In just 15 years, Airbnb has grown from nothing to a multi-billion dollar company. Since it was initially introduced to the public, Airbnb has made great strides to improve the way people rent rooms and apartments. As it stands today, the company has over 3 million listings across many countries.
In its short time in business, it has helped thousands of homeowners and property owners to generate hundreds of thousands of dollars in revenue as a result of using its platform and service. If you’ve been on the fence about renting out your room, apartment, or house, chances are that you’ve considered using Airbnb. In today’s post, we take a closer look at some of the more impactful benefits you stand to gain by hosting a place to stay on Airbnb.
1) Generate Additional Income
One of the more obvious benefits of using Airbnb as a property owner is that it gives you an opportunity to generate additional income at your own convenience. Occupancy rates and prices tend to fluctuate based on the demand of the market. Therefore, by charging on a per night basis, your rental income may fluctuate. Airbnb hosts, depending on the area and rental demand, can earn more with a vacation rental listing than they would with a typical tenancy contract.
Companies that buy houses professionally are beginning to get more involved in the short-term rental niche of real estate. If there is a large demand from outside travelers to a specific area, there’s a strong chance that the Airbnb model can be successful. However, the responsibility still lies on you to make it happen. Your ability to manage, optimize, and promote your listing will have a direct impact on the amount of income that you are able to generate. Other factors that affect your income potential include:
- Location
- Amenities
- Accessibility to public transportation
- Landscape
- Property appearance
- Number of rooms available
2) Flexibility and Freedom
The concept of becoming a short-term rental Airbnb host isn’t for everyone. Some people may like the stability that long-term tenants provide. On the flip side, certain property owners may have a strong desire for flexibility and freedom.
If you crave financial freedom and flexibility, being an Airbnb host can give you the opportunity to control how you spend your time. You decide when your listing is available or not, and have full control over the unbooked nights in the calendar. When you work with long-term tenants on 12+ month leases, there is no ‘shutting things off’. You must be there for them at all times no matter what.
3) Tax Benefits
Becoming an Airbnb host opens up the opportunity for you to get significant tax benefits and tax deductions. Of course, consult a tax professional to determine what benefits you can take advantage of. Additionally, as a landlord or Airbnb host, you can typically write off these expenses:
- Insurance
- Repair and maintenance expenses
- Mortgage Interest
- Property taxes
- Professional and legal fees
4) Diversification
By adding Airbnb to your arsenal of income-generating vehicles, you can diversify your portfolio. This would be a smart thing to do, especially after looking at how 2020 played out. If you only had Airbnb rentals, you likely got hit hard by the pandemic. It’s smart to have multiple investment plans, such as stock investing or land investing, alongside running short-term rentals. Diversifying your assets helps to mitigate risk and protect you from market volatility.
The benefits of becoming an Airbnb host are numerous and invaluable. Experts also suggest that the short-term rental market will keep growing at a rapid pace as the younger generation gravitates towards short-term rental units as opposed to hotel rooms when it comes to going on vacations.
