Pros and Cons of Using Airbnb
Founded in 2008, Airbnb has gone on to become a global brand with a valuation of over $30 billion. Over 4 million listings and 150 million users has seen Airbnb become one of, if not the biggest property rental platform in the world, being present in 190 countries and 65,000 cities.
The concept has had a great deal of positive growth news though also of recent years negative PR where legal constraints on using the service grows and some places banning Airbnb totally. It is said to be raising rental costs globally where property owners are realising they can rent short term easier with the platform thus this increases the long term rental prices they are asking – Most landlords / property investors are of course driven by profits they can acquire from their portfolios.
Can you make money from Airbnb?
Yes for sure, many people now share their stories on how they are increasing their profits from their property portfolio thanks to Airbnb and at times this means doubling or tripling the earnings compared to long terming renting.
It will very much depend on the type of property you have and the situation too. If you have a property located in a touristic spot or place of ease for short term renters ie near the town centre, near the coast, near to walking regions etc then you are more likely to succeed with Airbnb.
The fees from Airbnb are at just 3% and no set up fees / no monthly fees so you simply pay only upon the service securing you bookings. As it is most likely now the number one platform for short term rentals globally then you are not really having to advertise elsewhere.
The only costs you will have of course are for the change overs ie cleaning of linen and replacement of products such as toiletries etc. You can charge extra service fees which Airbnb again will charge a commission of.
Do not think about buying a property to rent out that Airbnb will simply and easily make you money on. If you purchase property then make sure what your costs are can be covered via the current long term rental income, do not purchase on the basis that you could likely acquire more from Airbnb as unless you purchase the ideal property you will likely become stuck and in financial problems as the popularity of Airbnb grows and competition expands.
Positives of Airbnb:
- It is a popular service globally and more or less a household name, if you have the right kind of property and rental price then it is likely you will get business.
- If you have a decent property in the right location then you could very well earn more money with Airbnb short term rentals over more secured long term renting.
- If you have a spare room you can easily make money by using Airbnb as many users are looking for single night stays and especially in major cities – London has the most listings compared to any other city globally on Airbnb.
- It is an easy to use and fast service with no complications. Rentals and payments happen quickly compared to legals and paperwork required for long term rentals.
Negatives of Airbnb:
- When people hear of a good thing then they all pile in for their share – Is it now becoming too flooded with too much choice? Even back in 2016 it was said that 80,000 British home owners were using Airbnb for their property portfolios.
- Horror stories. Yes there are many, I know of one lady that the first Airbnb booking she had the guest was a professional thief who simple stole everything from the property with a removal van from beds down to cutlery. Your safety could also be at risk by letting people stay at your home you do not know and have only basically vetted online.
- Subletting could cause you legal issues even if you own your property with a mortgage as terms and conditions can restrict such services as Airbnb. This could also stretch to insurances on property becoming null and void because of using Airbnb.
- More and more objections arise such as apartments complexes which are blocking Airbnb as long term renters / owners dislike the idea that property in their location are being let short term with any and all kinds of renters being present who have no regard for neighbours.
Looking to find out more about hosting on Airbnb? Visit the official website and place your property on the Airbnb website today.