Want to get a slice of the Airbnb action, but don’t own a rental property or holiday home? Here’s 5 ways to make money on Airbnb when you don’t own a vacation rental property:
1. Go on Holiday
This one’s the easiest way to make money on Airbnb. Just sign up to become a host* and rent your own place out when you are away. It’s easy to do and really satisfying. I took a month long road trip around America and got paid while I did it – I was eating ribs in Memphis, partying in Nashville and hiking in the Blue Ridge Mountains, all while Airbnb were sending me spending money.
I did no work for it (since I had already automated my place), I just watched the $$$ roll in.
The first time you set your place up for Airbnb will be effort. Here’s how I got on when I tried my Airbnb experiment initially. But once that’s done, you are ready to go every time you are away from home. Going to your parents for Christmas? List it. Got a work trip coming up? List it! Just make sure to use a good Airbnb Lock because you won’t be around to let guests in. I’ve written a guide to the best Airbnb Locks here.
2. Experience Host Tour guide
Another way to make money on Airbnb when you don’t own a rental space is through Airbnb Experiences*.
I’ve looked at setting one of these up previously. The premise is simple – just set yourself up to offer an Experience like a guided tour or activity, such as a tour of the cobbled streets of Edinburgh, or a pasta making class in Rome. Then post your Experience on Airbnb. Guests can book a place directly through Airbnb’s platform, and even get adverts promoting your events when the book a place to stay locally.
I’d planned a nature walk through the swamps of Florida for my Airbnb Experience. Although, now I’m in Cambridge in the UK, maybe I’d need to offer something different! Maybe a tour of the colleges, or an afternoon paddle boarding on the river Cam that runs through the heart of the city.
Whatever idea you come up with, Airbnb will help get you customers, and at a zero start-up cost to you. You can sign up to become an Airbnb Experience Host here*.
3. Airbnb Glamping
This is my next project. I’m really excited about it. It’s so simple.
I’ll be writing more here about this experiment soon, but in essence all you need is a tent and somewhere to put it. Provide access to toilets and running water too and you are good to go. Just create your listing* and pitch your tent.
Some people do it in their own back yards. I’ll probably do a test run in my garden this summer during the Cambridge Beer Festival. Lots of people will be in town looking for accommodation, and it will be a nice way to test the waters.
4. House Hack
This is where you split a house into two – one side you live in, the other you rent out. This can work especially well if you can create separate entrances for both units.
It would take some initial investment, but is definitely achievable. Certain houses lend themselves more to being split into two functional spaces. Three and four bedroom British Victorian houses work especially well – both units end up with a kitchen, living room and one or two bedrooms.
A simpler version of house hacking is to simply take in room-mates, who book for a week or two through Airbnb. I’ve got a few friends that do this, and it pays all their housing bills each month. One mate only has to work a few days a month because of it! He says Airbnb guests are way better than having a regular house mate, as Airbnb guests are on best behaviour.
I can imagine it gets a bit hectic and has more of a hostel vibe than a relaxed vacation home would have, but I would bet you’d meet many like minded people. I’d have been all about it in my twenties.
5. Airbnb Arbitrage – rent out a place to sublet on Airbnb
This is the most commercial ways to make money on Airbnb. Arbitrage is the situation where a commodity is available at different prices in different markets. It’s how wholesalers sell to consumers – buy for a dollar, sell for $2. That’s why most products in America are made in China, since China is a good market to be a buyer, and America a good market to be a seller. This is business 101. But Airbnb Arbitrage is slightly different. Here, you locate properties that would do well on Airbnb, and take them under a long term lease with the option to sublet. It’s also sometimes known as “rent-to-rent” for obvious reasons.
If you can rent a one bedroom flat in the middle of, say Cambridge for £1000pm, but can get £200 a night from Airbnb guests with an occupancy of 20 nights a month (so £2000pm), that’s £1000 profit. All you need is to get some furniture and post your listing.
I must admit, I’ve never tried this method. But the potential is plain to see. I’ll give it a go some day, but I think the secret is in finding the right place and with the right landlord. If you’ve tried Airbnb Arbitrage, let me know how you got on. I’d really love to hear.
So there we have it. 5 ways to make money on Airbnb when you don’t own a vacation rental property or holiday home. Now you’ve got no excuse. Get to it, and happy hosting!
Thanks for reading, Owen