- You may have heard about a rapidly expanding network called Airbnb. Perhaps you are curious about what the service entails, or you are simply curious about how you could use the service to make money. If you are interested in Airbnb and how it can possibly benefit you, then this article will help you understand its various facets and benefits.
Simply put Airbnb is a service that allows you to rent out space in your home for people to stay in. Airbnb has grown massively since its debut in 2009 and now has over 800,000 registered properties in over 90 countries globally. Despite the potential issue that could arise from letting a stranger rent a part of your home, millions of users have trusted Airbnb and are raking in the money because of it. Airbnb presents a great opportunity for you to earn some extra income as well as potentially meet new people from all over the world.
How does Airbnb work
Airbnb lets you rent out either your whole property or a section of your property out to guests. Once you have signed up to the service you can set what areas of your home you want to rent out as well as your rate. Users can then look up locations to rent out when they go on holiday. They will often look for somewhere close to where they are visiting so if you are near a popular holiday area you may get a lot more business. Once they have decided they want to rent your place they will ask for a booking for however many days they are interested in staying. If you agree to their request then they will come and stay for however many days were agreed upon.
Airbnb can charge you in one of two ways for renting out. Either you pay an annual fee of $349 which includes advertising out your property and no additional charges. Or you can opt out of the advertising fee and instead Airbnb will charge you a 10% commission for each individual booking. The second option is better if you are only planning on renting your home a couple of times a year. If you are planning on year-round rental, then the first option may be preferable. You will need to ensure that you provide things for your guests such as clean towels and sheets and ensure that your home is in pristine condition.
Advantages of Airbnb
Airbnb offers a large assortment of benefits if you choose to rent with them. These include:
- Highly profitable: Airbnb can potentially earn you a lot of money from renters. Depending on various factors such as the size of the area you’re renting, quality of the area, how long you’re renting for and what location your home is in, you can charge a fair amount of money. This is far more lucrative than most other ways of earning money from home.
- Opportunity to meet new people: The most common people who rent on Airbnb are people who are going on holiday. Because of this, they will be from all over the world with various different cultures and experiences. Depending on the nature of their visit you may end up interacting with your guest a lot and getting to know them very well. You could potentially make a lot of friends this way.
- Listings are free: You aren’t charged a single penny for listing your property. So even if you are unsuccessful in finding someone to rent your property you won’t lose anything from listing your property on the service.
- Airbnb has protection in place for both hosts and guests: Obviously, a major risk with allowing strangers into your home is potential damages or theft, or possibly even worse. To alleviate these worries Airbnb protects its users to grant them peace of mind and safety. The Airbnb host program guarantees up to $1,000,000 in damages if you fall within one of the eligible countries.
- You set your own prices: While it is a good idea to see what other people in your area are charging, you are free to set whatever price you want.
Disadvantages of Airbnb
Airbnb does present a number of great opportunities and advantages, but it isn’t all upside. There are a few reasons why you might not want to use Airbnb including:
- It’s a lot of effort: Most methods of earning money from home can be done with low amounts of effort or with a degree of automation, this is not the case here. Running an Airbnb will require a large investment of time and effort on your part. You will need to ensure that your property is in tip-top condition. You must ensure that everything is impeccably clean and organised, you will have to ensure that your guests always have clean linens and bedsheets. Various amenities such as soap and shampoo will also have to be provided. You may find that the hassle isn’t worth it.
- Different areas will have different legalities: Some areas may have laws in place that make running an Airbnb more difficult or costly. Make sure you check beforehand your local laws about renting out property. You may need to acquire a permit, be limited to renting out during set periods, or it may be flat out illegal. Always make sure that you are aware of your local laws.
- Potential damage: Even though Airbnb covers a lot of damage that you might suffer, you should still be wary. Even with financial compensation, you may not want to take any risks of having your property damaged. If you have anything with a large amount of sentimental value, then no amount of money could ever replace it. There will also be a lot of inconveniences caused by having to replace your items/repair your building.
How you make money on airbnb
Airbnb can be a very competitive marketplace and can be a little overwhelming. This part of the article will cover how you earn money on Airbnb, and an overview on how the process works.
listing is free
Signing up for Airbnb and listing a property is completely free. One key benefit here is that if you don’t get any tenants, you won’t be charge, unlike other similar services. All’s you need to do is create an engaging listing and wait for the reservations to come in. Airbnb will take a percentage cut of 6%-12% after the tenant has paid.
you set your own prices
Hosting on Airbnb can be beautiful as you get to set your own prices. You normally charge by the night, and you can change this from night-to-night. With you being able to change pricing, this means that you can charge more on weekends, and depending on the season to get the most out of your profits.
You can also charge extra fees for things like extra guests and cleaning. It’s important to take all these extras into consideration as they add up. Even smalls things like toilet roll, cleaning essentials, all add up. At the end of the way, you’re practically self-employed here, so you need to run it like a business.
You’ll get paid after check-in
How Airbnb usually works is that you’ll be paid 24 hours after your guest has checked in. Airbnb is among the faster payment services out there, since by the time your guest has left, the money is in your bank.
How the money goes into your bank is completely up to you. Depending on your location, you can choose direct debit, international wire, PayPal, and many more.
Check city tax laws
In some cities you’re required to collect taxes on your Airbnb earnings. Not all cities require this, but it’s worth checking up with your local government or speaking to other Airbnb lanlords in your area.
How you collect taxes will vary depending on your location. You’ll either have to add your taxes manually, or just add taxes along with your listing. Airbnb also offer a collect a remit feature. Airbnb will usually let you know what taxes your area needs to pay.
Value added tax, or VAT may also apply in some location.
How to sign up
- 1. First of all, head over to the Airbnb site here to begin the sign-up process. Click on the sign-up button on the top right of the screen.
2. Then you need to input some information including your email address, name, and birthday. You also need to create a password for the account.
3. Lastly, you must accept the terms and conditions.