Today, many people prefer home-like accommodations over hotels when they travel to a different city or country. If you want to make money with the help of your own or rented property, you can let it out on Airbnb. If you are wondering how much money can you make on Airbnb, you will be thrilled to know that you can make close to $900 a month, if you are doing this as a part-time business.
However, if you have a series of properties to let out on Airbnb, and if you have already invested a lot to make your homes hotel-worthy, you can be assured of earning a 6-figure mark every month! To know how much money can you make on Airbnb, you should first know how to join Airbnb. Here are the steps for the same:
How much money can you make on Airbnb
How to join Airbnb:
To join Airbnb as a host, follow these steps:
- Go to the Airbnb website and click on the “Become a host” button.
- Create an account by entering your email address and creating a password.
- Fill out your profile, including your name, phone number, and a profile picture.
- Describe your property and the amenities you are offering to guests.
- Set your rental rate and availability.
- Upload photos of your property.
- Review and accept the Airbnb terms of service.
- Wait for your listing to be approved. Once your listing is approved, it will be publicly available for guests to book.
To join Airbnb as a guest, follow these steps:
- Go to the Airbnb website and click on the “Sign up” button.
- Create an account by entering your email address and creating a password.
- Fill out your profile, including your name, phone number, and a profile picture.
- Review and accept the Airbnb terms of service.
- Once your account is created, you can start searching for and booking properties on the Airbnb platform.
How much money can you make on Airbnb:
How much money can you make on Airbnb? Before getting an answer to this question, you must first work on some fundamental concepts such as the following:
How much of space you can let out on Airbnb?
Becoming a host with Airbnb is one of the businesses that make money right away. Therefore, more and more people have started to get into this field. If you want to join Airbnb, you should first decide on how much you can let out. Ensure that you have got the answers to the following questions:
- Are you letting out an entire building?
- Are you letting out a part of the home where you are staying now?
- Have you invested in making the space worthy of hosting guests?
- Have you followed the basic rules mentioned by Airbnb (such as clean facilities, toilet rolls, etc.)?
- If you are letting out a leased building, did you check with your landlord about the same?
- Did you check with the local housing societies in your area if it is alright to let out some space on Airbnb?
Pricing related matters
Your apartment may be well-furnished and on a prime locality, but it may not be preferred by guests if it is overpriced. This is why it is very important for you to understand the market in your locality before fixing a price for your property. You should also know how much does Airbnb takes and how it calculates its commission rate.
If you are thinking of how much does Airbnb takes, it could be anywhere between 3 to 5% of the listing price that you have fixed for your property. However, this percentage could vary based on the locality, services offered by you, tourist discounts that you are offering, and the like.
To ensure that your property is well-maintained, you need to ensure that you fix a ceiling on the maximum staying period. This will give you enough time to clean the property before the next guest’s check-in. You can also charge for extra passengers checked-in or additional facilities ordered at your property.
How does Airbnb make money?
While it may sound quite thrilling for you to let out your space and make money from it on Airbnb, you cannot help but think how does Airbnb makes money. Here is the simple math behind Airbnb’s successful business model. As we told you in the above sections, Airbnb gets close to 3 to 5% commission from you (hosts).
However, the major chunk of the site’s income comes from the service fee it charges for its guests when they check-in. Guests need to pay anywhere between 5 and 15% of the reservation fee while booking a property on Airbnb.
Airbnb makes money by charging a fee to hosts and guests on its platform.
For hosts, Airbnb charges a 3% fee for every booking made through the platform. The host is responsible for paying this fee, which is deducted from the total amount of the booking.
For guests, Airbnb charges a service fee that is a percentage of the booking total. The exact percentage of the service fee varies, but it is generally between 6% and 12% of the booking total. The service fee is added to the total cost of the booking and is paid by the guest.
In addition to these fees, Airbnb also generates revenue from other sources, such as:
- Airbnb Experiences: Airbnb offers a variety of experiences, such as guided tours and activities, that can be booked through the platform. Airbnb charges a fee for hosting and booking these experiences.
- Airbnb Luxe: Airbnb Luxe is a luxury rental platform that offers high-end properties for rent. Airbnb charges hosts a higher fee for listing their properties on Airbnb Luxe and also charges guests a higher service fee for bookings made on the platform.
- Airbnb Plus: Airbnb Plus is a program that recognizes properties that meet certain standards of quality and comfort. Hosts who participate in Airbnb Plus pay a higher fee to list their properties on the platform, and guests may be charged a higher service fee for bookings made on Airbnb Plus properties.
How to know how much money can you make on Airbnb
If you want to know how much money can you make on Airbnb, you can make use of the estimator tool available on the official site of Airbnb. This will give you a rough estimate of the price that you need to fix for a property based on its location and facilities. However, the downside to this tool is that you cannot use it to estimate the price of your property during peak tourist seasons.
This is why you can make use of a new tool launched by a startup company, Elliott & Me. This is calculator powered by artificial intelligence that guides you to almost the exact answer to the question, how much money can you make on Airbnb.
Why is this tool accurate? All you need to do is to feed in the address of your property on this calculator. With this information, the tool automatically calculates the no. of bedrooms, bathrooms and other facilities in your property. It will also calculate how many guests can this property fit in.
