Before Airbnb was founded, the creators were desperate for money to pay their rent. They rented air mattresses to make some extra cash and decided to build on that idea by creating a website for short-term rentals. This website has grown in an unprecedented manner to bring to life the Airbnb platform. At the time everyone laughed off their idea of making money by renting out rooms. Today, renting out Airbnb rooms is generating enough money for some people to cover their monthly rent or mortgage payment in addition to leaving them with some good profit.
Many people get uncomfortable by the idea of renting out rooms in their home to strangers who will come top stay for a few days and leave. Nonetheless, Airbnb rooms are becoming a more and more common trend, especially with the younger generations. Many of these Airbnb hosts who have shared their rooms with guests from various countries and backgrounds have admitted to actually enjoying the experience.
Airbnb rooms renting is a way for real estate investors as well as regular homeowners to make a significant amount of money without having to waste almost any energy or time. A spare room that is not being used in your real estate property is a potential goldmine, so why not exploit it? Does it make sense to rent out Airbnb rooms? Obviously yes, but there are many things to consider before moving forward with that plan.
Related: Rental Income from Airbnb
Airbnb Rental Laws
Airbnb’s accessibility to all people by the click of a button and for free has made its user numbers rise massively over the last 3 years. Airbnb’s emergence as a rival to the hotel industry across the United States has seen that industry suffer in the profit it makes on annual basis. As a result, there has been a general move on behalf of the hotel industry to try to curb Airbnb activities. In New York, for example, hoteliers have lobbied consistently for a ban on Airbnb listings unless the New York City Municipality issues them a license. This law only applies for hosts who are renting out their entire flats though. However, due to ongoing strong lobby pressures, politicians have vowed to continue fighting the Airbnb rise, which means that renting Airbnb rooms in some cities has come under investigation. Checking your city and state laws before renting Airbnb rooms would be the first step in becoming an Airbnb host.
Airbnb’s Occupancy Rates
The Airbnb platform has become known worldwide. A bigger customer base has resulted in higher occupancy rates for all Airbnb listings around the world. Airbnb rooms are no different; if you list your room for rent on Airbnb, then it will be exposed to the biggest platform on Earth for short-term rentals. The marketing exposure does not stop there. If as a property owner you are hesitant about short-term rentals and the turnover of guests, then Airbnb will solve that problem. Airbnb has added an option of weekly and monthly discounts for guests who want to rent a room for a number of weeks or months. The ability to expose your room on Airbnb for long-term rentals gives it more exposure than real estate agents could ever provide.
Making Airbnb rooms in your real estate property available for guests requires you to be a good and interesting host. Meanwhile, chances are that you will meet many exciting and fun people. Many Airbnb hosts have shared their experiences about how they met many interesting people and made new friends just by hosting Airbnb guests in their rooms for a few days.
Airbnb rooms are one of the most popular features on the website. The number of rooms’ bookings is way more than those of entire homes on Airbnb. The reason is the lower price as most Airbnb guests don’t want to pay too much for a hotel room or an entire rental property. The demand for these rooms is an area to exploit to find a stream of revenue for you as a real estate property owner. For example, a property owner in Los Angeles who is paying off a mortgage payment that is around $800 per month can reduce the impact of this amount on his/her budget by listing a room on Airbnb. If we consider the average price per night for an Airbnb room in New York, which is around $60, then it is not hard to understand why Airbnb rooms should be an option. Renting that room for 10 nights only at a price of $60 will generate an Airbnb rental income of $600 a month. This makes Airbnb a great source of income for many homeowners.
Reviews of Guests
Airbnb allows hosts to give a review of the guests who have stayed with them. Be sure to check the reviews of each potential guest before you approve him/her. Opening your home and renting Airbnb rooms is not an easy task at first, but it could become a horrible experience if your guests are not pleasant. Screening guests and being selective is more important than the number of nights you rent out the room. Renting out for 15 days in one month to good reviewed guests is much safer than renting out for 30 days for just any guest.
The era of Airbnb is on a constant rise and property owners must grasp the opportunity to make money from Airbnb as much as they can. Airbnb rooms might not appeal to every real estate investor or homeowner with a spare room. However, it must definitely be on your mind due to the potential financial benefits as a form of real estate investing. The real estate market is evolving because of Airbnb. Embracing these changes might be challenging, but it’s definitely worth the effort.