You have been wondering what you will do with all that money you are going to make with your Airbnb listing: a dream vacation, quit your job, pay off bills? BUT before you go ahead and videotape yourself quitting your job.
Let’s talk dinero, mula, dough, bones…you know, that fabulous entity known as money .
Figuring out your Airbnb pricing strategy will be key to your success.
1. What kind of listing are you offering? Per Airbnb description:
- Shared rooms: guests share the entire space with you or others and don't have a room to themselves. *My Notes: they are sleeping in the living room.
- Private rooms: Guests share some spaces with you–the kitchen, living room, or bathroom–but they have their own private room for sleeping.
- Entire homes/apartments: Guests rent the entire property and do not have to share the space with you or with anyone else.
2. How much can you charge for your Airbnb listing?
Do a little investigation in your Airbnb neighborhood, write your address in the search button and see you competition. Of course, you need to compare listings similar to yours. You can’t compare your share space to a private bedroom with a private bathroom. A private bedroom and bathroom will covet more money.
See what hosts with no reviews and with reviews are charging. Charge $5 to $10 less per night than your lowest competition, don’t charge cleaning or extra per person fees. I know you’re not making money now but you’ll be getting those reviews.
3. Before you publish your Airbnb listing do your math and compare (private room –> shared space –> entire apartment):
- Private room – Will you make more money renting on Airbnb than you would by having a roommate?
- Shared space – It will be hard, not impossible, to get a full time living room long-term roommate. Will you be making more money from Airbnb?
- Entire apartment – Are you only using Airbnb when you travel or en lieu of a long-term tenant?
What you have to make sure is that your Airbnb money is more than renting to a full-time roommate or tenant. Unless you don’t need the money and you’re doing it because you like people.
Remember that as your reviews grow so can your prices!
Is home sharing something to pursue? It really depends on your expenses and income.
Do your math before you jump in!
In your comments below, share your numbers and insights. How do you make it work? Will it work for you?
You want to read my numbers? This year, 98% of my income is from home sharing. Home sharing pays all my bills. It works, but I work it.
If you want to read my numbers, more tips, how-to and insider information on providing the best experience in this sharing economy sign up for my newsletter.
Like always, wishing a great week, and Happy Hosting!