Want to learn new ways to make extra money?
Join the family to get updates from us and tons of cool freebies:
Our number one goal at DollarSprout is to help readers improve their financial lives, and we regularly partner with companies that share that same vision. Some of the links in this post may be from our partners. Here’s how we make money.
Ready for an amazing and complete Airbnb hosting guide? Your next income stream as an Airbnb host might be right inside your home.
Renting out space in your home can be a fun and lucrative gig. And who doesn’t like to make money from home? Hosting can help you pay off debt, save money for that awesome vacation you’ve always wanted, or even provide a full-time income.
People list all different kinds of places on Airbnb:
(You can even list just one room if you don’t want to rent out your whole place)
Whatever your reason for becoming an Airbnb host, we’ve put together a comprehensive guide to help you get started the right way and make the most of your Airbnb hosting experience.
How to Be An Airbnb Host: The Steps You Need to Start Generating Income
Before you jump all in and decide to be an Airbnb host, there are some things you should do first.
1. Check the local laws
If you really want to do things by the book, the first thing you should do is check the local laws and regulations on short-term rentals in your area. Some cities may require you to obtain a business license or special permit.
There are probably plenty of hosts out there flying under the radar, and maybe that’s how you roll. I’m just here to tell you what you should do, not what you have to do. Little rebel, you.
2. Decide how much money you want to make with Airbnb
Ah, the fun part.
Why do you want to host with Airbnb? What is your goal?
Do you want to make enough money to cover your rent or mortgage, or are you just looking for a little extra spending money? Maybe you’re saving for a vacation, paying off debt, or just need some extra cash to supplement your muffin and coffee addiction (whoops, that’s me…).
Setting goals for your money is important for the next step in the process: research. Whatever number you decide on ($5,000 for that vacation, $1,500 to cover the mortgage, etc.) will help you determine how many days a month you need to rent your place in order to meet your goal.
See also: 25 Best Online Money Making Ideas
3. See what other local listings are priced at
Learning how to be a great Airbnb host is a little like learning how to run a business. And just like with any business, you should do a little research up front.
Take a look around the Airbnb website to check the going rate for similar rentals in your area (i.e. same number of bathrooms, bedrooms, location, etc.). Determine the average prices for weekdays and weekends.
The nice thing about Airbnb is that you have the full freedom to choose when you rent out our space, and there’s no long-term commitment. You can rent out one time just to test the waters!
Once you have a feel for how much you can expect to earn per rental, you can calculate how many days/nights per month you will need to rent out in order to meet your income goal in Step 2.
4. Talk to your landlord
If you don’t own the place where you live, then you’ll need to ask your landlord’s permission before profiting from having strangers stay at your place. You’re more likely to get the okay if you rent from an individual rather than a large apartment complex. Most apartments don’t allow short-term rentals.
You’ll want to be prepared before you talk to whoever it is you need to talk to. Make sure you’ve done your research and that you convey to your landlord what’s in it for them. Will you split the profit? And will the split be even or skewed?
Have some projections drawn up and be ready to discuss how much you think you can both realistically make. Your landlord is much more likely to agree if you can convince them the benefits are worth the risk!
5. Talk to your neighbors
Ultimately, your neighbors don’t really have a say in the matter if you own your own house (unless you’re part of an HOA, in which case you’ll definitely need to check the HOA rules and chat with your neighbors). Either way, you can avoid a great deal of frustration by being up front with them about your plans.
Neighbors can put a stop to your dreams of hosting with Airbnb real quick if you or your guests behave disrespectfully. Better to get it out of the way up front to avoid potential roadblocks in the future.
Again, have a plan when you approach your neighbors/HOA. Let them know how often you plan to host guests, how you’ll screen potential candidates, and ask them if they have any special requests (e.g. quiet after 9pm, maximum number of vehicles, where guests will park, etc.).
6. Keep insurance and taxes in mind
Two necessary evils.
Fortunately, Airbnb has a Host Protection Insurance policy that provides liability coverage for up to $1 million for claims of bodily injury or third party property damage. This protects you from being sued by a guest who suffers some type of loss during their stay.
Airbnb’s policy does not protect your property. And neither will your regular homeowner’s policy.
That’s because homeowner’s policies have what’s called a “business activity” exclusion, which means your policy can deny any claim related to a business activity. What does that mean for your Airbnb business?
It means you’ll likely need to purchase a separate liability insurance policy to cover your assets.
Whether or not you need to collect occupancy taxes from your guests depends on where you live. Some locations have a collect and remit feature that automatically adds the occupancy taxes to your listing, so you don’t have to do a thing. However, if you do need to collect taxes separately, Airbnb makes it easy to do so by adding a Special Offer to your listing.
Airbnb Host Tips: How to Be the Best Airbnb Host You Can Be
If you decide to give this Airbnb gig a shot, awesome!!
Now it’s time to get your game face on and focus on the prize.
