How To Get Started and Make Money With Airbnb

How To Make Money and Live Rent Free by Becoming an Airbnb Host

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Would you like to know how to get started making money with Airbnb?

As the Queen of Side Hustles, I’m here to share one of my most lucrative side hustles ever – one I absolutely LOVE – and that is being an Airbnb Host.

Just in case you’re the only person left on the planet that doesn’t know what Airbnb is… it is a home sharing platform that allows you to rent out rooms in your home or to rent out your entire home.

In essence, The Airbnb marketplace connects short term renters that are seeking accommodations.

Airbnb was founded in 2007 by roommates Brian Chesky and Joe Gebbia as a way to afford their expensive San Francisco rent after moving from New York. Nathan Blecharczyk came in later as a third partner.

Founders Chesky and Gebbia decided to set up air mattresses in their loft and rent them out to visitors and convention attendees and offer breakfast.

Many iterations and changes through the years, Airbnb is now a publicly held business worth over $30 billion dollars.

If you enjoy hosting and meeting new people, and have a spare room in your home, or even your entire home, perhaps being an Airbnb host and greeting people from all around the world would be perfect for you…and bring in enough income with the potential to live rent-free.

The concept of renting out your home and making money is known as house hacking. Many others, like myself, use it as an entry way to start real estate investing.

I’ve been able to generate a steady stream of income as an Airbnb Host over the past few years, and the same is true for many other hosts throughout the world.

Those additional monies earned from being an Airbnb host have allowed me to live practically rent-free and aided in my being able to quit my federal government job and retire early.  

You can read more of my retirement story on this blog here.

I’ve even hit the status of ‘Superhost’. Airbnb states “The Superhost program celebrates and rewards Airbnb’s top-rated and most experienced hosts”.

In addition to a badge on your listing designating you are a Superhost, see the other benefits of being a Superhost here on Airbnb’s website and more info here.

 

As an Airbnb host, I’ve found that the little niceties are what guests remember and appreciate. Those fine details, in turn, translate to guests leaving positive star reviews that help skyrocket your ratings.

Those ratings equate to increased bookings and more earning potential.

I also use Airbnb when I travel. I’ve used Airbnb in places I’ve visited including Tokyo, Hiroshima, Atlanta, Puerto Rico, and Barbados.

I’ve rented a room inside a home as well as rented an entire home.

As a guest, I enjoy seeing the setup of other hosts, as I’m always on the lookout for ideas to help out my own Airbnb business.

Often when I’m traveling out of the country, I will have an Airbnb guest at my home. That’s  when it especially feels like passive income for me! It also makes me feel as though I’m getting paid to travel. Sweet!

When I initially started my Airbnb business and I mentioned it to friends, I would usually get questions about the security of my household items.

Know that Airbnb has a one million dollar insurance policy for property damage protection.

Here’s the statement verbatim from Airbnb’s website:

If a guest damages your place or belongings during a stay and doesn’t reimburse you, you may be protected with up to $1,000,000 USD property damage protection.

Also, if you have anything of value and you need more reassurance of its safety, just lock it up or put it offsite in a safe deposit box or any other method you prefer.

Really, it’s about making a decision and doing what feels best for you and your situation.

Getting started with your own Airbnb business.

#1.  First, check on the local ordinance laws, rules, and regulations for running an Airbnb business in your neighborhood.

Here in Los Angeles, guests are charged an Occupancy Tax, like you’re charged for hotel stays.  Airbnb sends those Occupancy Taxes directly to the City of Los Angeles before the host receives payment

Here’s another example of the city rules for Airbnb hosts for Los Angeles. We now have a Home-Sharing program fee that’s paid monthly, based on booked nights of your Airbnb.

This fee is in addition to the annual Home-Sharing registration fee that hosts in Los Angeles pay.

You can find local regulations for your area here on Airbnb’s website.

#2.  Assess if you are willing and able to put in the time commitment to run an Airbnb business to make it successful and profitable.

Have you calculated the costs of running an Airbnb? Now would be a good time to create your business plan.

Will you manage your property or will you hire a management company to handle your listing?

There will be registration fees, permits, and possibly other required fees such as a license for your area.

Consider your  fees as the cost of doing business.

Will you have a cleaning service or handle the cleaning yourself? You’ll need cleaning supplies.

Do you already have the necessary setup in your home? Enough beds, linens, etc.?

You will need amenities for your guest, such as shampoo, conditioner, a hair dryer, soaps, an ironing board, clothes hangers, bath clothes and towels?

When I first started my Airbnb business, I took a page from the founders startup book and used air mattress beds, which I aptly described in my Airbnb listing.

After a few months and some profitable earnings, those air mattresses were upgraded for two brand new and very comfortable beds.

#3.   When getting started, decide if you’re using your home or an investment property – or you may even decide to forgo both those options and manage Airbnb properties instead. 

You will have to decide if you’re going to do short-term rentals, long term rentals, or both.

#4.  Now it’s time to create your Airbnb listing to start making money.

Go to Airbnb.com and select Become a Host to set up your profile.

Select Try Hosting.

Select your method of signing up. Then continue to set up your profile.

When setting up your Airbnb property listing, you want to be very detailed and accurate in your descriptions.

Decide on a title and description that catches the eye and stands out from the others.

Make a list of amenities offered. One host I know offers a coffee bar in the room, along with tea and a mini-fridge.  Another has a laptop-friendly desk.

Still another has her own four legged pooch, so her Airbnb listing says that it is pet-friendly for pets you have under 20 pounds.

Make sure to add a list of all of your amenities.

Search other Airbnb listings in your area to do comparables to make sure the price you list is competitively priced.

When deciding upon your price, don’t forget that the guests also has other fees to pay, such as cleaning fees and local taxes.

All of those fees will impact the final price the guest has to pay.

When I first started out as an Airbnb host, I lowered my rates so that I could attract clients and get some ratings to boost my listing.

Once you get started in your Airbnb business, continue to update your listing regularly with any new changes.

Happy Airbnb hosting!

Create a Guest Welcome Guide

Create a Welcome Guide for your guest. This Etsy template provides space for a welcome message, emergency numbers, wifi information, house rules, amenities, local attractions, places to eat, and more.

The guide is 12 pages, including the cover. This is a WORD document that lets you change out the photos and prefilled words. Click here to order your copy.

Related posts:

Money Making Ideas for Airbnb Hosts

5 AIRBNB HOST TIPS TO INCREASE YOUR EARNINGS

 

20 SIDE HUSTLE INCOME IDEAS