How To Earn Passive Income With Airbnb In Real Estate


Airbnb has gradually become most people’s go-to platform when it comes to finding to getting affordable lodging while traveling. 

But vacationers are not the only ones who can use Airbnb. Homeowners can earn passive income with Airbnb by renting out their houses. 

Airbnb has become a popular way for property owners to earn passive income. Many people are joining the trend by renting cheap flats in tourist-friendly areas or cities, furnishing them, and then renting them out via Airbnb to visitors and tourists.

You have probably heard of Airbnb hosting and the several ways you can earn passive income with Airbnb.  But how do you get started? Is it as good as it sounds? Let’s find out!  

Although the term “passive” implies that you need to do nothing but sit back and collect money, this simply isn’t the case. 

You would have to put in the time and work to grow an investment to the point where it starts to grow and can keep going on its own, giving you a steady stream of income with little or no work on your part.

If you want to earn passive income with Airbnb, here are some things you should know: 

1. Understanding The Basics Of Airbnb


To earn passive income with Airbnb, you need to understand the basics of this platform. If you travel frequently, you have likely heard of Airbnb. 

Airbnb is an online platform that allows people to rent out their homes, apartments, or other types of accommodations to travelers and tourists. 

The company has provided a service that benefits both parties. By renting out their apartments, hosts can make money while guests get to experience local culture and comfort in a home away from home.

It was founded in 2008, and since then the company has expanded to rank among the biggest and most well-known online travel booking agencies in the world. 

There are more than 220 countries and areas where you can find listings for Airbnb, which might include everything from a spare room in a person’s house to a whole villa or luxury apartment. 

The platform also offers a variety of travel-related services that enable users to explore foreign locales and cultures, such as events, tours, and activities.

Airbnb and other peer-to-peer short-term rental services are increasingly being used as alternatives to hotels by travelers. 

It is perfect for tourists seeking the comfort of a home away from home and accommodation that can house big groups in one location.

Anyone can set up a free account on Airbnb and list their houses, or apartments. The options are very flexible. 

You can rent out your second home, a single room, or your main house while you are on vacation yourself. You can even lease a house and rent it out on Airbnb if you do not own a house. 

All you need to start earning passive income with Airbnb is a house that is well-designed and that people will want to rent.

You could also hire a professional to handle the interior design of your Airbnb property. This will be worth it because having an apartment that is beautifully decorated and furnished can greatly boost the chances of your property being rented. And in turn, this increases your chance to earn passive income with Airbnb.

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Airbnb makes its money by charging a service fee. This service fee is what truly supports the running of the website and enables the platform to operate smoothly. 

The service fees depend on the overall cost of the reservation, a service fee of 6-12% is charged to visitors. 

This means that the service fees decrease as the sum increases. Additionally, Airbnb charges a 3% fee to the host for each successful booking. The cost of processing the guest’s payment is covered by this fee.

2. Setting Up Your Airbnb Listing

To earn passive income with Airbnb you have to list the property you want to rent out. Listing your property on Airbnb is a straightforward process that can be completed in just a few steps. 

First, you have to create an Airbnb account if you don’t already have one. This involves creating a profile, providing some basic information about yourself, and verifying your identity.

Once you have an Airbnb account, you can create your listing. You will need to provide information about your property, including its location, size, and amenities.

Airbnb provides a tool that can help you determine an appropriate price for your listing based on factors such as location, seasonality, and demand. However, you get to choose how much you want to ease your property. 

You can individually approve potential guests when you list for free. You should look at rival listings to determine the average rate in your neighborhood before selecting your pricing. 

You should also think about the expenses associated with hostings, such as cleaning, higher electricity bills, taxes, and Airbnb’s host charge, which is 3% for processing payments. Booking fees from Airbnb range from 6% to 12%. 

Make sure you are familiar with Airbnb’s host requirements, including those for listing accuracy, communicating with visitors, honoring reservation promises, cleaning your home for each visitor, and offering essentials like soap and toilet paper.

Tips For Creating A Good Listing

  1. Add high-quality pictures: High-quality photos are essential for attracting guests to your listing. Airbnb allows you to upload up to 50 photos, so be sure to showcase your property in the best possible light. Before taking photos of your place, you should clean and organize it to make it look its best.
  1. Write a detailed description: Your property description should be detailed and informative, highlighting its unique features and amenities. 

Think about what makes your location special while describing it, and attempt to put yourself in the shoes of a tourist. Is public transportation accessible to your location on foot? Is it close to exciting dining options, vibrant nightlife, or interesting attractions? What extras are available, such as free Wi-Fi, a fully equipped kitchen, cable TV, or a patio?

  1. Review and publish your listing: Before publishing your listing, be sure to review it carefully to make sure everything is accurate and complete. Once you’re satisfied, click the “Publish” button to make your listing live on the Airbnb platform.

Creating a good listing is a very important step if you want to earn passive income with Airbnb. People are only going to rent your property if they like what they see.

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3. Preparing Your Space For Guests

Before you can earn passive income with Airbnb, you have to prepare your space to receive guests. The quality of your guests’ experience will have a direct impact on the success of your listing, as positive reviews can help you attract more bookings in the future.

