There is no doubt that Airbnb is growing in popularity. More and more people are using the service to find places to stay when they’re on vacation or traveling for work.
It seems like everyone is talking about it, and for good reason. Airbnb is a great way to make some extra money and it’s easy to get started. But is it worth it for you to rent out your property on Airbnb?
Renting out on Airbnb can definitely be worth it.
In this article, we will explore the pros and cons of doing so.
We will outline the things you need to consider before making a decision, such as how much time you need to invest, whether it’s profitable, and how much competition there is.
So read on to decide if Airbnb is right for you.
Let’s get started.
Is renting on Airbnb worth it?
Whether or not to rent on Airbnb is a difficult decision with many factors to consider. On the one hand, it is a great way to make some extra money. On the other hand, can be more work and open the potential for problems with guests. You need to decide if the pros outweigh the cons for you. Here are some things to think about:
Pro 1: You can make a good profit
One of the biggest reasons to rent out your property on Airbnb is for the profit it generates compared to traditional rentals.
If you live in a popular tourist destination or a big city, you can charge a lot of money for your rental.
Of course, this is all depending on your location, the type of property you have, and how often you rent it out.
But if you do your research and price your rental correctly, you can make a good profit from it.
Pro 2: Diversified portfolio of tenants
Another big plus is that you have a diversified portfolio of tenants.
This means that you’re not relying on just one tenant to pay your mortgage or rent.
If you have a long-term tenant, they could stop paying at any time and then you would be stuck with the bill.
But with Airbnb, you have a lot of different people staying in your rental and so the risk is spread out.
This is a big benefit that can help give you peace of mind and more flexibility with your property.
Pro 3: Access to the property
Another benefit is that you have access to the property when you want.
If you have a traditional rental, you usually can’t just go and stay there whenever you want.
But with Airbnb, you can use the property yourself when it’s not rented out and then rent it out when you’re not using it.
This is a great way to make some extra money and still have access to your property.
Con 1: Time investment
One of the biggest cons is that it can take a large time investment to start an Airbnb rental.
You need to set up the property with furniture, decor, and amenities that guests will love. The property needs to be set up in a way that is appealing and comfortable.
Then, you’ll need to list your property, take pictures, write a description, and manage the bookings. This can all take a lot of time, especially in the beginning.
Once you get everything set up, you’ll need to manage the property and guests.
You’ll need to be available to answer questions, give directions, and deal with any problems that come up. Anything from scheduling cleanings to fixing a broken toilet can fall on your shoulders.
So, if you’re not willing to put in the time, then Airbnb is probably not for you.
Con 2: Expenses
Another big con is that there are more expenses associated with Airbnb than a traditional rental.
You’ll need to pay for things like cleaning, laundry, and repairs.
You may also need to buy furniture and decor if you don’t already have it.
And, of course, you’ll need to pay any taxes and fees associated with your rental.
So, it’s important to factor in the larger upfront financial investment needed when deciding if Airbnb is right for you.
Con 3: Difficult guests
Perhaps the biggest con is that you may end up with difficult guests.
With traditional rentals, you usually have a lease and so the tenant is more likely to be respectful of your property.
But with Airbnb, guests may not take care of your property as well and you may have to deal with things like damage, noise complaints, and guests who overstay their welcome.
Of course, you can screen your guests and try to avoid problem renters, but there’s always the possibility that you’ll end up with a difficult guest.
So, be prepared to deal with some challenging situations if you decide to rent out your property on Airbnb.
Do Airbnbs make more money than renting?
The answer is almost always: yes. It really varies depending on your location, the type of property you have, how often you rent it out, and how well you manage it. But if you do your research and price your rental correctly, you can make a good profit from it.
According to Airbnb, hosts in the US make more than $13,800 per year on average. However, in my first year on Airbnb, I made roughly $100,000 in revenue renting out my house full-time in Denver, Colorado.
That is far more than I would make if I were to rent my house out using a traditional rental method. And, it’s not just me – there are plenty of other people who are making a killing renting on Airbnb.
One of the best ways to determine how much you could make on Airbnb is using AirDNA. You’ll be able to see how much other properties in your area are making and get an estimate for what you could achieve.
So, is renting on Airbnb worth it? For most people, the answer is yes. It can be a great way to make some extra money in a semi-passive way while still having access to your property when you want it. Just be aware of the time investment required. It is not as passive as some people make it out to be. There is also the potential for difficult guests and more expenses than traditional rentals.
But, there are several ways to automate your Airbnb operation with a property manager, systems, and technology that can make renting on Airbnb much easier. I would recommend renting on Airbnb to anyone. It’s been a fantastic source of additional income and, once you get the hang of it, the time commitment is minimal. What are your thoughts? Is renting on Airbnb worth it for you? Feel free to reach out and let me know.