1. Decide what kind of host you want to be
In terms of making money, there are three main kinds of Airbnb hosts. There are those who want to make: a few extra bucks on the side, a steady second income, or a full-time Airbnb business.
Your Airbnb hustle can change and grow over time. We recommend easing into it at first, one visit at a time until you get a feeling for what it’s like to be an Airbnb host and whether or not it’s a good fit for you.
Another thing to consider is how hands-on you’ll want to be with it. Are you going to greet every visitor upon arrival or avoid human interaction at all cost (not recommended)?
2. Choose your target market
Be realistic about who you want to attract and who you’re likely to attract.
What kind of guests do you want to attract?
If you’re renting a room in the house where you live, then maybe you’d prefer families or couples. But if you’re renting an independent unit (apartment, room in a detached garage, etc.) then you may not have a preference.
Now think about the type of guests you’re likely to attract.
Think about the location of your listing, attractions in your area, and the amount of space you can offer. If you plan to rent out the couch in your living room, then you’re not likely to attract many families.
Does your space have mass appeal, or is it ideal for a certain group of people? Are your guests visiting for leisure or business? Are they groups, families, or individuals? Men or women?
Knowing your target market is important for later when you actually create your listing and decide on your house rules.
Pro Airbnb host tip- If you live in a college town, creating a listing for during home football weekends is some of the easiest money you will ever make.
3. Be realistic about the time commitment
Hosting with Airbnb can be very hands-off if that’s your style. It can require as little or as much time as you want depending on how frequently you host, how much you want to interact with your guests, and what tasks you decide to outsource.
I’ve had hosts that I never saw my entire visit and others who were always present and even sat and chatted with me over dinner. Neither method is wrong, but you should take into account potential time spent greeting and interacting with guests, giving tours, and attending to general needs and inquiries.
If you want to keep your costs as low as possible, then you’ll also need to account for the time required to clean up after guests and purchase and stock supplies.
4. Estimate your Airbnb hosting fees and costs
The costs for getting your Airbnb rental up and running will depend on the size of your space and items you already have on hand. No two hosts will have the same expenses.
Start by determining your larger, one-time purchases, such as furniture, bath towels, insurance, etc.
Then make a checklist for supplies and perishables that will need to be restocked on a regular basis.
Airbnb fees for things like:
- Toilet paper
- Paper towels
- Shampoo and Conditioner
- Snacks and drinks
Having a checklist handy will help you determine your initial Airbnb costs and make turnover between guests much easier.
How to Create an Airbnb Listing that SELLS
Now it’s time to create your listing and get your first guest!
Here are a few things to keep in mind as you put your space on the market.
1. Be honest
Don’t overstate what you have to offer, because it could come back to bite you in the form of negative reviews. Manage your guests’ expectations by being completely transparent.
If the room you’re renting is on the smaller side, then let that be known. Don’t try to up the appeal by using photos that make your space look much larger than it actually is, else you’re setting your guests up for disappointment and your Airbnb business up for failure.
I had this happen to me once where a lady posted beautiful photos in her listing, but when I arrived the room looked completely different. I couldn’t even believe it was the same space. It was cramped, dirty, and not at all what she had led me to expect.
Don’t make her mistake.
2. Be specific
Details, details, DETAILS!
Set your listing up for success with an appealing, detailed title. Which one are you more likely to choose:
“Spacious One-Bedroom Apartment in Downtown Asheville”?
Make sure you fill out your entire profile, complete with a picture of yourself and a detailed description. Include any unique amenities you have to offer, like breakfast or a complimentary massage (yep, I’ve seen it).
Remember that old saying “A picture is worth a thousand words”? Yeah, well, it’s true. Though you want to avoid misleading photos, you should include professional-looking, high-quality pictures. Make sure your space looks clean, bright, and welcoming.
If you need help with taking high quality photos for your listing, this article is super helpful.
3. Be professional with your profile
But casual at the same time.
You don’t need to sport a three piece suit in your profile picture, but you do want your profile to look clean and put together. That picture your friend took of you passed out in the bar last weekend won’t cut it. Unless you’re trying to attract like-minded party animals, in which case, party on!
Create your profile with your target audience/ideal guests in mind. Check for spelling and grammatical errors, and be sure to include professional-looking photographs that show off the unique personality of your space.
4. How to be a great Airbnb host: Be flexible!
Remember, the people in your house are paying you to be there.
That doesn’t mean you have to oblige every request of a demanding guest, but you should be available to answer questions for them and make sure their visit goes smoothly.
It also means being flexible with check-in and check-out times. When it comes to travel, things happen. Flights are delayed, cars break down, or things just don’t go as planned. It’s important to keep an open mind (and an open schedule) if you really want to provide the best experience for your guests.
5. Set clear and simple rules
When setting rules for your guests, be explicitly clear. Don’t leave anything open for interpretation.
Are extra guests allowed? How many? What about smoking? Pets? What’s the procedure for check out?
