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Airbnb has attracted many people from around the world to rent out their spaces and properties on its platform. Some rent out their properties as their sole source of income, while others use it as a part-time gig.
Want to know the Airbnb average income? Read on!
In a survey of 1,000 people conducted by Clever, a real estate data company, 54% of those who own their home said that they would consider renting it out through a rental service like Airbnb. 82% of respondents believe that this type of venture is a good money-making strategy.
The Airbnb average income that hosts make is about $924 a month, according to research by low-interest lender Earnest. However, that amount significantly varies depending on the location of a rental property, the place’s quality, how often it's rented out, and the services provided.
According to Danny Rusteen, founder of OptimizeMyAirbnb.com and former employee of Airbnb, one can set up an Airbnb with an existing space and make a decent side income.
However, not all Airbnb stories have happy endings. There are also unpleasant stories about terrible guests, run-ins with local law enforcement, and broken furniture. One host complained about spring breakers who destroyed a Florida condo after partying for over a week.
And if you’re planning to be a host on Airbnb, Vrbo, HomeAway, or any other rental site, it’s going to be worth your while to understand the reality of the business before diving right into it.
Prepare for the Upfront Costs
Starting your Airbnb rental business is an exciting venture. And while you think that your home is perfect for you, guests may have different perspectives. You have to understand that at some point, some redecorating may be needed. The same goes when you’re renting out a spare room, as you may have to buy a new bed or mattress.
You have to make sure that your space is fairly new, decent, and attractive because you’re competing with other Airbnb hosts. It could cost you around $3000 for the rest of the house and about $1,500 per bedroom, which is at par with what experts estimate.
Below are some types of equipment worth investing in:
Smart TV
Digital keyless entry system
Toiletries
Wifi
Extra towels
Pantry staples (condiments, salt, pepper, etc)
You can always provide more amenities that you think would suit your guests. It’s just about acclimating your guests to their new environment, which is your Airbnb listing, as quickly as possible.
Cover Your Bases
Make sure to protect your investment ahead of time because you’ll never know what will happen once your guests show up. This means checking that you’re operating on the right side of the law. This can save you money on your Airbnb average income by avoiding any penalties or fees.
Research all the necessary information before starting your Airbnb rental business, such as the requirements that you need to meet. Sometimes, you will find that you will need to take a trip down to the local city hall to fill out some paperwork. In many instances, the city in which you’re operating your Airbnb needs to be informed that you’re renting out your space.
You can welcome guests without performing this step, but it can prove helpful. Also, check the rules and regulations that are enforced by homeowners’ associations, landlords, and condo boards.
Be sure that your new venture is covered by insurance. While big companies in this space, like Airbnb, Vrbo, and HomeAway, provide liability insurance that covers up to $1 million, there are restrictions that can prove to be a challenge when submitting claims.
Manage Your Expectations
You now know the Airbnb average income, but hosts still get surprised by the variability in income. Bookings come in waves, which changes pricing models for high and low seasons. For this, hosts must be able to face the reality of monthly income fluctuations.
On the other hand, a lot of aspiring hosts fail to understand that the earning potential is largely determined by the existing demand for Airbnb travel and their property location. If their place is not located in an Airbnb hotspot, they’re going to have difficulties and challenges from the start.
While the Airbnb rental industry has grown significantly over the years, much of that growth is still linked to areas that already have a strong travel demand.
You must also keep in mind that there’s an ongoing time commitment in this line of business. The way to make the most money is to provide short-term rentals, as well as room-to-room, instead of renting out the entire house. But the tradeoff is that it’s a lot of work.
Paying for professional cleaners to clean your space is a good option, especially if you’re just renting out one room or doing full-time rentals, as the turnaround time between guests can be fast. This can save you a lot of time that you can use for other vital processes of your business.
In Summary
There are many benefits to becoming an Airbnb host, but it’s also important to bear in mind that to do it right, you will have to invest lots of time and money.