Airbnb is one of the most popular property leasing options for investors. It currently operates in more than 190 countries and over 81,000 cities globally. According to Airbnb, their average daily bookings surpass 2 million worldwide.
It is pertinent to remember that Airbnb does not offer property rentals directly. Instead, Airbnb connects the tenants with property renters across the world.
If you have a spare property, a portion of your house, or planning to start it as a full-time rental business, Airbnb should be on your watch list for good reasons.
6 solid financial reasons for renting a space on Airbnb
We have listed some financial benefits of renting your space on Airbnb.
1. Free listing on a global platform
If you wish to advertise your business to a global audience, you must pay for it. On the other hand, if you meet specific basic requirements on your property, you can get things going with zero fees per listing with Airbnb.
Being able to showcase your rental property to millions of users worldwide is like advertising your business to the world for free. Think of all the opportunities; that will get you to your first financial benefit with Airbnb.
2. Lower service fee
Online rental and accommodation platforms have become a popular option for travelers. That makes them a lucrative opportunity for investors in the real estate industry too.
The commission or service fee per transaction takes a substantial chunk of your gross income to these platforms. Like other online and e-commerce platforms, Airbnb also charges you on a transaction basis. However, unlike other popular service providers, Airbnb has a lower service fee structure, ranging from 3% to 5%.
3. Higher ROI than long-term rentals
One reason you can earn more with an Airbnb listing is that you can develop your pricing strategy. If you can maintain a good customer rating and set the right pricing strategy, you can reap a higher return on investment with Airbnb than with traditional rentals.
Airbnb will list your property and showcase your prices to potential customers, regardless of the numbers. It does not mean, however, that you may charge anything. You have to stay competitive with your pricing.
4. Set your rental schedule
It may not seem to you like a direct financial benefit, but you can certainly turn it into a tangible economic gain. Traditional renting would mean that once you rent out, you will lease the property until the contract expires.
With Airbnb listings, you can set your schedule. It can help you prepare and maintain the property when the demand is lower and put it on rentals when the market is in high demand.
5. Property damage insurance
Airbnb covers your property damages with $1M in property insurance. Your property damage clause is an integral part of your contract with Airbnb.
The insurance cover may come with certain conditions, as is the case with any insurance cover. However, trusting an industry leader and a recognized brand can make you feel at peace.
6. Steady passive income
Airbnb allows you to make a small fortune on your spare room. Then again, if you can reach a level of a super host with Airbnb, you can further turn your passive irregular income into a regular income stream.
Achieving the super host status with Airbnb requires meeting criteria, such as maintaining an overall 4.8 rating and having less than 1% cancellation.
Renting a room on Airbnb in a nutshell
If you are considering listing with Airbnb, you must consider it a full-time business. So do everything to bring a delightful experience to your guests, and you can move up the ladder to even use the lucrative incentives Airbnb offers to its partners and affiliates.
Still, before proceeding with renting out, make sure you understand and meet all the legal aspects of renting out on Airbnb in your city.
