Can You Make Money Renting a Property On Airbnb?

Do you own a rental property that you have been considering listing on Airbnb but are unsure if that is the right option for you? Are you hesitant as to whether or not you’ll be able to make money through Airbnb? You may find it helpful to read up a bit more on how Airbnb works from a renter’s perspective so that you can weigh the pros and cons of your property. 

A Look at Airbnb

Airbnb has been around since 2008 and acts as a marketplace where accommodations from around the world are listed, ranging in size, type, and price. Currently, Airbnb has properties in more than 100,000 cities in over 191 countries. That number continues to grow on a daily basis. As well, it has helped more than 150 million guests find accommodation. Their data analysis reveals that as of 2022, there are 2.9 million hosts registered on Airbnb worldwide. 

From a guests’ standpoint, it’s an excellent way to find properties that are unique, off the beaten track, luxurious, and fit their specific needs. It provides people with a different option over traditional hotels and resort chains. 

The Pros of Renting a Property

While it is clear what the pros of renting a property are from the guests’ standpoint – lower cost, unique features, a more specific list of amenities – the list of pros from a renter’s perspective isn’t always as talked about. One of the biggest benefits of choosing Airbnb is that the platform has already been set up and the technology is all there. As a renter, all you have to do is list your property on the site and you're done. You don't have to worry about marketing, taking bookings, how guests will pay, and how you will get paid.

Some renters wonder how the rates are set and the good news is that the renter has total control over what they want to charge. The renter is responsible for a 3% host fee, which is paid to Airbnb, and that's it. Once Airbnb collects payment from the guest, it is then paid to you by your method of choice within 24 hours.

The Challenges You May Face

Just like with any hotel or accommodation, getting your property seen and having it stand out from the competition is always going to be the number one challenge. Providing unique amenities and flexible rates will help in this regard. Of course, you also run the risk of having your property damaged by guests.

Keep in mind that there will also always be Airbnb horror stories out there. The risk is low though and Airbnb does have insurance to cover your property if the worst was to happen. 

Extra Ways to Make Money from Your Property

If you are looking for ways to make extra money from your property, jacking up the rates is not the way to do it. This will just give the competition an edge over you. Instead, look for a value-added incentive.

One option is renting out a parking spot through spot hero. This works especially well in the city of Chicago, where parking is hard to come by and usually very expensive. A second option is making use of the attic or spare garage that your property may have, and renting out this storage space through storeatmyhouse.com. Particularly within towns and cities space is at a premium, there will be neighbors within your area who are searching for some cheaper storage space. Finally, for those with larger homes, it’s possible to utilize the living space mid-week when it’s often quieter by hiring out rooms for use as workspaces and meeting rooms. 

Renting your property on Airbnb can turn out to be a great way to make money, as long as it’s legal to rent your property, you offer competitive rates, and there are some simple additional ways to top up the income that you can earn. 

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