How To Make £500 Per Month On AirBnB (Tax Free!)
If the whole concept of inviting a stranger into your home in exchange of a nice monthly income, then you are in the right place…
When my wife and I used to rent our spare room a few years ago, we were averaging between £550-600 per month income with only around a £20 laundry bill – the returns were pretty good!
AirBnB was created with a sharing economy in mind – it began as a small startup in San Francisco but is now operating more listings than the largest hotel chains in the world.
Airbnb is almost completely dependent on potential hosts like yourself. The company itself does not hold any property and effectively acts as a broker to connect travellers with hosts.
Over the past few years, the popularity of Airbnb has continued to rise resulting in a shortage in inventory on Airbnb. As a seasoned host myself, I have seen my occupancy rates shoot up during peak demand months! Even as I increase the price of my listing to reflect the changes in peak times and allow for renovations, it seems like the demand never stops.
As an example, my 2 bedroom house in Coventry was rented 3 months in advance as soon as I put it on the market!
Get to know your local market
Before you list your spare room or an entire home on Airbnb, take some time to scope out other properties in your area. Around us, for example, most people are listing bedrooms with terrible photography – this is good for us, because we know that if we just make our listing look nicer, we will be on to a WINNER.
Once you get to know your market, including pricing, you can see what amenities you should offer. Pay attention to details, like how many people can sleep in a room, whether most nearby listings include a private bathroom, etc. Then, do what you can to meet or exceed your local standards.
Make your listing clear
You don’t have to provide Airbnb guests any fancy amenities. A clean bed and bathroom and a toothbrush for emergencies are enough for most guests. But you do need to make sure your listing is completely clear about what you do and do not offer.
In this video I will take you on a quick tour of a room I rent out on Airbnb:
List all the amenities included in your room but don’t overplay things. Your listing has to stand out for you to have more bookings:
• Use an alluring headline. Sum up what you have to offer in one compelling line — this is what people will see when they perform a search in your area. Try to be both enticing and informative, for example “Spacious Self Contained Room With Beautiful View.”
• Write an enticing, detailed, and honest description. Explain what’s available to guests, including the number of bedrooms and what types of beds they are, whether they’ll have access to a kitchen, a deck, a private bathroom, a place to park, TV, air conditioning, Wi-Fi — anything you can think of. Just don’t make claims you can’t deliver on: If a guest is expecting to do work on your Wi-Fi connection, but your router is broken, they could leave you a BAD review.
• If your house is on a busy street, post a photo of that — some people may be turned off by the noise, but others may be enticed by a bustling location.
• Take great photos. And lots of them! In many areas, Airbnb will send a professional photographer to your home free of charge, as they’ve found that quality photos increase bookings considerably.
• Be transparent. Airbnb keeps your full name, phone number, address, and email address hidden until a guest completes a booking. But you should create a full profile with a photo of yourself, ID verifications, and a bio.
• Set house rules. You can choose a variety of cancellation policies and price structures, and you can also set your own house rules, such as no smoking, no additional overnight guests, etc.
Since Airbnb guests rely so much on reviews, you should make sure your description is accurate and prices are fair. You might also provide little extras, like a bottle of water or a homemade travel guide.
Most new hosts set prices low to attract initial guests. Once you’ve become more experienced as an Airbnb host, you can raise your rates.
Another thing to consider is the set-up cost of hosting. You’ll need to buy the initial furniture and linen, and any other small items your guests may need.
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