What is Airbnb?
Airbnb is a broker service for housing. Essentially, it makes it so regular people can rent out their own home, apartment, bedroom, or even sofa, to other people via their app or website. Airbnb doesn’t actually own any property. They own the insurance and the website that enables average people to make money from their property.
You can stay in all sorts of places via Airbnb, even igloos, and treehouses. It’s often times less expensive than hotels, especially for longer stays. Since anyone can host on Airbnb, you can find places to stay nearly anywhere in the world. Whether you want an entire house for a music festival or a room for an overnight business trip, there are millions of options on Airbnb.
Recently, Airbnb also began offering experiences, as well. You can use Airbnb to do a special hike, scenic tour, or other local experience offered by hosts.
Who uses Airbnb?
Airbnb is more used by millennials since millennials are more open to the sharing economy, but people from all walks of life host and stay via Airbnb. In city areas, people vacate their apartment during busy times of the year, staying with friends in order to rent out their own place for a profit. People also use this strategy when they live near big music festival venues or other popular destinations.
Anyone who travels uses Airbnb. Business people, tourists, families… It’s available to anyone. Airbnb offers the ability to verify your account, which increases legitimacy. Then, hosts and guests review each other, so it’s in everyone’s best interest to be on their best behavior during each transaction.
What are the requirements to host on Airbnb?
Registration is free. Hosts create a listing, complete with photos and descriptions. A banking account must be linked to the Airbnb site in order to receive payment. Tax documents have to be filled out and uploaded to be paid.
Is Airbnb the best company to host with?
There are other similar options for hosting a place online, but there’s nothing completely like Airbnb. HomeAway and VRBO are both websites that allow you to list whole places, but neither have the community feel that Airbnb does. Couchsurfing allows you to rent a sofa for free, but they don’t charge. Airbnb is the best bet for making money while doing short-term housing.
What are alternatives to Airbnb?
There are many alternatives to Airbnb, but no direct alternatives. HomeAway, VRBO, and Couchsurfing are the most popular ones.
How much money can you make hosting with Airbnb?
You can make as much or as little money as you want. Because you can see what other places in your area are renting for, you can pick a good price. Airbnb also has algorithms to help with automatic pricing. As long as you price competitively with what’s around you, your place has a good chance of booking.
Most places have busier and slower seasons, and that will affect how busy your Airbnb rental is. The price of your place will also impact your booking rate. For example, a city place near a subway with a low rate will book regularly and make money in volume. A mansion in Beverly Hills will rent less often but at a higher rate. Of course, expenses like rent must also be factored in. The amount of money you can make on Airbnb is very variable.
What are the downsides to hosting with Airbnb?
The biggest downside to hosting with Airbnb is that many cities and municipalities are taxing Airbnbs and making short-term rentals illegal. Also, some people get confused with they stay in Airbnb’s, thinking they’re like hotels and have overly high expectations. Similarly, some guests treat Airbnb’s like hotels and leave messes and break things. Airbnb does have a dispute program and will reimburse for guest messes, but it’s still an inconvenience. Lastly, Airbnb hosts have to clean their place between stays.
Are there better ways than Airbnb to make money?
Airbnb is a good way to make money. It’s a step between an actual job and really having the freedom of working for yourself. Because it means you have to be there to check on your place, there are other options that create better income with more flexibility, like owning your own online business.