Airbnb is another option for accommodation for travelers around the world. Airbnb stands for Air Bed and Breakfast. It is an idea started in 2008 by two designers who had a room, and they hosted three travelers who did not have a place to stay. Since 2008, the popularity of Airbnbs is continuing to grow, and it has become one of the most significant competitors of hotels. Statistics show that there are currently 2.9 million Airbnb hosts in the world. According to Airbnb, a survey done in 2021 shows more than eight million online sites with Airbnb listings from 220 countries in the world. Airbnb is a profitable way to make passive income. Before the covid-19 pandemic, it was estimated that the Airbnb industry generated $9.3 million in profit. With this in mind, here are five proven ways to make money on Airbnb.
If you are a frequent guest of Airbnb, you will notice a service charge called a cleaning fee. It is obvious that when a guest checks out of an Airbnb, someone has to do the cleaning, change the sheets, replace toiletries, clean the bathrooms and make sure the room is clean and sparkling, ready to be occupied by the next guest. If you love to clean, this is another way to make money with Airbnb. Several Airbnb owners are hands-on, and they prefer to do the cleaning. But the reality is many others would instead hire someone to clean. Many property owners own different properties in different areas, and they prefer to hire someone reliable to maintain the rooms and keep them in top-notch shape. A survey done by Friedberg shows that most house cleaners are paid a basic rate for cleaning depending on the size of the home. According to Wealthfit, the rate ranges from $15-40 per hour. These opportunities are available in plenty, and you can look for them on social media or contact any hosts looking for cleaners. You will need to create a business plan, market yourself and purchase liability insurance to make you look credible.
Co-hosting is a fancy word for property management. A co-host is a trusted friend, neighbor, or family member who looks after a house and guests. There are professionals on Airbnb websites who offer to co-host and bill you after receiving your payout. A co-host handles making reservations, checking in and out of guests, and messaging guests. According to Airbnb, you can earn approximately 20% from co-hosting. It is crucial to have a payout plan before venturing into co-hosting. Monetization will depend on the duties and responsibilities you must fulfill. If you are a full-time co-host and offer cleaning services, you will earn 20-30% of the night charge and the cleaning fee. Without cleaning, you will earn 10-20% of the night rate. In other cases, co-hosts agree to receive a flat rate paid on an hourly basis.
It involves renting out a property and then subletting it for a short-term stay on an Airbnb platform. Homeownership is becoming increasingly expensive, and this is a great way to invest in real estate if you cannot purchase a property. For example, you can rent a one-bedroom property for about $1000 and list it for about $100 per night on Airbnb. If you are lucky and get guests for 28 days a month, you will be able to pay your rent in a week, deduct all the maintenance expenses, and save and grow your income without owning the rental property.
It is a new concept that is emerging in the Airbnb industry. Experience hosting is for those people who are not interested in property hosting. The role of an experienced host presents you with a lucrative opportunity to make money as you guide guests and offer them a memorable experience. There are numerous options, from leading your guests through the city to taking them on a hike or skiing in the backcountry and later showcasing your culinary skills by serving them a delicious meal; the choice is yours. According to Moneyunder30, experience hosting is fun because the guests will pay you to do something you love. If you are interested in becoming an experienced host, you first need to have a fun personality and passion. Then, submit your application to Airbnb and explain the experience you will offer their guests. You can add some photos for validation. If you provide a quality and fun experience, be sure that several Airbnbs will get back.
Investing in real estate can be challenging because it requires financial stability. Buying a property with a money partner is one way to invest in real Airbnb if you have little money to invest in a rental property. You can find a partner to get a loan on your behalf and negotiate an equity partnership. In most cases, the partner who did not get the loan will have less equity, and in other cases, they can share equally. If one party is willing to get a loan and the other party finds a property, it is a solid way to partner and generate income from Airbnb. It is advantageous because you don’t need money to gain a 50% equity ownership, and you will have an incredible cash flow after the first year. Once you purchase the property, you can list it on an Airbnb site and start making money. You will need to create a payment plan to service the loan. If you list a property for $140 a night, you can make approximately $3920 a month, deduct your maintenance expenses, repay the loan according to the agreed terms and save the rest.
Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.
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