Find out some easy ways to make extra cash through Airbnb!
Airbnb (Air Bed and Breakfast) is an excellent option for accommodations available to travelers worldwide. It’s an idea that was started back in 2008 by two designers who had an extra room, and they hosted three travelers who didn’t have a place to stay.
Since then, the popularity of Airbnbs has continued to grow, and it has become one of the biggest competitors of hotels. Studies show that there are currently 2.9 million Airbnb hosts in the world.
According to their website, a survey done in 2021 showed more than eight million online sites with Airbnb listings from 220 countries around the globe. This makes Airbnb a profitable way to make some passive income.
With this in mind, here are 8 proven ways to make some extra cash on your Airbnb!
Buy A Property With A Capital Partner
Investing in real estate can be tricky if you don’t have financial stability. But purchasing a property with a partner with the funds is one way to invest in an Airbnb property.
You can even get your partner to get a loan on your behalf and negotiate the terms of your equity partnership. In most cases, the partner who didn’t get the loan will have less equity.
In others, they can share equally. It can be advantageous because you don’t need money to gain 50 percent equity ownership, and you’ll have a fantastic cash flow after the first year. Once you buy the property, you can list it on an Airbnb site and start earning capital.
You’ll need to create a payment plan to service the loan. Let’s say you list a property for $140 a night. You can earn around $3920 monthly, subtract your maintenance expenses, repay the loan according to the agreed terms and save the rest!
Spend More On Promoting And Advertising Your Airbnb
If you really want to boost the occupancy rate of your property, you have to be ready to spend some extra cash to reach your target audience. You should be advertising your Airbnb facility on local TV, social media, and radio stations.
The best online sites you should target include blogs, Instagram, Facebook, and all other available platforms. Make use of attractive handbills to create awareness and also to give direction to your location.
Another smart idea would be to position your signs and/or ads at strategic places in and around the city where you have your rental.
If you’ve ever been a guest of Airbnb, you would have noticed a service charge called a cleaning fee.
It’s obvious that when a guest checks out of an Airbnb, someone has to do the cleaning, change the sheets, clean the bathrooms, replace toiletries and ensure the room is sparkling and ready for the next guest. If you love to clean, this is another way to make money with Airbnb.
Several Airbnb owners are hands-on and prefer to do the cleaning themselves. If that’s the case for you, you can save some money doing the work yourself. But the reality is many others would just hire someone else to clean.
Many property owners own different properties in other areas and prefer to hire someone reliable to maintain the rooms and keep them in good shape. A survey showed that the rate most cleaners are paid depends on the size of the home.
This rate ranges from $15-40 an hour. These opportunities are available in plenty, and you can look for them on social media or contact any hosts looking for cleaners. You’ll need to create a business plan, market yourself and purchase liability insurance to make you look credible.
Use Effective Customer Relationship Management Software To Oversee Your Clientele Base
If you want to boost the occupancy rate of your Airbnb and maximize profits for your business, you need to track your progress, results, or outputs to improve on them as quickly as possible.
When managing your customers and building a loyal clientele base, you should purchase CRM software. With a customized system, you can effortlessly stay in touch with your clients by holding some quick surveys.
You can also introduce new products and prices to them effortlessly, facilitate them on their special occasions, and you can keep track of their progress. You can easily send out bulk texts and customized emails… and above all, you can quickly receive feedback from them.
Co-hosting is just a fancy word for: Property Management. This person is usually a trusted friend or family member who looks after a house and guests. Some professionals on Airbnb websites offer to co-host and bill you after receiving your payout.
A co-host will typically handle making reservations, checking guests in and out, and messaging guests. Airbnb says that you can earn about 20 percent from co-hosting. One thing, though: It’s vital to have a payout plan before venturing into co-hosting.
The payout will depend on the duties and responsibilities you fulfill. If you’re a full-time co-host and also offer cleaning services, you will earn around 20-30 percent of the night charge and the cleaning fee.
You’ll make 10-20 percent of the night rate without the cleaning. There are even specific cases where co-hosts agree to receive a flat rate paid hourly fee.
Create A Loyalty Program
If you really want to raise the occupancy rate of your Airbnb rental and you also want to maximize your profits, then you must be ready to create some sort of loyalty plan.
A plan like this is meant to enable you to reward your returning customers, especially those that book your rental on a regular basis. As a matter of fact, it’s easier for those who have benefited from your loyalty plan to become your brand ambassadors.
They’ll be more than willing to encourage their friends and family to visit your location. The bottom line is that you have to make sure you offer your clients incentives if you want to keep them and, of course, continue to generate repeat sales from them.
List The Right Price
Pricing your rental listing the right way is the primary key to maximizing your income. Generally speaking, properties earn at least 25 percent more on a short-term rental than on a long-term occupancy, even with a 70 percent occupancy rate.
If you’ve never rented out your property before, you should look at similar listings in your area that have lots of reviews to get an idea about the proper price range for your listing. It’s always worth beginning at a slightly lower price to catch the initial bookings.
After you build up your reviews, you can raise your prices accordingly.
Offer Your Customers Special Packages And Promotions Regularly
One of the smartest ways that you can increase your occupancy for your location is to make sure that you come up with different promotions that will be too tempting for your clients to resist while, at the same time, will not put too much of a dent into your profitability.
For instance, if your Airbnb offers additional services like access to laundry rooms, recreation halls, and playgrounds: You can package them together with the accommodation for a really great deal that encourages guests to book your rental.
Another VERY important example is WIFI. It’s an absolute MUST in Airbnb properties! Most visitors will automatically tick off “Wireless Internet” as a must-have amenity when searching properties. So if yours doesn’t provide Wi-Fi, it won’t appear in their search.
At the end of the day, there isn’t just one single strategy that fits all when it comes to boosting your Airbnb occupancy rate. All you need to do is practice all the points we’ve highlighted and ensure you customize it to fit your business model.
The bottom line is you have to keep improvising if you want to continue raising your rental occupancy rate and maximizing your profits.
And meanwhile, for some more great tips on boosting your income, we also recommend reading: 11 Best Work From Home Jobs for Retirees