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Top 7 Ways to Make Money on Airbnb to Boost Your Income
Want to make some extra cash? You’re in the right place, as I’ve listed the top 7 ways to make money on Airbnb! Becoming an Airbnb host is the start, but many people don’t realize how many possibilities this popular platform offers.
With over 5 million Airbnb hosts worldwide, you’ve likely interacted with someone who lists a property for rent on Airbnb, or you at least know of someone. And we’ll use this as an opportunity to earn money from Airbnb.
7 ways to make money on Airbnb are possible—some are easier, some are harder, some involve your home, while others don’t. But we’re going to go over the most profitable options out there so you can understand the money-making possibilities.
Table Of Contents:
7 Ways to Make Money on Airbnb
Many of these methods are known as successful business models. However, several, primarily co-hosting, cleaning services, and managing Airbnb rentals, often get overlooked by potential hosts as legitimate money-making endeavors.
So, let’s discuss them, and you may find a simultaneous way of earning money from Airbnb besides being a host.
1. Rental Arbitrage
To put it simply, rental arbitrage is when someone rents a property and then sublets it to make more money.
Although it may sound simple on paper, it comes with some significant challenges that you must consider. Some, like securing the proper paperwork and the lease agreement terms and conditions, must happen before you begin operating.
Other issues, such as understanding relevant landlord-tenant laws and making sure you’re operating within local laws, can often come later.
To successfully execute a long-term rental strategy such as rental arbitrage, you’ll need to identify your landlord’s opinions about short-term rentals. Ask whether you will need to collect any occupancy taxes on your guests and how you’ll pay those taxes.
To operate a legitimate business, always understand how the law affects your situation. According to one legal and regulatory analysis for short-term rentals, approximately 97% of cities in the US allow short-term rentals with or without permits, but that leaves 3% of areas that don’t.
This also means that you may be taking on significant risks. If your landlord finds out, and it’s illegal or not stated within your lease agreement, then they could file eviction proceedings. That could leave you paying for more than one year’s rent, all repairs for damages, and legal fees.
2. Manage Airbnb Properties for Homeowners
Not every vacation rental homeowner is the perfect business owner.
They may be overwhelmed by all the responsibilities or simply lack the skills. To take advantage of the profitable short-term rental market and create a side hustle as a rental property manager, look for owners who have recently started renting out their homes.
As an experienced property manager, I know that having a clear plan before starting is critical.
Research what a Vacation Rental Manager makes each year so you know what an acceptable rate is. Keep track of all of your expenses:
Mileage to and from properties
Time spent updating the properties’ calendars and rates
Managing their social media accounts
Responding to guests’ inquiries
Knowing these can determine whether the money that you’re making is sufficient. Or you can use it to raise your prices and avoid working for a rate that is too low.
3. Become an Airbnb Co-host
Sometimes, it’s hard to wrap our minds around becoming an Airbnb co-host and its profitability.
That’s because many don’t realize how much time managing several Airbnb properties actually takes. Property owners need to have several crucial skills: time management, patience, and an understanding that all travelers are individuals with unique demands, requirements, opinions, and perspectives.
Many new hosts like to go all in and quickly overextend their financial and time budgets without any plan in place to keep up. A person’s personality, skill sets, and ambitions, in combination with this unpredictable environment, can be hard to control.
Thus, many find that bringing someone into the process can help with such constraints. They need someone who can make the difference between a short-term rental property, feeling like they have a full-time job, or just an easily managed, profitable hobby that earns them extra income.
What this looks like can vary: it may mean writing reviews so that hosts can maximize bookings, posting and updating listings to attract more guests, and creating a vacation rental brand that appeals to a set type of potential guests and makes their business more trustworthy.
Co-hosting on Airbnb is different in this regard because the co-host can choose to focus on fewer of the day-to-day tasks.
You could manage just the listings and the calendars if you don’t like guest communication or take a break if you want a vacation. But you do need to make a financial plan to keep track of how your earnings stack up in comparison to your total number of hours worked.
4. Join the Airbnb Cleaning Service Industry
To fully grasp what 7 Ways to Make Money on Airbnb can really look like, we decided to contact experienced Airbnb hosts to get a more first-hand perspective. What I discovered is that most Airbnb hosts need to clean their properties themselves.
Hence, finding a reliable cleaning company is a very crucial part of the process at this stage.
Potential hosts who have never booked a stay through Airbnb (and haven’t seen what their Airbnb fees were) might be unaware of something.
When guests are looking through a property’s listings to check its availability and confirm the number of rooms and guests accepted, Airbnb lists the “cleaning fee” there.
So you are being honest and transparent about all of the possible costs upfront so the traveler can decide whether to book now, message you for additional information, or make their bookings with another Airbnb host.
