People all around the world are making lots of money from Airbnb.
Just having one Airbnb can give you over $10,000 every month without you doing much.
This could help you quit your job and be financially free.
So, why haven’t you started this business yet?
Maybe you think you need a lot of money or experience, but that’s not true.
You can start with very little money, and it’s not as hard as you might think.
About a year ago, I didn’t know much about Airbnb.
But now, I’m looking into it and trying to find my first Airbnb property.
In this blog, I’ll tell you exactly how to start a successful Airbnb business today and how you can make over $10,000 a month in passive income.
You’ve probably heard of Airbnb. It’s a website where anyone can list their property for rent.
People use these properties for vacations or short trips, but some people also stay for a longer time.
Airbnb are popular for short stays, and they’re dominating the short-term rental industry.
The best thing about Airbnb is that anyone can list their property and start making money.
Airbnb charges per night, so some hosts make a lot of money, like $1,000 a night, while others make less, maybe $500 a night.
This is different from long-term rentals, where you make a fixed amount each month.
A few months ago, I stayed at an Airbnb in Ontario. I asked the owner how much they were making, and I was surprised to learn that they made over $100,000 a year from just one Airbnb property.
They even owned three more properties and were living off the income.
This made me realize that Airbnb can be a full-time job and a way to retire early.
Now, I’m building a house, and my plan is to turn it into an Airbnb when I’m not living in it.
Understanding the Two Popular Airbnb Business Models
There are two popular ways to do it.
The first is called Airbnb Arbitrage.
The second is Buying a property and turning it into an Airbnb.
Let me explain both.
1. Airbnb Arbitrage
First, let’s talk about Airbnb Arbitrage.
Here’s how it works: First, you find a rental property on the market.
If you like the property and want to list it on Airbnb, you talk to the owner.
You let them know you want to rent the property from them but also plan to put it on Airbnb.
You agree to take care of everything related to Airbnb.
You pay the monthly rent to the owner and keep the profit from Airbnb.
The idea is to make more money since you’re charging per night.
Many people start with Airbnb Arbitrage and then buy their own property later.
2. Buying a property and turning it into an Airbnb.
Second way to make money with Airbnb, which is buying your own property and listing it on Airbnb.
This is what I’m also planning to do.
Currently, I’m searching for properties in Ontario.
For example, I found a nice property for $367,000.
It’s a beachfront property with private beach access.
If I were to buy this property, I wouldn’t pay in cash.
Instead, I’d get a loan from the bank, like most people do.
This means I’d only need about $30,000 saved up because I’m borrowing the rest from the bank, which I’ll eventually pay back.
If you want to buy an Airbnb property but don’t have much money, you can consider partnering with someone and splitting everything 50-50.
This makes it easier and allows you to share the workload.
If buying an Airbnb property is your goal, start saving from today, even though managing money can be challenging.
Importance of Good Location and How to Search them.
This is super important because you want to choose a place where lots of people visit.
That way, your Airbnb will almost always be booked.
It’s best to pick a spot you already know well, like your hometown or somewhere nearby.
Look for places downtown, near the beach, or popular tourist spots.
For example, if you’re thinking of getting an Airbnb in Florida, being close to Disney World is a great idea.
If you’re not sure where to buy, just hop on the website and search for Airbnb in your area.
See how they’re doing. If you notice lots of Airbnb in one area are doing really well, you might want to consider getting one there.
Oh, and it’s a good idea to find a trustworthy real estate agent.
They can give you helpful advice since they know the area well.
Alright, let’s simplify that.
So, once you’ve found the perfect location, the next step is to find a property there.
You can use websites like Zillow.com and Realtor.com to search for properties.
If you’re doing Airbnb Arbitrage (renting), look for properties for rent. If you want to buy, look for properties for sale.
When you find a potential property, go back to the Airbnb website.
Check if there are similar properties in the area.
My Plan for Airbnb Business
I would rather Buy a property where it should be near to the beach and in a busy area where lot of people want to go.
The place should be atleast 1,800 square feet, even though it’s not very huge, but it can accommodate eight people each night.
Buying a property and turning it into an Airbnb, it’s simple.
But if you’re doing Airbnb Arbitrage, it’s a bit different.
You need to talk to the owner and convince them to let you list it on Airbnb.
If your real estate agent can talk to them for you, it looks more professional.
But if not, you’ll have to do it yourself.
So let’s say you’ve got the property and everything’s going smoothly.
The next step is to talk to an accountant.
They’ll help you figure out what you need to do next.
Furnishing Your Airbnb
The next step is to furnish your Airbnb. Honestly, this part isn’t too hard, and I actually think it’s pretty fun.
You can find affordable furniture at places like IKEA or on Facebook Marketplace.
Make sure to include amenities like Wi-Fi, toilet paper, and shampoo, basically, all the things guests expect.
Also, Airbnb offers lots of free resources like guides and seminars to help you out.
It’s important to do plenty of research before starting your first Airbnb business.
The $10,000 Formula
To ensure your Airbnb makes at least $10,000 a month.
There’s a formula you need to use to calculate this.
(Expenses) + (Desired Profit) / (Nights) = Charge per Night
$3000 + $10,000 / 20 = $650
You can enter your Expected Profit values and calculate, how much you can charge .per Night
Charge per Night Calculator
My Rough calculation to make $10,000 a month in profit, you need to charge $650 every night on Airbnb.
It’s just an estimate, but it’s usually right.
If your place isn’t in a good spot or isn’t nice, you won’t make that much money.
It might take a while to find the perfect place, but it’s worth it in the end.
Posting Your Property on Airbnb
Now, let’s say you’ve put your property on the Airbnb website.
That means people can start booking it and you can start making money.
But the most important part is making this business passive income.
That means you don’t have to deal with all the bookings.
Hiring a Property Manager
You can hire a property manager to handle everything for you.
They’ll manage your whole Airbnb, dealing with guests, cleaning, restocking, and making sure everything runs smoothly.
You can find property managers on Airbnb website or by doing a quick Google search.
They usually take a small percentage of your profit, like 15 to 20%.
It’s worth it because they’ll handle everything for you, leaving you to relax and collect the profits.
You don’t have to get a property manager, but I highly recommend it.
It frees up your time to focus on getting more Airbnb properties and growing your business.
Why Starting an Airbnb Business is Worth It
Remember, building an Airbnb business isn’t a quick way to get rich.
It requires time and effort, but the payoff can be significant.
If you’ve established your first property, the process becomes easier, and you’ll be on your way to creating a sustainable source of income and potentially retiring early.
Once I do get my very first Airbnb property I promise I will document the process on this Blog.
Best of luck if you do decide to start this business and I promise you it’s gonna be 100% worth it in the future when you’re making tons of money and retired off your properties.
