With over 5.6 million Airbnb worldwide, you probably know about somebody who hosts Airbnb. For some, hosting can be a lucrative business, while others may even turn it into a permanent job!
However, we cannot afford to own property. But does this mean that we should be missing out on the opportunity to make money? No!
If you can’t afford to buy real estate, or it’s just not what you want to do, there are many other ways to make money with Airbnb.
The idea here is that you are renting a property with the intention of listing it on Airbnb.
So, you rent out the property for a long-term lease (let’s say you have a lease for one year) at the rate agreed with the owner, and then you make a profit by listing properties on Airbnb at a rate that will cover your rent, and then some more! This is also known as rental arbitration.
However, this is not for everyone, as you will have to ask the landlord for permission before subletting his apartment. If the homeowner doesn’t like this idea, you can offer them a portion of your profit – this may help close the deal.
Sam Friedberg, a seasoned real estate manager at Airbnb, notes that rental arbitration, while a good earning opportunity, is not possible in most cases.
“Most homeowners don’t [allow it]some will do so if they are sure it’s a bargain. Getting them to agree requires an individual sale. I only did this with a referral or with close friends / relatives. No one has a “list” of places where rental arbitration is “allowed” – and if they did and the opportunity was good, they would keep that list for themselves. There are several online courses available (at varying prices) that teach people how to approach landlords to allow rental arbitration. “
Many large cities, such as New York, have made it nearly impossible for tenants to sublet this way. Therefore, be sure to talk to your landlord so you can understand their views and the laws of your state.
2. Property management
You may not own property, but that shouldn’t stop you from managing someone else’s. There is a market for homeowners looking to list their properties on Airbnb, but they just don’t have the time or skills to do so successfully. This is where you come in.
If you have time, you may be responsible for listing properties, communicating with guests, resolving any issues that arise, and ensuring that the property is properly cleaned and ready to welcome new guests. Basically, you take on all responsibilities other than paying the mortgage. Friedberg also explains:
“Property management (often organized as shared hosting) comes with less risk and lower rewards than rental arbitration for an Airbnb entrepreneur. Rental arbitration also usually requires you to sign a legally binding rental agreement, even if things aren’t going well from Airbnb’s perspective. But if this is a good situation, the profit potential from arbitrage is higher. “
So how do you make money? Well, you and the landlord agree on a fair percentage. Typically, Airbnb property managers charge between 20% and 30% of the daily rate.
The amount you charge should also vary based on factors such as the location of the hotel (whether it is near or far from home) and the type of service offered to guests.
Those who live close to more expensive apartments can make a lot of money for those who live in more rural areas, however travel and work may not pay off. Don’t forget to count in advance!
3. Airbnb Partner
If you have a website that gets at least one million visits per month, or an app that opens over a million per month, you can become an Airbnb partner.
The affiliate program has a much higher barrier to entry than most of the other options on this list, but if you have a popular website or app and audience that can benefit from Airbnb’s offerings, why not give it a try!
Airbnb offers two ways to become an affiliate:
- Guest affiliate program. List Airbnb properties on your site and earn a commission on every booking you are responsible for.
- Host affiliate program. Highlight Airbnb hosting features on your site and earn a commission for every new host you get a hand in.
More details: Can Airbnb Hosting Make Home Ownership More Affordable?
If you’ve ever booked a stay through Airbnb, you’ve likely seen a “cleaning fee” fee. Unsurprisingly, after a guest leaves an Airbnb rental location, someone has to stop by to change sheets, clean bathrooms, and make sure the space is shiny and tidy for the next guest. You could be that person!
While some Airbnb hosts are very down-to-earth and prefer to do the cleaning themselves, many are looking for someone to do the job. Many landlords own properties around the world and need reliable people to keep their leases in top condition. In fact, Friedberg notes:
“Most housekeepers are paid a flat rate based on the size of the house (perhaps more to clean up after pets or unnecessary dirty guests). It is likely to be in the $ 15 to $ 40 an hour range, although most of it is not paid on an hourly basis. “
You can find these opportunities in a wide variety of places. Search job boards (LinkedIn, Indeed, etc.), post on social media, ask any hosts you know if they’re looking for cleaning women, or take the old route and post flyers around town.
5. Airbnb host.
If you’re not interested in becoming a property owner, Airbnb offers another hosting option called Experience Host. In this role, you can make money by guiding guests through an amazing experience.
Whether you’re taking a bike tour of your city, sending a group of guests on a ski adventure, or treating them to a culinary experience they’ll never forget, the choice is yours.
In my opinion, this is one of the best ways to make money on Airbnb because you get paid to do what you love.
If you want to become an Experience Host, you’ll need to go through Airbnb’s three-step process.
- Explore the expectations of Airbnbs Experience hosts. They want to see your passion in a unique, fun and exciting guest experience.
- Share your experience. Provide a description (what it is, what the guests will be doing, how long it will take, etc.) and even some photos so that the Airbnb team can get a good idea of what you want to offer guests.
- Sit back and wait. The Airbnb team will review your proposal and respond positively or negatively.
6. Babysitting on Airbnb.
What happens when an Airbnb host wants to go on vacation? Who will take care of everything while they are away on vacation for a few weeks or months?
Come into you – Airbnb Housekeeper Extraordinary!
As an Airbnb nanny, you are responsible for taking care of the hosts’ living space and also for renting their Airbnb. It’s a pretty sweet deal, especially if you’re looking for a cheap way to see a new place.
This situation allows you to travel to a new destination, stay for free, and also earn extra money to spend – win, win, win!
However, it is important to note here that finding such a job is not easy. Some people post directly to Airbnb, but you can also Google a house near you to look for opportunities.
7. Airbnb co-host
Co-hosting is great for people on Airbnb who own real estate but don’t have the time to set up and manage their ads.
Airbnb allows hosts to include a “co-owner”. A co-host is someone that property owners add to an ad and has permission to help with certain tasks. for example, chatting with guests, posting an ad, managing ads, restocking, etc. The host and co-host must decide who does what and how they are going to split the profits.
If you are interested in becoming a co-host, you can contact someone you know who is currently the host and ask if they would like to add you as a co-host. Suggest how you can help them make their lives easier, then negotiate a rate.
Or, if you know someone who has property and is thinking about becoming the owner, but he did not have time for this, offer to do it for him and ask them to add you as a co-host.
Owning your own property is not a requirement for making money with Airbnb. As you can see, there are many different ways to make a profit without taking out a mortgage, and many of them are very fun (hosting experience, sitting at home … yes please)!
So what are you waiting for? Pick the job that best suits your skills, ability, and level of effort you’re willing to put in, and start making money!