Airbnb Rentals When Is Renting Out a Room on Airbnb the Ultimate Real Estate Investment Strategy? by Nadia Abulatif January 8, 2018February 12, 2019 by Nadia Abulatif January 8, 2018February 12, 2019 Becoming a real estate investor with Airbnb properties is easy. However, the challenging part for new real estate investors is what kind of property to list. Should they buy a whole house to rent or should they start with renting out a room on Airbnb? In this blog, we are going to present both options. Moreover, we are going to tell you exactly when renting out a room on Airbnb is the ultimate real estate investment strategy. Related: Airbnb Income from an Entire Property vs. a Single Room. First, let us tell you how to list your property on Airbnb in the first place, and then we are going to compare Airbnb private room and entire house renting. How to rent on Airbnb? Whether you are renting out a room on Airbnb or an Airbnb whole house, it does not matter. The listing procedure is the same for both. Here is the listing procedure step by step: First, go to Airbnb.com: When you go to the website, you will have an option “List your space”. Click on that option, and it will take you to the application. Then, you will have to choose from the options the type of your property, the type of room, and the number of accommodates that fit in your place. Second, go to the calendar: You will use the calendar to mark the availability of your property. However, you will not need it for the first time. You will only need to specify how long you want to list your property on Airbnb. Third, pricing your place: Whether you are renting out a room on Airbnb or an entire house, Airbnb will suggest a price. The price is going to be based on the information you provide. But you can still put your own price. Fourth, property description: For this step, you will need to insert all the information associated with your property. This includes captions, photos, and describing the amenities available for Airbnb guests. When you are writing a description, make sure to make it appealing to your guests. This is, actually, going to be your property’s first impression. Finally, choose the location: The final step is to set the location of your property. Once you start typing the city, Airbnb will automatically suggest all places similar to it, and you can choose the right one from the list. What does entire house mean on Airbnb vs. renting out a room on Airbnb? Renting an entire house on Airbnb means that you will have a property for yourself. You will have the privacy to actually walk around in your pajamas. It also means that you have full access to the kitchen and act as if you were in your own home. However, keep in mind that it does not necessarily mean that the house is not owner-occupied. Some Airbnb hosts have a property of two or more levels, and they rent out one level while living in the other levels. So, it just means that you are going to have more privacy for yourself and not share the space with the hosts. This is while renting out a room on Airbnb means that you will share the space with the hosts. You are going to be living with them under the same roof. Of course, you will have your own room and the bathroom, but that’s it. You can share the kitchen if that is an option you choose. If not, then you will only have an access to the room and the bathroom. Related: Become an Expert on Airbnb Rental Properties With This Guide Should you rent out an Airbnb private room or entire home? We are going to help you decide whether renting out a room on Airbnb is better than renting out Airbnb whole house or not. So, here are the pros and cons of renting out a room on Airbnb vs. renting an entire house: Pros of renting out a room on Airbnb and cons of renting an entire house: Fewer regulations: Renting out a room on Airbnb means that the owner is living on their property. Therefore, the neighbors won’t have any problems with the guests, while this could be a problem for hosts renting an entire house on Airbnb. When the hosts are not present, there is no supervision. This means that the host is not there when the guests cause trouble. Affordability: Renting out a room on Airbnb is easier in terms of financing the property. You already have the property and will not need to go through the process of financing and buying a property for Airbnb exclusively as in whole house renting. Not only that, but if you have financed your house with a mortgage, then renting out a room on Airbnb can actually help you pay the mortgage. The cons of renting out a room on Airbnb and the pros of renting an entire house: Less income: When renting out a room on Airbnb, you should expect less cash flow compared to renting out an entire house. High competition: More people choose to rent out private rooms on Airbnb now that it’s highly competitive. Of course, it depends on your location, but still, you can expect competition. On the other hand, renting out an entire house means less competition. It is not that people do not rent entire houses, but this kind of rentals is mostly preferred by families or larger groups of travelers. What to take into consideration before renting out a room on Airbnb? Before you proceed with listing your room on Airbnb, you should consider a couple of things. First of all, if you are buying property for Airbnb, location plays a major role in determining the occupancy rates of your rental. Second, make sure your property is well prepared. Make it appealing to potential guests. Third, make sure that your description of your space actually matches the space. Many Airbnb guests have been disappointed by the rentals and many Airbnb hosts have got low guest reviews. So, pay attention to that. Related: Housing Market Trends: How Airbnb Affects Home Prices and Rents? Now, if you are interested in learning more about Airbnb rentals and other real estate investment strategies, you can always sign up for Mashvisor. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Airbnb RegulationsReal Estate WebsitesRental IncomeRental RateRental StrategiesRenting Out 0 FacebookTwitterGoogle +PinterestLinkedin Nadia Abulatif Nadia Abulatif is an experienced Content Writer at Mashvisor. She was a trainee lawyer before switching to writing about real estate. She is currently doing an LL.M. in Human Rights and International Law. 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