You’ll create your house rules as part of your listing when you set up your host profile. Guests can view the rules on your listing any time, but most people won’t revisit them after they’ve booked their stay. Keep a printout in the guest space as a friendly reminder.
Don’t be overbearing.
Some people may find it a little off putting to walk into their room and find a list of all the things they can’t do. Add some personality, wit, or show your sense of humor.
Even a simple “Have fun! 🙂 ” to top off the list is a great touch to lighten the mood.
Success — Someone Booked Your Listing! Here’s What to Do Next
Woohoo! Your first guest is ready to come visit, which means you are SO close to officially making money as an Airbnb host.
If you’ve made it this far, GO YOU!
Here’s what happens next.
1. Take precautions
Now, I like to think that people are generally good, but the infamous squatting Pashanin Brothers (and other people like them) do exist.
Avoid squatters by verifying the identity of your guests, checking out their Airbnb history/reviews, and only allowing short-term rentals.
Protect your valuables (guns, jewelry, technology, etc.) and any sentimental items you don’t want to lose by locking them up in a safe place. No, the Winnie the Pooh jewelry box you’ve had since you were six does not count.
And as a final word of caution, keep all communication and transactions with your guests on the Airbnb platform. Some under-the-table cash may sound tempting, but conducting business outside of Airbnb makes you susceptible to scams.
I’ve been using Airbnb for years and never had a problem with any of the aforementioned things, but it’s like they say – better to be safe than end up with squatters in your house.
2. Provide a welcoming (and clean) space
Cleanliness is a must!
There’s no faster way to stack up negative reviews than by inviting guests into your dirty home. Make a good first impression by always providing a clean space. That means cleaning up after every guest.
When it comes to design, it’s best to keep it simple. A cozy, clutter-free space will make your guests feel welcome. Soft ambient lighting and relaxing music is a great way to set the mood and show the personality of your home.
Small details like fresh flowers and interesting art add a nice touch and a pleasant feeling to any space.
3. Make your guests comfortable
Having enough and the right amenities is crucial to ensuring your guests’ happiness.
Items like books, games, extra blankets and travel-size toiletries are a huge convenience and can make all the difference in your guests’ Airbnb experience.
The first time I stayed in a really good Airbnb I was taken aback by how far the lady went out of her way to make her guests feel at home. She had locally-made soaps in the bathroom, fresh, organic eggs and other snacks in a guests-only mini fridge, and extra blankets on the bed (I sleep cold, so this was HUGE for me).
I was even more grateful when I woke up late for a meeting my first morning there. That makeshift breakfast of fruit and granola bars kept me from being late and set my morning off on the right foot.
And you know what? It really didn’t take much extra effort on her part at all.
Put yourself in your guests’ shoes. Cater not only to their needs, but their potential needs, and it’ll pay off in your reviews.
Here’s a great example of how to make your guests feel comfortable and special:
4. Don’t avoid your guests
Be friendly. Don’t be weird.
I stayed with a lady once who avoided me the entire time. I would hear her in the kitchen or the living room and walk downstairs to say hello (because that’s the normal person thing to do, right?) and by the time I reached the bottom of the stairs, she would have disappeared into her bedroom and locked the door.
That happened several times – in the kitchen, the living room, and once when she pulled in outside while I was leaving (she snuck through the garage to avoid me at the front door).
Avoiding your guests may seem like the right thing to do, but it can make them feel unwelcome and even uncomfortable.
You should always make an effort to meet your guest at some point during their stay, especially if you’re renting a space in your own home.
5. Go above and beyond
The higher the demand for your space, the more you can charge. The way to increase demand is to get verified reviews, and the best way to get good reviews is to please your guests.
Don’t show all your cards in your listing. When your guests arrive, have information available for local restaurants and activities that may be of interest. Offer to show them around or give them a short tour if it’s their first time visiting the area.
Ask them about their food preferences before they arrive and leave a personalized note with a treat as a welcome and “Thank you for staying.”
If a guest asks for something you don’t have on hand but would be handy, not only for them but for future guests as well, then go the extra mile and pick it up at the store if you have a chance. Small, kind gestures like this can go a long way.
If you know how to be an Airbnb host that wows their guests, you have an amazing opportunity to earn real money.
By creating a wonderful experience for your guests, you’re setting yourself up for great reviews and lots of repeat guests. If you’ve been looking for a way to earn extra money and want something more lucrative than paid surveys or driving with Uber, Airbnb may be just what you need.
And the best part is, you’ll be doing some good in the world 🙂
Like this article? Pin it!
More Cool Stuff
15 Affordable DIY Projects You Can Do to Increase the Value of Your Home
If you’re looking to sell your home now or sometime in the far-off future, or if you just want a more modern feel for your 1960s-era abode, here are 15 DIY projects to add value to your home.
13 Best Places to Take Paid Online Surveys for Money
Did you know you can make money just by taking paid online surveys? Paid surveys are all the rage these days. If you haven’t heard of them by now, you will see a lot more of them soon. These are our top picks.