The first step is to conduct a thorough property inspection. The inspection should cover all areas of the property, including the structure, plumbing, electrical, and appliances. 

Ensure that everything is in good shape. You can either conduct the inspection yourself or hire a professional inspector to do it for you.

After conducting the property inspection, you should prioritize the repairs based on their urgency and cost. 

Fix the things that need fixing, and touch up the places that could look better. You might also want to add decorations like plants, artwork, and other things that add to the aesthetic of the house. 

Thoroughly clean your property to ensure that it is spotless and free of dust, dirt, and other debris. This includes cleaning all surfaces, floors, and windows, and ensuring that the bathrooms and kitchen are stocked with clean towels and toiletries.

You should also provide basic amenities such as soap, shampoo, toilet paper, and others. This can potentially make your guests’ stay more comfortable and convenient. 

You can also consider providing additional amenities such as coffee or tea, snacks, or a bottle of wine as a welcome gift.

Decluttering is essential, your guests will appreciate a clutter-free space that is organized and easy to navigate. 

You should also remove any personal items both for safekeeping and the fact that guests would not want to feel like they are living in someone else’s space. 

It is also important to ensure that your space is secure and safe for your guests. This includes ensuring that all doors and windows are lockable and that there are no potential hazards such as loose floorboards or exposed wiring.


4. Legalities And Taxes

You may need to obtain permission before listing your property on Airbnb. Check the rules of any homeowners’ organization or cooperative that manages your property to be sure you are permitted to host. You should obtain your landlord’s approval if you rent.

Additionally, you could need a business license from your town, and any income you bring in may be subject to local taxes. 

You can be required to pay a transient occupancy tax, which is the same tax that hotels are subject to.

5. Monitoring Your Reviews

To earn passive income with Airbnb, you need to get good reviews. People base their thoughts on your listing on the reviews of others that have had the experience.  

The review section is where guests can highlight the aspects of their stay that they liked or disliked. 

Reviews are crucial to the entire Airbnb community because they guide travelers in making informed travel decisions and give hosts like you the assurance to advertise their properties confidently and draw in visitors who will enjoy their stay.

6. Personal Safety 

Apart from wanting to earn passive income with Airbnb, you also need to consider your safety as a host on this platform. 

You are probably not at risk of physical harm if you rent out your house when you won’t be there. However, you should keep things with high sentimental or monetary value, in a secure location. 

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This includes everything you would not want to get damaged or stolen, like important documents, jewelry,  photo albums, emergency cash, vases, and others. Don’t give visitors a chance to steal your belongings or your identity.

If you continue to live in your home while renting out a portion of it, things grow more complicated. You can keep a closer eye on your belongings (though it’s still a good idea to protect them), but you put yourself in danger if your visitor turns out to be harmful.

Running criminal history checks on visitors before they make a reservation or arrive is unrealistic. 

You can use the internet to do some basic research, but that’s about it, it’s not a foolproof method as there is only so much you can learn about people through the internet. You can also read reviews from past hosts for reassurance.

You can always decline a reservation or even cancel a booking if you feel the guest is dangerous or have negative thoughts about renting your home to particular people, however in some circumstances, Airbnb will charge a fee.  

You can choose to only accept reservations from those who have successfully gone through Airbnb’s Verified ID process, that’s another way to ensure your safety with guests. 

It involves uploading a legitimate government-issued ID and linking a Facebook, Google+, or LinkedIn account to an Airbnb account. Both hosts and guests can have Airbnb verify their identity.


FAQs About How To Earn Passive Income With Airbnb

Can I Earn Passive Income With Airbnb Without Owning A Property?

No, you don’t need to own a property to earn passive income with Airbnb. There are several ways for you to earn passive income with Airbnb. These include Airbnb Rental Arbitrage and co-hosting. 

Do Airbnb Hosts Pay Taxes?

Your earnings from hosting guests on Airbnb are considered taxable income and are therefore liable to several taxes, including the income tax and numerous business and lodging taxes as well as the VAT and service tax. To be on the safe side, it is recommended that you consult a tax adviser for more information.

Is Property Damage Covered By Airbnb?

The host guarantee is applicable if there is damage to your rental property while it is being rented. Up to €800,000 in property damage is covered by this. However, it does not provide coverage for the loss of money, jewels, or investments

It is best to either remove all valuables and items of high personal value from the flat or to store them safely and inaccessibly elsewhere. You should also have adequate liability and homeowner’s insurance to protect you in case of an emergency.

Conclusion On How To Earn Passive Income With Airbnb In Real Estate

In conclusion, you can easily earn passive income with Airbnb by renting out your place to travelers and tourists. By following the tips outlined above, you can maximize your earnings and minimize the time and effort required to manage your listing. 

However, it’s important to keep in mind that hosting on Airbnb comes with certain risks and responsibilities, such as ensuring the safety and comfort of your guests and complying with local laws and regulations. 

With careful planning and attention to detail, Airbnb can be a great way to make a steady stream of passive income.