How to Make Money by Renting out your Space on Airbnb

Airbnb.com is a very popular website that allows users to rent out their rooms, houses and apartments all over the world. The website was launched in August 2008 and its head office is located in San Francisco, California. The website currently has more than 800,000 listings in more than 34,000 cities in the world covering more than 192 countries. The website was the first of its kind and that’s why it got popular very fast. According to statistics, more than 20,000,000+ guests have been accommodated through this website which is quite an achievement. So far, this is the best website in its domain allowing people to easily monetize their living space and present it to the global audience.

Make money by renting out space on Airbnb

HOW DOES IT WORK

Airbnb allows users to rent out their space anywhere in the world and display it to a global audience. It can be any kind of space including a single room, an apartment, a house or a condo, you can rent it out to anyone who is searching for a space in your area. And your biggest advantage here is that you can list your space for FREE. However there is a 3% hosting fee associated whenever a booking gets completed through the website. You don’t have to pay anything before the booking actually takes place which makes it a win-win situation. Here’s how the process actually works:

  1. If you want to make your space available for booking and have it displayed on the website then the first step is to list your space with easy to use interface available on the website. Here’s how the initial interface looks like: list your space
  2. The second step is to put a description of the space that you are listing. You can include details about yourself, about the surrounding areas, means of transportation, availability of Wi-Fi etc. This is important because guests are always looking for the best place for them with the best price. So make sure that you have given enough details to answer their questions.
  3. Photos and images of your space and surroundings are very important to the guest and that’s why you should add them to your listing. This is one of the most important criteria when guests are trying to select a place for them.
  4. The next step is to decide the price of your listing and the dates when your place is available for renting. You can check other listings in your area and then decide the price accordingly. The website even lets you set custom prices for individual days and weekends, so you have complete power over your listing.
  5. After you have published your listing, it’s time to wait for requests. You can accept any of the requests that have been submitted on your listing and you can ask your selected guest to send a reservation reservation request or book the place instantly. It’s up to you. Here’s how a listing looks like:Listing view
  6. Once the reservation is done, its time to welcome and greet your guests and make them comfortable around your place.

In case of any issues related to property damage, Airbnb offers a Host Guarantee service which covers up to $1,000,000 in reimbursements. This ensures that you have complete peace of mind when making a deal with the guest. The host guarantee service is however offered in some selected countries. You ca read the details HERE.

To create your account and get started with your first listing click HERE.

HOW DOES AIRBNB PAY

This is the most interesting part of this whole guide. Since you know already that listing your place is completely free and you will be charged 3% of the Listing price once a booking is completed. You Payout will be the listing price minus the 3% hosting fee. So for example, your listing fees was $20 per day and the guest is going to stay for 4 days, that makes it 20 x 4 = $80. Now your payout will be:

3% of 80 = 2.4

80 – 2.4 = $77.6 (Your Payout)

So the formula is very simple. Also depending of the country of service there may also be a VAT fees associated which is charged from users belonging to European Union, Switzerland, Norway, Iceland, and South Africa.

Now as to WHEN do you get paid, Airbnb releases the payment 24 hours day after the guest arrives at your place. For long-term reservations (lasting 28 nights or more), payouts occur on a monthly basis. Here are the payment gateways that Airbnb supports:

  • ACH / Direct Deposit (Takes up to 3 business days)
  • International wire / Bank Transfer (Takes 3 to 7 business days)
  • Paypal (On the same day)
  • Western Union (Takes 1 business day)
  • Mailed Check (Up to 15 business days)
  • Payoneer (Takes 1 to 3 business days)

You will also receive a Billing receipt and Itinerary after you accept a reservation. You can also check the status of your transaction in the Transaction History section.

FINAL WORD

This is probably one of the greatest opportunities for everyone living in any corner of the world to properly utilize their space and make some money by renting out any kind of  space online on Airbnb. And the best part is that it’s totally free so there is nothing to lose. You can earn a good amount of money if your listing is good enough for guests to keep coming. All you have to do is to create a presentable listing of your place with the tools already available the website. So everyone should take advantage of this awesome opportunity and share it with your friends, relatives and colleagues so they can earn some money too.

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