How Much Money Can You Make on Airbnb? The 5 Factors That Affect Income in 2023
Since its creation in 2008, Airbnb has taken the world by storm, boasting well over 8 million active listings and $48.9 billion in gross revenue in 2021. The platform provides an easy and convenient way for travelers to find unique and affordable accommodations outside typical hotel options.
It’s also a great way for Airbnb hosts to make some extra money by renting out their homes.
More and more people are turning to Airbnb as a way to make money. Whether you’re looking for a little extra income or want to quit your day job, Airbnb can be a great way to make some extra cash. But exactly how much money can you make off of Airbnb?
Well, there’s no one-size-fits-all answer to this question because it depends on several factors. Today, we’ll explore how much an Airbnb host can make and provide you with resources to help you get started.
How Much Can You Make on Airbnb?
As mentioned earlier, the amount of money you can make on Airbnb depends on a couple of factors. But according to NerdWallet, hosts in the US make, on average, well over $9,000 a year. This isn’t too shabby, considering you don’t have to break a sweat.
Plus, if you rent out multiple properties or have more than one listing, your earnings could be even higher. The amount of money you can make depends on the size and location of your rental property, the number of guests staying there, and other factors like the amenities provided.
Individuals with between 50 and 1,000 reviews made an average of $23,862 in 2021 alone. In booming places like San Diego, hosts averaged a whopping $77,990. Talk about raking in the big bucks!
That said, it’s not uncommon for Airbnb hosts to end the year with less than $1,000 from their Airbnb. If you don’t put in the effort and plan accordingly, you’ll be left picking up the scraps at the end of the year.
What Factors Affect My Airbnb Earnings?
Your Airbnb revenue is tied to your hard work, commitment, and a few other factors that are out of your control. That said, here are a couple of factors that’ll determine how much you earn from the platform:
Where your Airbnb is located can make a world of difference in how much money you make. It’s important to pick an area with high demand. The more potential guests, the greater the earning opportunities.
Places like Los Angeles and New York City, for instance, see year-round visitors looking for places to stay. Hosts in these areas earn significantly more than those in less desirable areas. If your area has low demand, consider offering discounts or other incentives to draw in more guests.
2. Hosting Price
Pricing your Airbnb accurating can be the difference between earning a good chunk of change and barely breaking even. You’ll want to set prices that are competitive with other listings in the area while being mindful of how much you’re spending on utilities and upkeep.
Providing extra amenities will also increase your earning potential. Extras like toiletries, clean linens, and towels are always appreciated by guests. Some hosts go as far as setting up mini-bars to woo their hosts.
That said, having more amenities doesn’t always guarantee higher earnings. The amenities in question should actually be necessary and helpful to guests, as opposed to being overly extravagant.
4. Unique Experience
Most people book Airbnb for the unique experiences they offer. This could mean anything from an organic farm stay to a luxurious beach house. Offering a one-of-a-kind experience is key when it comes to earning top dollars on Airbnb.
Hosts with unique, themed listings generally make more than those with standard offerings. Just remember to provide your guests with a genuine experience that they won’t find anywhere else.
5. Listing Pictures
Good photos are essential for Airbnb hosts looking to make money. Quality images will draw in guests, so take the time to stage your properties and make sure all listings have attractive, professional-looking pictures.
How Do I Increase My Airbnb Earnings?
Are you looking to make a killing with Airbnb? If so, here are a few tips to set you on the right path.
Hire a Professional Photographer
Good photos can make or break your Airbnb earning potential. If you can afford it, consider hiring a professional photographer to take pictures of your properties.
The cost of the service should pale in comparison to the amount of money you’ll make from renting out your place. Plus, quality images will ensure that guests pick your Airbnb over the competition.
Invest in Quality Amenities
Don’t be afraid to splurge on amenities and other extras that’ll make your guests’ stay comfortable. Consider investing in quality furnishings, high-end linens, and other items that will make your Airbnb stand out from the rest.
A proper entertainment setup is always a nice touch and will usually pay for itself in the long run. Also, make sure all amenities are in working order, and hire a professional cleaner to keep the place spick and span.
Ask Guests to Leave Reviews
Reviews are everything on Airbnb. As such, ask your guests to leave an honest review after their stay, and be sure to reply to them in a timely manner.
Positive reviews will draw more guests your way and make you look more reliable as an Airbnb host. All those five-star ratings can really boost your earning potential. However, make sure you offer nothing but the best to your guests to get those 5-star reviews.
Price Your Airbnb Appropriately
Don’t be too greedy when pricing your Airbnb. Remember, the platform is intensely competitive, and guests want value for their money. If your price is too high, you may end up with fewer bookings. However, if it’s too low, you risk not making enough to cover your bills.
Do some market research and find out how much other Airbnb hosts in the area are charging for their listings. This will give you an idea of what’s reasonable and help you set a fair and competitive rate for your property.
Provide Add-on Goods and Services
If you want to improve your guests’ experience and your earnings, consider offering add-on goods and services. You could offer grocery delivery, airport transfers, or transportation during their stay.
You could even consider providing free tours of the city or discounts at local restaurants and attractions. The extra money you make from these services can really add up over time—not to mention those juicy 5-star ratings and great reviews!
Host Multiple Listings
If you’re serious about making money on Airbnb, consider hosting multiple listings. Having more than one property will give you more opportunities to make a killing without having to do much extra work.
Plus, the more properties you host, the easier it’ll be to attract guests and generate those all-important 5-star reviews. Just remember that running multiple listings can be a bit of a challenge. You’ll need to stay on top of all bookings and make sure you’re providing the best hospitality possible.
List an Airbnb Experience
“Airbnb Experiences” are a relatively new addition to the platform. Basically, it’s an opportunity for experienced hosts to offer unique experiences or activities to their guests.
“Experiences” can range from food tours and outdoor adventures to art classes and cooking lessons. You get to set the price and availability of your “Experience”, so you can ensure you turn a profit.
Last Thoughts: Airbnb Is a Goldmine!
Overall, Airbnb is a great way to make extra money while providing an amazing experience to visitors from around the world. With a bit of effort and creativity, hosts can easily maximize their earning potential and enjoy a steady income stream through the platform.
All it takes is some planning, dedication, and knowledge of how Airbnb works.
Don’t forget to set your prices competitively, invest in quality furnishings and amenities, provide thoughtful add-ons for your guests, ask for reviews after their stay, and if you’re feeling ambitious, list an “Airbnb Experience”! With the right strategy and approach, you can make loads of money from Airbnb.
Related Read: Does Airbnb Allow Pets? What You Need to Consider
Featured Image Credit: Piqsels