Airbnb provides a passive income system to monetize living space. Airbnb makes it easy to earn passive income from renting a room, an apartment or an entire house. Their systems handle, the bookings and the payments while the hosts handle all the rest.
Three ways to make an income via Airbnb
The first two are passive:
- You can rent your property
- You can first rent some one else property long term and then rent it out short-term via Airbnb. Both of these options enable passive income. If you rent other people’s properties, you need to have their permission to re-rent it on a short-term basis, but you do not need to have all the capital upfront.
- The third option is a side hustle; managing properties for a landlord who are renting out their property on Airbnb.
Step 1: Marketing and Research of the competition
Each geographical area attracts a different type of travellers, and each group of travellers have different needs. You can easily find out their needs by browsing the Airbnb listings for your target area. Here you can find out
- Type of property
- Price Range
- Style of properties
- No of Bedrooms
- What kind of extras
Step 2: Marketing your own property
With your knowledge about the competition (from the above step), you can tailor your listing competitively.
The title and description
A room or apartment for a short-term rental is not just a bed and a bathroom. It is an experience. This needs to be reflected in both the title and the description. Do not spell out the details of the property hygienically, tell them the experience that they will have. Describe the experience they can expect while highlighting the benefits. This also extends to the title of the property. For Example: “Quiet Apartment. Ideal for long romantic walks on the beach.” Look out for such good property descriptions and make them your own.
Images and Photos
The photos need to be of the best quality and the highest definition. Natural light makes the property feel more attractive, take the photos on bright sunny days.
Step 3: AirBnB SEO (Search Engine optimisation)
- Set Instant-book to ON. This allows guests to book without consulting with the host. It seems AirBnB ranks properties with Instant-book: ON higher.
- Minimum stay set to one night. Airbnb seems to rank properties higher the lower minimum amount of nights is.
- Fast host response time, the faster a host response, the higher the ranking.
- Having 5-star rankings
How to get 5-star rankings on AirBnB
Over-deliver on everything!
Include as many extras as you can. Extra pair of keys, Toilet paper, towels, water, tea, coffee, milk, sugar, maps and local attraction guides
Ask the guests to give you a 5-star rating and to tweet and Fb your property.
Step 4: Turning your Airbnb into a passive income machine
It is important to handle the first guests yourself, that way you can fine-tune your offering. However, once your system is working, it is time to protect your precious time. There are many turnkey AirBnB management companies out there that can make your short-term rental passive income hassle free.
Scaling it up.
Once you have managed one apartment, why not increase to several others.