Making Money on Airbnb (Without Property)
Co-hosting A co-host is basically hired help for an Airbnb host who doesn’t want to (or can’t) invest the time they need to manage their listing. A co-host might respond to inquiries on a listing, communicate with the guests, set up scheduling appointments for cleaners, or handle all of the host-to-Airbnb communications. As a reward, co-hosts are typically provided a flat percentage of all rental income. Pros: You’ll get all the practice you’d ever need if you want to manage your own Airbnb properties one day! The income from co-hosting is also very good if you don’t encounter a lot of issues with guests. Cons: The responsibilities can be a lot. If you aren’t experienced in the hospitality business, you may find full-blown co-hosting to be overwhelming at first. Unique considerations: Most co-hosts are friends or family members of the host. If you don’t personally know anyone who owns an Airbnb property, it can take a lot of time to find a host looking for third-party help.
Property management Property managers are basically professional co-hosts who don’t manage responsibilities through the Airbnb platform—property managers set up their arrangements off the website. As a property manager, you’ll manage listings, communicate with guests, handle cleanings, and do all of the non-Airbnb platform work for the owner. You’ll be paid a flat percentage of the rental income for your work. Pros: If you want to get into the short-term rental real estate game one day but you can’t afford your own property just yet, this is a great way to get all of the experience you’ll need. Cons: Unlike co-hosting, which is often a part-time job, property management is typically a full-time job and a distinct career path. Unique considerations: You typically apply for property management gigs like any other job, so look online to find openings in your area.
Hosting experiences In addition to renting out properties, Airbnb also hosts “experiences”—local services that tourists might be interested in during their stay. You might sign up to provide walking tours of a historical area you know a lot about, offer local photography services, or run a pub crawl. If you work at (or own) a small business, you could offer classes or workshops. Pros: Experiences provide you the opportunity to be your own boss. You set the price, the hours, and the scope of the work. Cons: Being approved to offer experiences on the Airbnb platform can be a little cumbersome. You need to get a background check, verify your identity, demonstrate your knowledge on a subject, and construct itineraries for each outing. You can find a full list of requirements here. Unique considerations: If you don’t have any niche skills or local knowledge that you’re comfortable charging people for, you may want to explore other routes.
Taking listing photos The Venn diagram between property owners and “people who take good photographs” is often just two circles. If you’re a wizard with the camera, you can make good money by providing your services to Airbnb owners. Pros: If you’re passionate about photography, getting paid to take photos can be a dream job! Cons: It can take a lot of legwork to get started as a freelance photographer. You’ll need to print business cards, set up an LLC, and pound the pavement to get your name out there so you can find clients. Unique considerations: It can be tough to get into the photography game if you’re new, so you may want to undercut the competition with your prices until you can build up a client base.
Freelancing as a copywriter Depending on where you live, you’ve probably got tons of Airbnbs around you. All of those units are competing with one another for renters, which means they need to have clever and attractive listings. If you’ve got the writing chops, you can make a solid chunk of change by selling your services as a writer to Airbnb owners. Pros: You can get paid to work from home while doing something you love! Cons: It’s hard work to get started out as a freelancer in any role, and writing is no different. You’ll have to market yourself, fight to get clients, and put in the work to get started. Unique considerations: It can be very hard to find clients as a budding freelance writer. You may want to offer huge discounts when you’re starting out just to attract some initial clients and build a portfolio.
Cleaning Airbnb units must be cleaned between each stay, but property owners rarely do that work themselves. If you can clean quickly and you’re diligent, you can make solid money cleaning properties. Pros: You’ll have total control over who you work for, when you work for them, and for how much. The work itself isn’t especially complicated either, which means you shouldn’t have too many roadblocks to getting started. Cons: Cleaning is hard! It takes a lot of sweat and energy to clean a space, do all of the laundry, and make sure it’s ready for the next client. If you don’t like physical work, this may not be for you. Unique considerations: At a certain point, you’re probably going to want to hire other cleaners to help you. This means applying for a business license, paying payroll taxes, the whole thing. If you never dreamed of owning a small business, it can be a lot of work you my not want.
Consulting Once you have a little bit of experience under your belt, you’ll be able to offer other property owners/managers help as a consultant. Depending on where you want to specialize, you’ll be hired to help owners fix problems, improve the quality of their listings, or solve marketing issues they’re facing. You can even help owners improve their margins, manage payroll, or hire assistants. Pros: The pay for consultants can be very lucrative if you’re in demand and can deliver results for your clients. Cons: You really have to know your stuff if you’re going to be a consultant. It will also take a lot of time to build your personal brand and find clients when you’re just starting out. Unique considerations: Consulting is a full-time job for many people, but it doesn’t have to be that way for you. Also, if you don’t want to work as an independent consultant, you can always apply to work at a consulting firm!
