Rent Out Your Room On AirBnB to Make Money
Do you know you can earn money by renting your room safely? Airbnb rent a room scheme provides you this opportunity.
In fact, rent a room of an existing house is a win-win game. Host earns money from a space which is useless otherwise. Guest accommodates cheaper and at a home comfort. Travelers prefer to stay at private rooms of houses more frequently. And today you can find these accommodation options in many cities all over the world.
Airbnb is one of the leading companies in this sector. Now, you probably ask should I Airbnb my spare room. To get the answer, continue to read this article.
What is Airbnb?
Airbnb is peer-to-peer home-sharing platform established in 2008. When the company was founded, it came with a great innovation to the sector. The founders of the company improve the idea of bed and breakfast (B&B) service. The company uses the advantages of “share economy” which open new doors in many sectors.
In 10 years, the company has reached to 81,000 cities in 192 countries. Today there are approximately 3 million bookable homes in the system of the company. By this way, it becomes a leading company in the short term home rental sector.
How Does The System Work?
Airbnb presents a simple business model. In fact, the success lies in this simplicity. This business model allows hosts to lease or rent out spaces to travelers looking for a short-term stay. In other words, the platform just connects hosts and travelers.
Hosts use the site to rent out extra spaces in their houses to travelers. There are many advantages of the system like:
- Typically, the prices are much cheaper than the other types of accommodation like hotels, motels etc.
- The website is user-friendly. Variety of filters helping guests to find the right alternatives.
- There is a chat system that connects guests directly to hosts.
- The company handles secure payments through the website.
Moreover, the company has expanded the business. Travelers can book certain tourism events through the site that make the website more attractive to customers. It is an advantage for the hosts who ask that should I Airbnb my house.
How You Can Earn By AirBnB?
You can rent your rooms/ rooms or your entire house through Airbnb. If you have such a spare space first you should register to Airbnb. Create a profile. The company expects a profile picture and some other process for verification and scanning like verifying your phone number and ID. This is important for security and trust for the company.
Then make sure your hosting is providing legal necessities required by local entities. You can check the following section for the requirements.
For putting your house on Airbnb, go to the “List Your Space” section. In this section, you will describe your space. Choose whether your offer is an apartment, house, room or any other type. List the certain specifications of the place like the area, size, furniture, number of beds and other details that can be significant for guests. Determine how many guests can you host. Set prices per night, week or month. You can also add notices about expectations from a guest like when they should be quite, smoking rules, cleanliness standards, information about transportation etc.
Then you should put pictures of the place. If you don’t have any good photos and you are not able to take good ones, in some cities AirBnB provides this service for you. Once you check the box indicating you don’t have photos, Airbnb offers you professional photographers near your place, if there is any, and presents the best prices for you.
After all, you will wait for guests. Once you get a booking request, you are able to connect with your potential guest directly. This provides a perfect match since you can speak about the expectations and responsibilities of guests beforehand. In the last instance, approval of guests is your decision. You have right to approve or decline a booking request.
Once you approve a guest, the company handles the payments. Airbnb holds the money and you will get the payment 24 hours after check-in. The payment options can vary depending on the country. Normally, AirBnB pays through PayPal, wire transfer or direct deposit with 3% servicing fee.
Meanwhile, Airbnb provides a 24/7 support for the hosts. One of the best things about the company is Airbnb’s Host Guarantee. You have property damage protection up to $1 million USD without any additional payment. Whenever a guest makes a reservation and stays at your place, you are automatically covered by Airbnb’s Host Guarantee.
In addition to all, when you registered to the system as a host the company supposes you have read Airbnb’s community standards. As a result, make sure you read it.
The Requirements To Become A Host
Practically, to become a host it is enough to have a spare place to rent. However, your place should meet the basic requirements expected by the company and the legal requirements.
Basic requirements for hosts:
- Provide essential amenities: Including toilet paper, soap, clean linens/sheets, and at least one towel and pillow for each booked guest.
- Be responsive: Reply inquiries and reservation requests within 24 hours.
- Accept request: Whenever you are available and don’t have a valid reason, accept the requests.
- Avoid cancellations: Avoid canceling any reservation.
- Maintain a high overall rating: Keep the service you give high quality.
In addition to these, there are legal requirements you are expected to meet. They change from region to region. They include issues on legal permissions, taxes, insurances, certificates etc. You can check what is required in your city from the website of Airbnb.
How Much Money Could I Earn?
The money you earn depends on the location, the available period of the spare place, the responses from your guests, the price you set and many other factors. Before setting the price, you should also know the share of the company. As a host, you can charge an extra cleaning fee or additional guest fee.
For all these services, Airbnb takes 6-12% of guest servicing fee and 3% commission. Form some countries, a value-added tax (VAT) may be applied. For instance, in Japan, there is a Japanese Consumption Tax (JCT). Airbnb accepts most of the major credit cards and handles the payment procedure. This provides convenience for hosts.