We’ve said it before and we’ll say it again, we LOVE Airbnb. Not only do we book most of our accommodations through them when we travel, we have also been Airbnb hosts in various capacities since 2012. It has allowed us to open up our spaces to great people, make unforgettable connections, contribute to the greater travel community, while also being a major income source for us over the years. We’ve shared different spaces in different ways on Airbnb since we started using the website, and it is currently one of our main income streams. That income is one of the major reasons why we are currently able to spend most of our time travelling!
If you’re not familiar with Airbnb, it’s a global home sharing community where local hosts can welcome guests into their unique space. It offers travellers a more comfortable and affordable alternative to a hotel, and gives hosts an opportunity to earn money through sharing their home. They are a trusted service with around-the-clock support, and work to ensure everyone’s safety and comfort at all times. We’ve had great experiences over the years through this website, and anytime something has gone wrong (things do happen), their customer service has always rectified the situation for us. We’ve been recommending the platform for years and will continue to do so.
Read Our 5 Tips on How to Be an Amazing Airbnb Host
We’re going to go over the various ways in which you can earn money as a host through Airbnb, as well as answer some of the questions we often get regarding the process. Keep reading for all of our tips and info!
4 Ways to Generate Income Through Airbnb
Share an Extra Space in Your Home
One of the easiest ways to start earning income through Airbnb, is to host guests in an extra space in your home. Do you have an empty guest room? Or a spare room that could accommodate travellers? By listing this space on Airbnb, you can welcome people into your home and start earning some extra money. When we’ve done this, we’ve met people from all over the world who were all absolutely lovely. We shared some common space with travellers, but everyone’s privacy was respected. If you’re happy to socialize with others and you like meeting new people, this is a great option! And you are completely in charge of the calendar, so if you decide you don’t want anyone in your space at a certain time, just block off the dates and reopen your calendar when you’re ready. We’ve never had any issues in regards to the safety of our belongings, etc. by having people in our home, but of course it’s up to everyone to consider their own comfort level.
Share a Separate Space on Your Property
Another great option to earn money through hosting on Airbnb is to welcome guests to a separate space on your property. Do you have a basement suite in your home? A coach house? A separate addition? Or the potential to add any of these things? Of course you need to consider local by-laws, but hosting guests in a separate space allows you to still enjoy the privacy of your own home, while leveraging another part of your property. When we purchased our current home in Niagara Falls, we finished the basement into a fully contained suite where we could host guests. There is a separate entrance, and the unit is completely private from the main house. We’ve also had dreams of converting the garage into an epic coach house, but we’re probably getting ahead of ourselves! This option is a great one for anybody who likes to have their home to themselves, but has some extra space to share.
Share Your Space While You Travel
A third option, and the best one if you don’t have extra space in your home or on your property, is to share your space when you’re not using it! If you’re going away for the weekend, or you’re headed off on vacation for a week (or a month), why not rent your space while you’re gone? This way you can open up your home to somebody who needs it, and you can make back some of the money you’re spending on your travel! This is a concept we’ve always loved. There have been times when we’ve taken trips that have essentially cost us nothing, because the money we made renting our space while we were gone covered all of our travel expenses. Sometimes we’ve even MADE money by going away. If that’s not a good excuse to travel, then what is!? If you’re welcoming someone into your main living space without you being there, you always have the option to lock up some of your personal belongings if you have any concerns. We’ve put our things in a laundry room that guests cannot access, or a closet that we can lock, and we’ve never had any issues with our personal property. This is a really wonderful option for leveraging your space while you’re not using it.
Share a Second Property
Now this last option is if you’re in a position to turn home sharing into your business. Investing in a second property or a vacation home gives you the opportunity to create a lot of income as an Airbnb host. Depending on where the property is located, what the local by-laws are, and how many nights per year you’re allowed to rent it, you can potentially host a lot of guests to your property. There are several considerations with this one. You need to do your research on the home sharing regulations in the area you are looking to purchase in. Some municipalities only allow short term rentals on properties that are your primary residence, and you can only share the space for a maximum of 180 days per year. Also, if you are thinking about buying a vacation home in another country with the purpose of sharing it on Airbnb, it’s important to do your research and consider the effects on the local residents. If you find a situation that works financially and ethically, this can be a great income generator and a smart use of the home sharing platform.