Renting Out a Property You Own
Confirm you’re in the clear to list your property. Some cities, like New York, Paris, Barcelona, Berlin, and Amsterdam have basically banned Airbnb. Other cities, like London or San Francisco, have regulated Airbnb like hotels, which means you must apply for local business permits before you can proceed. Look up your local laws regarding Airbnb before you take any of the time-consuming steps involved with actually listing your space. If you can’t find your local laws and ordinances, contact your local housing department. They’ll be familiar with the Airbnb rules where you live. Are you renting a space out? If you don’t own the property, you must consult your landlord before you start this process. Unless you have explicit permission in your lease, you cannot rent your unit out without the landlord’s permission.
Stage the space for short-term renters. Aim to create a warm, welcoming, and functional space by choosing art, décor, and furniture that will appeal to anyone. Opt for durable furniture that won’t wear down or stain easily (pleather and fabric are ideal). Put down plenty of rugs to protect the floors and set up the space so it’s easy to navigate and understand. Include an easy-to-spot sign explaining how the guests can log into the WiFi.
Set up all of the amenities your guests will need. Stock the cabinets with cutlery, plates, and bowls, and set up a coffee station so guests can get a morning cup of Joe. You might also include a local guidebook or guestbook. Renters tend to appreciate these little touches. Pro-tip: Choose white linens and bedding. This way, you can bleach the sheets if they ever get stained and you’ll never struggle to find replacements that work with the space’s color scheme.
Take photos of your space. If you’re good with the camera, take photos of the unit yourself. If you’re not handy with a camera or you simply want a more professional look, hire a photographer who specializes in real estate photography to take the photos for you. Pro-tip: If you’re shooting the photos yourself, use a tripod. Also, if you have a DSLR, set the aperture to a higher setting (more than f-stop 10 or so), shoot in a 3:2 aspect ratio, and use the highest resolution available.
Craft a compelling listing on the Airbnb platform. Highlight how many bedrooms and bathrooms there are, then focus on where your unit is located. If you’re near any public transit, famous tourist spots, or interesting sights, mention that early as well. Then, describe the space, list the amenities (like AC, WiFi, or parking), and create your post. Include your house rules. How many guests can come over? Are pets allowed? What about late checkout fees? All of this is important to include. Keep your target audience in mind. If you’re renting out a cabin on a peaceful lake, you probably don’t need to appeal to people looking for shopping or vibrant nightlife—you probably want to target folks looking for a quiet break. Think about who would be interested in renting your space and tailor the content to them!
Price your space based on similar local listings. You can set whatever price you want, but you’re most likely to get solid interest if you’re priced competitively for the area. Look at what the other units in your area are charging and then adjust your price based on how selective or aggressive you want to be. As a rule of thumb, the bigger your space is, the more you can charge. People often split Airbnb costs, so if a space holds 5 guests, divide your price by 5 to see how much you’d be charging each individual. Shared rooms are always worth less than entire homes unless the room is located in an extremely desirable area. Use your best judgement. If it looks like you have the nicest property on the platform, price your unit accordingly!
Confirm rentals and answer questions as they come. You will receive notifications on the platform each time someone wants to book your place or reach out with questions. Respond promptly to questions and bookings to ensure you get the best reviews possible, which will help you increase your future returns. After each rental, you must clean and reset your space. You won’t last long on Airbnb if you don’t change the sheets out, sweep, and do the dishes. Keep track of how much you’re making. You’ll need to report the income from your Airbnb on your taxes.
What is Airbnb arbitrage?
Airbnb “arbitrage” is a strategy where you rent out units to rent out again. Here’s how this works: you go out and apply to rent an apartment for, say, $1,000 a month. You sign the lease and then list the property on Airbnb with the goal of getting at least 5 rentals a month at $250 per stay. This comes out to $1,250. You pay the rent and pocket the $250. Then, you go out and do it again. The more rentals you get, the more you can earn each month. If this sounds kind of risky to you, that’s because it is. If you can’t hit your rental targets, you can end up with a giant rental bill that you may not be able to afford. The entire process hinges on you always meeting your target. This isn’t technically arbitrage. We want to caution against any connotations the word “arbitrage” carries here. Arbitrage typically refers to a guaranteed gain earned by buying an asset in one setting and selling it in another (like if a commodity sells for $1 in Japan but buyers are offering $2 in Canada, for example). Airbnb “arbitrage” is much riskier than the name suggests. Property owners must know what you’re doing ahead of time. Unless there’s something in your lease that explicitly permits subletting on Airbnb, you must talk to the landlord of a property about your plans before you sign any leases and list any properties for rent.
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