Ten years ago, a new company stepped onto the scene and transformed the hospitality world forever. Since its inception in 2008, Airbnb has earned itself a valuation of $31 billion USD, and in 2017, the company surpassed the 4 million listing mark.
Featuring apartments, condos, homes, and event-friendly spaces for short and long-term rent in 191 countries, Airbnb is here to stay – there’s no denying that. Here’s why you should consider this “sharing economy” platform when it’s time to get a tenant through the door.
Let’s assume your investment property’s monthly rent is $1,500. Let’s also assume you’re located in a fairly sought-after area of town. If there are 30 days in each month (more or less), and you charge $100 per night, you only need to have guests booked for half the month before breaking even. Everything else is pure profit.
A full-time tenant would not be likely to pay above market price for your apartment or home, so your profit margin would be slim to none. But when you’re charging per night, you can watch the money pile up.
Does your city host any music festivals, major events, or other notable festivities? Not all days were created equal, and you can reflect that in your pricing. For example, during high-demand local events that draw people from all over the country (or the world), you can easily double or triple the per-night cost to rent your Airbnb and visitors won’t bat an eye.
Same goes for special occasions like New Year’s Eve. You can even tack on a few more bucks if it’s a Friday or Saturday night stay since consumer demand is higher on weekends.
Dollars and cents aside, constantly welcoming different guests to your Airbnb is a wonderful way to meet new people from all over. While some people choose to limit their contact with guests to handing off the keys, others prefer to put on their “host” hat and offer to show them around town, have them over for dinner, or chat about must-see tourist spots.
Being an Airbnb host is all what you make it, and if you so choose, it can be an experience that enriches your life in ways that single-renter life could not.