Founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk, Airbnb is a worldwide property renting company. It lets customers choose the space they want to stay in, share with other people or purchase it entirely for themselves. In this article, we will be focusing on the core principles of Airbnb’s business strategy. Namely, we will provide you with tips and tricks on making money with Airbnb and getting the most out of your experience without having considerable funds or even owning the property.
How it started
Before moving on to the bulk of this article, it would be interesting to find out what the company’s name stands for, and the reason why it is named Airbnb at all. Turns out it is a shortened version of the original name ”Airbed and Breakfast”. The latter was chosen to reflect the origin of the company, and how the co-founders would invite people to sleep on their air mattresses in the living room, all while helping them cover the rent.
In the last couple of decades, more and more people are starting to join the vacation rental industry across the globe. Although, not all of them own the property. Is it possible to generate income from Airbnb without missing out on what seems to be its most important business tool? Surprisingly, the answer is yes.
Co-hosting
You can manage Airbnb listings by collaborating with property owners in a mutually beneficial arrangement. By assisting hosts with guest communication, check-ins, cleanings, and numerous other tasks, you can earn a percentage of the rental income. In order to establish yourself as a co-host, create a comprehensive profile, highlight your experience, skills, and dedication, and show off your knowledge of customer service.
You can also use social media platforms, local networks, and Airbnb communities to connect with potential hosts. It is crucial to put out clear expectations and establish a transparent agreement. This will help protect both parties interests.
Co-hosting at Airbnb will include the following tasks:
- Communicating with guests
- Property inspections
- Supervising the check-in and checkout process
- Restocking necessary items
- Confirming bookings
- Organizing cleaning and maintenance tasks
- Writing reviews for guests
Pros & Cons
- Flexible working hours
- No need for a license
- Less beneficial than being a host
- Fluctuating income.
Potential income will vary from 10 to 20%. However, if you perform additional duties and tasks, you can increase it up to 25% per booking.
Property management
Much like co-hosting, property management involves overseeing multiple Airbnb properties on behalf of owners. This role needs excellent communication and organizational skills. You must also have a strong understanding of the local rental market. By providing property owners with comprehensive management services, you can earn a percentage of the rental income. These services include listing optimization, pricing strategies, guest screening, and maintenance coordination.
You should focus on building a solid reputation. Make sure to invest in marketing efforts and maintain high standards. All of these are key to attracting property owners and ensuring a steady stream of bookings. However, keep in mind that you may require further education. This can be cost-heavy as well as time-consuming. Also, working on the management of multiple rentals can get pretty hectic at times.
Becoming an Airbnb consultant
One of the most straightforward ways you can dwell on Airbnb’s business strategy is to become a consultant. With the rapid growth of the vacation rental industry, many property owners are seeking expert advice. They all want to optimize their listings and maximize their earning potential as well.
Make sure to create a compelling portfolio showcasing your successful case studies, testimonials, and industry insights. You can also offer personalized consultations, workshops, and online courses to educate hosts on best practices. This will help them stand out in a competitive market. The major advantage of becoming an Airbnb consultant is the minimal startup cost. The downside is that you will be required to have previous experience as an Airbnb host.
Hosting an Airbnb Experience
Airbnb Experience is not just a buzzword. It is an actual platform that was launched by the company in 2016. The basic operational model of Airbnb Experiences is built on helping hosts generate a steady source of income. After joining the program, you will start to offer a variety of activities. Guests can then book them during their stays. These activities include but are not limited to cooking classes, traditional guided tours, or art workshops. Hosting guest stays can be a brilliant alternative in case you have a specific hobby, talent, or passion.
Pros & Cons
- Making money while pursuing your interests and hobbies
- Flexibility to work from anywhere with the help of Online Experiences that was introduced.
- High demand for expertise in the field or the service you offer.
- You may need to present a business license depending on what kind of Experience you will be offering.
Airbnb Cleaning Service
One of the first tasks that the host outsource is the cleaning service. Thus, making the first steps in Airbnb’s business strategy planning in this direction is guaranteed to be profitable.
Keep in mind, however, that Airbnb hosts have unique requirements when it comes to cleaning their properties. To stand out from the competition it is crucial to tailor your services to their specific needs. Try to create flexible cleaning packages that cater to different property sizes, types, and turnaround times.
You should also develop a checklist of tasks to be completed during each cleaning session. This includes thorough dusting, vacuuming, mopping, sanitizing kitchens and bathrooms, changing linens, and restocking essential supplies.
Additionally, consider offering additional services such as laundry, restocking groceries, or coordinating repairs and maintenance. By going the extra mile, you can become a trusted partner for hosts, enhancing their guest experience and alleviating their workload.
Pros & Cons
- No shortage of work
- Lower startup costs
- You need to be able to do your own marketing
- Finding a reliable team of professionals
Airbnb Photography
Mastering the art of interior photography can be a successful way to prosper in your Airbnb’s business strategy planning. By becoming a professional photographer for Airbnb you can earn an annual salary of approximately $50,000.
Remember that the equipment may be expensive. Although, you should not shy away from making this investment. Producing quality products without the proper technical support is impossible in this field. You will also have to market your own services. This means that besides mastering the art of photography, you will need to be well-versed in developing effective marketing strategies as well.
