Best Way to Make Money Fast with Airbnb
Airbnb is becoming more and more popular among travelers who seek an affordable accommodation. While it may advantageous for the guests, there are both rewards and concerns for Airbnb hosts entering the sharing economy.
Money is the main reason for many people to become an Airbnb host. The additional income can help cover rising rent costs, or even to create a nest-egg for some other purpose. Instead of leaving your home or room empty, renting it out for about $100 a night is welcome income. There are also many people who rent their place and use the rent rate to travel by themselves. Whatever your motivation to rent on Airbnb, the most important thing is it is a easy way to make money.
Use the estimating app on Airbnb’s site to get an idea of how much money you can make. “What you charge is up to you. After you sign up, you’ll get access to tools to set a price that factors in travel trends and prices for similar places.”
Here is an idea of what you might make with a private room in the top destination cities:
- New York City, New York — $534/wk
- Las Vegas, Nevada — $202/wk
- Orlando, Florida — $277/wk
- Chicago, Illinois — $456/wk
- San Francisco, California — $521/wk
Even if you don’t live in these major cities, living near them can also be profitable. Here is an idea of how much money you can make in nearby cities:
- Jersey City (near New York City) — $254/wk
- Paradise (near Las Vegas) — $231/wk
- Azalea Park (near Orlando) — $165/wk
- Oak Park (near Chicago) — $316/wk
- San Jose (near San Francisco) — $369/wk
Meet New people
For both guests and hosts, meeting new people means expanding horizons. You can learn interesting and exciting trivia from your guests while earning extra money. If you have the space, you can host multiple guests at one time. Your guests can be both domestic and international. It’s up to you. You choose who you will rent to.
What to Expect
You set the rules. Renting your house or room on Airbnb means that you are prepared for the good and bad. There are always possibilities of a bad experience but it should not hold you back because you also have a splendid experience while making money. Overall, Airbnb in can benefit both the guests and hosts and as a host, you should know both the risk and reward for better anticipation.
Sacrifice privacy — the moment you decide to rent your place for Airbnb; you share your personal space with others. Even though you do not share the same bedroom, you might share the same bathroom, kitchen, and living room. (It all depends on what space your have available.) If your guests are going to stay for a couple of days, they may desire eat out and experience your city’s great restaurants, but if they stay for a week or more, you may offer to share the kitchen. You decide and negotiate for how and when they can use the kitchen before you accept them as guests. It is also important to remember that it is your duty as host to make the guests feel welcome and comfortable.
If you rent your home, you have additional concerns when making money with Airbnb
If you own the house, this risk does not apply to you. However, if you rent your property and then you rent it out again on Airbnb; you might get evicted. Be sure to let the landlord know about your intention to subtle the apartment. This also means that you will need to give the landlord some amount of percentage of the rent price. But, this will be a better option rather than caught renting out a room and then being evicted.
Violating the Law
Similar like Uber, in some areas Airbnb are considered in a kind of grey zone area, which means that it is illegal and violated local municipal codes. There are some cases in which Airbnb hosts are caught for violating the law for hosting unauthorized hotels. Different areas have different law and regulations. Carefully learn about the legality of becoming a Airbnb host in your area. Take the time to learn whether if you are on the wrong side of the regulations in your area. There is nothing worse than earning additional money, but end up violating the law and spending your extra income on fines.
Investopedia.com also warns Airbnb hosts, “In addition to complying with state and local laws, hosts should be aware that they might be subject to rental income taxes. To assist with U.S. tax compliance, Airbnb collects taxpayer information from hosts so they can provide an account of their earnings each year via 1099 and 1042 forms.”
Your House Might Be Damaged
When you decide to become an Airbnb host to strangers; you make big assumptions. You hope your guest will treat your home with the respect as they would a friend or relative allowing them to stay in their home. But things can go wrong such as guest being drunk, coming and going at all hours, and even theft.
There are some Airbnb host horror stories and sometime a host’s world is turned upside down after experiencing an unruly or untrustworthy guest. Once you decide to rent out the room on Airbnb, make sure that you have anticipated for the worst case such as keeping the important and valuable belongings in a safe place. However, the Airbnb provides some protections for the host.
Learn more about the protections Airbnb offers, such as
- $1,000,000 Host Guarantee
- Host Protection Insurance
- Airbnb Host and Guest Reviews
The Reward of Making Money
Despite the potential problems, renting a house, room or space to potential guests can be a great opportunity to make extra money. You will be supporting a worldwide sharing community. Learn best-practices from other hosts when renting your space out to travelers.