Times are tough for many. With the pandemic conditions forcing us to think outside the box, and restrictions easing, more and more people are considering whether to take the leap into the world of Airbnb-ing and rent their homes out for an extra few quid. If you are wondering how much your home could earn on Airbnb then read on my friends.
What is Airbnb?
Airbnb is essentially an online rental marketplace. Homeowners (or anyone renting so long as they have their landlord’s consent) can list their whole property or an individual room for rent, and take bookings on a nightly basis. These bookings are completed through the online platform and payments are also made via the Airbnb website, removing the hassle of dealing directly with renters when it comes to bookings and money changing hands.
The founding members stumbled across a gap in the marketplace when renting out space in their apartment during a busy period in which all of the hotels in their area were full. The only bedding options they could afford to offer were air mattresses, which is where the name came from.
Since then, Airbnb has obliterated the competition to become not only a worldwide sensation, but a billion-dollar empire, too. Pretty impressive stuff.
Some interesting Airbnb stats include:
- There are currently approximately 4 million hosts worldwide
- 55% of those hosts are women
- Since the pandemic began, new female hosts have collectively earned over $600 million worldwide
- Some Airbnb Super Hosts based in the UK are currently earning more than £50,000 annually from renting their property out
How much could your home earn on Airbnb?
How much you can realistically expect to earn by Airbnbing your home will depend upon a number of factors.
Firstly, you need to decide whether you will focus on renting out a private room or your whole house, which will of course depend upon whether you have anywhere else to go!
Renting out a private room could see you achieve in the region of £50 per night (for a double), but to do that you would have to be willing to potentially share your home with a stranger. That or at least some areas, such as the kitchen or bathroom, unless you are fortunate enough to live in a property that facilitates dual occupancy.
For full rental of a flat or apartment, the average rate per night is currently £228. This can differ considerably depending upon location, but it can certainly be a sizable income for the amount of time you would need to invest.
Essentially, the amount that you could potentially earn boils down to two primary factors – the location and the size of the space you are offering for rent.
For properties that are situated in a busy, high-demand location, such as close to a major town or city that gets alot of visitors, a double room could be easily rented for approximately £70 – £100 per night. In similar circumstances, a two bedroom flat could be rented out for as much as £250 or more per night, so long as it was for sole and private use.
What if your property isn’t in a busy urban area?
Well, who doesn’t love a nice, quiet getaway? Rural locations are popular on Airbnb for anyone wanting to escape the hustle and bustle for a mini break. Again, rates vary based on a number of factors, but it isn’t uncommon for a rural-based double room to achieve in the region of £65 per night, or a self-contained unit to go for £150 or more per night.
Another great way to find out what your property could be worth as a rental is to search the Airbnb site for similar properties to your own, in similar locations. Scope out the competition!
You can also consider how you might be able to improve upon the offerings already out there, such as additional facilities, a higher standard of service or other additional property features, etc. A bit of a redecoration alone could go a long way.
The Airbnb Calculator
Having said all of this, as of this year, Airbnb has launched an online calculator to help you estimate what rental your property could achieve and therefore how much you stand to earn on Airbnb.
Called the ‘What’s My Place Worth’ tool, this feature calculates an estimate of your property’s projected income as a rental, taking into account information such as the location, size and property type. The tool also uses the site’s booking data for your area to more accurately assess the potential rental rate you could charge.
If your property is in London, Portico Host also has an online calculator where you could find out how much your home could earn on Airbnb in just 60 seconds.
Must you do all the work yourself?
No! It’s well worth noting that you may want to work in the costs of other services when you calculate your potential income. It can be difficult to manage renting your property out alone, especially if you have ambitions to really make a go of it.
Property management services can cover a range of services, such as cleaning and linen, right through to full account management, turning the venture into an efficiently-run business that can bring in a great second income, if not more!
Final thoughts
Combining using the Airbnb calculation tool with some site research of your own will give you the best chance of accurately assessing your rental rate potential, while also giving you an insight as to what exactly people are offering.
The greater you can make the experience for renters, the more repeat business, positive reviews and new visitors you will attract!
Photos by cottonbro from Pexels, Christine Roy on Unsplash, Roberto Nickson on Unsplash, Photo by Compare Fibre on Unsplash
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