Are you looking for a side hustle to make some extra cash? Make money on Airbnb by becoming a host of a space you already have or a co-host for someone else’s space! In this post, I will share a few ways to make money on Airbnb – including my personal experience and advice as an Airbnb Superhost! As a side hustle, you can do all of these while maintaining your full-time job.
I started my first Airbnb last year and have made over $27,000 in 8 months! This was all while working my full time job and managing the Airbnb property in my spare time.
Below is the income report directly from my Airbnb account. Passive income (well, mostly passive) is a beautiful thing and I hope you will take the leap to start an Airbnb listing today.
As you can see, there was a significant drop off in April due to COVID-19… this was my first year rent on Airbnb during this crazy time with Coronavirus!
So, how did I make money on AirBnb in my spare time??
There are a few different ways that you can make money on AirBnb.
Number 3 is what I am doing!!
First Option: Rent A Room In Your Own Home
Do you already own a home and have an extra bedroom that’s not being used?
Airbnb has an option to rent a private room. This can help pay your mortgage and bring in some extra monthly income. Even if it’s just one spare room, you can bring in extra income that you wouldn’t have even thought of before.
If you’re really serious about starting a full on Airbnb business, this is a great way to get your foot in the door. Short-term rentals are one of the best ways to make extra money and renting a room that you already own can kick start your portfolio.
Use this method as the first step to see if you enjoy hosting other people.
Depending on your location and other amenities in your home, you can get a pretty nice chunk of change for renting out a room!
Also, if you’re not having to rely on high occupancy rates to cover your bills, that’s more peace of mind.
Second Option: Rent Someone Else’s Home As A Co-Host
Instead of renting the entire property (like in our 4th option), you can become a co-host or property manager for someone that is already listed on Airbnb.
A lot of Airbnb rentals have hosts that may not have enough extra time to dedicate and provide the best hospitality. This is one of the most important things to hosting and you can definitely take some weight off their shoulders by co-hosting.
Do you have a neighbor with a seasonal home?
Does your friends friend rent their home but don’t make enough money?
Seek them out and tell them you’ll rent it on Airbnb for them! Take care of all the logistics and take a ‘Co Hosting Fee’ of up to 20%.
They make more money, you make some extra cash on the side… it’s a win win situation for both parties. More positive reviews will start coming in and everyone will be happy.
Third Option: Purchase A Home Specifically To Rent On Airbnb
In 2019, I purchased a third property with the intent to rent it as a short term vacation rental and make money on Airbnb. For potential hosts, this is the most lucrative option!
I also became a landlord when I was 24… so I had a little bit of experience in this space.
This was a huge decision. Make sure to do your research and due diligence about the area and pricing before taking this step.
I used AirDNA to see what other homes were charging per night and how often they were rented.
The best way to find profitable Airbnb markets. Analyze any area using AirDNA.
A few high level things you want to consider before purchasing a property to rent out on Airbnb…
How much will your mortgage be? How much will a cleaning service charge?
Tip: Make sure your income will outweigh your monthly expense. This is where AirDNA comes in handy. I purchased a subscription to AirDNA to get real time data for other vacation homes in the area.
What area will the home be in? Will it be seasonal or all year round?
What type of guests do you anticipate? Is there a big party scene? What are the local laws for these types of rentals?
What amenities are close by to attract people?
You won’t make money from short term rentals unless you take all of these things into consideration. Especially if this is your first purchase, I recommend doing research for at least 6 months before making the leap.
Fourth Option: Long Lease A Home And Furnish It To Rent On AirBnb
This is also called Airbnb arbitrage. Some landlords of yearly rental properties would be willing to accept less than normal for a longer lease.
For example, if a home typically rents for $1500 per month on a yearly basis… the owner may be willing to accept less if it’s rented for 2-3 years.
This gives them the security of not having to find a new tenant after a year (less fees, less hassle).
You can then list the space for rent on Airbnb and keep the money on top of what the rent is! With permission of the landlord/owner of course.
Let’s go through a simple example of Airbnb arbitrage. This is my property that I rent on Airbnb.
See the screen shot below for the real AirDNA Rentalizer projections. You will need a subscription to see these on their site (definitely worth it)
- Rental Property Monthly Cost: $2000
- Average Cleaning Fees Per Month: $350
- Occupancy Rate: 67%
- Average Daily Rate: $200
- Annual Revenue: $48,700
- Yearly Cost: $28,2000
- Yearly Profit (after all expenses): $20,500
Recap of Airbnb Side Hustle Ideas
There are a lot of ways to make some extra money as a side hustle while keeping your day job. The Airbnb platform allows us to do just that! How much money you can earn with short term rentals and vacation properties is really endless.
Whether you rent an entire home, buy your own property, or rent a spare bedroom, an Airbnb side hustle is definitely worth it. Going the extra mile with your hospitality will also elevate your hosting game and maybe add another one to your side hustle!
Hey, I’m Melissa… As an Airbnb Superhost and someone who is passionate about investing in real estate, I created Beach Life Bliss to share my experiences and help new hosts. I have been a landlord for over 10 years and started my first Airbnb property in 2019.
Creating a space with amenities that guests love, beautifully designed rooms, and providing exceptional customer service will make your Airbnb business thrive.
I hope that all of my Airbnb hosting resources are helpful as you navigate the challenges and rewards of being an Airbnb host!
Are you an Airbnb host? Tell us how you’re making money as new hosts today!
Quita
Friday 13th of August 2021
Thanks for the insight. Looking for an inexpensive way to get started. How do I approach a landlord about this? Just point blank ask?
beachlifebliss
Monday 16th of August 2021
No problem! Yes, I would approach local landlords in the neighborhood. Put together a presentation of what services you offer and how much money you might make them (And you!)