Now, time to answer as many questions as we can about home sharing, and hosting on Airbnb!
Is it safe to welcome people into your home?
It all comes down to your personal comfort level, but Airbnb has many measures in place to keep the home sharing community a safe one. Of course be sure that you have proper home owner’s insurance, get all your bases covered before you welcome any guests, and read over Airbnb’s policies to make sure you’re comfortable with how you’re protected in a worst case scenario. We have never had any major issues in regards to the safety of our home and our belongings, but if anything happened, we know we’ll be covered.
What are the rules regarding home sharing?
Airbnb is currently being regulated around the world (as it should be), and every city has different rules. Depending on the local community and factors like the hotel industry and housing market, there may be regulations in place that restrict how or when you can share your space. You may also require a business license in order to share your space. Some cities collect an additional tax that the guest pays when they book a space. A quick google search can tell you what the rules and regulations are in your location.
Should I hide my personal belongings?
Again this comes down to your own comfort level. If there is anything you don’t feel safe having available to your guests, you can lock it up in a separate room, closet, or cabinet that they won’t have access to.
How much income can be made?
There are so many different factors that contribute to how much income can be generated from your space. Is your home in a big city or a remote location? Is there regular or seasonal tourism in your area? How often will your space be available to share? Are there regulations on how many nights per year you are allowed to share your space? Do some research and look at what Airbnb hosts are charging in your area, and figure out how many nights per month or year you will be able to rent your space. There is definitely the potential to generate a lot of income through the Airbnb platform. Over the years we have generated nearly 100k as Airbnb hosts.
Can I choose my guests?
Yes and no. You can set your listing to ‘Instant Book’ which means that guests can book your space instantly without having to send you a booking request. With this system, you can still set requirements that your guests must meet in order to book, such as having a verified ID, or positive reviews from other hosts. You can also set your listing to ‘Request to Book’ meaning that you need to approve guests before they can book your space. That being said, you cannot decline guests on a discriminatory basis and you will be penalized if you decline too many requests.
Do I need to claim my Airbnb income?
The short answer is yes. The long answer is that you need to check the rules and regulations in your country for the specifics on how to claim it, what you can claim as expenses, when you need to register for a personal tax number, etc.
Can I share my home if I don’t own it?
If you are not a home owner and you are sharing your living space, you should only share it through Airbnb with permission of the owner. Home sharing works best when everyone in the community abides by the rules! Some cities have had huge issues with their housing markets because individuals are leasing multiple apartments just to rent them on Airbnb. Don’t do this. A space that is being shared on Airbnb shouldn’t be taking away a permanent living space from a local resident.
Will I need help managing it?
That depends! Do you only plan to share your space while you’re home? Or share a part of your property only while you’re around? Even if you accommodate guests while you’re on vacation, you can likely set everything up before you leave. That being said, you may need help managing your listing, and having help might allow you to generate more income. If you plan on sharing a second property or vacation home, you will need to find a manager since you won’t physically be there. If you plan on having numerous bookings while you’re out of town, you will need someone to clean your space between guests. Depending on how you wish to set up your check-in protocol, you or someone else may need to greet them upon arrival. Airbnb makes it easy to add additional property managers on a listing, and we’ve found it easy to enlist help when we’ve needed it! Currently, Steph manages all our online bookings, guest communication, and scheduling, and we employ two people to look after our property, clean it and set it up between guests, and be a point-of-contact in the case of an emergency. In the future we will likely employ more people to help us, and it will allow us to generate more income than if we tried to do everything ourselves.
If you have any other questions, please leave them in the comments below! We’re going to be sharing more posts about generating income through home sharing, and would love to cover as much of this topic as we can.
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