area or a sweet treat from your neighborhood bakery.

As Bearchell said, “Friends thought we were crazy for doing that, but really, what’s $10 when you’re pocketing $200 to $300 for very little work?”

Sources- https://www.housing.vic.gov.au/

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