Perhaps the biggest advantage of becoming a professional photographer for Airbnb is the opportunity to discover new places and travel across the globe. Additionally, you will have flexible working hours as well.
We advise you to experiment with different angles and perspectives to create visually engaging images. Invest in quality equipment, including a DSLR camera, wide-angle lens, and tripod to ensure sharpness and clarity in your photographs. Practice photographing various spaces. Make sure to pay attention to details such as staging, decluttering, and utilizing natural light to create inviting and appealing visuals.
You can leverage your services using platforms like Upwork, Instagram, and Fiverr. Alternatively, you have the option to enter a freelance marketplace as a listing photographer and get noticed by Airbnb that way.
Become an Airbnb copywriter
In the competitive world of Airbnb, a captivating and persuasive copy can make all the difference in attracting guests and driving bookings. As the vacation rental industry continues to flourish, hosts are increasingly recognizing the power of well-crafted descriptions, headlines, and property listings to entice potential guests. If you have a flair for writing and a knack for storytelling, becoming an Airbnb copywriter can be a fulfilling career path.
To become an effective Airbnb copywriter, it is crucial to understand the platform and its listing guidelines. Familiarize yourself with Airbnb’s policies, restrictions, and best practices for property descriptions, titles, and formatting. This knowledge will ensure that your copy complies with the platform’s requirements and maximizes the potential for visibility and bookings.
- Keep abreast of any updates or changes in Airbnb’s guidelines and algorithms to stay ahead of the competition and provide the most accurate and up-to-date information to hosts.
- Creating a strong portfolio is essential for showcasing your skills as an Airbnb copywriter and attracting potential clients.
- Collaborate with hosts to develop compelling property descriptions and headlines that effectively capture the essence of their properties.
- Include before-and-after examples to demonstrate the impact of your copywriting on the success of their listings.
Interestingly, copywriters can make up to $90,000 per year on average. However, keep in mind that you will need to be self-motivated. In addition, you’re going to need to know how to market yourself convincingly. Unlike photographing and cleaning services, becoming an Airbnb copywriter needs very little upfront investment. Needless to say, you will have adjustable working hours as well.
Vacation rental marketing
As more travelers opt for vacation rentals over traditional hotels, the market presents a lucrative opportunity for entrepreneurs and property owners. However, entering the vacation rental market and achieving success requires a well-crafted marketing strategy.
In general vacation rental marketers provide the following services: SEO, SEM, blog posting, content creation, email marketing, website design, lead generation, and social media marketing. With minimal overhead costs and the ability to operate from home, you can make up to $75,000 a year. However, the successful conduction of rental marketing requires the necessary technical skills and a reliable team.
Implementing effective SEO strategies is vital to increase your property’s visibility in search engine results. Research relevant keywords and incorporate them into your website content, titles, and descriptions. Create valuable blog content related to your location, attractions, and local tips to attract organic traffic. Optimizing your listings on vacation rental platforms with relevant keywords and descriptions is equally important.
Collaborate with local businesses and influencers to extend your vacation rental’s reach. Partner with tour operators, restaurants, and local attractions to offer exclusive packages and cross-promotion opportunities. Engaging with influential travel bloggers and social media influencers can amplify your property’s visibility and attract a wider audience.
Create enticing content across platforms like Instagram, Facebook, and Pinterest, showcasing your property’s best features, amenities, and experiences. Engage with your audience by responding to comments, sharing guest-generated content, and running targeted ad campaigns to reach potential guests.
Airbnb rental arbitrage route
If your sole purpose is to sublet the rented property on vacation rental sites, then you may want to try Airbnb rental arbitrage. In order for this business to run successfully, you will need to generate more money than you spend on business-related expenses and the rent set points.
Before engaging in Airbnb rental arbitrage, it’s crucial to understand and comply with local laws, regulations, and tax requirements. Some cities or municipalities may have specific rules governing short-term rentals, including permits, licenses, or restrictions on the number of days a property can be rented. Consult with legal professionals or local authorities to ensure you are operating within the boundaries of the law.
Evaluate your financial situation and determine how much capital you can allocate to this venture. Also, consider costs such as the down payment or security deposit, lease agreements, furnishings, utilities, insurance, maintenance, and marketing expenses.
Once you have a clear budget, start searching for suitable properties to lease. Look for properties that meet your desired criteria and have the potential to attract Airbnb guests. It could be a studio apartment, a single-family home, or multiple units within a building. Negotiate favorable lease terms, such as a longer term and permission for subletting.
Concluding Note
Make sure to research the local real estate market in your desired area. Look for neighborhoods with high demand for short-term rentals and potential for profitable returns. Factors to consider include tourist attractions, business centers, transportation access, and overall rental market dynamics.
Track your rental’s performance, including occupancy rates, average nightly rates, and guest reviews. In addition, analyze this data to identify areas for improvement and make adjustments to your pricing, marketing strategies, or property amenities accordingly. Remember, entering the Airbnb rental arbitrage route requires thorough research, financial planning, compliance with local regulations, and continuous effort to maintain and optimize your rental properties.