That’s why getting into the Airbnb cleaning Service Industry is an excellent opportunity to earn extra.
|
Job |
Hourly rate |
Annual Pay |
|
Vacation Rental Manager |
$27.39 |
|
|
Airbnb Cleaning Service |
$18.72 |
The money that an Airbnb cleaner can expect to earn varies. Their host income will depend on their cleaning rates and location.
For those Airbnb cleaners in places where an hourly wage of $18 is significantly higher than other part-time or full-time work, an hourly wage this high is enough for most to pay their mortgage and bills.
5. Lead Experiences for Guests
Offering Airbnb Experiences requires some upfront work. But, if you plan on managing multiple locations for Airbnb hosts, you may not even need to get any business license at all.
What’s better, Online Experiences allow you to do what you’re good at from the comfort of your home without even having to purchase property. Maybe you want to show travelers your local culture through cooking or crafts or share knowledge by hosting online sessions.
It may be as simple as leading fitness or well-being experiences because many states don’t require trainers and teachers in those specializations to be registered and qualified. Think creatively, and avoid quitting your job until you know if this strategy can replace a full-time income.
What makes Airbnb’s offerings for “Experiences” even better is that anyone with a proven track record can become a trainer. Airbnb’s experts can teach you how to elevate your skills so that you can teach others.
If you’re interested in getting a behind-the-scenes look at how to create experiences with the help of an experienced teacher and get tips, reach out to Airbnb today to see if you qualify.
6. Airbnb House Sitting
Airbnb offers so many opportunities that we need help figuring out where to start, so we’ve compiled 7 Ways to Make Money on Airbnb.
Do you want to start making money this year but need to know what your options are and feel daunted by the idea of applying? In a nutshell, Airbnb housesitting gives you the best of the best by allowing you to travel (for free) and stay in the homes of owners who are on vacation.
You are usually asked to manage the Airbnb in their absence. Doing so lets you have a chance to see how an established Airbnb operates, and you may even learn enough to quit your nine-to-five job.
7. Market Airbnbs for Other Hosts
One aspect of joining Airbnb or the world of 7 Ways to Make Money on Airbnb that many often ignore is this: most do not consider their marketing strategies when posting to Airbnb.
Not every homeowner who owns a property has any skill in web marketing. A well-optimized, engaging vacation rental that attract guests should include:
High-quality, professional images with a focus on angles.
Good lighting to enhance the guest experience and show off any vacation rental amenities.
If your Airbnb marketing budget is pretty low, you can get started by taking photos of their property to improve the quality of their images. Eventually, as you find more success, you can create an Airbnb marketing plan for your hosts.
Maybe that means promoting their Airbnb listings with the right keywords and regularly posting about the rental across all their social media channels. Or make sure you correctly identify all relevant regulations to ensure their hosting business is above board.
Conclusion
Finding your success stories in this real estate investment requires understanding what travelers expect and what is offered.
Joining the platform as an Airbnb host may feel overwhelming—whether it’s because of legal requirements or the thought of providing an exceptional experience and positive reviews. Then maybe taking the time to create a more manageable Airbnb business that’s right for you.
Consider cleaning short-term rental properties in your town and creating a successful cleaning service or have expertise that qualifies you to join Airbnb as a trainer. The choice is yours when deciding which of these 7 Ways to Make Money on Airbnb will lead to achieving your ambitions.
What’s important is to start now!
FAQs
How do I make a lot of money on Airbnb?
Because Airbnb’s profit margin can fluctuate, most prefer joining multiple services that Airbnb offers. Start with these steps and increase the ways you are participating. Start cleaning Airbnbs for property owners or become a property manager.
How to maximize Airbnb income?
Rental arbitrage allows you to make the highest Airbnb income because all the profit is going to you. This is not the case for most of the options. Typically, Airbnb property managers charge between 20% and 30%, which will cut into the total income generated by a vacation rental business owner.
What type of Airbnb makes the most money?
It might seem intimidating, but if you have a proven record, you can create your own experiences with the assistance of a training specialist and get tips from Airbnb directly. Once listed, you can charge your guests what you think is right for your services. With co-hosting and property management, on the other hand, you’ll likely only make 20–30% per night.
How to earn six figures in 6 months on Airbnb without owning property?
Managing Airbnb rental listings can be a side hustle. However, your strategy may need to incorporate more options to make enough profit to live comfortably and earn $100k within six months without owning property.
Choose from the top 7 ways to make money on Airbnb—clean and housesit an Airbnb rental property in high-priced markets, maybe. Become a co-host to earn a portion of nightly profits while building your skills so that you can create your own Airbnb experiences.
