New Trends in Real Estate: How to Earn Income from Airbnb
What is an Airbnb Property?
Airbnb is a relatively new trend in the field of real estate investing. It is currently the world’s biggest and widest accommodation-sharing site.
Airbnb is an online marketplace that features different types of accommodations within a specified area. It connects people who want to have their homes rented out with people who are searching for a house, unit or room in that locale.
The “host” or owner of the accommodation participates in the Airbnb network to generate income from their property by opening it to “guests” who need a place to stay while in that area. However, this can expose the property to certain risks and damages.
How It Works
Airbnb, being an online marketplace, allows people to rent out their properties, a spare room in their home or a portion of their house to guests. Airbnb is entitled to take 3% commission for every booking from the hosts and 6% to 12% from the guests.
There are several guidelines and criteria to list and search for a property. You can search for shared accommodation, an entire house, cottage or a condominium.
You can specify certain requirements such as beachfront villa, urban location, nature-inspired or even a treehouse among many others; and certain amenities such as swimming pool, washing and drying area, playground for kids, fitness center and cooking facilities.
Photos of the property and hosts/guests are uploaded including a map that shows exact location.
Airbnb as an Affordable Option when Travelling
Airbnb defies the cost of expensive hotel reservations which is one of the main reasons behind its breakthrough success. For instance, a family of 5 having a vacation can search for an Airbnb that can comfortably accommodate all of them with complete amenities for cooking, laundry and family activities.
Or, a couple of backpackers who are traveling on a budget can rent a single AirBnB room for the night as an affordable accommodation option.
What Makes AirBnB a Good Real Estate Business?
There are several reasons that make AirBnB a profitable business for anyone who has a spare room in their house or a decent unoccupied property that meets the standards. Its most obvious benefit is the additional income that you can gain from it. Guests can get value accommodation at a huge range of price points.
Hosts can take advantage of their properties’ location to attract guests who need a place to stay within their area. Guests who had stayed in their place can leave a review to describe their experience and the same goes for the hosts who are likewise entitled to review their guests.
So basically, guests can have ideas regarding the place and the host-based upon the reviews left by previous guests. Just the same, hosts can read what other (previous hosts) have to say about the guests who are inquiring from them.
How Much Can You Earn from AirBnB?
Airbnb earnings vary to a great extent. It primarily depends upon the demand on a particular area. Earnings can range drastically ranging from 5 figures to 3 figures in dollars.
For hosts whose properties are located in prime locations and top destinations, they can earn as much as $10,000 a month.
This would depend on the competition around the area, demand for accommodation, quality of reviews left by previous guests and property amenities.
Despite the huge discrepancies when it comes to earnings, almost 50% of Airbnb hosts make an average of $500 per month.