Renting rooms, apartments or houses to tourists has become popular. Because of this, many owners of such properties earn money on both short-term and long-term rentals. Getting the offer to interested people is the key activity of the companies in the industry. There are many sites on the Internet that allow you to place ads, but they usually charge a fee for each ad. An interesting alternative seems to be Airbnb, which only charges a commission on the reservation amount. So how to make money with Airbnb?
How to make money with Airbnb – issues discussed:
- Airbnb – what is it?
- How does Airbnb work?
- How to make money with Airbnb?
- What commission is charged by the portal?
- When does the host get paid?
- How much money can you make?
- Does Airbnb invoice?
Airbnb is a very popular website in the world. Recently, it has been used by more and more owners of apartments for rent. It is a convenient solution for both owners of living spaces as well as tourists.
Airbnb – what is it?
Airbnb is a service that offers accommodations in over 65,000 cities and 191 countries. Tourists and travelers have the opportunity to rent comfortable accommodation at an affordable price. The portal was created in 2008 and allows owners of rooms, apartments or houses to rent without intermediaries (such as a real estate agent).
Renters have a lot to choose from, as the service offers both cheap rooms on the outskirts of cities and exclusive apartments in the center. An interested person can rent a flat, according to the criteria specified by them, i.e. location, price or equipment.
How does Airbnb work?
Many tourists, as well as people who own rooms or houses for rent, wonder how Airbnb works. Tourists should be aware that renting a place from a private owner is often different from staying in a hotel. In the latter case, service is available 24 hours a day, but the cost of the stay is often much higher.
Sometimes guests also don’t have access to a kitchen, for example, rely on restaurant meals. The wide range of Airbnb offers makes it possible for almost everyone to rent a place according to their financial possibilities.
To book an accommodation on Airbnb, a tourist needs to log in and provide the necessary personal information. The next step is to select the location, the length of stay, and make the payment.
Almost any apartment or house owner can become a host offering rentals on this service. The only restriction may be international law, which prohibits providing services for selected countries. In some countries, it is necessary to differentiate between guests by gender, marital status or nationality. In this case, the host must indicate this information in the offer.
How to make money with Airbnb?
To list a property, the owner must create an account and provide the information required by the portal. Listing on the site is free of charge. However, the portal charges the host for each reservation made by users.
It is important to comply with the rules of the site and the quality of services provided – in accordance with the content of the ad. Guests often give opinions, which can be a great advertisement or nuisance – if the conditions in practice are contrary to the stated offer.
What commission is charged by the portal?
Fees range from 3% to 5%. Their amount is affected by the cancellation policy given by the advertiser. The commission is calculated on the reservation amount (before fees and tax) and deducted from the payments made to the host.
Guests, on the other hand, are required to pay a service charge that ranges from 6% to 12% – depending on the booking options selected. Another important element is the VAT, which is included in the service fee – according to the tax regulations of the respective country.
When does the host get paid?
The money for the reservation is first credited to the service’s account and then transferred to the specified bank account within 24 hours. This happens only after the scheduled arrival of the guest. In case of a longer stay (min. 28 days), the money is paid by the service every month.
How much money can you make?
Airbnb allows you to freely list your living space for rent. How much money can you make renting out your home? Prices vary depending on the city and location of the apartment or house.
According to the calculations made by Maciej Samcik from the blog Subjectively about Finance, the average price of an apartment for rent in a major Eastern European city is 60 Euros per day. On average, you can get in this way 1000 Euros gross per month and 10 700 Euros gross per year.
In attractive seaside cities or those located in the mountains, these amounts can be even higher, while in less touristic areas, earnings will be significantly below the average we were writing about.
Does Airbnb invoice?
An invoice is generated each time a guest makes a service charge – the moment the reservation is accepted. You can access individual invoices for single bookings or download a summary invoice with start dates falling on a given month. All invoices are available in the Reservations tab.
Now that you know how to make money with Airbnb, you might also want to check out our still-unfolding list of what other businesses are worth starting in 2021.
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