Then, the tool will pull up historical data of this property and the neighboring localities to compare the competition. It will then give you a detailed daily, weekly and monthly rental pricing (estimated) that you can fix for your property. It will also give details when the tourist season is at its peak and its lowest. Therefore, you can price your property accordingly on Airbnb, thanks to the accuracy of this calculator.
How to make money on Airbnb without owning property?
Do you want to understand how to make money on Airbnb without owning property? Here are some tips you can follow:
- Managing other people’s properties – these people own properties but don’t have enough knowledge about listing on Airbnb
- Renting a furnished accommodation and then letting it out on Airbnb
- Sitting for an owner in his property, when it is being let out to take care of the maintenance
- Convincing a house owner to let out his own property on Airbnb instead of renting out like he usually does; this way, you get to earn a commission for the money that the house owner earns on Airbnb
- How much money can you make on Airbnb – the answer to this question depends on how wide you are ready to extend your scope of work. You can work as an Airbnb cleaner to clean & take care of the properties of house owners and make them hotel-worthy; you will get paid on an hourly basis for this.
- Offering your experiences on a property that is on Airbnb – examples could be performing the role of tour guide, conducting a cooking class in the premises of the property and the like
- Becoming an affiliate of Airbnb where you get to promote the properties advertised on Airbnb and receive a commission when these properties are booked
In a nutshell, you need to understand the Airbnb terms carefully before you think of making a lot of money from this source.
Best tips to succeed on Making money on Airbnb
- Offer a clean and well-maintained space: Guests will have a better experience and be more likely to leave positive reviews if your property is clean and well-maintained.
- Have clear and accurate listing information: Make sure your listing accurately reflects your property and the amenities you are offering. This will help set realistic expectations for your guests and avoid misunderstandings.
- Respond promptly to inquiries and requests: Guests appreciate timely responses, and it can make a big difference in your bookings.
- Be a good communicator: Communicate clearly and regularly with your guests, especially leading up to their stay.
- Price your property competitively: Take the time to research the market and price your property accordingly.
- Consider offering additional services: Adding value for your guests can help you stand out from the competition. This could include things like breakfast or other meals, transportation, or special activities.
- Get good reviews: Positive reviews from previous guests can make a big difference in attracting new bookings. Make sure to provide a good experience for your guests and ask them to leave a review after their stay.
- Use high-quality photos: Good photos can help your listing stand out and attract more bookings. Make sure to use high-quality, well-lit photos that accurately represent your property.
- Be proactive about addressing any issues: If you receive a negative review or a complaint from a guest, try to address it quickly and effectively. This can help you maintain a good reputation on the platform.
- Follow Airbnb’s guidelines: Airbnb has specific guidelines for hosts, including rules around things like cancellations and refunds. Make sure to familiarize yourself with these guidelines and follow them to avoid any issues.
- Utilize the Airbnb hosting tools: Airbnb provides a number of tools for hosts to help them manage their listings, including the ability to set house rules, block off dates for maintenance or personal use, and set up automated responses to frequently asked questions.
- Consider joining a professional hosting service: If you are looking to maximize your earnings on Airbnb, you may want to consider joining a professional hosting service. These services can help you optimize your listing, handle bookings and communication with guests, and provide other services to help you run your Airbnb business more efficiently.
Conclusion:
It is difficult to determine exactly how much money you can make on Airbnb, as it will depend on a variety of factors such as the location of your property, the type of property, the demand for rentals in your area, and the price you set for your rentals. However, many people have been successful in making significant income through Airbnb.
Some hosts are able to make enough money to cover their mortgage or rent payments, while others are able to use Airbnb as a significant source of income. Ultimately, the amount of money you can make on Airbnb will depend on your specific circumstances.
If you are interested in learning more about the potential income you can earn as an Uber Eats driver, you can read more about it here: “How much do Uber Eats drivers make?”
Frequently Asked Questions:
Is Airbnb a good way to make money?
Airbnb is a popular platform for homeowners and renters to earn extra income by renting out their properties. By providing a comfortable and welcoming space and delivering a positive experience for guests, you can make money on Airbnb. It is an excellent way to supplement your income or pay off your mortgage early.
How much do Airbnb hosts get paid?
As an Airbnb host, you will be charged a service fee of 3% of the booking subtotal. The booking subtotal is the total cost of the booking for the guest, including your nightly rate and any optional fees you may have charged, such as a cleaning fee. This service fee is separate from any fees and taxes that Airbnb may charge guests.
Are Airbnb owners rich?
On average, Airbnb hosts in the US earn over $9,000 per year. However, this amount can vary based on location, demand, and pricing. Some hosts rent out multiple properties full-time, while others only list a single property or room.
Hi, my name is Idammah, and I am the founder of Genie Dollars, a website dedicated to helping people make money online. I have always been interested in finding ways to earn extra income and achieve financial freedom. That's why I started this blog – to share my own experiences and the strategies that have worked for me with others who are looking to do the same. I have personally tried a variety of methods for making money online, including affiliate marketing, POD, and freelance writing. While some methods have been more successful than others, I have learned a lot along the way and am constantly experimenting with new ways to earn an income online. Through my blog, I hope to inspire and educate others who are looking to start their own online businesses or simply want to supplement their income. I believe that with hard work and dedication, anyone can find success in the world of online entrepreneurship. I am excited to share my knowledge and experiences with my readers, and I hope that my blog can be a helpful resource for anyone looking to make money online. Thanks for stopping by!
